27378 Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 12 and 102

RIN 1515–AB71

Rules of Origin for Textile and Apparel

Products

AGENCY: Customs Service, Department

of the Treasury.

ACTION: Notice of proposed rulemaking.

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 § 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
Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules 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 § 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 valuecontent 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 § 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

§ 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

§ 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 § 10.25 to

implement section 334(b)(4)(A) of the

Act, Customs proposes to add a new

§ 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
27380 Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules

entry into the commerce (of a nonbeneficiary country) which is modeled

on the ‘‘imported directly’’ principle

contained in § 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 § 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, § 10.26(a) would

implement the provisions of U.S. Note

2(b), Subchapter II, Chapter 98, HTSUS,

and § 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 § 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 § 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

§ 12.130 are specifically applicable only

for international textile agreement

purposes, the principles of § 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
Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules 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 § 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 § 102.21. This

proposed new § 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 § 102.21 would supersede

those provisions of §§ 102.1 through

102.20 for those products that fall

within the scope of § 102.21, except for

the purpose of identifying products of

Israel for which §§ 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 § 102.21 will become

effective.

Wholly Obtained or Produced

The first § 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

§ 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 § 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 § 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 § 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 § 102.21. In
27382 Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules

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 § 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

§ 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 § 102.21 both

under the third general origin rule

(paragraph (c)(3)) and in the tariff shift

rules under paragraph (e).

While § 12.130(e)(2)(iii) of the

Customs Regulations presently

addresses the assembly of ‘‘knit-toshape component parts’’, section

334(b)(2)(B) of the Act applies the knitto-shape concept to the imported article

as a whole. Because of the wording used

in § 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 § 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
Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules 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 § 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 § 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), § 1.4, Treasury Department

Regulations (31 CFR 1.4), and

§ 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 § 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 dutyfree 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 §§ 10.191–10.198 continue

to read, and a specific authority citation

for §§ 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:

§ 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
27384 Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules

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

§ 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 § 10.16 insofar as they may be

applicable to a textile component; and

(c) The valuation and documentation

provisions of §§ 10.17, 10.18, 10.21 and

10.24 shall apply.

§ 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

§ 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 nonbeneficiary country; or

(ii) Where the component or article

passed through the territory of a nonbeneficiary 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 § 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:

§ 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 § 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;

* * * * *

§ 12.130 [Amended]

2. In § 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

§ 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 § 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 § 102.21,

this’’ and by adding a sentence at the

end to read as follows:

§ 102.0 Scope.

* * * The rules for determining the

country of origin of textile and apparel

products set forth in § 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:

§ 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

§ 102.21.

* * * * *

3. Section 102.21 is added to read as

follows:

§ 102.21 Textile and apparel products.

(a) Applicability. Except for purposes

of determining whether goods originate
Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules 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 ‘‘fabricmaking 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 §§ 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.
27386 Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules

HTSUS Tariff shift and/or other requirements

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.
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HTSUS Tariff shift and/or other requirements

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.
27388 Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules

HTSUS Tariff shift and/or other requirements

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 fabricmaking 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.
Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules 27389

HTSUS Tariff shift and/or other requirements

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.
27390 Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules

HTSUS Tariff shift and/or other requirements

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.
Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed Rules 27391

HTSUS Tariff shift and/or other requirements

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