96-18545. Rules of Origin for Textile and Apparel Products  

  • [Federal Register Volume 61, Number 141 (Monday, July 22, 1996)]
    [Rules and Regulations]
    [Pages 37817-37818]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-18545]
    
    
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    DEPARTMENT OF THE TREASURY
    
    Customs Service
    
    19 CFR Part 102
    
    [T.D. 96-56]
    
    
    Rules of Origin for Textile and Apparel Products
    
    AGENCY: U.S. Customs Service, Department of the Treasury.
    
    ACTION: Final rule.
    
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    SUMMARY: This document sets forth technical corrections to the Customs 
    Regulations which govern the determination of the country of origin of 
    textile and apparel products for purposes of laws enforced by Customs. 
    The changes involve an updating of certain tariff subheading references 
    and the correction of an error in the text of one tariff shift rule.
    
    EFFECTIVE DATE: July 22, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Phil Robins, Office of Regulations and 
    Rulings (202-482-7029).
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        On September 5, 1995, Customs published T.D. 95-69 in the Federal 
    Register (60 FR 46188) containing final amendments to the Customs 
    Regulations to set forth standards governing the determination of the 
    country of origin of textile and apparel products for purposes of laws 
    enforced by Customs. The regulatory amendments primarily implemented 
    the provisions of section 334 of the Uruguay Round Agreements Act 
    (Public Law 103-465, 108 Stat. 4809) and included a new Sec. 102.21 (19 
    CFR 102.21) which covers the majority of the section 334 provisions and 
    applies to goods entered, or withdrawn from warehouse, for consumption 
    on or after July 1, 1996.
        Section 102.21(b)(5) defines a ``textile or apparel product'' as a 
    good classifiable in specified chapters, headings or subheadings of the 
    Harmonized Tariff Schedule of the United States (HTSUS). Section 
    102.21(c) sets forth the general rules for determining the country of 
    origin of a textile or apparel product and, in paragraph (c)(2), allows 
    for the determination of the country of origin of a good on the basis 
    of a tariff classification change and/or other requirement specified 
    for the good in paragraph (e). Paragraph (e) of Sec. 102.21 
    incorporates a table consisting of a list of HTSUS headings and 
    subheadings together with corresponding specified tariff shift and/or 
    other requirements.
        The HTSUS references in the Sec. 102.21 texts were based on the 
    1995 version of the HTSUS. However, the 1996 version of the HTSUS 
    incorporates a number of subheading number changes as a result of 
    amendments made to the international Harmonized System, one of which 
    involved the redesignation of subheading 7019.10 as subheading 7019.19 
    and another of which involved the replacement of subheading 7019.20 by 
    new subheadings 7019.40-7019.59. Accordingly, this document makes the 
    following changes within the Sec. 102.21 texts to conform them to the 
    1996 HTSUS: (1) in the list of HTSUS headings and subheadings in 
    paragraph (b)(5), ``7019.10.15'' is changed to read ``7019.19.15'' and 
    ``7019.10.28'' is changed to read ``7019.19.28'' and ``7019.20'' is 
    changed to read ``7019.40-59''; (2) in the table under paragraph (e), 
    in the ``HTSUS'' column, ``7019.10.15'' is changed to read 
    ``7019.19.15'' and ``7019.10.28'' is changed to read ``7019.19.28'' and 
    ``7019.20'' is changed to read ``7019.40-7019.59'', and in the 
    corresponding specific rules in the ``Tariff shift and/or other 
    requirements'' column, each reference to ``7019.10.15'' is changed to 
    read ``7019.19.15'' and each reference to ``7019.10.28'' is changed to 
    read ``7019.19.28'' and the reference to ``7019.20'' is changed to read 
    ``7019.40 through 7019.59''; and (3) also in the ``Tariff shift and/or 
    other requirements'' column in the table under paragraph (e), in the 
    second tariff shift rule for newly designated subheadings 7019.19.15 
    and 7019.19.28, the exception clause is changed to read ``except from 
    subheading 7019.19.30 through 7019.19.90, 7019.31.00 through 
    7019.39.50, and 7019.90''.
        In addition, it is noted that in the table under paragraph (e) of 
    Sec. 102.21, the tariff shift rule for newly designated subheadings 
    7019.40-7019.59 (which cover woven fabrics of rovings and other woven 
    fabrics) specifies a change from any other ``heading'' and includes a 
    proviso that the change must be the result of a fabric-making process. 
    It is further noted that heading 7019 (which covers glass fibers and 
    articles thereof) includes subheadings for glass fiber rovings 
    (subheading 7019.12.00) and yarns (subheadings 7019.19.05-7019.19.28) 
    which are the products from which the fabrics of subheadings 7019.40-
    7019.59 are made and without which those fabrics could not exist. 
    Therefore, by specifying a change from any other ``heading'' (that is, 
    any heading other than heading 7019) rather than a change from any 
    other ``subheading'' (so as to allow a change from subheadings 
    7019.12.00 and 7019.19.05-7019.19.28), the tariff shift rule for 
    subheadings 7019.40-7019.59 has no substantive utility because the rule 
    disallows the very tariff shifts that would be involved in producing 
    the goods covered by those subheadings. Accordingly, this document 
    amends the tariff shift rule for subheadings 7019.40-7019.59 to refer 
    to a change from any other ``subheading'' in order to correct this 
    obvious drafting error.
    
