What Every Member of the 

Trade Community Should Know About: 

 Textile & Apparel 

Rules of Origin 

AN INFORMED COMPLIANCE PUBLICATION 

REVISED APRIL 2004 
Textile & Apparel Rules of Origin

April 2004

NOTICE:

This publication is intended to provide guidance and information to the trade community. 

It reflects the position on or interpretation of the applicable laws or regulations by U.S.

Customs and Border Protection (CBP) as of the date of publication, which is shown on 

the front cover. It does not in any way replace or supersede those laws or regulations.

Only the latest official version of the laws or regulations is authoritative. 

Publication History 

Revised: March 2004 

Revised: December 2000 

Revised: November 1998 

First Issued: October 1996 

 

 

PRINTING NOTE: 

This publication was designed for electronic distribution via the CBP website 

(http://www.cbp.gov) and is being distributed in a variety of formats. It was originally set

up in Microsoft Word97®. Pagination and margins in downloaded versions may vary 

depending upon which word processor or printer you use. If you wish to maintain the 

original settings, you may wish to download the .pdf version, which can then be printed 

using the freely available Adobe Acrobat Reader®. 

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PREFACE 

On December 8, 1993, Title VI of the North American Free Trade Agreement Implementation 

Act (Pub. L. 103-182, 107 Stat. 2057), also known as the Customs Modernization or “Mod” Act, 

became effective. These provisions amended many sections of the Tariff Act of 1930 and 

related laws. 

Two new concepts that emerge from the Mod Act are “informed compliance” and “shared 

responsibility,” which are premised on the idea that in order to maximize voluntary compliance 

with laws and regulations of U.S. Customs and Border Protection, the trade community needs to 

be clearly and completely informed of its legal obligations. Accordingly, the Mod Act imposes a

greater obligation on CBP to provide the public with improved information concerning the trade

community's rights and responsibilities under customs regulations and related laws. In addition, 

both the trade and U.S. Customs and Border Protection share responsibility for carrying out

these requirements. For example, under Section 484 of the Tariff Act, as amended (19 U.S.C. 

1484), the importer of record is responsible for using reasonable care to enter, classify and

determine the value of imported merchandise and to provide any other information necessary to

enable U.S. Customs and Border Protection to properly assess duties, collect accurate

statistics, and determine whether other applicable legal requirements, if any, have been met.

CBP is then responsible for fixing the final classification and value of the merchandise. An

importer of record’s failure to exercise reasonable care could delay release of the merchandise

and, in some cases, could result in the imposition of penalties. 

The Office of Regulations and Rulings (ORR) has been given a major role in meeting the 

informed compliance responsibilities of U.S. Customs and Border Protection. In order to

provide information to the public, CBP has issued a series of informed compliance publications

on new or revised requirements, regulations or procedures, and a variety of classification and 

valuation issues. 

This publication, prepared by the Textiles Branch, Commercial Rulings Division, ORR, is an 

informed compliance publication to advise the trade community on the rules for determining the

country of origin of textile products. We sincerely hope that this material, together with seminars 

and increased access to rulings of U.S. Customs and Border Protection, will help the trade

community to improve voluntary compliance with customs laws and to understand the relevant

administrative processes. 

The material in this publication is provided for general information purposes only. Because 

many complicated factors can be involved in customs issues, an importer may wish to obtain a

ruling under Regulations of U.S. Customs and Border Protection, 19 C.F.R. Part 177, or to

obtain advice from an expert who specializes in customs matters, for example, a licensed

customs broker, attorney or consultant. 

Comments and suggestions are welcomed and should be addressed to the Assistant 

Commissioner at the Office of Regulations and Rulings, U.S. Customs and Border Protection,

1300 Pennsylvania Avenue, NW, (Mint Annex), Washington, D.C. 20229. 

Michael T. Schmitz, 

Assistant Commissioner 

Office of Regulations and Rulings 

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INTRODUCTION..........................................................................................7

EFFECTIVE DATE.......................................................................................7

COVERAGE.................................................................................................8

SEE 19 CFR §102.21(B)(5). ........................................................................8

PRINCIPLES BEHIND THE RULES ...........................................................8

(1) General Rules......................................................................................................... 8

(A) Wholly obtained or produced............................................................................... 9

(B) Yarn, Including Single and Multiple Yarns ........................................................... 9

(C) Fabric .................................................................................................................. 9

(D) All Other Textile Products.................................................................................... 9

(2) Special rules ......................................................................................................... 10

(A) Specified HTS Classifications............................................................................ 10

