Rules of Origin for Textile and Apparel Products

SUMMARY: This document proposes to amend the Customs Regulations to

implement the provisions of section 334 of the Uruguay Round Agreements

Act (``the Act'') regarding the country of origin of textile and

apparel products. Except for the purpose of identifying products of

Israel, the proposed rules would govern the determination of the

country of origin of imported textile and apparel products for purposes

of laws enforced by the Customs Service. The proposed rules also

implement the provisions of section 334 of the Act regarding the

treatment of components that are cut to shape in the United States from

foreign fabric, exported for assembly, and returned to the United

States. The document also implements previously-enacted provisions

regarding the treatment of articles assembled or produced in a

Caribbean Basin Initiative beneficiary country wholly from U.S.-

produced components, materials or ingredients.

DATES: Comments must be received on or before June 22, 1995.

ADDRESSES: Written comments (preferably in triplicate) may be addressed

to the Regulations Branch, U.S. Customs Service, Franklin Court, 1301

Constitution Avenue, N.W., Washington, D.C. 20229. Comments submitted

may be inspected at the Regulations Branch, Office of Regulations and

Rulings, Franklin Court, 1099 14th Street, N.W., Suite 4000,

Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Phil Robins, Office of Regulations and

Rulings (202-482-7029).

SUPPLEMENTARY INFORMATION:

Background

On December 8, 1994, President Clinton signed into law the Uruguay

Round Agreements Act (``the Act''), Public Law 103-465, 108 Stat. 4809.

Subtitle D of Title III of the Act deals with textiles and includes

section 334 (codified at 19 U.S.C. 3592) which concerns rules of origin

for textile and apparel products.

Paragraph (a) of section 334 provides that the Secretary of the

Treasury shall prescribe rules implementing the principles contained in

paragraph (b) for determining the origin of ``textiles and apparel

products''. Paragraph (a) further provides that such rules must be

promulgated in final form not later than July 1, 1995.

Paragraph (b) of section 334 incorporates the following provisions:

(1) For purposes of the customs laws and the administration of

quantitative restrictions and except as otherwise provided for by

statute, general rules for determining when a ``textile or apparel

product'' originates in a country, territory, or insular possession,

and is the growth, product, or manufacture of that country, territory,

or insular possession; (2) special origin rules for goods classifiable

under certain specified tariff headings and subheadings; (3) a

``multicountry rule'' for determining origin when the origin of a good

cannot be determined under the preceding provisions of paragraph (b);

(4) special rules governing the treatment of components that are cut to

shape in the United States from foreign fabric, exported for assembly,

and returned to the United States; and (5) an exception to the

application of section 334 that specifically provides for the continued

application of the administrative practices that were applied

immediately before the enactment of the Act to determine the origin of

textile and apparel products from Israel, unless such practices are

modified by the mutual consent of the United States and Israel.

Paragraph (c) of section 334 provides that section 334 shall apply

to goods entered, or withdrawn from warehouse, for consumption on or

after July 1, 1996. Paragraph (c) further provides that section 334

shall not apply to goods entered or withdrawn from warehouse on or

before January 1, 1998, that are covered by contracts of sale which

were entered into, with all material terms fixed, before July 20, 1994,

and which are filed, with an accompanying certification, with the

Commissioner of Customs within 60 days after the date of the enactment

of the Act. On January 27, 1995, Customs published in the Federal

Register (60 FR 5457) a notice setting forth the procedures for filing

such contracts and certifications.

The purpose of this document is to set forth for public comment

proposed regulations implementing the principles contained in section

334(b) of the Act, with a view to promulgation of final regulations by

July 1, 1995, as mandated by section 334(a) of the Act.

Discussion of Proposed Rules

On January 3, 1994, Customs published T.D. 94-4 in the Federal

Register (59 FR 110) setting forth interim regulations for determining

the origin of goods from Canada and Mexico other than for the purposes

of determining eligibility for preference under the North American Free

Trade Agreement (NAFTA). T.D. 94-4 set forth these interim rules as a

new Part 102 of the Customs Regulations (19 CFR Part 102), entitled

``Rules of Origin'', and also set forth consequential conforming

interim amendments to existing sections within Parts 12 and 134 of the

Customs Regulations (19 CFR Parts 12 and 134). These interim

regulations were made immediately effective for trade from Canada and

Mexico pursuant to Annex 311 of the NAFTA. No final action on these

interim regulatory amendments has been taken.

Also on January 3, 1994, Customs published a document in the

Federal Register (59 FR 141) that proposed to amend Sec. 102.0 of the

interim regulations published as T.D. 94-4 so that the Part 102

provisions would also apply to country of origin determinations ``for

purposes of the Customs and related laws and the navigation laws of the

United States'' for goods from all countries. This document also

proposed to amend various provisions within Parts 4, 10, 12, 134 and

177 of the Customs Regulations (19 CFR Parts 4, 10, 12, 134 and 177) to

ensure that the rules contained in Part 102 would control wherever

language requiring a country of origin determination appears in those

other regulatory provisions. Final action also has not been taken on

these proposed regulatory amendments.

In keeping with the intended function of Part 102 as the repository

for origin rules under the uniform rules of origin principle reflected

in the January 3, 1994, proposal mentioned above, Customs proposes in

this document to implement those provisions of section 334(b) of the

Act that have broad application under the terms of the statute by

amending the Part 102 provisions and by amending other regulatory

provisions as necessary to conform to those Part 102 changes. With

regard to the remaining provisions of section 334(b) (that is, the

special rules governing the treatment of components that are cut to

shape in the United States from foreign fabric, exported for assembly,

and returned to the United States) and with one exception as discussed

further below, Customs proposes to implement those provisions by

amending that portion of Part 10 of the Customs Regulations (19 CFR

Part [[Page 27379]] 10) that concerns articles assembled abroad with

United States components because the subject provisions of section

334(b) are more appropriate to that context. In addition, it is

proposed to make a number of amendments to existing regulatory

provisions to ensure that those existing provisions will be consistent

with the new regulatory proposals implementing section 334(b) of the

Act. The proposed amendments are discussed in more detail below.

A. Proposed Amendments to Part 10

Section 334(b)(4)(A) of the Act

Section 334(b)(4)(A) of the Act provides that the value of a

component that is cut to shape (but not to length, width, or both) in

the United States from foreign fabric and exported to another country,

territory, or insular possession for assembly into an article that is

then returned to the United States: (1) Shall not be included in the

dutiable value of such article; and (2) may be applied toward

determining the percentage referred to in General Note 7(b)(i)(B) of

the Harmonized Tariff Schedule of the United States (HTSUS), subject to

the limitation provided in that note.

Subheading 9802.00.80, HTSUS, provides a duty exemption for

fabricated components of U.S. origin that are assembled abroad and

returned to the United States. Under current textile rules of origin,

textile components that are cut to shape in the United States from

foreign fabric qualify as U.S.-origin fabricated components under

subheading 9802.00.80, HTSUS. The effect of section 334(b)(4)(A) of the

Act is to continue the duty exemption for those components,

notwithstanding the fact that under the origin principles in section

334(b) of the Act such components would no longer qualify as products

of the United States (see the ``cutting versus assembly'' discussion in

connection with the proposed amendments to Part 102 below). In

addition, section 334(b)(4)(A) in effect continues the present practice

of allowing the value of such cut-to-shape textile components to be

applied toward the 35 percent value-content requirement, up to the 15

percent maximum limitation for materials produced in the United States,

for purposes of the Caribbean Basin Initiative (CBI) duty-free program

established by the Caribbean Basin Economic Recovery Act, as amended

(19 U.S.C. 2701 et seq.), and reflected in General Note 7, HTSUS.

Although section 334(b)(4)(A) of the Act is a separate statutory

provision and does not amend or otherwise affect subheading 9802.00.80,

HTSUS, Customs believes that the references to ``component'' and

``assembly'' in the Act were intended to mirror the concepts of,

including the types of operations traditionally permitted under,

subheading 9802.00.80, HTSUS. Accordingly, Customs believes that the

appropriate place for regulatory implementation of this aspect of the

Act would be following the existing Part 10 regulations applicable to

subheading 9802.00.80, HTSUS, because some of those existing regulatory

provisions appear to be equally relevant for purposes of this provision

of the Act. Therefore, Customs proposes to add a new Sec. 10.25 (19 CFR

10.25) that would reflect the relevant terms of section 334(b)(4)(A) of

the Act and that would also provide for the applicability of certain of

those existing regulatory standards and procedures (for example, the

U.S. component valuation principles, the assembly and incidental

operations principles, and the documentation requirements).

