Quiz 1 Q 6 – Country of origin determination for textiles and apparel products

The applicable regulations are as follows:

19 CFR § 102.21 – Textile and apparel products

19 CFR § 102.21(b)(2) A fabric-making process is any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric.

19 CFR § 102.21(b)(5) A textile or apparel product is any good classifiable in Chapters 50 through 63, Harmonized Tariff Schedule of the United States (HTSUS) …

19 CFR § 102.21(c) General rules. Subject to paragraph (d) of this section, the country of origin of a textile or apparel product will 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.

19 CFR § 102.21(e) Specific rules by tariff classification.

(1) The following rules will apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:

HTSUS 6213–6214: Except for goods of heading 6213 through 6214 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6213 through 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

Here, there is no single country, territory, or insular possession in which the good was wholly obtained or produced. Therefore, the first rule cannot be applied to determine the country of origin of the scarves.

Since we have to apply the rules of origin sequentially we now look at the second rule and it states that 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.

The information provided in the question states that the scarves are imported into the US directly from Italy, and correctly entered under heading 6214. When we look at 19 CFR § 102.21(e) Specific rules by tariff classification for HTSUS 6213–6214, it is stated that except for goods of heading 6213 through 6214 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6213 through 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

The scarves classified under 6214 are not included in goods of heading 6213 through 6214 provided for in paragraph (e)(2). Therefore, the country of origin of a scarves classifiable under heading 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process. We are told in the question that silk yarn is manufactured in Korea and then sent to China where it is woven into fabric. Since the fabric-making process occurred in China, the country of origin of these silk scarves classified under heading 6214 is China. This answer is derived by applying the textile rules of origin sequentially.