(B) Special rules govern knit-to-shape products...................................................... 11

(C) Dyed and Printed Fabrics and Articles Made from Fabrics ............................... 11

(3) Multi-country Rule................................................................................................. 12

HIERARCHY OF RULES...........................................................................13

SPECIAL EXCEPTIONS & CONSIDERATIONS ......................................15

Israel Free Trade Agreement ..................................................................................... 15

Insular Possessions ................................................................................................... 16

Components Cut in the U. S. from Foreign Fabric and Assembled Abroad ............... 16

NAFTA Override......................................................................................................... 17

U.S. Goods Sent Abroad For Processing................................................................... 17

Sets ............................................................................................................................ 17

SUMMARY OF RULES .............................................................................18

TEXTILE DECLARATION AND QUOTA CHARGE STATEMENT...........18

FAILURE TO FOLLOW THE ORIGIN RULES..........................................19

ADDITIONAL INFORMATION...................................................................20

The Internet................................................................................................................ 20

Customs Bulletin ........................................................................................................ 20

Importing Into the United States................................................................................. 21

Informed Compliance Publications............................................................................. 21

Value Publications...................................................................................................... 21

“Your Comments are Important”................................................................................. 22

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RULES OF ORIGIN FOR TEXTILE AND APPAREL PRODUCTS 

INTRODUCTION 

Section 334 of the Uruguay Round Agreements Act (Pub. L. 103-465, codified 

as 19 U.S.C. §3592) established rules of origin for textile and apparel products which 

are imported into the Customs Territory of the United States. Except as otherwise 

provided by statute, these rules apply for purposes of the Customs laws and the 

administration of quantitative restrictions (quotas). The law required the Secretary of 

the Treasury to promulgate implementing regulations, which appear as section 102.21 

of the Customs Regulations (19 CFR §102.21). Section 405 of the Trade and 

Development Act of 2000 (Pub. L. 106-200) amended Section 334 of the Uruguay 

Round Agreements Act to clarify the rules of origin for certain textile products. CBP has

amended the regulations contained in 19 CFR §102.21 to reflect the changes mandated 

by Section 405. 

This publication was adapted from material which was originally prepared to help 

CBP Attachés in foreign countries interpret and explain the §334 rules of origin to 

manufacturers and exporters. It has answers to many of the questions which CBP

headquarters has received from both CBP field personnel and the trade. While it is only

a guide, this publication provides the basis of the rules in a format which should be 

useful to importers and exporters. For that reason we are making the material available 

not only to CBP personnel, but to the trade as well. 

It must be remembered that this publication does not supersede any Customs 

laws, regulations or rulings and should only be used as a general guide. If there are 

any technical questions, they should be addressed to the National Import Specialist

responsible for the particular commodity. Addresses for these offices appear in the 

material which follows. 

EFFECTIVE DATE 

The country of origin rules contained in 19 CFR §102.21 apply to textile and apparel 

products (see below for coverage) entered, or withdrawn from warehouse, for 

consumption on or after July 1, 1996. This date is set by law and does not provide for a 

grace period for shipments on the water, time entered into the port limits, entry rejects 

or any other exceptions except for certain pre-existing contracts entered into prior to 

July 20, 1994 which were required to be filed with the Commissioner of Customs and 

Border Protection. The country of origin rules, as amended by Section 405 of the Trade 

and Development Act of 2000, apply to goods entered or withdrawn from warehouse for

consumption, on or after May 18, 2000.

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COVERAGE 

The §334 country of origin rules for textile and apparel products apply to the textile 

items classified in Chapters 50 through 63 of the Harmonized Tariff System (HTS) and 

to the following textile items in the HTS classifications listed below:

3005.90 Wadding, gauze, bandages and the like (nonadhesive) 

3921.12 Cellular plates, sheets, film, foil and strip of plastics of polymers of vinyl 

chloride, combined with textile materials 

3921.13 Cellular plates, sheets, film, foil and strip of plastics, of polymers of 

polyurethanes, combined with textile materials 

3921.90 Cellular plates, sheets, film, foil and strip of plastics of polymers, other, 

combined with textile materials 

4202.12 Trunks, suitcases, vanity cases, attache cases, briefcases, school 

satchels and similar containers with outer surface of textile materials 

4202.22 Handbags with outer surface of textile materials 

4202.32 Articles carried in the pocket or handbag with outer surface of textiles 

4202.92 Other containers of heading 4202 with outer surface of textile materials 

6405.20 Footwear with soles and uppers of wool felt 

6406.10 Footwear uppers with 50% or more of the external surface area of textile 

 materials 

6406.99 Leg warmers and gaiters of textile material 

6501- 6505 Headwear of textiles 

6601.10-99 Umbrellas 

7019 Yarns and woven fabrics of glass fibers 

8708.21 Safety seat belts for motor vehicles 

8804 Parachutes; their parts and accessories 

9113.90 Watch straps, bands and bracelets of textile materials 

9404.90 Comforters, quilts, pillows and cushions, and similar articles of textile 

materials 

9502.91 Doll clothing 

9612.10 Woven typewriter ribbons or similar ribbons, of man-made fibers 

See 19 CFR §102.21(b)(5). 