With regard to the second aspect of section 334(b)(4)(A) of the

Act, which allows the value of textile components cut to shape in the

United States to be applied toward the 35 percent value-content

requirement under the CBI duty-free program, Customs proposes to

reflect this provision in the context of the CBI implementing

regulations by adding a new paragraph (d) to Sec. 10.195 (19 CFR

10.195). Although modeled on present paragraph (c) of that section, the

following particular points are noted regarding this new paragraph (d):

(1) The proposed text mentions the percentage ``referred to in

paragraph (c)'' (that is, the 15 percent maximum attributable to U.S.

materials) rather than the percentage referred to in paragraph (a)

(that is, the overall 35 percent value-content requirement), in order

to clarify that the new allowance operates as part of, or an

alternative to, but not in addition to, the pre-existing 15 percent

allowance for U.S.-produced materials; and (2) contrary to present

Sec. 10.195(c), which refers to materials produced in the ``customs

territory of the U.S. (other than the Commonwealth of Puerto Rico)''

and thus reflects the specific terms of the CBI statute (19 U.S.C.

2703(a)(1)), the text of this new Sec. 10.195(d) refers to a textile

component that is cut to shape in the ``U.S. (including the

Commonwealth of Puerto Rico)'', because Customs believes that the

reference to the ``United States'' in section 334(b)(4)(A) of the Act

was intended to cover Puerto Rico.

Section 334(b)(4)(B) of the Act

Section 334(b)(4)(B) of the Act provides that no article (except a

textile or apparel product) assembled in whole of components described

in section 334(b)(4)(A) of the Act, or of such components and

components that are products of the United States, in a CBI beneficiary

country shall be treated as a foreign article, or as subject to duty,

if the components after exportation from the United States, and the

article itself before importation into the United States, do not enter

into the commerce of any foreign country other than such a beneficiary

country.

U.S. Note 2(b), Subchapter II, Chapter 98, HTSUS, provides that no

article (except a textile article, apparel article, or petroleum, or

any product derived from petroleum, provided for in heading 2709 or

2710) may be treated as a foreign article or as subject to duty if the

article is assembled or processed in a CBI beneficiary country in whole

of fabricated components that are a product of the United States or if

the article is processed in a CBI beneficiary country in whole of

ingredients (other than water) that are a product of the United States,

provided that neither the fabricated components, materials or

ingredients after exportation from the United States, nor the article

itself before importation into the United States, enters the commerce

of any foreign country other than a CBI beneficiary country. The effect

of section 334(b)(4)(B) of the Act is to continue this Note 2(b)

treatment for textile and apparel articles which would meet the

requirements of the Note but for the fact that, under the origin

principles in section 334(b) of the Act, components cut to shape in the

United States from foreign fabric would no longer qualify as products

of the United States.

Customs notes that the provisions of Note 2(b) discussed above have

not been implemented in the Customs Regulations. Accordingly, based on

the same rationale stated above regarding the addition of new

Sec. 10.25 to implement section 334(b)(4)(A) of the Act, Customs

proposes to add a new Sec. 10.26 (19 CFR 10.26) which would cover both

Note 2(b) and the provisions of section 334(b)(4)(B) of the Act. To

reflect that these are discrete statutory provisions, paragraph (a) of

the proposed new section covers only Note 2(b) and paragraph (b)

thereof covers only the provisions of section 334(b)(4)(B) of the Act.

Paragraph (c) sets forth definitions or rules for purposes of the

section and includes, as subparagraph (c)(3), a rule regarding

[[Page 27380]] entry into the commerce (of a non-beneficiary country)

which is modeled on the ``imported directly'' principle contained in

Sec. 10.193 of the CBI implementing regulations.

Customs proposes to define the terms ``textile article'', ``apparel

article'', and ``textile or apparel product'' for purposes of new

Sec. 10.26 more narrowly than the term ``textile or apparel product''

is defined for purposes of the new Part 102 provisions (see the below

discussion of the proposed Part 102 amendments in regard to the

latter). As noted above, Sec. 10.26(a) would implement the provisions

of U.S. Note 2(b), Subchapter II, Chapter 98, HTSUS, and Sec. 10.26(b)

would implement section 334(b)(4)(B) of the Act. With regard to the

scope of the terms ``textile article'' and ``apparel article'' as used

in Note 2(b), in T.D. 91-88, 25 Cust.Bull. 226, Customs issued an

interpretive rule which concluded that articles (other than footwear

and parts of footwear) classifiable in HTSUS provisions that have a

textile and apparel category number designation should be considered

``textile'' and ``apparel'' articles for purposes of Note 2(b).

Footwear and parts of footwear were determined in this interpretive

rule not to constitute ``textile'' and ``apparel'' articles under Note

2(b). As indicated above, Customs believes that the primary purpose of

section 334(b)(4)(B) of the Act is to preserve the current duty

exemption granted under Note 2(b) for articles assembled abroad from

components cut to shape in the United States from foreign fabric. For

example, under Customs current interpretation of Note 2(b), foreign

fabric components cut to shape in the United States that are assembled

in a CBI beneficiary country into a footwear upper or assembled into

gloves classifiable in a provision that does not have a textile quota

category number have been considered to be outside the scope of the

articles excluded from this duty exemption. If, however, the term,

``textile or apparel product'' as used in Sec. 334(b)(4)(B) of the Act

is interpreted to cover the same articles covered by the term ``textile

or apparel product'' as used elsewhere in section 334(b) of the Act

[which include footwear and parts thereof and many articles that are

not classified in quota provisions], Customs would fail to give effect

to the legislative purpose behind this provision. Indeed, under such an

interpretation this provision would be nullified by the exception

contained therein, since no good can be ``assembled in whole of

components [cut to shape from foreign fabric in the United States] * *

*'' and still be considered to fall outside the scope of goods excluded

from the duty-free treatment allowed under the provision in question.

Therefore, solely for purposes of section 334(b)(4)(B) of the Act, it

is proposed to define the term ``textile or apparel product'' to

reflect the same interpretation previously given by Customs to the

terms ``textile article'' and ``apparel article'' under Note 2(b).

B. Proposed Amendments to Part 102

The proposed amendments to Part 102 set forth in this document

specifically implement sections 334(b) (1)-(3) and (5) of the Act.

These proposed changes affect Part 102 and other provisions of the

Customs Regulations.

The proposed amendments to Part 102 set forth in this document

represent the view of Customs on the application of the principles

contained in sections 334(b) (1)-(3) and (5) and are intended to be

used in all determinations of whether a textile good is the product of

a particular country, territory, or possession, except where other

statutory authority provides for application of a different origin

standard. Accordingly, starting on July 1, 1996, the final regulations

resulting from these proposed regulatory texts would take precedence

over any other conflicting provisions in Part 102 or elsewhere in the

Customs Regulations but would not control origin determinations

regarding textile and apparel products of Israel.

Scope of ``Textile or Apparel Product''

Section 334(b) of the Act sets forth principles governing the

determination of the origin of ``a textile or apparel product'' for

purposes of laws enforced by Customs. However, nowhere in the

legislation is ``textile or apparel product'' defined. Customs believes

that the principles in section 334(b) were intended to be applicable to

essentially the same goods to which Customs has applied the principles

of Sec. 12.130 of the Customs Regulations (19 CFR 12.130).

Section 12.130, which Customs currently follows in determining the

country of origin of textile products for most purposes, specifically

states that its provisions cover textiles and textile products subject

to section 204, Agricultural Act of 1956, as amended (7 U.S.C. 1854),

that is, merchandise which is the subject of an international textile

agreement. Customs has interpreted this to include all goods

classifiable in Section XI of the HTSUS and all goods classifiable

outside Section XI under a provision that has a textile and apparel

category number designation. However, Customs has ruled that while the

provisions of Sec. 12.130 are specifically applicable only for

international textile agreement purposes, the principles of Sec. 12.130

are applicable to all textiles and textile products for all purposes

(i.e., quota, marking and duty assessment).

The United States is a signatory to the Agreement Establishing the

World Trade Organization (the WTO Agreement) and to the Agreement on

Textiles and Clothing annexed thereto. In the Annex to the Agreement on

Textiles and Clothing, textile and clothing products are defined by

means of a listing of subheadings in the international Harmonized

Commodity Description and Coding System, or Harmonized System (which

has been implemented in the United States in the HTSUS). The

subheadings listed in the Annex to the Agreement on Textiles and

Clothing include some provisions which presently do not have a textile

and apparel category number currently associated with them. They also

do not include every provision contained in Harmonized System/HTSUS

Section XI (which covers textiles and textile articles).

Customs notes that sections 101(d)(4), 331 and 332 of the Act

specifically refer to the Agreement On Textiles And Clothing of the WTO

Agreement. Moreover, section 332 of the Act amended the second sentence

of section 204 of the Agricultural Act of 1956 to specifically

authorize the President to issue, in order to carry out a multilateral

agreement (``including but not limited to the Agreement on Textiles and

Clothing'' of the WTO Agreement), regulations governing the entry or

withdrawal from warehouse of articles covered by such an agreement that

are the products of countries which are not parties to the agreement or

to which the United States does not apply the agreement.

Customs believes that, in order to reflect the overall context in

which section 334 of the Act was enacted, the regulations implementing

the principles of section 334(b) must, with slight technical

modifications, have reference to the subheadings listed in the Annex to

the Agreement on Textiles and Clothing of the WTO Agreement. Customs

believes that, in the absence of a specific statutory definition,

Customs is required to determine the scope of section 334. In doing

this, Customs has considered the wording of section 334, its

development, and the context in which it was enacted.