    Executive Order 12866, Regulatory Flexibility Act, and Inapplicability 
    of Notice and Delayed Effective Date Requirements
    
        This document does not meet the criteria for a ``significant 
    regulatory action'' as specified in Executive Order 12866. In addition, 
    pursuant to the provisions of the Regulatory Flexibility Act (5 U.S.C. 
    601 et seq.), it is certified that the amendments will not have a 
    significant economic impact on a substantial number of small entities 
    because the amendments either merely conform the regulations to 
    existing statutory provisions or correct an obvious error. For the same 
    reasons and in view of the July 1, 1996, effective date of the 
    regulatory provisions to which these amendments relate, it is 
    determined pursuant to the provisions of 5 U.S.C. 553(b)(B) that notice 
    and public procedures thereon are unnecessary and contrary to the 
    public interest, and it is determined pursuant to the provisions of 5 
    U.S.C. 553(d)(3) that good cause exists for dispensing with a delayed 
    effective date.
    
    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 in 19 CFR Part 102
    
        Customs duties and inspections, Imports, Reporting and 
    recordkeeping requirements, Rules of origin, Trade agreements.
    
    Amendments to the Regulations
    
        Accordingly, for the reasons stated above, Part 102, Customs 
    Regulations (19 CFR Part 102), is amended as set forth below.
    
    [[Page 37818]]
    
    PART 102--RULES OF ORIGIN
    
        1. The authority citation for Part 102 continues to read as 
    follows:
    
        Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
    Tariff Schedule of the United States), 1624, 3314, 3592.
    
    
    Sec. 102.21  [Amended]
    
        2. Section 102.21(b)(5) is amended by removing the listings 
    ``7019.10.15'' and ``7019.10.28'' and ``7019.20'' and adding, in their 
    place in numerical order, the listings ``7019.19.15'' and 
    ``7019.19.28'' and ``7019.40-59''.
        3. In Sec. 102.21(e), the table is amended by removing the entries 
    for HTSUS 7019.10.15 and HTSUS 7019.10.28 and HTSUS 7019.20 and adding, 
    in their place, entries for HTSUS 7019.19.15 and HTSUS 7019.19.28 and 
    HTSUS 7019.40-7019.59 to read as follows:
    
    
    Sec. 102.21  Textile and apparel products.
    
    * * * * *
        (e) * * *
    
    ------------------------------------------------------------------------
                HTSUS               Tariff shift and/or other requirements  
    ------------------------------------------------------------------------
                                                                            
    *                  *                  *                  *              
                      *                  *                  *               
    7019.19.15..................  (1) If the good is of filaments, a change 
                                   to subheading 7019.19.15 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 7019.19.15 from any 
                                   other subheading, except from subheading 
                                   7019.19.30 through 7019.19.90, 7019.31.00
                                   through 7019.39.50, and 7019.90, and     
                                   provided that the change is the result of
                                   a spinning process.                      
    7019.19.28..................  (1) If the good is of filaments, a change 
                                   to subheading 7019.19.28 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 7019.19.28 from any 
                                   other subheading, except from subheading 
                                   7019.19.30 through 7019.19.90, 7019.31.00
                                   through 7019.39.50, and 7019.90, and     
                                   provided that the change is the result of
                                   a spinning process.                      
    7019.40-7019.59.............  A change to subheading 7019.40 through    
                                   7019.59 from any other subheading,       
                                   provided that the change is the result of
                                   a fabric-making process.                 
                                                                            
    *                  *                  *                  *              
                      *                  *                  *               
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    George J. Weise,
    Commissioner of Customs.
    
        Approved: June 17, 1996.
    John P. Simpson,
    Deputy Assistant Secretary of the Treasury.
    [FR Doc. 96-18545 Filed 7-19-96; 8:45 am]
    BILLING CODE 4820-02-P
    
    
    

Document Information

Effective Date:
7/22/1996
Published:
07/22/1996
Department:
Customs Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-18545
Dates:
July 22, 1996.
Pages:
37817-37818 (2 pages)
Docket Numbers:
T.D. 96-56
PDF File:
96-18545.pdf
CFR: (1)
19 CFR 102.21