June 13, 2000

#  ENT-14 FO:TP:IA:TT SST

TO: All Directors, Field Operations and Port Directors

FROM: Director, Trade Programs

SUBJECT: TBT-00-010 New Rule of Origin for Fabric and Other
Miscellaneous Textiles

BACKGROUND:

Section 334 of the Uruguay Round Agreements Act (URAA), as originally
enacted, provided that fabrics and certain made-up products originate in
the country, territory or possession where the constituent fibers,
filaments, or yarns are woven, knitted, needled, tufted, felted,
entangled, or transformed by any other fabric-making process. This rule
of origin is codified in 19 USC 3592 and 19 CFR 102.21. Currently, the
rules of origin codified in 19 CFR 12.130 only apply to Israel.

Section 405 of the Trade and Development Act of 2000, which was signed
into law on May 18, 2000, amends Section 334(b)(2) of the URAA. The
amendments made by Section 405 will apply to goods entered, or withdrawn
from warehouse for consumption, on or after May 18, 2000.

Customs Regulations at 19 CFR 102.21 will be amended to reflect these
changes. However in the meantime the statutory changes are effective
immediately.

ACTION:

Effective May 18, 2000, Section 405 provides that certain fabrics and
made-ups originate in the country, territory or possession in which the
fabric is both dyed and printed when accompanied by 2 or more of the
following finishing operations: bleaching, shrinking, fulling, napping,
decating, permanent stiffening, weighting, permanent embossing, or
moireing.

Section 405 applies only to those fabrics classified in the Harmonized
Tariff Schedule of the United States (HTSUS) that are of silk, cotton,
man-made fiber, or vegetable fiber. Please note that wool fabric is not
included in this modification.

Section 405 also applies, as described below, to made-up products
classified under the following HTSUS headings and subheadings:
([NOTE]{.underline}: The words in parentheses are provided for
descriptive purposes only and do not define the scope of the HTSUS
provision for purposes of the statutory amendment.)

6117.10 (knitted or crocheted shawls, scarves, mufflers, mantillas,
veils and the

> like),

6213 (handkerchiefs, not knitted or crocheted),

6214.00 (shawls, scarves, mufflers, mantillas, veils and the like, not
knitted or

> crocheted),

6302.22 (man-made fiber printed bed linen, not knitted or crocheted),

6302.29 (printed bed linen, not knitted or crocheted, of other than
cotton or man-

> made fiber),

6302.52 (table linen of flax),

6302.53 (table linen of man-made fibers),

6302.59 (table linen, not knitted or crocheted, of other than cotton,
flax or man-

> made fiber),

6302.92 (toilet and kitchen linen of flax),

6302.93 (toilet and kitchen linen of man-made fibers),

6302.99 (toilet and kitchen linen of other textile materials),

6303.92 (curtains, including drapes, interior blinds and bed valances,
not knitted

> or crocheted of synthetic fibers),

6303.99 (curtains, including drapes, interior blinds and bed valances,
not knitted

> or crocheted of other textile materials),

6304.19 (bedspreads not knitted or crocheted),

6304.93 (other furnishing articles, not knitted or crocheted, of
synthetic fibers),

6304.99 (other furnishing articles, not knitted or crocheted, other than
of

> synthetic fibers or cotton),
>
> 9404.90.85 (quilts, eiderdowns, comforters and similar articles), and

9404.90.95 (other articles of bedding and similar furnishings)

Except for goods classified under such headings as of cotton or of wool
or consisting of fiber blends containing 16 percent or more by weight of
cotton, the above listed HTSUS numbers shall be considered to originate
in, and be the growth, product, or manufacture of the country,
territory, or possession in which the fabric is both dyed and printed
when accompanied by 2 or more of the following finishing operations:
bleaching, shrinking, fulling, napping, decating, permanent stiffening,
weighting, permanent embossing, or moireing.

Shipments that were exported prior to the enactment but not entered for
consumption or withdrawn from warehouse for consumption before May 18,
2000 that now have an invalid textile export visa due to the amendments
are to be denied entry. The Committee for the Implementation of Textile
Agreements (CITA) will, on request of the foreign government, issue a
visa waiver to allow entry of the merchandise.

INFORMATION:

If you have any questions concerning these procedures, please call Susan
Thomas at (202) 927-3719, Gina Tayler at (202) 927-4882, or Bob Abels at
(202) 927-1959.

Elizabeth G. Durant

cc: Executive Director, Field Programs

Executive Director, Field Operations