Classification and country of origin determination for a textile key holder; 19 CFR 102.21(c)(2); tariff shift

N117479 August 12, 2010 CLA-2-63:RR:E:NC:N3:351 CATEGORY: Classification Ms. Penelope N. Post Pomchies LLC 740 East Highland Ave., Suite 100 Phoenix, Arizona 85014 RE: Classification and country of origin determination for a textile key holder; 19 CFR 102.21(c)(2); tariff shift Dear Ms. Post: In your letter dated Aug. 29, 2010, you requested a tariff classification ruling. While you did not request a country of origin determination for the textile key holder that will be imported into the United States, the facts you presented warrant one. FACTS: You submitted a product called the PomKey. It is a piece of elasticized knit narrow fabric measuring 4” long x 1/4" in width with a snap closure to allow keys to be put on and removed. Sewn to the elasticized knit fabric are many strips of knit fabric, each measuring 2-1/4” long x 1/2" wide; half of them are blue, the other half white and they alternate, creating the look of a cheerleader’s pompom. You state that the manufacturing operations for the PomKey are as follows: “The fabric is from Korea and is imported from Korea to Vietnam.” We take this to mean that both the elasticized knit fabric and the blue and white fabric strips are formed by a fabric-making process in Korea and the PomKey is cut and sewn in Vietnam. ISSUES: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the PomKey will be 6307.90.9889, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other made up textile articles, other. The general 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 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 both fabrics are manufactured in a single country, that is, Korea, as per the terms of the tariff shift requirement, country of origin is conferred in Korea. HOLDING: The country of origin of the PomKey is Korea. We note that the packaging is properly marked “Made in Korea.” 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 Mitchel Bayer at (646) 733-3102. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division