Accordingly, it is the position of Customs that the regulations

implementing section 334(b) of the Act should apply to (1) all goods

classifiable in Section XI of the HTSUS and (2) with [[Page 27381]] one

exception, all goods classifiable under any subheading outside Section

XI that is listed in the Annex to the Agreement on Textiles and

Clothing of the WTO Agreement. This will avoid any possibility of

interpreting ``apparel product'' to include apparel products consisting

entirely of plastic or other nontextile component parts, which clearly

are not intended to be covered by section 334 of the Act.

The one exception to the subheadings listed in the WTO Agreement

concerns subheading 9113.90 which provides for watch straps, watch

bands, watch bracelets, and parts thereof. That subheading is further

broken down in the HTSUS into two 8-digit subheadings, only one of

which, subheading 9113.90.40, provides for goods of textile materials.

Customs believes that it would be inappropriate to treat clearly

nontextile goods as falling within the scope of ``textile or apparel

article'' as used in section 334(b) of the Act. Accordingly, the

definition of ``textile or apparel product'' in the proposed Part 102

regulatory texts set forth in this document includes a reference to

subheading 9113.90.40 but does not refer to subheading 9113.90.80 which

covers the remainder of the goods falling under subheading 9113.90.

Customs recognizes that, by referring to the Agreement on Textiles

and Clothing, the proposed rules of origin in this document will cover

some goods not presently considered to be within the purview of

Sec. 12.130 (for example, wadding and gauze impregnated or coated with

medicinals, umbrellas, automobile seat belts, parachutes, watch straps,

doll clothing).

General Approach in Proposed Rules

Customs proposes to implement the section 334(b) origin principles

within Part 102 as a new Sec. 102.21. This proposed new Sec. 102.21

includes an applicability provision (paragraph (a)) to clarify the

scope of the section, various definitions of terms used in the section

(paragraph (b)), five general origin rules (paragraph (c)) which apply

in a hierarchical and sequential manner, a special provision for sets

(paragraph (d)), and specific change in tariff classification rules

(paragraph (e)) which apply for purposes of the second general origin

rule. The proposed regulatory texts, and the section 334(b) principles

which they implement, are discussed in more detail below.

Proposed Sec. 102.21 would supersede those provisions of

Secs. 102.1 through 102.20 for those products that fall within the

scope of Sec. 102.21, except for the purpose of identifying products of

Israel for which Secs. 102.1 through 102.20 will remain in effect.

Customs expects that Part 102 will have been made effective for all

imports prior to July 1, 1996, when Sec. 102.21 will become effective.

Wholly Obtained or Produced

The first Sec. 102.21 general origin rule (paragraph (c)(1))

provides that 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. This rule sets forth the principle

contained in section 334(b)(1)(A) of the Act. The definition of ``a

good wholly obtained or produced'' contained in present Sec. 102.1(g)

would apply for purposes of this proposed rule.

Change in Tariff Classification

Where a textile or apparel product is not wholly obtained or

produced in a single country, territory, or insular possession, the

second general origin rule (paragraph (c)(2)) provides that the country

of origin of such a good is the single country, territory, or insular

possession in which each material incorporated in the good underwent an

applicable change in tariff (HTSUS) classification specified in

paragraph (e). The proposed tariff shift rules contained in paragraph

(e) reflect the views of Customs on the results obtained when the

principles of section 334(b) of the Act are applied to specific textile

goods. Because Customs believes that the tariff shift approach

represents the most transparent and predictable method for determining

origin under the principles contained in section 334(b) of the Act, an

attempt has been made to reflect the application of those principles

within the proposed tariff shift rules to the greatest extent

practicable.

Assembly Versus Cutting

Under the rulings presently issued by Customs, the country of

origin of some textile products, particularly apparel products, is

often determined on the basis of where the components thereof were cut

to shape. Since promulgation of Sec. 12.130 in 1984, it has been

suggested to Customs that cutting components from fabric is an

extremely minor manufacturing operation and thus should not determine

origin. The position of Customs in regard to cutting, however, was not

predicated on the time or expense involved in that operation. Rather,

it was based on the physical change of the fabric and the result of the

cutting operation--a change from material which could be used for a

number of different purposes to a garment part that was dedicated to a

specific use in a specific type of garment.

Under section 334(b)(1)(D) of the Act, which applies to all goods

not covered by the preceding provisions of paragraph (b)(1) other than

goods covered by the special rules of section 334(b)(2), a textile or

apparel product has its origin in the country, territory, or possession

in which it is wholly assembled from its component pieces. In addition,

the ``multicountry rule'' of section 334(b)(3) of the Act discussed

below refers to the place in which the most important assembly or

manufacturing process occurs or the last place in which important

assembly or manufacturing occurs.

In view of the overall approach taken in section 334(b) of the Act,

including the fact that assembly is mentioned in three contexts as a

process conferring origin while no mention whatsoever is made of

cutting, and in view of its historical context, Customs believes that

section 334(b) was intended to eliminate cutting from playing any role

in determining the country of origin of textile and apparel products.

Accordingly, many of the tariff shift rules contained in paragraph (e)

of proposed new Sec. 102.21 have been drafted to reflect this

consideration.

Fabric-Making Process

Section 334(b)(1)(C) of the Act provides that if the product is a

fabric, its country of origin is the country, territory, or insular

possession in which ``the constituent fibers, filaments, or yarns are

woven, knitted, needled, tufted, felted, entangled, or transformed by

any other fabric-making process''. In view of the wording of this

statutory provision, Customs proposes to define the term ``fabric-

making process'' for purposes of proposed new Sec. 102.21 as including

only processes which advance basic materials (fibers, yarns, etc.) into

a fabric, thereby excluding any process which starts with a fabric and

ends up with a different type of fabric. Because of the existence of

spunbonded fabrics, which are produced by extruding polymers directly

into fabric form, the term ``polymers'' has been included in the

proposed definition. In addition, since twine, cordage, or rope may be

used to make a textile fabric (for example, a fabric of heading 5608),

those terms have also been included in the proposed definition.

Scope of ``Wholly Assembled''

The ``wholly assembled'' principle of section 334(b)(1)(D) of the

Act as discussed above has been assimilated into the tariff shift rules

under paragraph (e) of proposed Sec. 102.21. In

[[Page 27382]] addition, because the tariff shift rules will not always

yield an origin result, this principle has also been incorporated

within the third general origin rule under paragraph (c) of proposed

Sec. 102.21 with specific reference to goods not knit to shape which

are not covered by the special rules of section 334(b)(2) of the Act

and thus remain subject to the section 334(b)(1)(D) principle. For

purposes of Sec. 102.21, Customs proposes a definition of ``wholly

assembled'' which would embody the following principles:

1. The entire good must be assembled, and the assembly must take

place in a single country, territory, or insular possession. This is

intended to reflect the concept of ``wholly'' and to ensure, consistent

with the overall aim of the section 334(b) principles, the attribution

of a good to only one country, territory, or insular possession.

2. The assembly must, at a minimum, involve two separate components

that are combined to form the good. Section 334(b)(1)(D) of the Act

uses the terminology ``wholly assembled * * * from its component

pieces.'' Since the statute uses the plural ``pieces'', Customs

believes that Congress intended that the assembled good incorporate

more than one previously separate component. Accordingly, while it may

be argued that folding a fabric over on itself and stitching that fold

in place is an assembly, Customs does not believe that such a process

constitutes an assembly ``from its component pieces.'' Also, Customs

will not normally consider materials used to join components (for

example, sewing thread, rivets) as falling within the purview of the

term ``components'' as that term is used in this context.

3. Minor attachments and embellishments (for example, appliques,

beads, spangles, embroidery, buttons) which do not appreciably affect

the identity of the good are not required to be added to the good in

the country, territory, or insular possession where the ``component

pieces'' are assembled into the good in order for that good to qualify

as ``wholly assembled'' in a single country, territory, or insular

possession. This principle is included in the proposed definition

because, once assembled, the product exists whether or not minor

attachments and embellishments are attached and because Customs does

not believe that Congress intended that a simple process, such as

attaching a few buttons or beads to a good, should be allowed to

nullify the assembly rule of origin principle. Moreover, Customs notes

that the origin result would be the same even if the addition of minor

attachments and embellishments were to disqualify the good from being

``wholly assembled'' in one country, territory, or insular possession.

For example, where fabric from Country A is cut in Country B, all the

cut pieces are assembled into a shirt in Country C, and the buttons are

attached to the shirt in Country D, even if it were argued that the

shirt does not qualify as ``wholly assembled'' in Country C, that shirt

would still have its origin in Country C by application of the first

``multicountry rule'' under section 334(b)(3) of the Act because

Country C is the country in which the most important assembly or

manufacturing process occurs. For essentially the same reasons, the

proposed definition of ``wholly assembled'' also contains an exception

for minor subassemblies (for example, collars, cuffs, plackets,

pockets).

