HQ 959501: Country of origin of woven cotton fabric; Section102.21(c)(2), Customs Regulations; Section 12.130(c)

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 959501

                          August 9, 1996

CLA-2 RR:TC:TE 959501 CAB

CATEGORY: Classification

Mr. Ryden Richardson, Jr.
Carmichael International Service
533 Glendale Boulevard
Los Angeles, CA 90026-5097

RE: Country of origin of woven cotton fabric; Section
102.21(c)(2), Customs Regulations; Section 12.130(c)

Dear Mr. Richardson:

     This is in response to your inquiry of March 4, 1996,
requesting a country of origin determination for woven cotton
fabric pursuant to Section 102.21, Customs Regulations.  There
were no samples provided for examination.

FACTS:

     Cotton fabric is woven in the United States and exported in
the greige state to Japan or South Korea.  In either South Korea
or Japan, the greige fabric is subject to further processing in
twelve different combinations.  These combinations are as
follows:

     1.    Scour and dye
     2.    Scour and print
     3.    Scour, dye and print
     4.    Scour, bleach and dye
     5.    Scour, bleach, dye and print
     6.    Scour, mercerize, sanforize and dye
     7.    Scour, bleach and print
     8.    Scour, bleach, mercerize, sanforize and print
     9.    Scour, mercerize, sanforize and print
     10.  Scour, mercerize, sanforize, dye and print
     11.  Scour, bleach, mercerize, sanforize and dye
     12.  Scour, bleach, mercerize, sanforize, dye and print

Following the above processing, the fabric will be returned as
piece goods to the United States.  

ISSUE:

     What is the country of origin of the subject fabric?

LAW AND ANALYSIS:

     Pursuant to Section 334 of the Uruguay Round Agreements Act
(codified at 19 USC Section 3592), new rules of origin were
effective for textile products entered, or withdrawn from
warehouse, for consumption on or after July 1, 1996.  These rules
were published in the Federal Register, 60 Fed. Reg. 46188
(September 5, 1995).  Section 102.21, Customs Regulations (19 CFR
Section 102.21), sets forth the general rules to determine
country of origin.  Thus, the country of origin of a textile
product will be determined by a hierarchy of rules set forth in
paragraphs (c)(1) through (c)(5) of Section 102.21.

     Section 102.21(c)(1) sets forth the general rule for
determining the country of origin of a textile or apparel product
in which the good is wholly obtained or produced in a single
country, territory, or insular possession.  As the subject fabric
is not wholly obtained or produced in a single country,
territory, or insular possession, Section 102.21(c)(1) is
inapplicable.  

     Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under paragraph (c)(1) of this section.  Section
102.21(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 foreign material 
          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.

     Section 102.21(e) 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:"

     5208-5212      A change to heading 5208 through 5212 from
                    any heading outside that group provided the
                    change is the result of a fabric-making
                    process.

     As the fabric is not wholly obtained or produced in a single
country, we must apply Section 102.21(c)(2) and the applicable
requirement of Section 102.21(e) to the proposed scenario to
determine the country of origin of the subject fabric.   In this
instance, the fabric is woven in the United States and it is then
transported to South Korea or Japan where it is subject to
various manufacturing operations in twelve different
combinations.  The fabric is classifiable in Heading 5208,
HTSUSA.  Pursuant to the applicable provisions of Section
102.21(e), the country of origin of the fabric is the United
States, the country where the fabric was formed by a fabric-making process.  

     However, there is an exception for products from the United
States that are sent abroad for processing.  Section 12.130(c),
Customs Regulations, provides that any product of the United
States which is returned after having been advanced in value or
improved in condition abroad, or assembled abroad, shall be a
foreign article.  In this case, fabric woven in the United States
is exported in its greige state to Japan or South Korea where it
is subject to multiple processing operations that result in the
fabric being improved in condition and advanced in value.    

     Section 12.130 which remains in effect was originally
intended to be used to determine the country of origin of
textiles and textile products for quota/visa requirements.  In
Treasury Decision ("T.D.") 90-17, issued February 23, 1990,
Customs announced a change in practice and position.  This change
resulted in Customs using Section 12.130 for quota, duty, and
marking purposes when making country of origin determinations for
textile goods.  Therefore, in accordance with T.D. 90-17 and
Section 12.130(c), the country of origin of the subject fabric
for quota, marking, and duty purposes is Japan or South Korea,
the country where the additional processing occurs.    

     With respect to your request as to advice on the country of
origin labeling requirements for the subject merchandise, Customs
recently ruled in Headquarters Ruling Letter (HRL) 559625, dated
January 19, 1996, that the origin rules set forth in 19 USC
Section 3592 govern the labeling requirements of textile and
apparel products for purposes of the country of origin marking
requirements of 19 USC 1304.  Also as noted above, Section
12.130(c) is still considered to be applicable for quota,
marking, and duty purposes.  As a result, the country of origin
for the subject fabric is Japan or South Korea and it must be so
marked pursuant to 19 USC 1304.  However, it is important to note
that the holding in HRL 559625 is currently under review
regarding the manner and specificity of the marking requirements. 
            

     You also inquire about the documentation required at entry. 
You ask the following:

     1.  Will entry require presentation in the entry summary of
a textile visa issued by the       government of the country
                              where processing, as outlined in 1
                              through 12 above, has           
                              occurred?

     Entry will require a textile visa from the country of
origin, in this instance, either, South Korea or Japan in the
entry summary.  

     2.  What country of origin should be identified in the label
attached to the returning piece          goods, U.S.A. or the
                                   country wherein processing
                                   occurred?

     As stated above, pursuant to 19 USC 1304, the country of
origin of the subject fabric is South Korea or Japan and the
fabric may be marked "Made in South Korea" or "Made in Japan".  

     3.  Other than a visa, will entry documents other than a
commercial invoice and packing          list be required, e.g., a
country of origin declaration, as described in 19 CFR 12.130(f)?

     In accordance with 19 CFR 12.130(f), as the subject fabric
is an imported textile subject to section 204 Agricultural Act of
1956, as amended, it should be accompanied by the appropriate
declaration(s) set forth in paragraph (f)(1) or (f)(2) of Section
12.130, including a country of origin declaration.
 
HOLDING:

     The country of origin of the subject fabric is Japan or
South 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 is issued
on the assumption that all of the information 
furnished in the ruling letter, either directly, by reference, or
by implication, is accurate and complete in every material
respect.

     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.

                                   Sincerely,



                                   John Durant, Director
                                   Tariff Classification Appeals
Division