Classification and country of origin determination for toe socks; 19 CFR 102.21(c)(2)

NY G87778 March 15, 2001 CLA2-RR:NC:3:353 G87778 CATEGORY: Classification Mr. Dick Lin Canonda Enterprise Co., Ltd. 6/F No. 119, Chien Kuo N. Road Sec.2, Taipei, Taiwan RE: Classification and country of origin determination for toe socks; 19 CFR 102.21(c)(2) Dear Lin: This is in reply to your letter dated February 22, 2001, requesting a classification and country of origin determination for toe socks, which will be imported into the United States. The samples will be returned to you as requested. FACTS: The subject merchandise is a toe sock, which extends to slightly above the ankle, composed of either knit 100% acrylic fabric or knit 100% wool fabric. There are five individual toes at the end of the sock. The manufacturing operations for the toe sock are as follows: Taiwan: Sock tubes are knit to shape from yarn of Taiwan origin Toe tubes are knit to shape from yarn of Taiwan origin Vietnam: Sock tubes and toe tubes are shipped to Vietnam Sock tubes and toe tubes are separated Toe tube is joined to the sock tube Ends of the toes are closed Toe sock is trimmed, finished and steam ironed Packing and quality control ISSUE: What are the classification and country of origin for the subject merchandise? CLASSIFICATION: The applicable subheading for the acrylic toe sock will be 6115.93.9020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Panty hose, tights, stockings, socks and other hosiery, including stockings for varicose veins, and footwear without applied soles, knitted or crocheted: Other: Of synthetic fibers: Other: Other, Other.” The rate of duty will be 14.9% ad valorem. The textile category designation is 632. The applicable subheading for the wool toe sock will be 6115.91.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Panty hose, tights, stockings, socks and other hosiery, including stockings for varicose veins, and footwear without applied soles, knitted or crocheted: Other: Of wool or fine animal hair.” The rate of duty will be 11.5% ad valorem. The textile category designation is 432. 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 6101–6117 (3) If the good is knit to shape, a change to heading 6101 through 6117 from any heading outside that group, provided that the knit-to-shape components are knit in a single country, territory, or insular possession. As the components are knit to shape in a single country, that is, Taiwan, as per the terms of the tariff shift requirement, country of origin is conferred in Taiwan. HOLDING: The country of origin of the subject toe sock is Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and 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 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 Kenneth Reidlinger at 212-637-7084. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division