Special Rules for Certain HTSUS Headings and Subheadings

Section 334(b)(2)(A) of the Act provides that the origin of a good

classifiable under one of the HTSUS provisions enumerated therein

``shall be determined under subparagraph (A), (B), or (C) of paragraph

(1), as appropriate''. Subparagraph (A) provides for products ``wholly

obtained or produced'' in a country, territory, or possession.

Subparagraph (B) provides rules for determining the country of origin

of yarn, thread, twine, cordage, rope, cable, and braiding.

Subparagraph (C) sets out a rule of origin for fabric.

The words ``as appropriate'' in section 334(b)(2)(A) of the Act

appear to have created some confusion regarding the application of that

statutory provision. In this regard it has been suggested to Customs,

for example, that because neither a bed sheet nor a comforter (each of

which is classifiable in a tariff provision listed in section

334(b)(2)(A)) is a fabric, it would not be appropriate to determine the

origin of the sheet or comforter by resorting to subparagraph (1)(C)

which on its face covers only fabric. Customs does not agree with this

suggested interpretation because all of the HTSUS provisions listed in

section 334(b)(2)(A) cover goods that have been advanced beyond the

form of (in other words, have been made from) yarn, thread, etc., or

fabric. Accordingly, the suggested interpretation would make a nullity

of section 334(b)(2)(A).

Customs believes that the words ``as appropriate'' in section

334(b)(2)(A) of the Act are simply intended to alert the reader to use

common sense. For example, when determining the origin of a bed sheet

cut and finished in Country B from fabric woven in Country A, the

appropriate rule is subparagraph (1)(C) which concerns the origin of

fabrics. Subparagraph (1)(A) cannot be used because the sheet was not

wholly produced in a single country, and subparagraph (1)(B), which

concerns yarns, twine, etc., obviously is not applicable because the

sheet is made from a fabric. The proposed tariff shift rules set forth

in this document for goods classified in the HTSUS provisions

enumerated in section 334(b)(2)(A) of the Act have been drafted to

reflect this position.

Knit-To-Shape Garments

Section 334(b)(2)(B) of the Act provides that ``a textile or

apparel product which is knit to shape'' shall be considered to

originate in the country, territory, or insular possession in which it

is knit. This statutory provision is reflected in proposed Sec. 102.21

both under the third general origin rule (paragraph (c)(3)) and in the

tariff shift rules under paragraph (e).

While Sec. 12.130(e)(2)(iii) of the Customs Regulations presently

addresses the assembly of ``knit-to-shape component parts'', section

334(b)(2)(B) of the Act applies the knit-to-shape concept to the

imported article as a whole. Because of the wording used in

Sec. 12.130, the present position of Customs is that if a garment

contains at least one major knit-to-shape component, the presence of

that component will preclude the assembly of that garment from

conferring origin.

Customs believes that the phrase ``knit to shape'' should be

defined for purposes of proposed new Sec. 102.21. Accordingly, focusing

on the entire article (as opposed to the components comprising that

article), Customs proposes to define the phrase ``knit to shape'' as

referring to a good with an exterior surface wholly comprised of fabric

knitted directly to the shape used in the good (except for neck and

front opening trim), with no consideration being given to minor cutting

or trimming. This means that if an article consists of more than one

component, all exterior components (except for neck and front opening

trim) must be formed by knitting into the general shape that they are

found in the article in order for the knitting to confer origin.

Multicountry Rule

In some cases the proposed tariff shift rules were drafted to

reflect an origin result that would be reached for specific goods by

application of the ``multicountry rule'' contained in section 334(b)(3)

of the Act. The ``multicountry rule'' provides that where the origin of

a good cannot be determined under the general or special

[[Page 27383]] rules set forth in section 334(b)(1) or (2) of the Act,

the good shall be considered to have its origin either in the country,

territory, or insular possession in which the most important assembly

or manufacturing process occurs or (in effect, if two or more equally

important assembly or manufacturing processes are attributable to

different countries, territories or insular possessions) in the last

country, territory, or insular possession in which important assembly

or manufacturing occurs. The two parts of this ``multicountry rule''

are also set forth separately as the proposed fourth (paragraph (c)(4))

and fifth (paragraph (c)(5)) general origin rules in recognition of the

fact that the tariff shift rules will not always yield an origin

result.

Treatment of Sets

A set is two or more articles, each classifiable under a different

tariff heading, which, when packaged together, meet a particular need

or carry out a specific activity. As such, the entire set is usually

classifiable as a unit under a single tariff subheading. In T.D. 91-7,

25 Cust. Bull. 7 (1991), Customs determined that each component not

substantially transformed as a result of its inclusion in a set must be

individually marked to indicate its own country of origin. This marking

requirement is applicable to all goods, not just textiles. In addition,

in order to prevent circumvention of international textile agreements,

Customs, at the direction of the Committee for the Implementation of

Textile Agreements, has for years been requiring that textile

components of a set be broken out on a Customs Form 7501 (Customs

Entry/Entry Summary) to meet quota/visa requirements.

Section 334(b) of the Act, and the legislative history relating

thereto, are silent on the determination of the country of origin of

sets. Customs believes that this omission was not inadvertent and that

Congress intended that the present practice of Customs continue for

purposes of applying the origin principles contained in section 334(b).

Accordingly, Customs proposes to include in new Sec. 102.21 a paragraph

(d) to provide that in the case of goods which are classifiable as sets

and which include one or more components that are textile or apparel

products, the country, territory, or insular possession of origin of

each such textile or apparel component shall be determined separately

under the rules set forth in paragraph (c) of Sec. 102.21.

Comments

Before adopting the proposed amendments as a final rule,

consideration will be given to any written comments (preferably in

triplicate) timely submitted to Customs. Comments submitted will be

available for public inspection in accordance with the Freedom of

Information Act (5 U.S.C. 552), Sec. 1.4, Treasury Department

Regulations (31 CFR 1.4), and Sec. 103.11(b), Customs Regulations (19

CFR 103.11(b)), on regular business days between the hours of 9:00 a.m.

and 4:30 p.m. at the Regulations Branch, Office of Regulations and

Rulings, Franklin Court, 1099 14th Street, NW., Suite 4000, Washington,

DC.

Executive Order 12866

This document does not meet the criteria for a ``significant

regulatory action'' as specified in E.O. 12866.

Regulatory Flexibility Act

Pursuant to the provisions of the Regulatory Flexibility Act (5

U.S.C. 601 et seq.), it is certified that, if adopted, the proposed

amendments will not have a significant economic impact on a substantial

number of small entities. Accordingly, the proposed amendments are not

subject to the regulatory analysis or other requirements of 5 U.S.C.

603 and 604.

Paperwork Reduction Act

The collection of information requirements contained in this notice

of proposed rulemaking have been submitted to the Office of Management

and Budget for review in accordance with the Paperwork Reduction Act of

1980 (44 U.S.C. 3504(h)). Comments on the collection of information

should be sent to the Office of Management and Budget, Attention: Desk

Officer for the Department of the Treasury, Office of Information and

Regulatory Affairs, Washington, DC. 20503. A copy should also be sent

to Customs at the address set forth previously.

The collection of information in these proposed regulations is in

Sec. 10.25. This information is used by Customs to determine whether

articles assembled abroad from textile components cut to shape in the

United States from foreign fabric are entitled to reduced or duty-free

treatment under section 334(b)(4)(A) of the Act or under the CBI. The

likely respondents are business organizations including importers,

exporters, and manufacturers.

Estimated total annual reporting and/or recordkeeping burden: 750

hours.

Estimated average annual burden per respondent/recordkeeper: 1.5

hours.

Estimated number of respondents and/or recordkeepers: 500.

Estimated annual frequency of responses: 2,000.

Drafting Information: The principal author of this document was

Francis W. Foote, Office of Regulations and Rulings, U.S. Customs

Service. However, personnel from other offices participated in its

development.

List of Subjects

19 CFR Part 10

Customs duties and inspection, Imports, Reporting and recordkeeping

requirements.

19 CFR Part 12

Customs duties and inspection, Labeling, Marking, Reporting and

recordkeeping requirements, Textiles and textile products.

19 CFR Part 102

Customs duties and inspections, Imports, Reporting and

recordkeeping requirements, Rules of origin, Trade agreements.

Proposed Amendments to the Regulations

For the reasons stated above, it is proposed to amend Parts 10, 12

and 102, Customs Regulations (19 CFR Parts 10, 12 and 102), as set

forth below.

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE,

ETC.

1. The general authority citation for Part 10 and the specific

authority citations for Secs. 10.191-10.198 continue to read, and a

specific authority citation for Secs. 10.25 and 10.26 is added to read,

as follows:

Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized

Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508,

1623, 1624;

* * * * *

Sections 10.25 and 10.26 also issued under 19 U.S.C. 3592;

* * * * *

Sections 10.191-10.198 also issued under 19 U.S.C. 2701 et seq.;

* * * * *

2. Sections 10.25 and 10.26 are added under the heading ``Articles

assembled abroad with United States components'' to read as follows:

Sec. 10.25 Textile components cut to shape in the United States and

assembled abroad.

