Classification and country of origin determination for fabric knitted in Macau; 19 CFR 102.21(c)(2); tariff shift

NY B88193 August 6, 1997 CLA-2-RR:NC:TA:351 B88193 CATEGORY: Classification Mr. Barry E. Powell Grunfeld, Desiderio, Lebowitz & Silverman LLP 707 Wilshire Boulevard Suite 5555 Los Angeles, CA 90017 RE: Classification and country of origin determination for fabric knitted in Macau; 19 CFR 102.21(c)(2); tariff shift Dear Mr. Powell: This is in reply to your letter dated July 31, 1997, requesting a classification and country of origin determination for knitted fabric which will be imported into the United States. FACTS: The subject merchandise consists of various types of knitted fabric classified in headings 6001 and 6002. The fabrics are of various widths, fiber contents, constructions and finishes. The manufacturing operations for the knitted fabric are as follows: Polyester, cotton, or polyester/cotton blended yarn is produced in Taiwan, Korea, China, or Macau. Fabric is knitted in Macau from one of the above yarns. The knitted fabric is shipped to China where it will be dyed, possibly printed, finished and packed for export. 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 of the foreign materials 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) in pertinent part 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": HTSUS Tariff shift and/or other requirements 6001-6002 A change to heading 6001 through 6002 from any heading outside that group, provided that the change is the result of a fabric-making process. As the knitting of this fabric occurs in a single country, that is, Macau, as per the terms of the tariff shift requirement, country of origin is conferred in Macau. HOLDING: The country of origin of the knitted fabric is Macau. 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 sections states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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. A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Jeff Konzet at 212-466-5885. Sincerely, Paul K. Schwartz Chief, Textiles & Apparel Branch National Commodity Specialist Division