The tariff classification, country of origin determination and marking for elastic ponytail holders

N302009 February 7, 2019 CLA-2-59:OT:RR:NC:N3:351 CATEGORY: Country of Origin TARIFF NO: 5609.00.3000 Mr. Robert Grasing Sandler, Travis & Rosenberg551 Fifth Avenue, Suite 1100 New York, NY 10176 RE: The tariff classification, country of origin determination and marking for elastic ponytail holders Dear Mr. Grasing: In your letter dated November 14, 2018, you requested a country of origin determination and marking for elastic ponytail holders on behalf of your client, Goody Products. You submitted a detailed description of and samples of elastic hair ties. Samples are retained. Items 10938 and 10939 are black, four millimeter elastic ponytail holders that consist of an isoprene rubber core with a braided textile cover composed of 100 percent polyester filament yarn. Item 43776 is a black, two millimeter elastic ponytail holder that consists of an isoprene rubber core with a braided textile cover composed of 100 percent polyester filament yarn. Item 16132 is a black, two millimeter elastic ponytail holder that consists of an isoprene rubber core with a braided textile cover composed of 100 percent polyester filament yarn. CLASSIFICATION: The applicable subheading for all the elastic ponytail holders will be 5609.00.3000, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for articles of yarn, strip or the like of heading 5404 or 5405, twine, cordage, rope or cables, not elsewhere specified or included: Of man-made fibers. The rate of duty will be 4.5 percent ad valorem The subject merchandise consists of a variety of elastic ponytail holders that are made up from an isoprene rubber core with a braided textile cover composed of 100 percent polyester filament yarn. All of the elastic ponytail holders are put up for retail sale on cardstock display cards. The proposed manufacturing operation under consideration are as follows: The rubber thread is made from 100 percent vulcanized isoprene rubber that is prepared, mixed, and then rolled into sheets. The sheets are then cut into strips with a maximum cross-sectional dimension of 3 millimeters. The strips are then spooled and packaged. All of these steps occur in China. The polyester yarn will be produced from Chinese origin resin being shipped to Vietnam, where it will undergo the following processes: The resin is extruded into polyester filaments The polyester filaments will be texturized Two filaments will be twisted into a single ply polyester yarn The yarn is dyed The finished polyester yarn is spooled and packaged for export In China, the assembly process for ponytail holders will consist of braiding a polyester yarn cover over the rubber core, cutting the material to length, gluing the ends together to form a loop and the finished ponytail holder is packaged for sale and shipment. 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 CFR 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.” Since 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 5609 (1) If of continuous filaments, including strips, the country of origin of a good classifiable under heading 5609 is the country, territory, or insular possession in which those filaments, including strips, were extruded. The textile coverings for the ponytail holders are made from 100 percent polyester filament yarn and in the proposed manufacturing process, this yarn will be extruded in Vietnam. Therefore according to the above rule, the country of origin of the finished ponytail holder will be Vietnam. MARKING: The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the elastic ponytail holders is the consumer who purchases the product at retail. An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs is satisfied that the article will remain on its retail display card until it reaches the ultimate purchaser and if the ultimate purchaser can determine the country of origin of elastic ponytail holders by viewing the way in which it is packaged, the individual elastic ponytail holders would be excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d). Accordingly, marking the display cards in which the elastic ponytail holders are imported and sold to the ultimate purchaser in lieu of marking the individual article itself is an acceptable country of origin marking for the imported elastic ponytail holders provided the port director is satisfied that the article will remain on the marked display card until it reaches the ultimate purchaser. You have submitted samples of all four ponytail holders with their current retail packaging that states “Made in China.” You state that Goody proposes to mark its future ponytail holders in identical fashion with the single exception of replacing the statement “Made in China” with “Made in Vietnam.” Therefore, if the proposed markings "Made in Vietnam" are manufactured in the same manner as the samples submitted, if the marking appearing on retail display cards are legible, conspicuous and permanent within the meaning of 19 U.S.C. 1304 and section 134.41, Customs Regulations (19 CFR 134.41), relating to the method and manner of marking, the marking of the elastic ponytail holders is acceptable according to 19 CFR 134.47. In reference to the fiber content, information on these labeling requirements may be obtained at the Federal Trade Commission website at www.ftc.gov. For information on the acceptability of the marking on this product, you should contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Ave, N.W., Washington, D.C. 20508 to ascertain whether the proposed marking satisfies their requirements. 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 or 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). 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 Adleasia Lonesome via email at adleasia.a.lonesome@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division