Classification and country of origin determination for narrow woven ribbons and "Breast Cancer Bows or Ribbons"; 19 CFR 102.21(c)(2); tariff shift

N095522 March 26, 2010 CLA2-OT:RR:NC:TA:350 CATEGORY: Classification Annie W. Reisinger McGuire Woods LLP 1050 Connecticut Ave. N.W. Suite 1200 Washington, D.C. 20036-5317 RE: Classification and country of origin determination for narrow woven ribbons and “Breast Cancer Bows or Ribbons”; 19 CFR 102.21(c)(2); tariff shift Dear Ms. Reisinger: This is in reply to your letter dated February 23, 2010, on behalf of your client MNC Stribbons, Inc., requesting a classification and country of origin determination for both narrow woven ribbons and “Breast Cancer Bows or Ribbons” which will be imported into the United States. FACTS: The subject merchandise consists of both a narrow woven ribbon and an item referred to as “Breast Cancer Bows or Ribbons”. Three ribbon samples, approximately 11½ inches in length and 3/8” in width, were provided. Four samples of the “Breast Cancer Bows or Ribbons” were provided. You state the ribbon is composed of 100 percent polyester man-made fibers and is manufactured on a narrow fabric loom which produces a woven selvedge on both sides of the fabric. The sample of the “Breast Cancer Bows or Ribbons” appears to be the same woven ribbon which has been folded, or looped, over on itself and secured with a safety pin. The ends of these Breast Cancer ribbons have been cut at an angle. You indicate the contemplated manufacturing operations for the ribbon are as follows: 1) Yarns that are sourced from China are shipped to the Philippines where they are placed on a narrow fabric loom. The ribbons have woven selvedges. They are cut to length but not width and made into ribbons in the greige state. 2) In China, the ribbons are dyed and sized using a starch as a stiffening agent. In China, the ribbons are spooled onto individual reels of varying lengths. The dyed ribbons may be further processed and logos or other graphics may be added by printing or hot stamping. The ribbons may also be hanked to various lengths or cut into strips according to customer specifications. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the ribbon will be 5806.32.1030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other narrow woven fabrics, … ribbons, of man-made fibers, of polyester, with woven selvedge, without wire in the selvedge. The general rate of duty will be 6 percent ad valorem. The applicable subheading for the “Breast Cancer Bows or Ribbons” will be 6307.90.9889, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other made up textile articles, other. The rate of duty will be 7% ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states, “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, “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, 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 5806 (1) Except for fabric of wool or fine animal hair, a change from greige fabric of heading 5806 to a finished fabric of heading 5806 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing or moireing; or (2) If the country of origin cannot be determined under (1) above, a change to heading 5806 form any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, and 5801 through 5803, and provided that the change is the result of a fabric-making process. Subsection (1) of this rule does not apply because although greige fabric of 5806 is exported to China from the Philippines, it neither changes from a greige fabric to a finished fabric of 5806 by both dyeing and printing, nor undergoes two or more of the finishing operations listed under (1) above. The yarns from China are made into ribbons in the Philippines on ribbon making machines/looms. As the fabric making process occurs in a single country, that is, the Philippines, as per the terms of the tariff shift requirement in subsection (2) of this rule, country of origin is conferred in the Philippines. HTSUS Tariff shift and/or other requirements 6307.90 The country of origin of a good classifiable under subheading is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process. The yarns from China are made into ribbons in the Philippines on ribbon making machines/looms. As the fabric making process occurs in a single country, that is, the Philippines, as per the terms of the tariff shift requirement for subheading 6307.90 above, the country of origin of the Breast Cancer Bows and Ribbons is conferred in the Philippines. HOLDING: The country of origin of both the ribbons and the “Breast Cancer Bows and Ribbons” is the Philippines. 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, 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 Deborah Walsh at (646) 733-3044. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division