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Country
of
Origin
Marking
Goods for which a claim under 9802.00.80 is made are
subject to the requirements of the country of origin marking
statute, section 304, Tariff Act of 1930, as amended (19 U.S.C.
1304).
Section 304 requires an article of foreign origin (or its
container) imported into the United States to be marked with the
English name of the country of origin of the article, as legibly,
indelibly and permanently as the nature of the article (or
container) will permit. The country of origin of an article is the
country of manufacture, production or growth of the article. If
further work or material added to an article in another country
constitutes a substantial transformation – that is, a new
article with a different name, character and use is created –
then that country will be determined to be the country of origin
of the article. In general, a complex assembly of many parts will
constitute a substantial transformation. By contrast, a simple
assembly will generally not constitute a substantial
transformation.
This publication from the U.S. Customs Service discusses
portions of the partial duty exemption provided by subheading
9802.00.80, which is applicable to imported articles that have
been assembled abroad from fabricated components that are a
product of the United States
For Customs marking purposes, the country of origin of a
good of a NAFTA country will be determined by applying the NAFTA
marking rules, published in the Customs Regulations at 19 CFR Part
102.
Textiles
and apparel
The country of origin for textiles and apparel products,
except for those processed in Israel, is determined by section 334
of the Uruguay Round Agreements Act, codified in the United States
Code at 19 U.S.C. 3592 and implemented by 19 CFR 102.21. In
general, the rules of 19 CFR 102.21 provide that the assembly of
cut components will confer origin, but the cutting of fabric to
shape will not confer origin. Although foreign fabric cut to shape
in the United States. is not considered a product of the United
States, the value of these textile components is not included in
the dutiable value of the article, as provided in 19 CFR 10.25.
Fabric woven in the U.S. and cut to shape in the U.S. and
assembled abroad may be entered under subheading 9802.00.80.
The country of origin for textile and apparel products
processed in Israel is determined in accordance with 19 CFR
12.130(c), which generally provides that the origin of most
garments is the country in which the components are cut to shape,
although for tailored or complex garments, the country of origin
is the country in which the garments are wholly assembled. For
more information on this topic, see Customs informed compliance
publication entitled “What Every Member of the Trade Community
Should Know About: Textile & Apparel Rules of Origin.”
The requirements regarding labeling, radiation standards,
flame-retarding properties, etc., that are applicable to imported
textile and apparel articles are equally applicable to 9802.00.80
merchandise. Quota and visa requirements also apply to 9802.00.80
merchandise. The Federal Trade Commission (FTC) has labeling
requirements that may apply. For more, please consult Customs
informed compliance publication entitled, “What Every Member of
the Trade Community Should Know About Marking Requirements for
Wearing Apparel.”
Special
programs
On May 18, 2000, Public Law 106-200, the Trade and
Development Act of 2000 (the “Act”), was signed into law.
Title I of the Act, which is entitled “African Growth and
Opportunity Act” (the “AGOA”), extends certain trade
benefits to sub-Saharan Africa. Title II, which is entitled the
“United States-Caribbean Basin Trade Partnership Act” (the “CBTPA”)
provides certain benefits to countries and territories in the
Caribbean Basin. Certain textile and apparel articles that are
imported directly into the customs territory of the United States
from an eligible beneficiary sub-Saharan African country or an
eligible beneficiary CBTPA country will enter the United States
free of duty and free of any quantitative limitations, if the
country has satisfied the requirements set forth in the Act. The
Harmonized Tariff Schedule of the United States (HTSUS) has been
amended by inserting new U.S. notes in subchapter II of chapter 98
and new subchapters XIX and XX in chapter 98 to cover the new
benefits.
The 9802.00.80 provisions which were added by this
legislation are:
•Apparel articles assembled in one or more beneficiary
sub-Saharan African countries from fabrics wholly formed and cut
in the United States, from yarns wholly formed in the United
States, (including fabrics not formed from yarns, if those fabrics
are classifiable under heading 5602 or 5603 of the Harmonized
Tariff Schedule of the United States (HTSUS) and are wholly formed
and cut in the United States) that are entered under subheading
9802.00.80 of the HTSUS (new subheading 9802.00.8042).
•Apparel articles assembled in one or more CBTPA
beneficiary countries from fabrics wholly formed and cut in the
United States, from yarns wholly formed in the United States,
(including fabrics not formed from yarns, if those fabrics are
classifiable under heading 5602 or 5603 of the HTSUS and are
wholly formed and cut in the United States) that are entered under
subheading 9802.00.80 of the HTSUS (new subheading 9802.00.8044).
•Textile luggage assembled in a CBTPA beneficiary country
from fabric wholly formed and cut in the United States, from yarns
wholly formed in the United States, that is entered under
subheading 9802.00.80 of the HTSUS (new subheading 9802.00.8046).
The 9802.00.80 provisions under both the AGOA and CBTPA
have their own rules, including rules on the treatment of findings
and trimmings, specific interlinings, and de minimis for fibers or
yarns that would otherwise not qualify. In addition, there are
special requirements regarding certificates of origin, direct
importation and record keeping. These new 9802.00.80 provisions
are briefly discussed above for information. However, readers are
advised to read the new informed compliance publications entitled:
“What Every Member of the Trade Community Should Know About: The
African Growth and Opportunity Act,” and “What Every Member of
the Trade Community Should Know About: The U.S.-Caribbean Basin
Trade Partnership Act” for detailed discussions of the
provisions and requirements which apply to these provisions. Both
of these publications are available for reading or downloading
from the U. S. Customs web site.
Mexico
In addition to the provisions listed above, there is a
special provision in subheading 9802.00.90 for certain textile and
apparel goods assembled in Mexico. This provision covers textile
and apparel goods, assembled in Mexico in which all fabric
components were wholly formed and cut in the United States,
provided that such fabric components, in whole or in part:
•Were exported in condition ready for assembly without
further fabrication.
•Have not lost their physical identity in such articles
by change in form, shape or otherwise.
•Have not been advanced in value or improved in condition
abroad except by being assembled and except by operations
incidental to the assembly process; provided that goods
classifiable in chapters 61, 62 or 63 of the HTSUS may have been
subject to bleaching, garment dyeing, stone-washing, acid-washing
or perma-pressing after assembly.
Pre-importation
rulings
Normally, the local import specialist will make
appraisement and classification decisions. However, these
decisions are advisory in nature. A formal binding ruling may be
obtained by contacting the Office of Regulations and Rulings. A
request for a ruling regarding either valuation or the eligibility
for merchandise for the duty allowance provided by subheading
9802.00.80 should be addressed to the Assistant Commissioner,
Office of Regulations and Rulings at the following address: Office
of Regulations and Rulings, Commercial Rulings Division, U.S.
Customs Service, 1300 Pennsylvania Avenue, NW, Washington, D.C
20229.
A request for a ruling regarding the tariff classification
of an imported article should be addressed to the Director,
National Commodity Specialist Division at the following address:
Office of Regulations and Rulings, National Commodity Specialist
Division, U.S. Customs Service, 6 World Trade Center Room 423, New
York, NY 10048.
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