[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