PRINCIPLES BEHIND THE RULES 

(1) General Rules 

In general, except as otherwise provided for by law, a textile or apparel product, for 

purposes of Customs laws and the administration of quantitative restrictions, originates 

in a country, territory or insular possession according to the following rules: 

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(A) Wholly obtained or produced

The country of origin is the country in which a textile or apparel product is wholly

obtained or produced when the product is completely produced or manufactured in 

one country (except for de minimis materials as defined in 19 CFR §102.13). 

(B) Yarn, Including Single and Multiple Yarns

The country of origin of yarn, thread, twine, cordage, rope, cable or braiding is: 

(i) STAPLE yarn, etc. - the country in which staple fibers are spun into 

yarn

(ii) FILAMENT yarn, etc. - the country in which filament is extruded

(iii) PLIED, GIMPED AND CABLED yarns, etc. - the country in which the 

fibers or filaments used in the yarn are spun or extruded 

(C) Fabric

The country of origin of a FABRIC is the country in which the fabric is woven,

knitted, needled, tufted, felted, entangled or created by any other fabric making

process. (NOTE: A fabric making process is defined in 19 CFR §102.21(b)(2) as "any

manufacturing operation that begins with polymers, fibers, filaments (including strips),

yarns, twine, cordage, rope, or fabric strips and results in a textile fabric.)

NOTE: The country of origin of QUILTED FABRICS is the country in which the fabrics

are formed (one of the specific exceptions listed below).

(D) All Other Textile Products

The country of origin of all other textile and apparel products is the country in 

which the components of the product are wholly assembled (except for minor 

attachments such as buttons, beads, spangles, embroidery, etc., or minor 

subassemblies such as collars, cuffs, pockets, plackets, etc.). 

NOTE: The rules generally provide that processing operations or assembly (particularly 

for apparel), not cutting components, confer country of origin (however, see pre-existing 

contracts above and the Israel and insular possession exceptions below). 

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(2) Special rules 

(A) Specified HTS Classifications 

Special rules govern the articles in the following 16 specified Harmonized Tariff 

System (HTS) classifications (the HTS classification is followed by a general 

description):

(i) Articles Produced from Yarns 

5609 - the country of origin of articles made from yarn, strips, twine, cordage, 

rope or cables is the country in which the yarn, etc., is produced.

(ii) Articles Produced From Fabric 

The country of origin of certain articles made from fabric in the following 

Harmonized Tariff System classifications is the country in which the fabric is 

produced:

5807 Labels, badges, emblems 

5811 Quilted textile products in the piece (i.e., lengths or rolls of

quilted fabrics) 

6209.20 Baby diapers (cotton woven) 

6213 Handkerchiefs 

6214 Shawls, scarves, mufflers, mantillas, veils and the like 

6301 Blankets, traveling rugs 

6302 Bed Linen, table linen, toilet linen, kitchen linen 

6303 Curtains, drapes, interior blinds, valances 

6304 Bedspreads, furnishings 

6305 Sacks and bags for packing 

6306 Tarpaulins, awnings, sunblinds, tents, sails, camping goods 

6307.10 Dust cloths, mop cloths, polishing cloths, shop towels, bar 

mops, dish cloths 

6307.90 Labels, cords, tassels, corset and footwear lacings, toys for 

pets, wall banners, surgical towels, surgical drapes, tufted 

towels, pillow shells, quilt and comforter shells, national 

flags, moving pads, and other made up textile articles not 

specifically provided for elsewhere 

 6308 Needlecraft sets 

 9404.90 Comforters, quilts, pillows and cushions, and similar articles 

of textile materials

NOTE: The country of origin of certain articles is affected by special rules set forth in 

section 2(C) below. 

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(B) Special rules govern knit-to-shape products. 

The country of origin of knit-to-shape products is the country in which major 

parts are knitted or crocheted directly to the shape used in the finished product. 

