Classification and country of origin determination for a cashmere and wool sample test kit; 19 CFR 102.21(c)(3)

N168517 June 9, 2011 CLA2-OT:RR:NC:N3:351 CATEGORY: Classification Mr. Karl Spilhaus President Cahmere and Camel Hair Manufacturer’s Institute 6 Beacon Street, Suite 1125 Boston, MA 02108 RE: Classification and country of origin determination for a cashmere and wool sample test kit; 19 CFR 102.21(c)(3) Dear Mr. Spilhaus: This is in reply to your letter dated May 18, 2011, requesting a classification and country of origin determination for a cashmere and wool sample test kit which will be imported into the United States. FACTS: The subject merchandise consists of 48 samples of various strains of cashmere, camel, wool, yak, and other such fibers from various countries (China, Afghanistan, Australia, and others). Each two-ounce fiber sample is contained in a small vial. The vials are packaged in a sturdy box, measuring 14” across x 10-1/2” deep x 3” high, containing cardboard separators forming an 8 x 6 grid. The box is made of textile fabric over cardboard; it has a flip-up cover with a snap closure and is imprinted with the institutes name and “Fiber Box / 2011 / 1st edition.” The plastic cap of each vial is labeled to indicate its place within the grid, from A-1 to H-6. The identification numbers correspond to a chart that is included in the box and identifies each sample: A-1 / Cashmere Chinese Alashan Type White; E-3 / Goat Fiber Mongolian Brown; G-4 / Wool Australian Treated Merino, and so on. Each vial is labeled the same, although we note there are some mismatches in the kit we received. The chart is laminated between two sheets of clear plastic and measures approximately 12” x 8-1/2”. The back of the chart is printed with information about the samples and the descriptive terms used to label the samples. The kit is designed to be used by textile testing laboratories and similar organizations “to promote improved techniques for identifying cashmere and other luxury animal hair.” You state that the samples will be used by a technician as standards in fiber identification; the kit contains both typical and atypical fibers of certain species. Using a microscope and other tools, the technician can compare other fibers to the standard fibers in the kit. The manufacturing operations for the cashmere and wool sample test kit are as follows: the samples are collected from various fiber-producing countries. Some fibers have been modified chemically or physically, or both, and bleached or otherwise artificially treated. All have been examined by multiple laboratories by light and scanning electron microscopes, or both. In some cases, DNA was also analyzed. You do not state where any of these operations took place. The samples are sent to CCMI’s facility in Japan where they are assembled into the kit. Approximately 100 kits have been produced and will be imported by CCMI and stored at your Boston offices until they are shipped individually to laboratories in the United States and abroad. They are not for sale through what might be considered normal channels of trade. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: Note 7 in Subchapter XVII of Chapter 98, HTSUS, defines prototypes for the purposes of subheading 9817.85.01 and sets forth certain conditions and limitations governing classification in the subheading. Subheading 9817.85.01 provides for duty-free treatment for “[p]rototypes to be used exclusively for development, testing, product evaluation, or quality control purposes.” Based upon the facts which you have provided, as stated above, we find that the cashmere and wool sample test kit meets the definition of prototypes in Section XXII, Subchapter XVII, U.S. Note 7, HTSUS. Pursuant to U.S. Note 7 to Subchapter XVII, the applicable heading for the sample test kit will be 9817.85.01, HTSUS, which provides for “Prototypes to be used exclusively for development, testing, product evaluation, or quality control purposes.” The rate of duty will be Free. 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 5101-5103 A change to heading 5101-5103 from any other chapter. As the wool and animal hairs are all classified in Chapter 51, they do not meet the terms of the above tariff shift and Section 102.21(c)(2) is inapplicable. Section 102.21(c)(3) states, Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section: (i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or (ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled. Subsection (i) is not relevant to this merchandise. The sample test kit is assembled in a single country, Japan, so according to the terms of subsection (ii), Section 102.21(c)(3) applies. HOLDING: The cashmere and wool sample test kit is classified in subheading 9817.85.01, HTSUS, as a prototype to be used exclusively for development, testing, product evaluation, or quality control purposes. The country of origin of the sample test kit is Japan. 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. Your sample is being returned. 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