[Federal Register Volume 60, Number 99 (Tuesday, May 23, 1995)]
[Proposed Rules]
[Pages 27378-27391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12655]




[[Page 27377]]

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Part II





Department of the Treasury





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Customs Service



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19 CFR Part 10 et al.



Rules of Origin for Textile and Apparel Products; Proposed Rule

  Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Proposed 
Rules    
[[Page 27378]] 

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 12 and 102

RIN 1515-AB71


Rules of Origin for Textile and Apparel Products

AGENCY: Customs Service, Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations to 
implement the provisions of section 334 of the Uruguay Round Agreements 
Act (``the Act'') regarding the country of origin of textile and 
apparel products. Except for the purpose of identifying products of 
Israel, the proposed rules would govern the determination of the 
country of origin of imported textile and apparel products for purposes 
of laws enforced by the Customs Service. The proposed rules also 
implement the provisions of section 334 of the Act regarding the 
treatment of components that are cut to shape in the United States from 
foreign fabric, exported for assembly, and returned to the United 
States. The document also implements previously-enacted provisions 
regarding the treatment of articles assembled or produced in a 
Caribbean Basin Initiative beneficiary country wholly from U.S.-
produced components, materials or ingredients.

DATES: Comments must be received on or before June 22, 1995.

ADDRESSES: Written comments (preferably in triplicate) may be addressed 
to the Regulations Branch, U.S. Customs Service, Franklin Court, 1301 
Constitution Avenue, N.W., Washington, D.C. 20229. Comments submitted 
may be inspected at the Regulations Branch, Office of Regulations and 
Rulings, Franklin Court, 1099 14th Street, N.W., Suite 4000, 
Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Phil Robins, Office of Regulations and 
Rulings (202-482-7029).

SUPPLEMENTARY INFORMATION:

Background

    On December 8, 1994, President Clinton signed into law the Uruguay 
Round Agreements Act (``the Act''), Public Law 103-465, 108 Stat. 4809. 
Subtitle D of Title III of the Act deals with textiles and includes 
section 334 (codified at 19 U.S.C. 3592) which concerns rules of origin 
for textile and apparel products.
    Paragraph (a) of section 334 provides that the Secretary of the 
Treasury shall prescribe rules implementing the principles contained in 
paragraph (b) for determining the origin of ``textiles and apparel 
products''. Paragraph (a) further provides that such rules must be 
promulgated in final form not later than July 1, 1995.
    Paragraph (b) of section 334 incorporates the following provisions: 
(1) For purposes of the customs laws and the administration of 
quantitative restrictions and except as otherwise provided for by 
statute, general rules for determining when a ``textile or apparel 
product'' originates in a country, territory, or insular possession, 
and is the growth, product, or manufacture of that country, territory, 
or insular possession; (2) special origin rules for goods classifiable 
under certain specified tariff headings and subheadings; (3) a 
``multicountry rule'' for determining origin when the origin of a good 
cannot be determined under the preceding provisions of paragraph (b); 
(4) special rules governing the treatment of components that are cut to 
shape in the United States from foreign fabric, exported for assembly, 
and returned to the United States; and (5) an exception to the 
application of section 334 that specifically provides for the continued 
application of the administrative practices that were applied 
immediately before the enactment of the Act to determine the origin of 
textile and apparel products from Israel, unless such practices are 
modified by the mutual consent of the United States and Israel.
    Paragraph (c) of section 334 provides that section 334 shall apply 
to goods entered, or withdrawn from warehouse, for consumption on or 
after July 1, 1996. Paragraph (c) further provides that section 334 
shall not apply to goods entered or withdrawn from warehouse on or 
before January 1, 1998, that are covered by contracts of sale which 
were entered into, with all material terms fixed, before July 20, 1994, 
and which are filed, with an accompanying certification, with the 
Commissioner of Customs within 60 days after the date of the enactment 
of the Act. On January 27, 1995, Customs published in the Federal 
Register (60 FR 5457) a notice setting forth the procedures for filing 
such contracts and certifications.
    The purpose of this document is to set forth for public comment 
proposed regulations implementing the principles contained in section 
334(b) of the Act, with a view to promulgation of final regulations by 
July 1, 1995, as mandated by section 334(a) of the Act.