Knit-to-shape means that the panels or parts (not including parts such as collars, 

cuffs, waistbands, plackets, pockets, linings, paddings, trim or similar parts) are knit to 

the shape used in the final assembly process (rather than knit into a tube or blanket of

material that is cut to shape). Minor cutting, trimming or sewing does not affect whether

components are knit to shape. Knit-to-shape applies when 50 percent or more of the 

exterior surface area (not including patch pockets, appliques, etc.) is formed by major 

parts that have been knitted or crocheted directly to the shape used in the good. 

For hosiery, the addition of gussets or top elastics or the closing of toes does not 

affect the status of knit-to-shape.

(C) Dyed and Printed Fabrics and Articles Made from Fabrics 

Special rules are applicable to certain fabrics and articles made from fabrics 

which are dyed and printed when accompanied by two or more certain specified 

finishing operations.

(i) Fabrics 

The country of origin of fabric classified under the Harmonized Tariff Schedule as

of silk, cotton, man-made fiber or vegetable fiber is the country in which the fabric

is both dyed and printed when accompanied by two or more of the following

finishing operations: bleaching, shrinking, fulling, napping, decating, permanent

stiffening, weighting, permanent embossing or moireing. 

(ii) Articles Made From Fabric 

Notwithstanding the rule set forth in (A)(ii) above, the country of origin of certain 

articles made from fabric in the following eighteen (18) Harmonized Tariff 

Schedule classifications is the country in which the fabric is both dyed and 

printed when accompanied by two or more of the following finishing operations: 

bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, 

permanent embossing or moireing, except for goods classified under such 

headings as of cotton or wool or consisting of fiber blends containing sixteen 

(16%) or more by weight of cotton (the HTS classifications are followed by 

general descriptions): 

6117.10 0 knitted or crocheted shawls, scarves, mufflers, mantillas, veils and 

 the like 

6213 handkerchiefs, not knitted or crocheted 

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6214 shawls, scarves, mufflers, mantillas, veils and the like not knitted or 

crocheted 

6302.22 printed bed linen, not knitted or crocheted, of man-made fibers 

6302.29 printed bed linen, not knitted or crocheted, of other textile materials 

6302.52 table linen, not knitted or crocheted, of flax 

6302.53 table linen, not knitted or crocheted, of man-made fibers 

6302.59 table linen, not knitted or crocheted, of other textile materials 

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 valences, of 

synthetic fibers 

6303.99 curtains, including drapes, interior blinds and bed valences, 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, of other textile 

materials 

9404.90.85 quilts, eiderdowns, comforters and similar articles 

9404.90.95 other articles of bedding and similar furnishings 

(3) Multi-country Rule

If the country of origin of a textile or apparel product cannot be determined by

one of the above rules and the product is created as a result of processing in two or

more countries, the country of origin is: 

(A) The country in which the most important assembly or most important 

manufacturing process occurs. 

The most important processing operation must be determined on a case-bycase basis through binding rulings and court decisions. The resulting body of

rulings and court decisions may serve as guidelines in the future. 

(B) If the most important assembly or manufacturing process cannot be 

determined, the country of origin is the last country in which an important 

assembly or manufacturing operation occurred.

For example: if the right half of a coat is assembled in one country and the left 

half is assembled in another country, and provided the processing steps in each 

country are equally balanced, then the country of origin is probably the country in 

which the two halves are sewn together (that is, the last country in which an 

important processing operation occurred) because each half is equally important. 

More realistically, if one yarn of a plied yarn is produced in one country and the 

other yarn is produced in a second country, and the yarns are twisted to form a plied 

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yarn, then, assuming both yarns are equal in the final product, the country in which the 

yarns are twisted together is the country of origin because each yarn is equally

important and you have to resort to the last country in which an important processing 

occurred. 

Another example of when the last important processing rule would be used to

determine origin is in the case of a tent in which the fabric for the roof and floor are 

produced in one country, the fabric for the walls is produced in another country, and all 

the fabrics are cut and assembled in a third country. As a tent is classified in heading

6306, according to the language of §334 its origin should be based on where the fabric 

for the tent is formed. But as the fabric is formed in different countries, and it is difficult 

to argue that fabric for roofs and floors is more important than fabric for walls, resort to 

the last important processing, i.e., where the fabrics are cut and sewn into the tent, 

renders the origin determination. 