Where a textile component is cut to shape (but not to length,

width, or both) in the United States from foreign fabric and exported

to another country, territory, or insular possession for assembly into

an article that is then returned to the United States and entered, or

withdrawn from warehouse, for consumption on or after July 1, 1996, the

value of the textile component shall not be included in the dutiable

value of [[Page 27384]] the article. For purposes of determining

whether a reduction in the dutiable value of an imported article may be

allowed under this section:

(a) The terms ``textile component'' and ``fabric'' have reference

only to goods covered by the definition of ``textile or apparel

product'' set forth in Sec. 102.21(b)(4) of this chapter;

(b) The operations performed abroad on the textile component shall

conform to the requirements and examples set forth in Sec. 10.16

insofar as they may be applicable to a textile component; and

(c) The valuation and documentation provisions of Secs. 10.17,

10.18, 10.21 and 10.24 shall apply.

Sec. 10.26 Articles assembled or processed in a beneficiary country in

whole of U.S. components or ingredients; articles assembled in a

beneficiary country from textile components cut to shape in the United

States.

(a) No article (except a textile article, apparel article, or

petroleum, or any product derived from petroleum, provided for in

heading 2709 or 2710, Harmonized Tariff Schedule of the United States

(HTSUS)) shall be treated as a foreign article or as subject to duty:

(1) If the article is assembled or processed in a beneficiary

country in whole of fabricated components that are a product of the

United States; or

(2) If the article is processed in a beneficiary country in whole

of ingredients (other than water) that are a product of the United

States; and

(3) Neither the fabricated components, materials or ingredients

after their exportation from the United States, nor the article before

its importation into the United States, enters into the commerce of any

foreign country other than a beneficiary country.

(b) No article (except a textile or apparel product) entered, or

withdrawn from warehouse, for consumption on or after July 1, 1996,

shall be treated as a foreign article or as subject to duty:

(1) If the article is assembled in a beneficiary country in whole

of textile components cut to shape (but not to length, width, or both)

in the United States from foreign fabric; or

(2) If the article is assembled in a beneficiary country in whole

of both textile components described in paragraph (b)(1) and components

that are products of the United States; and

(3) Neither the components after their exportation from the United

States, nor the article before its importation into the United States,

enters into the commerce of any foreign country other than a

beneficiary country.

(c) For purposes of this section:

(1) The terms ``textile article'', ``apparel article'', and

``textile or apparel product'' cover all articles, other than footwear

and parts of footwear, that are classifiable in an HTSUS subheading

which carries a textile and apparel category number designation;

(2) The term ``beneficiary country'' has the meaning set forth in

Sec. 10.191(b)(1); and

(3) A component or an article shall be deemed to have not entered

into the commerce of any foreign country other than a beneficiary

country if:

(i) The component was shipped directly from the United States to a

beneficiary country, or the article was shipped directly to the United

States from a beneficiary country, without passing through the

territory of any non-beneficiary country; or

(ii) Where the component or article passed through the territory of

a non-beneficiary country while en route to a beneficiary country or

the United States:

(A) The invoices, bills of lading, and other shipping documents

pertaining to the component or article show a beneficiary country or

the United States as the final destination and the component or article

was neither sold at wholesale or retail nor subjected to any processing

or other operation in the non-beneficiary country; or

(B) The component or article remained under the control of the

customs authority of the non-beneficiary country and was not subjected

to operations in that non-beneficiary country other than loading and

unloading and activities necessary to preserve the component or article

in good condition.

3. In Sec. 10.195, paragraphs (d) and (e) are redesignated as

paragraphs (e) and (f) respectively and a new paragraph (d) is added to

read as follows:

Sec. 10.195 Country of origin criteria.

* * * * *

(d) Textile components cut to shape in the U.S. The percentage

referred to in paragraph (c) of this section may be attributed in whole

or in part to the cost or value of a textile component that is cut to

shape (but not to length, width, or both) in the U.S. (including the

Commonwealth of Puerto Rico) from foreign fabric and exported to a

beneficiary country for assembly into an article that is then returned

to the U.S. and entered, or withdrawn from warehouse, for consumption

on or after July 1, 1996. For purposes of this paragraph, the terms

``textile component'' and ``fabric'' have reference only to goods

covered by the definition of ``textile or apparel product'' set forth

in Sec. 102.21(b)(4) of this chapter.

* * * * *

PART 12--SPECIAL CLASSES OF MERCHANDISE

1. The authority citation for Part 12 continues to read in part as

follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20,

Harmonized Tariff Schedule of the United States (HTSUS)), 1624;

* * * * *

Sections 12.130 and 12.131 also issued under 7 U.S.C. 1854;

* * * * *

Sec. 12.130 [Amended]

2. In Sec. 12.130:

a. The last sentence of paragraph (b) is amended by adding after

``Mexico'' the words ``, and the origin of textile and apparel products

covered by Sec. 102.21 of this chapter,'';

b. The last sentence of the introductory text of paragraph (d) is

amended by adding after ``Mexico'' the words ``, and the origin of

textile and apparel products covered by Sec. 102.21 of this chapter,'';

and

c. The introductory text of paragraph (e)(1) is amended by adding

after ``Mexico'' the words ``and except for textile and apparel

products''.

PART 102--RULES OF ORIGIN

1. The authority citation for Part 102 is revised to read as

follows:

Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized

Tariff Schedule of the United States), 1624, 3314, 3592.

2. Section 102.0 is amended by removing the word ``This'' at the

beginning of the first sentence and adding, in its place, the words

``Except in the case of goods covered by Sec. 102.21, this'' and by

adding a sentence at the end to read as follows:

Sec. 102.0 Scope.

* * * The rules for determining the country of origin of textile

and apparel products set forth in Sec. 102.21 apply for the foregoing

purposes and for the other purposes stated in that section.

2. Section 102.11 is amended by adding an introductory paragraph

before paragraph (a) to read as follows:

Sec. 102.11 General rules.

The following rules shall apply for purposes of determining the

country of origin of imported goods other than textile and apparel

products covered by Sec. 102.21.

* * * * *

3. Section 102.21 is added to read as follows:

Sec. 102.21 Textile and apparel products.

(a) Applicability. Except for purposes of determining whether goods

originate [[Page 27385]] in Israel or are the growth, product, or

manufacture of Israel, and except as otherwise provided for by statute,

the provisions of this section shall control the determination of the

country of origin of imported textile and apparel products for purposes

of the Customs laws and the administration of quantitative

restrictions. The provisions of this section shall apply to goods

entered, or withdrawn from warehouse, for consumption on or after July

1, 1996.

(b) Definitions. The following terms shall have the meanings

indicated when used in this section:

(1) Country of origin. The term ``country of origin'' means the

country, territory, or insular possession in which a good originates or

of which a good is the growth, product, or manufacture.

(2) Fabric-making process. A ``fabric-making process'' is any

manufacturing operation which begins with polymers, fibers, filaments

(including strips), yarns, twine, cordage, or rope, and results in a

textile fabric.

(3) Knit to shape. The term ``knit to shape'' applies to any good

with an exterior surface area wholly comprised of one or more fabrics

knitted or crocheted directly to the shape used in the good (except for

fabric used for trimming the neck or front opening). Minor cutting or

trimming of fabric will not affect the determination of whether a good

is ``knit to shape.''

(4) Textile or apparel product. A ``textile or apparel product'' is

any good classifiable in Chapters 50 through 63, Harmonized Tariff

Schedule of the United States (HTSUS), and any good classifiable under

one of the following HTSUS headings or subheadings:

3005.90

3921.12.15

3921.13.15

3921.90.2550

4202.12.40-80

4202.22.40-80

4202.32.40-95

4202.92.15-30

4202.92.60-90

6405.20.60

6406.10.77

6406.10.90

6406.99.15

6501

6502

6503

6504

6505.90

6601.10-99

7019.10.15

7019.10.28

7019.20

8708.21

8804

9113.90.40

9404.90.10

9404.90.80-95

9502.91

9612.10.9010

(5) Wholly assembled. The term ``wholly assembled'' when used with

reference to a good means that all components, of which there must be

at least two, preexisted in essentially the same condition as found in

the finished good and were combined to form the finished good in a

single country, territory, or insular possession. Minor attachments and

minor embellishments (for example, appliques, beads, spangles,

embroidery, buttons) not appreciably affecting the identity of the

good, and minor subassemblies (for example, collars, cuffs, plackets,

pockets), will not affect the status of a good as ``wholly assembled''

in a single country, territory, or insular possession.

(c) General rules. Subject to paragraph (d) of this section, the

country of origin of a textile or apparel product shall be determined

by sequential application of paragraphs (c) (1) through (5) of this

section and, in each case where appropriate to the specific context, by

application of the additional requirements or conditions of

Secs. 102.12 through 102.19 of this part.

(1) 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.

(2) 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.

(3) 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) 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.

(4) Where the country of origin of a textile or apparel product

cannot be determined under paragraph (c) (1), (2) or (3) of this

section, the country of origin of the good is the single country,

territory, or insular possession in which the most important assembly

or manufacturing process occurred.

