Rules of Origin for Textile and Apparel Products

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 102

[T.D. 96-56]

Rules of Origin for Textile and Apparel Products

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: This document sets forth technical corrections to the Customs

Regulations which govern the determination of the country of origin of

textile and apparel products for purposes of laws enforced by Customs.

The changes involve an updating of certain tariff subheading references

and the correction of an error in the text of one tariff shift rule.

EFFECTIVE DATE: July 22, 1996.

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

Rulings (202-482-7029).

SUPPLEMENTARY INFORMATION:

Background

On September 5, 1995, Customs published T.D. 95-69 in the Federal

Register (60 FR 46188) containing final amendments to the Customs

Regulations to set forth standards governing the determination of the

country of origin of textile and apparel products for purposes of laws

enforced by Customs. The regulatory amendments primarily implemented

the provisions of section 334 of the Uruguay Round Agreements Act

(Public Law 103-465, 108 Stat. 4809) and included a new Sec. 102.21 (19

CFR 102.21) which covers the majority of the section 334 provisions and

applies to goods entered, or withdrawn from warehouse, for consumption

on or after July 1, 1996.

Section 102.21(b)(5) defines a ``textile or apparel product'' as a

good classifiable in specified chapters, headings or subheadings of the

Harmonized Tariff Schedule of the United States (HTSUS). Section

102.21(c) sets forth the general rules for determining the country of

origin of a textile or apparel product and, in paragraph (c)(2), allows

for the determination of the country of origin of a good on the basis

of a tariff classification change and/or other requirement specified

for the good in paragraph (e). Paragraph (e) of Sec. 102.21

incorporates a table consisting of a list of HTSUS headings and

subheadings together with corresponding specified tariff shift and/or

other requirements.

The HTSUS references in the Sec. 102.21 texts were based on the

1995 version of the HTSUS. However, the 1996 version of the HTSUS

incorporates a number of subheading number changes as a result of

amendments made to the international Harmonized System, one of which

involved the redesignation of subheading 7019.10 as subheading 7019.19

and another of which involved the replacement of subheading 7019.20 by

new subheadings 7019.40-7019.59. Accordingly, this document makes the

following changes within the Sec. 102.21 texts to conform them to the

1996 HTSUS: (1) in the list of HTSUS headings and subheadings in

paragraph (b)(5), ``7019.10.15'' is changed to read ``7019.19.15'' and

``7019.10.28'' is changed to read ``7019.19.28'' and ``7019.20'' is

changed to read ``7019.40-59''; (2) in the table under paragraph (e),

in the ``HTSUS'' column, ``7019.10.15'' is changed to read

``7019.19.15'' and ``7019.10.28'' is changed to read ``7019.19.28'' and

``7019.20'' is changed to read ``7019.40-7019.59'', and in the

corresponding specific rules in the ``Tariff shift and/or other

requirements'' column, each reference to ``7019.10.15'' is changed to

read ``7019.19.15'' and each reference to ``7019.10.28'' is changed to

read ``7019.19.28'' and the reference to ``7019.20'' is changed to read

``7019.40 through 7019.59''; and (3) also in the ``Tariff shift and/or

other requirements'' column in the table under paragraph (e), in the

second tariff shift rule for newly designated subheadings 7019.19.15

and 7019.19.28, the exception clause is changed to read ``except from

subheading 7019.19.30 through 7019.19.90, 7019.31.00 through

7019.39.50, and 7019.90''.

In addition, it is noted that in the table under paragraph (e) of

Sec. 102.21, the tariff shift rule for newly designated subheadings

7019.40-7019.59 (which cover woven fabrics of rovings and other woven

fabrics) specifies a change from any other ``heading'' and includes a

proviso that the change must be the result of a fabric-making process.

It is further noted that heading 7019 (which covers glass fibers and

articles thereof) includes subheadings for glass fiber rovings

(subheading 7019.12.00) and yarns (subheadings 7019.19.05-7019.19.28)

which are the products from which the fabrics of subheadings 7019.40-

7019.59 are made and without which those fabrics could not exist.

Therefore, by specifying a change from any other ``heading'' (that is,

any heading other than heading 7019) rather than a change from any

other ``subheading'' (so as to allow a change from subheadings

7019.12.00 and 7019.19.05-7019.19.28), the tariff shift rule for

subheadings 7019.40-7019.59 has no substantive utility because the rule

disallows the very tariff shifts that would be involved in producing

the goods covered by those subheadings. Accordingly, this document

amends the tariff shift rule for subheadings 7019.40-7019.59 to refer

to a change from any other ``subheading'' in order to correct this

obvious drafting error.

Executive Order 12866, Regulatory Flexibility Act, and Inapplicability

of Notice and Delayed Effective Date Requirements

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

regulatory action'' as specified in Executive Order 12866. In addition,

pursuant to the provisions of the Regulatory Flexibility Act (5 U.S.C.

601 et seq.), it is certified that the amendments will not have a

significant economic impact on a substantial number of small entities

because the amendments either merely conform the regulations to

existing statutory provisions or correct an obvious error. For the same

reasons and in view of the July 1, 1996, effective date of the

regulatory provisions to which these amendments relate, it is

determined pursuant to the provisions of 5 U.S.C. 553(b)(B) that notice

and public procedures thereon are unnecessary and contrary to the

public interest, and it is determined pursuant to the provisions of 5

U.S.C. 553(d)(3) that good cause exists for dispensing with a delayed

effective date.

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 in 19 CFR Part 102

Customs duties and inspections, Imports, Reporting and

recordkeeping requirements, Rules of origin, Trade agreements.

Amendments to the Regulations

Accordingly, for the reasons stated above, Part 102, Customs

Regulations (19 CFR Part 102), is amended as set forth below.

[[Page 37818]]

PART 102--RULES OF ORIGIN

1. The authority citation for Part 102 continues to read as

follows:

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

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

Sec. 102.21 [Amended]

2. Section 102.21(b)(5) is amended by removing the listings

``7019.10.15'' and ``7019.10.28'' and ``7019.20'' and adding, in their

place in numerical order, the listings ``7019.19.15'' and

``7019.19.28'' and ``7019.40-59''.

3. In Sec. 102.21(e), the table is amended by removing the entries

for HTSUS 7019.10.15 and HTSUS 7019.10.28 and HTSUS 7019.20 and adding,

in their place, entries for HTSUS 7019.19.15 and HTSUS 7019.19.28 and

HTSUS 7019.40-7019.59 to read as follows:

Sec. 102.21 Textile and apparel products.

* * * * *

(e) * * *

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HTSUS Tariff shift and/or other requirements

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* * * *

* * *

7019.19.15.................. (1) If the good is of filaments, a change

to subheading 7019.19.15 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 7019.19.15 from any

other subheading, except from subheading

7019.19.30 through 7019.19.90, 7019.31.00

through 7019.39.50, and 7019.90, and

provided that the change is the result of

a spinning process.

7019.19.28.................. (1) If the good is of filaments, a change

to subheading 7019.19.28 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 7019.19.28 from any

other subheading, except from subheading

7019.19.30 through 7019.19.90, 7019.31.00

through 7019.39.50, and 7019.90, and

provided that the change is the result of

a spinning process.

7019.40-7019.59............. A change to subheading 7019.40 through

7019.59 from any other subheading,

provided that the change is the result of

a fabric-making process.

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George J. Weise,

Commissioner of Customs.

Approved: June 17, 1996.

John P. Simpson,

Deputy Assistant Secretary of the Treasury.

[FR Doc. 96-18545 Filed 7-19-96; 8:45 am]

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