Multi-country processing of goods often leads to origin determinations based 

upon the place where the most important processing operation occurred or, if that 

cannot be ascertained, the last place where an important processing operation 

occurred. Such determinations can only be made on a case-by-case basis, conditioned 

upon the specific facts in each case. As such, binding rulings should be requested 

from: 

U.S. Customs and Border Protection 

Director, National Commodity Specialists Division 

One Penn Plaza, 10th Fl 

ATTN: Binding Rulings Section 

New York, New York 10119 

The requestor should be sure to specify that the ruling is requested pursuant to 

the textile and apparel rules of origin in §334. Complete information should be supplied 

as to manufacturing and processing and a sample (or drawings if a sample is not

practical) showing exact subassemblies or processing steps should be submitted with 

the request for a ruling. Rulings requested from New York will be answered within 30

days if information provided by the requestor is complete. 

Initial rulings are issued by the National Commodity Specialists Division in New 

York while CBP Headquarters considers any appeals. 

HIERARCHY OF RULES 

The above rules are arranged in a hierarchy to be applied in the following sequential 

order as specified in Customs Regulation §102.21 (c):

1. Textile or apparel products wholly produced in one country. 

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2. Each foreign material undergoes requisite tariff shift (as provided in 

Customs Regulation 102.21), 

EXPLANATION: 

All textile and apparel products are listed by 4-digit to 10-digit HTS classifications 

or groups of classifications in the tariff shift rules. The tariff shift rules simply explain the 

requirements to change the country of origin of textile and apparel products (as shown 

in the preceding section) by using tariff classifications rather than textile or apparel 

product descriptions. A tariff shift states that, for any given classification, to change the 

country of origin of a textile or apparel product there must be a shift from one 

Harmonized Tariff System (HTS) classification to another as listed in the tariff shift rules

and/or the processing which occurs must meet any other requirement that is specified in 

the tariff shift rules in Customs Regulation §102.21(e).

EXAMPLE:

One group of classifications in the tariff shift rules is 5208 through 5212, which contains

the classifications for cotton woven fabrics. The tariff shift rule for classifications 5208-

5212 states that: 

(a) A change from greige fabric of heading 5208 through 5212 to finished 

fabric of heading 5208 through 5212 by both dyeing and printing when 

accompanied by two or more of the following finishing operations:

bleaching, shrinking, fulling, napping, decating, permanent stiffening, 

weighting, permanent embossing, or moireing; or 

(b) If the country of origin cannot be determined under (1) above, a change of 

heading 5208 through 5212 from any classification outside that group, 

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

To confer country of origin to a cotton fabric, a greige fabric must have been 

dyed and printed and accompanied by two or more specified finishing operations. For 

example, a greige fabric formed in China which is imported into Pakistan where it is 

dyed, printed, shrunk and permanently embossed will have its country of origin as 

Pakistan. 

In the alternative, the creation of fabric must be from some product other than 

another cotton woven fabric; for example, the fabric could be formed from cotton yarns, 

or from polyester and cotton yarns, from fibers or any other product except cotton 

woven fabric (e.g. joining two narrow fabrics). The second requirement of creating a 

fabric from a fabric forming process must also be met. This tariff shift rule merely 

restates the fabric rule (in the section above) using tariff classification terms or

definitions. 

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The result is that the determination of the country of origin is defined in objective 

tariff classification shifts rather than subjective terms such as “substantial 

assembly” or “new commercial product.” By using HTS classifications, there is no doubt 

when a change in the country of origin occurs. If a shipper knows the classification of a 

textile product he is exporting, he merely has to locate the classification in the tariff shift 

rules to see if the required change of classifications occurred when the product was

produced or manufactured. If the tariff shift has occurred and any other listed 

requirement is met, then the country of origin is changed by the processing. 

For example, the tariff classification for 5204 through 5207 (cotton yarns) states

that the tariff shift must be from any other heading provided that the change or shift

results from a spinning process. This defines the country of origin for spun yarns (see 

above). The tariff shift for 5208 through 5212 requires a shift from classifications for

yarns, fibers or filaments that results from a fabric making process. Similarly, shifts for 

6302 require that the country of origin of certain linens must be from the fabric forming 

process, i.e., the country in which the fabric was woven and not the country in which the 

fabric for the linens were cut and sewn, while certain other linens may originate in the 

country where the fabric comprising the good was both dyed and printed when

accompanied by two or more specified finishing operations. 

3. Textile or apparel products for which the major parts are knit-to-shape. 

4. Textile or apparel products wholly assembled in one country except for 

the 16 specified exceptions. 

When the product is manufactured in two or more countries and the country of 

origin cannot be determined by the four rules above, the country of origin is: 

5. The country in which the most important assembly or manufacturing

process occurs, and, if that cannot be determined, 

6. The last country in which an important assembly or manufacturing 

process occurs. 