(5) Where the country of origin of a textile or apparel product

cannot be determined under paragraph (c) (1), (2), (3) or (4) of this

section, the country of origin of the good is the last country,

territory, or insular possession in which an important assembly or

manufacturing process occurred.

(d) Treatment of sets. Where a good classifiable in the HTSUS as a

set includes one or more components that are textile or apparel

products and a single country of origin for all of the components of

the set cannot be determined under paragraph (c) of this section, the

country of origin of each component of the set that is a textile or

apparel product shall be determined separately under paragraph (c) of

this section.

(e) Specific rules by tariff classification. 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

----------------------------------------------------------------------------------------------------------------

3005.90.......................... If the good contains pharmaceutical substances, a change to subheading

3005.90 from any other heading; or, If the good does not contain

pharmaceutical substances, a change to subheading 3005.90 from any other

heading, except from heading 5007, 5111 through 5113, 5208 through 5212,

5309 through 5311, 5407 through 5408, 5512 through 5516, 5601 through 5603,

5801 through 5804, 5806, 5809, 5903, 5906 through 5907, and 6001 through

6002.

3921.12.15....................... A change to subheading 3921.12.15 from any other heading.

3921.13.15....................... A change to subheading 3921.13.15 from any other heading.

3921.90.2550..................... A change to subheading 3921.90.2550 from any other heading.

4202.12.40-4202.12.80............ A change to subheading 4202.12.40 through 4202.12.80 from any other heading,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

[[Page 27386]]

4202.22.40-4202.22.80............ A change to subheading 4202.22.40 through 4202.22.80 from any other heading,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

4202.32.40-4202.32.95............ A change to subheading 4202.32.40 through 4202.32.95 from any other heading,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

4202.92.15-4202.92.30............ A change to subheading 4202.92.15 through 4202.92.30 from any other heading,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

4202.92.60-4202.92.90............ A change to subheading 4202.92.60 through 4202.92.90 from any other heading,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

5001-5002........................ A change to heading 5001 through 5002 from any other chapter.

5003............................. A change to heading 5003 from any other heading, provided that the change is

the result of garnetting. If the change to heading 5003 is not the result of

garnetting, the country of origin of the good is the country of origin of

the good prior to its becoming waste.

5004-5006........................ (1) If the good is of staple fibers, a change to heading 5004 through 5006

from any heading outside that group, provided that the change is the result

of a spinning process.

(2) If the good is of filaments, a change to heading 5004 through 5006 from

any heading outside that group, provided that the change is the result of an

extrusion process.

5007............................. A change to heading 5007 from any other heading, provided that the change is

the result of a fabric-making process.

5101-5103........................ A change to heading 5101 through 5103 from any other chapter.

5104............................. A change to heading 5104 from any other heading.

5105............................. A change to heading 5105 from any other chapter.

5106-5110........................ A change to heading 5106 through 5110 from any heading outside that group,

provided that the change is the result of a spinning process.

5111-5113........................ A change to heading 5111 through 5113 from any heading outside that group,

provided that the change is the result of a fabric-making process.

5201............................. A change to heading 5201 from any other chapter.

5202............................. A change to heading 5202 from any other heading, provided that the change is

the result of garnetting. If the change to heading 5202 is not the result of

garnetting, the country of origin of the good is the country of origin of

the good prior to its becoming waste.

5203............................. A change to heading 5203 from any other chapter.

5204-5207........................ A change to heading 5204 through 5207 from any heading outside that group,

provided that the change is the result of a spinning process.

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.

5301-5305........................ (1) Except for waste, a change to heading 5301 through 5305 from any other

chapter.

(2) For waste, a change to heading 5301 through 5305 from any heading outside

that group, provided that the change is the result of garnetting. If the

change is not the result of garnetting, the country of origin of the good is

the country of origin of the good prior to its becoming waste.

5306-5307........................ A change to heading 5306 through 5307 from any heading outside that group,

provided that the change is the result of a spinning process.

5308............................. (1) Except for paper yarns, a change to heading 5308 from any other heading,

provided that the change is the result of a spinning process.

(2) For paper yarns, a change to heading 5308 from any other heading, except

from heading 4707, 4801 through 4806, 4811, and 4818.

5309-5311........................ A change to heading 5309 through 5311 from any heading outside that group,

provided that the change is the result of a fabric-making process.

5401-5406........................ A change to heading 5401 through 5406 from any other heading, provided that

the change is the result of an extrusion process.

5407-5408........................ A change to heading 5407 through 5408 from any heading outside that group,

provided that the change is the result of a fabric-making process.

5501-5502........................ A change to heading 5501 through 5502 from any other chapter, provided that

the change is the result of an extrusion process.

5503-5504........................ A change to heading 5503 through 5504 from any other chapter, except from

Chapter 54.

5505............................. A change to heading 5505 from any other heading, provided that the change is

the result of garnetting. If the change is not the result of garnetting, the

country of origin of the good is the country of origin of the good prior to

its becoming waste.

5506-5507........................ A change to heading 5506 through 5507 from any other chapter, except from

Chapter 54.

5508-5511........................ A change to heading 5508 through 5511 from any heading outside that group,

provided that the change is the result of a spinning process.

5512-5516........................ A change to heading 5512 through 5516 from any heading outside that group,

provided that the change is the result of a fabric-making process.

5601............................. (1) A change to wadding of heading 5601 from any other heading, except from

heading 5105, 5203, and 5501 through 5507.

(2) A change to flock, textile dust, mill neps, or articles of wadding, of

heading 5601 from any other heading or from wadding of heading 5601.

5602-5603........................ A change to heading 5602 through 5603 from any heading outside that group,

provided that the change is the result of a fabric-making process.

5604............................. (1) If the textile component is of continuous filaments, including strips, a

change of those filaments, including strips, to heading 5604 from any other

heading, except from heading 5001 through 5007, 5401 through 5408, and 5501

through 5502, and provided that the change is the result of an extrusion

process.

(2) If the textile component is of staple fibers, a change of those fibers to

heading 5604 from any other heading, except from heading 5004 through 5006,

5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through

5511, and provided that the change is the result of a spinning process.

[[Page 27387]]

5605-5606........................ If the good is of continuous filaments, including strips, a change of those

filaments, including strips, to heading 5605 through 5606 from any other

heading, except from heading 5001 through 5007, 5401 through 5408, and 5501

through 5502, and provided that the change is the result of an extrusion

process; or

If the good is of staple fibers, a change of those fibers to heading 5605

through 5606 from any other heading, except from heading 5106 through 5110,

5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided

that the change is the result of a spinning process.

5607............................. If the good is of continuous filaments, including strips, a change of those

filaments, including strips, to heading 5607 from any other heading, except

from heading 5001 through 5007, 5401 through 5406, and 5501 through 5511,

and provided that the change is the result of an extrusion process; or

If the good is of staple fibers, a change of those fibers to heading 5607

from any other heading, except from heading 5106 through 5110, 5204 through

5207, 5306 through 5308, and 5508 through 5511, and provided that the change

is the result of a spinning process.

5608............................. (1) A change to netting of heading 5608 from any other heading, except from

heading 5804, and provided that the change is the result of a fabric-making

process.

(2) A change to fishing nets or other made up nets of heading 5608:

(a) If the good does not contain nontextile attachments, from any other

heading, except from heading 5804 and 6002, and provided that the change is

the result of a fabric-making process; or

(b) If the good contains nontextile attachments, from any heading, including

a change from another good of heading 5608, provided that the change is the

result of the good being wholly assembled in a single country, territory, or

insular possession.

5609............................. (1) If the good is of continuous filaments, including strips, a change of

those filaments, including strips, to heading 5609 from any heading, except

from heading 5001 through 5007, 5401 through 5406, 5501 through 5502, and

5604 through 5607, and provided that the change is the result of an

extrusion process.

(2) If the good is of staple fibers, a change of those fibers to heading 5609

from any other heading, except from heading 5106 through 5110, 5204 through

5207, 5306 through 5308, 5508 through 5511, and 5604 through 5607, and

provided that the change is the result of a spinning process.

5701-5705........................ A change to heading 5701 through 5705 from any other chapter.

5801-5803........................ A change to heading 5801 through 5803 from any other heading, including a

heading within that group, except from heading 5007, 5111 through 5113, 5208

through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, and

6002, and provided that the change is the result of a fabric-making process.

5804.10.......................... A change to subheading 5804.10 from any other heading, except from heading

5608, and provided that the change is the result of a fabric-making process.

5804.21-5804.30.................. A change to subheading 5804.21 through 5804.30 from any other heading,

provided that the change is the result of a fabric-making process.

5805............................. A change to heading 5805 from any other heading, except from heading 5007,

5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408,

and 5512 through 5516, and provided that the change is the result of a

fabric-making process.

5806............................. A change to heading 5806 from 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.

5807............................. A change to heading 5807 from any other chapter, except from heading 5007,

5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408,

5512 through 5516, 5602 through 5603, and 6001 through 6002, and subheading

6307.90, and provided that the change is the result of a fabric-making

process.

