Textiles

1
Textiles

• Chapter 30

2
What is a Textile Product

• A Textile or Apparel product is any good
  classified in HTS 50 63 and the list in
  102.21(b)(5).
• See the list now!!!
• Keep this section open for this lecture

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Textile Vocabulary

• De Minimis allows a textile or apparel good to
  contain a small percent by weight of foreign
  fibers or yarns. Usually 7.
• Elastomeric Yarn Like a spandex type yarn. A
  textile or apparel good containing elastomeric
  yarns in the component that determines
  classification of the good is eligible for
  preferential treatment if the elastomeric yarn is
  wholly formed in the territory of a party to the
  agreement. (In short, normally the elastomeric
  yarn must be made in the country of the trade
  program)

4
Textile Vocabulary Cont.

• TPL Temporary Preference Level. Similar to a
  tariff rate quota. A certain quantity of goods
  can enter during an annual period and receive a
  reduced rate or duty free treatment even though
  they do not meet tariff shift rules.
• QIZ Qualified Industrial Zone. Jordan and
  Egypt have a QIZ.

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Textile Vocabulary Cont.

• Visible Lining Rule Certain fabrics which are
  used as a visible lining material in coats,
  anoraks, suits, jackets, skirts, and similar
  articles, must be formed and finished in the
  Country of the trade program to claim
  preferential treatment. The rule applies to the
  visible lining fabric in the main body of the
  garment, excluding sleeves, and does not apply to
  removable linings.

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Textiles Rules of Origin 102.21

• Where the fabric is woven, knitted, needled, or
  created (Ex. A roll of fabric)
• Articles such as blankets, linens, labels,
  curtains, and scarves, Country of Origin is where
  the fabric was created not where product is
  finished
• The Country of Origin for most yarn is where the
  staple fibers are spun into a yarn.

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Textile Rules Continued

• 1. Where good is wholly obtained or produced
• 2. Where the foreign material undergoes tariff
  shift 102.21e (see example on next slide)
• 3. Where good is knit to shape (def. .21(b)(3))
• 4. Where good was wholly assembled
• 5. Where the most important assembly process
  occurred
• 6. Where an important assembly process occurred

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Textiles Rules of Origin 102.21

• Tariff Shift - the country of origin of a textile
  or apparel product may be determined by a shift
  (manufacturing process) from one Harmonized
  Tariff (HTS) Number to another - as listed in the
  tariff shift rules.
• Example classification for headings 5204
  through 5207 (cotton yarns) states that these
  products can be from any other heading provided
  that the change or shift results from a spinning
  process. So, cotton yarns will be considered
  country of origin X if cotton yarns are formed
  from a spinning process in country X.

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Textile Marking

• 1. Country of Origin, 2. fiber content, 3. care
  instructions, 4. manufacturer or importer.
• The Federal Trade Commission (FTC) allows
  registration of the manufacturer or importer
  names. When a manufacturer registers with the
  FTC, they receive an RN code, which can be used
  in place of manufacturer name.

10
Redelivery

• Any textile that is entered is considered a
  conditional release for 180 days from the date of
  release for determination of Country of Origin.
  141.113(b)
• CBP can demand redelivery for up to 180 days from
  date of release if country of origin was
  misrepresented to CBP.

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Misc.

• Quota categories
• 200 series -cotton and/or man made fiber
• 300 series -cotton (likely when item is 50 or
  more by weight)
• 400 series -wool (likely when item is 17 or more
  by weight)
• 600 series -man made fiber (likely when item is
  50 or more by weight)
• 800 series -silk blends or non cotton vegetable
  fibers
• Textile Trade Programs

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• Would a garment classifiable in Chapter 62 and
  shipped to the U.S.
• qualify for treatment under the U.S. - Australia
  Free Trade
• Agreement (UAFTA) if it is manufactured in
  Australia of Australian
• silk (94), elastomeric yarn made in Peru (3)
  and cotton lace
• made in Ethiopia (3)?
• A. Yes, because the chief weight of the fabric is
  made in the territory of a UAFTA party
• B. No, because the cotton lace trimming is not
  made in the territory of a UAFTA party
• C. Yes, because the de minimus rule states an
  originating textile or apparel good may contain
  7 by weight of foreign fibers or yarns
• D. No, because the fact that the cotton lace is
  made in Ethiopia would shift the garment to be
  considered under the African Growth and
  Opportunity Act
• E. No, because the elastomeric yarn is made in
  Peru (answer is E)