REMEMBER: Cutting will almost never confer country of origin. For garments, the 

above rules are based on assembly operations, not on cutting. 

SPECIAL EXCEPTIONS & CONSIDERATIONS 

Israel Free Trade Agreement 

Israel is an exception to the country of origin rules. The country of origin for 

textile and apparel products from Israel will continue to be determined by the rules set 

forth in § 12.130 (19 CFR § 12.130), e.g., the origin of most garments is the country in 

which the components are cut to shape, although for tailored or complex garments, the 

origin is the country in which the garments are wholly assembled. In T.D. 96-58,

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published in the Federal Register on July 31, 1996, CBP explained how to determine 

the origin of textile and apparel products that are processed in Israel and another

country. If Israel is determined not to be the country of origin under § 12.130 (19 CFR § 

12.130), then the rules in § 102.21 are applied to determine the origin. As Israel cannot

be found to be the country of origin under §102.21, the processing in Israel will be 

disregarded when applying the steps in §102.21. 

Insular Possessions 

The §102.21 country of origin rules apply to the insular possessions of the 

United States. The rules will be used to determine whether the goods qualify as a 

product of the insular possession under General Note 3(a)(iv) of the Harmonized Tariff

Schedule of the United States. 

However, CBP will continue to follow past rulings to determine whether foreign 

fabric has been subjected to a “double substantial transformation” for purposes of the 

50 percent foreign material content restriction under General Note 3(a)(iv). Cutting will 

continue to be used to maintain current status in achieving a double substantial 

transformation. The first portion of the substantial transformation test may occur when 

fabric is cut into components, while the second may occur when the components are 

assembled into wearing apparel. In determining whether the apparel meets the 50 

percent foreign value limitation, components which undergo a double substantial 

transformation are (and will continue to be) treated as materials produced in the 

insular possession rather than as foreign materials.

Components Cut in the U. S. from Foreign Fabric and Assembled Abroad 

The value of components cut to shape (but not to length, width or both) in the 

U.S. from foreign fabric and exported for assembly abroad into an article that is then

returned is not included in the dutiable value of the finished article imported into the

U.S. (19 CFR §10.25). 

a. For textile and apparel products that do not have category numbers (e.g. 

umbrellas, parachutes), as well as all footwear and parts of footwear, 

assembled in a Caribbean Basin Initiative (CBI) country from components

that were cut to shape (but not including pieces merely cut to length 

and/or width) in the U.S. from foreign fabric, the assembled textile 

articles are not subject to duty. (19 CFR §10.26). 

This provision is necessary in the statute because under the country of origin 

rules cutting does not confer country of origin, and therefore components cut in the U.S.

of foreign fabric are not considered to be U.S. products. The definition of textile and 

apparel products includes articles that were not considered as textile articles by the 

United States prior to implementation of the new World Trade Organization definitions. 

See the Annex to the Agreement on Textiles and Clothing. This provision continues the 

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current duty free treatment under U.S. Note 2(b), Subchapter II, Chapter 98 of the 

Harmonized Tariff Schedule of the United States. 

b. The value of the components cut in the U.S. from foreign fabric, up to 

the 15 percent cap for U.S. origin materials, may be applied toward

determining the minimum 35 percent requirement to qualify for the 

benefits of CBI. 

NAFTA Override 

Any NAFTA override rules currently in existence will continue to be applied if 

a NAFTA preference is claimed. 

FOR EXAMPLE: China is the country of origin of comforter shells and also the 

country of origin of down used to fill the shells. Both of these components are

sent to Canada where the down is inserted into the shells. The country of origin 

of the finished comforter under the §334 rules of origin is China. However, 

NAFTA provides for an override rule that applies if a claim is made. Because the 

processing in Canada (a NAFTA country) satisfies the NAFTA duty preference

rule, if a claim is made for duty preference at the time of entry (or within one 

year), the country of origin is Canada. The NAFTA preference rule continues to 

override the §334 country of origin rules in determining the country of origin for 

NAFTA products. 

U.S. Goods Sent Abroad For Processing 

For a U.S. produced textile good sent abroad for processing which results in an 

advancement in value or improvement in condition: 

a. For duty assessment purposes, the good will continue to be considered 

foreign under Note 2(a), Subchapter II, Chapter 98, HTS. 

b. For quota purposes, the good will continue to be considered foreign under 

19 CFR §12.130(c). 

c. The origin of textile or apparel goods for marking purposes is determined 

solely by the rules under §102.21. 19 CFR §12.130(c) does not apply for

country of origin marking purposes. 

