[Federal Register Volume 61, Number 124 (Wednesday, June 26, 1996)]
[Rules and Regulations]
[Pages 32924-32925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16278]



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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 102 and 134


Country of Origin Marking Exception for Textile Goods Assembled 
Abroad With Components Only Cut to Shape in the U.S.

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

ACTION: General policy statement.

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SUMMARY: This notice advises the public of a general country of origin 
marking exception that will be granted by Customs, commencing July 1, 
1996, for imported textile goods assembled abroad with components which 
were only cut to shape in the United States.

EFFECTIVE DATE: July 1, 1996.

FOR FURTHER INFORMATION CONTACT: Craig Walker, Special Classification 
and Marking Branch, Office of Regulations and Rulings (202-482-6980).

SUPPLEMENTARY INFORMATION:

Background

    On September 5, 1995, Customs published in the Federal Register (60 
FR 46188) a final rule document setting forth, in section 102.21, 
Customs Regulations (19 CFR 102.21), new rules of origin applicable to 
textile and apparel products. These rules, which become effective July 
1, 1996, implement the provisions of section 334 of the Uruguay Round 
Agreements Act (``the Act'') (codified at 19 U.S.C. 3592).
    One of the fundamental changes that will result from the new 
textile rules of origin is that cutting fabric to shape will no longer 
confer origin. Currently (prior to July 1, 1996), the cutting of 
foreign fabric to shape in the U.S. results in the components becoming 
products of the U.S. If these components are assembled abroad and 
returned, they are entitled to a duty allowance under subheading 
9802.00.80, HTSUS, and pursuant to the regulations (19 CFR 10.22, which 
will be eliminated effective August 5, 1996), they may be marked 
``Assembled in X country from U.S. components'' or a similar phrase. 
However, under the new textile rules, these fabric components will no 
longer be of U.S. origin. Therefore, while the Act provides that 
importers may continue to receive a duty allowance for components cut 
to shape in the U.S. from foreign fabric and assembled abroad, 
effective July 1, 1996, such assembled goods will no longer be 
considered properly marked when they are labeled ``Assembled in X 
country from `U.S.' components.''

[[Page 32925]]

    However, the marking statute and regulations allow for exceptions 
to the marking requirements under certain circumstances. One of these 
exceptions concerns articles which cannot be marked prior to, or after, 
importation except at an expense that would be economically 
prohibitive. See 19 U.S.C. 1304(a)(3) (C) and (K), and 19 CFR 134.32(c) 
and (o). In consideration of: (1) The fact that many labels for 
assembled goods were already printed prior to July 1, 1996, on the 
basis of the current textile origin rules; (2) the expectation that 
many individual requests will be received for marking exceptions on the 
ground of economic prohibitiveness; and (3) the importance of providing 
uniformity of Customs treatment for such goods, Headquarters has made a 
general finding that it would be economically prohibitive to properly 
mark goods (either before or after importation) with respect to which 
marking labels have already been pre-printed or/or sewn into goods 
based on the current origin rules. This action will allow importers to 
exhaust their inventory of pre-existing labels stating ``Assembled in X 
country from U.S. components'' or a similar phrase, for goods that were 
assembled from components that were only cut to shape in the U.S. 
(i.e., not woven in the U.S.). This general marking exception shall be 
granted for all imported goods marked as described above for a period 
not to exceed four (4) months from the effective date of the new 
textile rule of origin (i.e., no later than November 1, 1996) which 
Customs views as a reasonable period of time for the exhaustion of 
existing inventory of labels. Please note that, if information is 
obtained that the above labels were printed after July 1, 1996, this 
general marking exception will not apply.

    Dated: June 21, 1996.
Stuart P. Seidel,
Assistant Commissioner, Office of Regulations and Rulings.
[FR Doc. 96-16278 Filed 6-25-96; 8:45 am]
BILLING CODE 4820-02-P