5808.10.......................... (1) If the good is of continuous filaments, including strips, a change of

those filaments, including strips, to subheading 5808.10 from any heading,

except from heading 5001 through 5007, 5401 through 5406, 5501 through 5502,

and 5604 through 5607, and provided that the change is the result of an

extrusion process.

(2) If the good is of staple fibers, a change of those fibers to heading

5808.10 from any other heading, except from heading 5106 through 5113, 5204

through 5212, 5306 through 5311, 5401 through 5408, 5508 through 5516, and

5604 through 5607, and provided that the change is the result of a spinning

process.

5808.90.......................... (1) For ornamental fabric trimmings, a change to subheading 5808.90 from any

other chapter, except from heading 5007, 5111 through 5113, 5208 through

5212, 5309 through 5311, 5407 through 5408, and 5512 through 5516, and

provided that the change is the result of a fabric-making process.

(2) For nonfabric ornamental trimmings:

(a) If the trimming is of continuous filaments, including strips, a change to

subheading 5808.90 from any other heading, except from heading 5001 through

5007, 5401 through 5408, 5501 through 5502, and 5604 through 5607, and

provided that the change is the result of an extrusion process; or

(b) If the trimming is of staple fibers, a change to subheading 5808.90 from

any other heading, except from heading 5106 through 5113, 5204 through 5212,

5306 through 5311, 5401 through 5408, 5508 through 5516, and 5604 through

5607, and provided that the change is the result of a spinning process.

(3) For tassels, pompons and similar articles:

(a) If the good has been wholly assembled in a single country, territory, or

insular possession, a change to subheading 5808.90 from any other heading;

(b) If the good has not been wholly assembled in a single country, territory,

or insular possession and the good is of staple fibers, a change to

subheading 5808.90 from any other heading, except from heading 5004 through

5006, 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508

through 5511, and 5604 through 5607, and provided that the change is the

result of a spinning process; or

(c) If the good has not been wholly assembled in a single country, territory,

or insular possession and the good is of filaments, including strips, a

change to subheading 5808.90 from any other heading, except from heading

5001 through 5007, 5401 through 5406, and 5501 through 5502, and provided

that the change is the result of an extrusion process.

5809............................. A change to heading 5809 from any other heading, except from heading 5007,

5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408,

5512 through 5516, 5801 through 5802, 5804, and 5806, and provided that the

change is the result of a fabric-making process.

5810.10.......................... A change to subheading 5810.10 from any other heading.

[[Page 27388]]

5810.91-5810.99.................. A change to subheading 5810.91 through 5810.99 from any other chapter, except

from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311,

5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5903, 5907,

and 6001 through 6002, and provided that the change is the result of a

fabric-making process.

5811............................. A change to heading 5811 from any other heading, except from heading 5007,

5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408,

5512 through 5516, 5601 through 5604, 5801 through 5804, 5806, 5809 through

5810, 5903, 5907, and 6001 through 6002, and subheading 6307.90, and

provided that the change is the result of a fabric-making process.

5901-5903........................ A change to heading 5901 through 5903 from any other heading, including a

heading within that group, except from heading 5007, 5111 through 5113, 5208

through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5803,

5806, 5808, and 6002, and provided that the change is the result of a fabric-

making process.

5904............................. A change to heading 5904 from any other heading, provided that the change is

the result of the good being wholly assembled in a single country,

territory, or insular possession.

5905............................. A change to heading 5905 from any other heading, except from heading 5007,

5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408,

5512 through 5516, 5603, 5803, 5806, 5808, and 6002, and provided that the

change is the result of a fabric-making process.

5906-5907........................ A change to heading 5906 through 5907 from any other chapter, except from

heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407

through 5408, 5512 through 5516, 5803, 5806, 5808, and 6002, and provided

that the change is the result of a fabric-making process.

5908............................. (1) Except for yarns, twine, cord, and braid, a change to heading 5908 from

any other heading, except from heading 5007, 5111 through 5113, 5208 through

5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5801 through

5802, 5806, 5808, and 6001 through 6002.

(2) For yarns, twine, cord, and braid:

(a) If the good is of continuous filaments, including strips, a change to

heading 5908 from any other heading, except from heading 5001 through 5007,

5401 through 5406, and 5501 through 5502, and provided that the change is

the result of an extrusion process; or

(b) If the good is of staple fibers, a change to heading 5908 from any other

heading, except from heading 5106 through 5110, 5204 through 5207, 5306

through 5308, and 5508 through 5511, and 5605 through 5607, and provided

that the change is the result of a spinning process.

5909............................. A change to heading 5909 from any other chapter, except from heading 5007,

5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408,

5512 through 5516, 5603, 5801 through 5804, 5806, 5808, and 6001 through

6002, and provided that the good does not contain armor or accessories of

nontextile material and provided that the change is the result of a fabric-

making process; or

A change to textile hosepiping with armor or accessories of nontextile

material, of heading 5909, from any heading, including a change from another

good of heading 5909, provided that the change is the result of the good

being wholly assembled in a single country, territory, or insular

possession.

5910............................. (1) For belts and belting of braid, rope, or cord:

(a) If the good is of continuous filaments, including strips, a change of

those filaments, including strips, to heading 5910 from any other heading,

except from heading 5001 through 5006, 5401 through 5406, and 5501 through

5502, and provided that the change is the result of an extrusion process; or

(b) If the good is of staple fibers, a change of those fibers to heading 5910

from any other heading, except from heading 5106 through 5110, 5204 through

5207, 5306 through 5308, and 5508 through 5511, and provided that the change

is the result of a spinning process.

(2) For fabric belting and belts, not braids and not combined with nontextile

components, whether or not reinforced with metal or other material, a change

to heading 5910 from any other heading, except from heading 5007, 5111

through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512

through 5516, 5602 through 5603, 5801 through 5804, 5806, 5808 through 5809,

and 6001 through 6002, and provided the change is the result of a fabric-

making process.

(3) For fabric belts, including belts of braided materials, combined with

nontextile components, whether or not reinforced with metal or other

material, a change to heading 5910 from any heading, including a change from

another good of heading 5910, provided that the change is the result of the

good being wholly assembled in a single country, territory, or insular

possession.

5911.10-5911.40.................. A change to subheading 5911.10 through 5911.40 from any other heading, except

from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311,

5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5804,

5806, and 6001 through 6002, and provided that the change is the result of a

fabric-making process.

5911.90.......................... (1) For goods of yarn, rope, cord, braid:

(a) If the good is of continuous filaments, including strips, a change of

those filaments, including strips, to subheading 5911.90 from any other

heading, except from heading 5001 through 5006, 5401 through 5406, and 5501

through 5502, and provided that the change is the result of an extrusion

process; or

(b) If the good is of staple fibers, a change of those fibers to subheading

5911.90 from any other heading, except from heading 5106 through 5110, 5204

through 5207, 5306 through 5308, and 5508 through 5511, and provided that

the change is the result of a spinning process.

(2) If the good is a fabric, a change to subheading 5911.90 from any other

heading, except from heading 5007, 5111 through 5113, 5208 through 5212,

5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603,

5801 through 5804, 5806, 5809, and 6001 through 6002, and provided that the

change is the result of a fabric-making process.

(3) If the good is a made up article, a change to subheading 5911.90 from any

heading, including a change from another good of heading 5911, provided that

the change is the result of the good being wholly assembled in a single

country, territory, or insular possession.

6001-6002........................ A change to heading 6001 through 6002 from any heading outside that group,

provided that the change is the result of a fabric-making process.

[[Page 27389]]

6101-6117........................ (1) If the good is not knit to shape and consists of two or more component

parts, a change to an assembled good of heading 6101 through 6117 from

unassembled components, provided that the change is the result of the good

being wholly assembled in a single country, territory, or insular

possession.

(2) If the good is not knit to shape and does not consist of two or more

component parts, a change to heading 6101 through 6117 from any heading

outside that group, except from heading 5007, 5111 through 5113, 5208

through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5806,

5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and

subheading 6307.90, and provided that the change is the result of a fabric-

making process.

(3) If the good is knit to shape, a change to heading 6101 through 6117 from

any heading outside that group, provided that the knit-to-shape components

are knit in a single country, territory, or insular possession.

6201-6208........................ (1) If the good consists of two or more component parts, a change to an

assembled good of heading 6201 through 6208 from unassembled components,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

(2) If the good does not consist of two or more component parts, a change to

heading 6201 through 6208 from any heading outside that group, except from

heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407

through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809

through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and

provided that the change is the result of a fabric-making process.

6209.10.0000-6209.20.5035........ (1) If the good consists of two or more component parts, a change to an

assembled good of subheading 6209.10.0000 through 6209.20.5035 from

unassembled components, provided that the change is the result of the good

being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more component parts, a change to

subheading 6209.10.0000 through 6209.20.5035 from any other heading, except

from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311,

5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806,

5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading

6307.90, and provided that the change is the result of a fabric-making

process.

