Country of origin of Medline Bulkee II? Gauze Bandages; modification of NY E89254

HQ 963292 December 10, 1999 CLA-2 RR:CR:TE 963292 jb CATEGORY: Classification Mr. Stephen J. Pepi Great Lakes Customs Brokerage, Inc. 85 River Rock Drive, Suite 202 Buffalo, NY 14207 RE: Country of origin of Medline Bulkee II? Gauze Bandages; modification of NY E89254 Dear Mr. Pepi: On November 16, 1999, our New York office issued to you New York Ruling Letter (NY) E89254, addressing the classification and country of origin of merchandise referred to as Medline Bulkee II? Gauze Bandages, imported from Canada. This letter is to inform you that although the classification of that merchandise in subheading 3005.90.5090, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), is correct, the country of origin determination rendered for that merchandise is in error. Accordingly, we are modifying NY E89254. The correct country of origin for the merchandise is China pursuant to the analysis which follows below. FACTS: The merchandise at issue consists of a sterile, 100 percent cotton, 6-ply gauze bandage, in roll form. The bandage is individually packaged for retail sale. It is not coated or impregnated with pharmaceutical substances. Each package bears a printed label indicating, among other things, that, when “stretched”, the bandage measures 4.5 inches by 4.08 yards, and is (only) for “single patient use.” The manufacturing operations for the subject merchandise are as follows: China raw material of woven cotton slit gauze bolts of 100 yards each is produced Canada gauze fabric is crimped to add stretch folded to make two ply rolled and cut into individual bandages packing ISSUE: What is the country of origin of the subject merchandise? LAW AND ANALYSIS: On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable. Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section". Paragraph (e) states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section": 3005.90 If the good contains pharmaceutical substances, a change to subheading 3005.90 from any other heading; or if the good does not contain pharmaceutical substances, a change to subheading 3005.90 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5601 through 5603, 5801 through 5804, 5806, 5809, 5903, 5906 through 5907, and 6001 through 6002. As the fabric for the subject merchandise, when imported from China into Canada is classified in heading 5208, HTSUS, it is precluded from the tariff shift. Accordingly, section 102.21 (c)(2) is not applicable to this merchandise. Paragraph (c)(3) states that, "Where the country of origin of a textile or apparel product (i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or (ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled. As this merchandise is not knit to shape and there are no assembly operations which take place, paragraph (c)(3) is inapplicable. Paragraph (c)(4) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c) (1), (2) or (3) of this section, the country of origin of the good is the single country, territory, or insular possession in which the most important assembly or manufacturing process occurred". In the case of the subject merchandise, the most important manufacturing process occurs at the time of the fabric making. As such, the country of origin of the subject merchandise is the single country in which the fabric making occurs, that is, China. HOLDING: NY E89254 is hereby modified. The proper country of origin of the subject merchandise is China. The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2. Sincerely, John Durant, Director Commercial Rulings Division