Sets 

If one or more components in a set are textile articles and there is no single 

country of origin for these components, the country of origin for each textile 

component of the set is determined separately. A composite good will 

continue to be considered as one combined good. 

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For example the country of origin for a comforter set consisting of a flat sheet, a fitted 

sheet and pillow cases produced in Pakistan and a comforter, a dust ruffle, and pillow 

shams produced in India would be determined separately for each textile component of 

the set. Thus, the comforter, dust ruffle and pillow shams that were wholly obtained or

produced in India have a country of origin as India. The sheets and pillowcases that 

were wholly obtained or produced in Pakistan have a country of origin as Pakistan. 

A woman’s dress, self-fabric belt and shawl that are wholly assembled in Korea are 

considered a "composite good" in which the dress imparts the essential character. As 

such, the country of origin of the dress will determine the origin of the composite good 

and the country of origin of the accompanying self-fabric belt and shawl are not 

determined separately. Accordingly, as per the terms of Section 102.21(c)(2) and 

Section 102.21(e), as the dress is composed of two or more component parts and is 

wholly assembled in a single country, that is, Korea, the country of origin of the subject 

dress, self-fabric belt and shawl is Korea. See Headquarters Ruling Letter (HQ) 

960047, dated February 20, 1997. 

SUMMARY OF RULES 

1. Cutting does not determine the country of origin. The §334 rules are 

based on processing or assembly operations.

2. CBP’s previous interpretation of substantial transformation for origin 

purposes has been replaced with statutory rules based on processing. 

3. A subjective determination under the provisions of §12.130 (19 CFR 

§12.130) is largely replaced by objective processing operations 

expressed in terms of tariff shifts. 

4. Generally fabrics originate in the country where the fabric is formed, 

however, certain fabrics and articles made from fabric originate in the 

country in which they are dyed and printed when accompanied by two or

more specified finishing operations as set forth in §405. 

5. Country of origin for textile and apparel products processed, assembled or 

manufactured in two or more countries is determined by where the most 

important processing occurs, and, if that cannot be ascertained, by where 

the last important assembly or manufacturing process occurs. 

TEXTILE DECLARATION AND QUOTA CHARGE STATEMENT

A single or multiple country of origin declaration and quota charge statement are 

required under 19 CFR §12.130. 

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FAILURE TO FOLLOW THE ORIGIN RULES 

Because the §334 rules govern the origin of goods for purposes of quantitative 

restrictions (quota), goods subject to quota which arrive without correct visas are 

inadmissable and may be detained (until correct visas are obtained), denied entry, or in 

certain cases seized. Material false statements or omissions regarding origin may also

lead to civil penalties or criminal prosecution. Failure to have the goods properly marked 

with the correct country of origin may also lead to the assessment of marking duties, or

in certain cases, penalties, or in cases of repeated or intentional violations, seizure and 

forfeiture. In addition, goods which were released may be subject to orders to redeliver

the goods to CBP. Failure to comply with such orders may lead to the assessment of

liquidated damages. 

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ADDITIONAL INFORMATION 

The Internet 

The home page of U.S. Customs and Border Protection on the Internet’s World Wide 

Web, provides the trade community with current, relevant information regarding CBP 

operations and items of special interest. The site posts information -- which includes 

proposed regulations, news releases, publications and notices, etc. -- that can be 

searched, read on-line, printed or downloaded to your personal computer. The web site 

was established as a trade-friendly mechanism to assist the importing and exporting

community. The web site also links to the home pages of many other agencies whose 

importing or exporting regulations that U.S. Customs and Border Protection helps to 

enforce. The web site also contains a wealth of information of interest to a broader 

public than the trade community. For instance, on June 20, 2001, CBP launched the 

“Know Before You Go” publication and traveler awareness campaign designed to help 

educate international travelers. 

 

The web address of U.S. Customs and Border Protection is http://www.cbp.gov

Customs Regulations 

The current edition of Customs Regulations of the United States is a loose-leaf, 

subscription publication available from the Superintendent of Documents, U.S. 

Government Printing Office, Washington, DC 20402; telephone (202) 512-1800. A 

bound, 2003 edition of Title 19, Code of Federal Regulations, which incorporates all 

changes to the Regulations as of April 1, 2003, is also available for sale from the same 

address. All proposed and final regulations are published in the Federal Register, which 

is published daily by the Office of the Federal Register, National Archives and Records 

Administration, and distributed by the Superintendent of Documents. Information about

on-line access to the Federal Register may be obtained by calling (202) 512-1530 

between 7 a.m. and 5 p.m. Eastern time. These notices are also published in the 

weekly Customs Bulletin described below. 