6209.20.5040..................... A change to subheading 6209.20.5040 from any other heading, except from

heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407

through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809

through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and

provided that the change is the result of a fabric-making process.

6209.20.5045-6209.90.9000........ (1) If the good consists of two or more component parts, a change to an

assembled good of subheading 6209.20.5045 through 6209.90.9000 from

unassembled components, provided that the change is the result of the good

being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more component parts, a change to

subheading 6209.20.5045 through 6209.90.9000 from any other heading, except

from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311,

5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806,

5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading

6307.90, and provided that the change is the result of a fabric-making

process.

6210-6212........................ (1) If the good consists of two or more component parts, a change to an

assembled good of heading 6210 through 6212 from unassembled components,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

(2) If the good does not consist of two or more component parts, a change to

heading 6210 through 6212 from any heading outside that group, except from

heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407

through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809

through 5811, 5903, 5906 through 5907, 6001 through 6002, and 6217, and

subheading 6307.90, and provided that the change is the result of a fabric-

making process.

6213-6214........................ A change to heading 6213 through 6214 from any other heading, except from

heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407

through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809

through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and

provided that the change is the result of a fabric-making process.

6215-6217........................ (1) If the good consists of two or more component parts, a change to an

assembled good of heading 6215 through 6217 from unassembled components,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

(2) If the good does not consist of two or more component parts, a change to

heading 6215 through 6217 from any heading outside that group, except from

heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407

through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809

through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and

provided that the change is the result of a fabric-making process.

6301-6306........................ A change to heading 6301 through 6306 from any heading outside that group,

except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through

5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through

5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and

subheading 6307.90, and provided that the change is the result of a fabric-

making process.

6307.10.......................... A change to subheading 6307.10 from any other heading, except from heading

5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through

5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, 5809

through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided

that the change is the result of a fabric-making process.

6307.20.......................... A change to subheading 6307.20 from any other heading, provided that the

change is the result of the good being wholly assembled in a single country,

territory, or insular possession.

6307.90.......................... A change to subheading 6307.90 from any other heading, except from heading

5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through

5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, 5807

through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided

that the change is the result of a fabric-making process.

[[Page 27390]]

6308............................. A change to heading 6308 from any other heading, except from heading 5007,

5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408,

5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, 5809 through

5811, 5903, 5906 through 5907, and 6001 through 6002, and provided that the

change is the result of a fabric-making process.

6309-6310........................ The country, territory, or insular possession in which the good was last

collected and packaged for shipment.

6405.20.60....................... A change to subheading 6405.20.60 from any other heading, provided that the

change is the result of the good being wholly assembled in a single country,

territory, or insular possession.

6406.10.77....................... (1) If the good consists of two or more components, a change to subheading

6406.10.77 from any other heading, provided that the change is the result of

the good being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more components, a change to

subheading 6406.10.77 from any other heading, except from heading 5007, 5111

through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512

through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through

5810, 5903, 5906 through 5907, and 6001 through 6002, and provided that the

change is the result of a fabric-making process.

6406.10.90....................... (1) If the good consists of two or more components, a change to subheading

6406.10.90 from any other heading, provided that the change is the result of

the good being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more components, a change to

subheading 6406.10.90 from any other heading, except from heading 5007, 5111

through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512

through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through

5810, 5903, 5906 through 5907, and 6001 through 6002, and provided that the

change is the result of a fabric-making process.

6406.99.15....................... (1) If the good consists of two or more components, a change to subheading

6406.99.15 from any other heading, provided that the change is the result of

the good being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more components, a change to

subheading 6406.99.15 from any other heading, except from heading 5007, 5111

through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512

through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through

5810, 5903, 5906 through 5907, and 6001 through 6002, and provided that the

change is the result of a fabric-making process.

6501............................. (1) If the good consists of two or more components, a change to heading 6501

from any other heading, provided that the change is the result of the good

being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more components, a change to

heading 6501 from any other heading, except from heading 5603, and provided

that the change is the result of a fabric-making process.

6502............................. (1) If the good consists of two or more components, a change to heading 6502

from any other heading, provided that the change is the result of the good

being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more components, a change to

heading 6502 from any other heading, except from heading 5007, 5111 through

5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through

5603, 5608, 5801 through 5804, 5806, 5808 through 5810, 5903, 5906 through

5907, and 6001 through 6002, and provided that the change is the result of a

fabric-making process.

6503............................. (1) If the good consists of two or more components, a change to heading 6503

from any other heading, provided that the change is the result of the good

being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more components, a change to

heading 6503 from any other heading, except from heading 5603, and provided

that the change is the result of a fabric-making process.

6504............................. (1) If the good consists of two or more components, a change to heading 6504

from any other heading, provided that the change is the result of the good

being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more components, a change to

heading 6504 from any other heading, except from heading 5007, 5111 through

5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through

5603, 5608, 5801 through 5804, 5806, 5808 through 5810, 5903, 5906 through

5907, and 6001 through 6002, and provided that the change is the result of a

fabric-making process.

6505.90.......................... (1) If the good consists of two or more components, a change to subheading

6505.90 from any other heading, provided that the change is the result of

the good being wholly assembled in a single country, territory, or insular

possession.

(2) If the good does not consist of two or more components, a change to

subheading 6505.90 from any other heading, except from heading 5007, 5111

through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602

through 5603, 5608, 5801 through 5804, 5806, 5808 through 5811, 5903, 5906

through 5907, and 6001 through 6002, and provided that the change is the

result of a fabric-making process.

6601.10-6601.91.................. A change to subheading 6601.10 through 6601.91 from any other heading,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

7019.10.15....................... (1) If the good is of filaments, a change to subheading 7019.10.15 from any

other heading, provided that the change is the result of an extrusion

process.

(2) If the good is of staple fibers, a change to subheading 7019.10.15 from

any other subheading, except from subheading 7019.10.30 through 7019.10.90

and 7019.31 through 7019.90, and provided that the change is the result of a

spinning process.

7019.10.28....................... (1) If the good is of filaments, a change to subheading 7019.10.28 from any

other heading, provided that the change is the result of an extrusion

process.

(2) If the good is of staple fibers, a change to subheading 7019.10.28 from

any other subheading, except from subheading 7019.10.30 through 7019.10.90

and 7019.31 through 7019.90, and provided that the change is the result of a

spinning process.

7019.20.......................... A change to subheading 7019.20 from any other heading, provided that the

change is the result of a fabric-making process.

[[Page 27391]]

8708.21.......................... (1) For seat belts not combined with nontextile components, a change to

subheading 8708.21 from any other heading, except from heading 5007, 5111

through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, and

5512 through 5516, and provided that the change is the result of a fabric-

making process.

(2) For seat belts combined with nontextile components, a change to an

assembled good of subheading 8708.21 from unassembled components, provided

that the change is the result of the good being wholly assembled in a single

country, territory, or insular possession.

8804............................. (1) If the good consists of two or more component parts, a change to an

assembled good of heading 8804 from unassembled components, provided that

the change is the result of the good being wholly assembled in a single

country, territory, or insular possession.

(2) If the good does not consist of two or more component parts, a change to

heading 8804 from any other heading, except from heading 5007, 5111 through

5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through

5516, 5603, 5801 through 5804, 5806, 5809 through 5811, 5903, 5906 through

5907, and 6001 through 6002, and subheading 6307.90, and provided that the

change is the result of a fabric-making process.

9113.90.40....................... (1) If the good consists of two or more component parts, a change to an

assembled good of subheading 9113.90.40 from unassembled components,

provided that the change is the result of the good being wholly assembled in

a single country, territory, or insular possession.

(2) If the good does not consist of two or more component parts, a change to

subheading 9113.90.40 from any other heading, except from heading 5007, 5111

through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512

through 5516, 5603, 5801 through 5802, 5806, 5809, 5903, 5906 through 5907,

and 6001 through 6002, and subheading 6307.90, and provided that the change

is the result of a fabric-making process.

9404.90.10....................... A change to subheading 9404.90.10 from any other heading, except from heading

5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through

5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through

5811, 5903, 5906 through 5907, and 6001 through 6002, and subheading

6307.90, and provided that the change is the result of a fabric-making

process.

9404.90.80-9404.90.95............ A change to subheading 9404.90.80 through 9404.90.95 from any other heading,

except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through

5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through

5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and

subheading 6307.90, and provided that the change is the result of a fabric-

making process.

9502.91.......................... A change to an assembled good of subheading 9502.91 from unassembled

components, provided that the change is the result of the good being wholly

assembled in a single country, territory, or insular possession.

9612.10.9010..................... A change to subheading 9612.10.9010 from any other heading, except from

heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407

through 5408, 5512 through 5516, 5603, 5806, 5903, 5906 through 5907, and

6002, and provided that the change is the result of a fabric-making process.

----------------------------------------------------------------------------------------------------------------

Approved: May 15, 1995.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

George J. Weise,

Commissioner of Customs.

[FR Doc. 95-12655 Filed 5-22-95; 8:45 am]

BILLING CODE 4820-02-P