Classification and country of origin determination for surgical towels; 19 C.F.R. §102.21(c)(2); tariff shift

NY E85471 August 11, 1999 CLA-2-RR:NC:TA:349 E85471 CATEGORY: Classification Mr. Derick Li Grand Medical Products 7222 Ertel Road Houston, TX 77040 RE: Classification and country of origin determination for surgical towels; 19 C.F.R. §102.21(c)(2); tariff shift Dear Mr. Li: This is in reply to your letter dated August 4, 1999, requesting a classification and country of origin determination for surgical towels which will be imported into the United States. FACTS: The subject merchandise consists of surgical towels. You have submitted a piece of undyed fabric and a finished surgical towel. The blue towel is made from a 100 percent cotton huck weave fabric and the submitted sample measures approximately 16 x 28 inches. The towel is hemmed on three sides and has selvage on the fourth side. Other towels will be hemmed on all four sides. The manufacturing operations for the surgical towels are as follows: India: -fabric is woven. -fabric is bleached. -bales of fabric are shipped to China. China: -fabric is dyed. -fabric is cut into rectangles. -fabric is hemmed and finished. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the surgical towels will be 6307.90.8910, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other made up articles, including dress patterns: other: other: surgical towels. The rate of duty will be 7 percent ad valorem. The surgical towels fall within textile category designation 369. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.GOV. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment. COUNTRY OF ORIGIN - 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 6307.90 The country of origin of a good classifiable under subheading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process. As the fabric comprising the surgical towel is formed in a single country, that is, India, as per the terms of the tariff shift requirement, country of origin is conferred in India. HOLDING: The surgical towels are classified in subheading 6307.90.8910, HTSUSA, which provides for surgical towels. The country of origin of the surgical towels is India. Based upon international textile trade agreements products of India are subject to the requirement of a visa. 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 C.F.R. §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 C.F.R. §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 C.F.R. §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 John Hansen at 212-637-7078. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division