Customs Bulletin 

The Customs Bulletin and Decisions (“Customs Bulletin”) is a weekly publication that 

contains decisions, rulings, regulatory proposals, notices and other information of 

interest to the trade community. It also contains decisions issued by the U.S. Court of 

International Trade, as well as customs-related decisions of the U.S. Court of Appeals

for the Federal Circuit. Each year, the Government Printing Office publishes bound 

volumes of the Customs Bulletin. Subscriptions may be purchased from the 

Superintendent of Documents at the address and phone number listed above. 

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Importing Into the United States

This publication provides an overview of the importing process and contains general 

information about import requirements. The February 2002 edition of Importing Into the 

United States contains much new and revised material brought about pursuant to the 

Customs Modernization Act (“Mod Act”). The Mod Act has fundamentally altered the 

relationship between importers and U.S. Customs and Border Protection by shifting to 

the importer the legal responsibility for declaring the value, classification, and rate of 

duty applicable to entered merchandise. 

The February 2002 edition contains a section entitled "Informed Compliance." A key 

component of informed compliance is the shared responsibility between U.S. Customs 

and Border Protection and the import community, wherein CBP communicates its 

requirements to the importer, and the importer, in turn, uses reasonable care to assure 

that CBP is provided accurate and timely data pertaining to his or her importation. 

Single copies may be obtained from local offices of U.S. Customs and Border

Protection, or from the Office of Public Affairs, U.S. Customs and Border Protection, 

1300 Pennsylvania Avenue NW, Washington, DC 20229. An on-line version is 

available at the CBP web site. Importing Into the United States is also available for 

sale, in single copies or bulk orders, from the Superintendent of Documents by calling 

(202) 512-1800, or by mail from the Superintendent of Documents, Government Printing

Office, P.O. Box 371954, Pittsburgh, PA 15250-7054. 

Informed Compliance Publications 

U.S. Customs and Border Protection has prepared a number of Informed Compliance 

publications in the “What Every Member of the Trade Community Should Know About:”

series. Check the Internet web site http://www.cbp.gov for current publications. 

Value Publications 

Customs Valuation under the Trade Agreements Act of 1979 is a 96-page book 

containing a detailed narrative description of the customs valuation system, the customs 

valuation title of the Trade Agreements Act (§402 of the Tariff Act of 1930, as amended 

by the Trade Agreements Act of 1979 (19 U.S.C. §1401a)), the Statement of 

Administrative Action which was sent to the U.S. Congress in conjunction with the TAA,

regulations (19 C.F.R. §§152.000-152.108) implementing the valuation system (a few 

sections of the regulations have been amended subsequent to the publication of the 

book) and questions and answers concerning the valuation system. A copy may be 

obtained from U.S. Customs and Border Protection, Office of Regulations and Rulings, 

Value Branch, 1300 Pennsylvania Avenue, NW, (Mint Annex), Washington, D.C. 20229. 

Customs Valuation Encyclopedia (with updates) is comprised of relevant statutory

provisions, CBP Regulations implementing the statute, portions of the Customs 

Valuation Code, judicial precedent, and administrative rulings involving application of 

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valuation law. A copy may be purchased for a nominal charge from the Superintendent

of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-

7054. This publication is also available on the Internet web site of U.S. Customs and 

Border Protection. 

The information provided in this publication is for general information 

purposes only. Recognizing that many complicated factors may be 

involved in customs issues, an importer may wish to obtain a ruling under

CBP Regulations, 19 C.F.R. Part 177, or obtain advice from an expert

(such as a licensed Customs Broker, attorney or consultant) who 

specializes in customs matters. Reliance solely on the general 

information in this pamphlet may not be considered reasonable care.

Additional information may also be obtained from U.S. Customs and Border Protection 

ports of entry. Please consult your telephone directory for an office near you. The 

listing will be found under U.S. Government, Department of Homeland Security. 

“Your Comments are Important” 

The Small Business and Regulatory Enforcement Ombudsman and 10 regional 

Fairness Boards were established to receive comments from small businesses about

Federal agency enforcement activities and rate each agency’s responsiveness to small 

business. If you wish to comment on the enforcement actions of U.S. Customs and

Border Protection, call 1-888-REG-FAIR (1-888-734-3247). 

REPORT SMUGGLING 1-800-BE-ALERT OR 1-800-NO-DROGA 

Visit our Internet web site: http://www.cbp.gov