Discussion of Proposed Rules

    On January 3, 1994, Customs published T.D. 94-4 in the Federal 
Register (59 FR 110) setting forth interim regulations for determining 
the origin of goods from Canada and Mexico other than for the purposes 
of determining eligibility for preference under the North American Free 
Trade Agreement (NAFTA). T.D. 94-4 set forth these interim rules as a 
new Part 102 of the Customs Regulations (19 CFR Part 102), entitled 
``Rules of Origin'', and also set forth consequential conforming 
interim amendments to existing sections within Parts 12 and 134 of the 
Customs Regulations (19 CFR Parts 12 and 134). These interim 
regulations were made immediately effective for trade from Canada and 
Mexico pursuant to Annex 311 of the NAFTA. No final action on these 
interim regulatory amendments has been taken.
    Also on January 3, 1994, Customs published a document in the 
Federal Register (59 FR 141) that proposed to amend Sec. 102.0 of the 
interim regulations published as T.D. 94-4 so that the Part 102 
provisions would also apply to country of origin determinations ``for 
purposes of the Customs and related laws and the navigation laws of the 
United States'' for goods from all countries. This document also 
proposed to amend various provisions within Parts 4, 10, 12, 134 and 
177 of the Customs Regulations (19 CFR Parts 4, 10, 12, 134 and 177) to 
ensure that the rules contained in Part 102 would control wherever 
language requiring a country of origin determination appears in those 
other regulatory provisions. Final action also has not been taken on 
these proposed regulatory amendments.
    In keeping with the intended function of Part 102 as the repository 
for origin rules under the uniform rules of origin principle reflected 
in the January 3, 1994, proposal mentioned above, Customs proposes in 
this document to implement those provisions of section 334(b) of the 
Act that have broad application under the terms of the statute by 
amending the Part 102 provisions and by amending other regulatory 
provisions as necessary to conform to those Part 102 changes. With 
regard to the remaining provisions of section 334(b) (that is, the 
special rules governing the treatment of components that are cut to 
shape in the United States from foreign fabric, exported for assembly, 
and returned to the United States) and with one exception as discussed 
further below, Customs proposes to implement those provisions by 
amending that portion of Part 10 of the Customs Regulations (19 CFR 
Part [[Page 27379]] 10) that concerns articles assembled abroad with 
United States components because the subject provisions of section 
334(b) are more appropriate to that context. In addition, it is 
proposed to make a number of amendments to existing regulatory 
provisions to ensure that those existing provisions will be consistent 
with the new regulatory proposals implementing section 334(b) of the 
Act. The proposed amendments are discussed in more detail below.

A. Proposed Amendments to Part 10

Section 334(b)(4)(A) of the Act
    Section 334(b)(4)(A) of the Act provides that the value of a 
component that is cut to shape (but not to length, width, or both) in 
the United States from foreign fabric and exported to another country, 
territory, or insular possession for assembly into an article that is 
then returned to the United States: (1) Shall not be included in the 
dutiable value of such article; and (2) may be applied toward 
determining the percentage referred to in General Note 7(b)(i)(B) of 
the Harmonized Tariff Schedule of the United States (HTSUS), subject to 
the limitation provided in that note.
    Subheading 9802.00.80, HTSUS, provides a duty exemption for 
fabricated components of U.S. origin that are assembled abroad and 
returned to the United States. Under current textile rules of origin, 
textile components that are cut to shape in the United States from 
foreign fabric qualify as U.S.-origin fabricated components under 
subheading 9802.00.80, HTSUS. The effect of section 334(b)(4)(A) of the 
Act is to continue the duty exemption for those components, 
notwithstanding the fact that under the origin principles in section 
334(b) of the Act such components would no longer qualify as products 
of the United States (see the ``cutting versus assembly'' discussion in 
connection with the proposed amendments to Part 102 below). In 
addition, section 334(b)(4)(A) in effect continues the present practice 
of allowing the value of such cut-to-shape textile components to be 
applied toward the 35 percent value-content requirement, up to the 15 
percent maximum limitation for materials produced in the United States, 
for purposes of the Caribbean Basin Initiative (CBI) duty-free program 
established by the Caribbean Basin Economic Recovery Act, as amended 
(19 U.S.C. 2701 et seq.), and reflected in General Note 7, HTSUS.
    Although section 334(b)(4)(A) of the Act is a separate statutory 
provision and does not amend or otherwise affect subheading 9802.00.80, 
HTSUS, Customs believes that the references to ``component'' and 
``assembly'' in the Act were intended to mirror the concepts of, 
including the types of operations traditionally permitted under, 
subheading 9802.00.80, HTSUS. Accordingly, Customs believes that the 
appropriate place for regulatory implementation of this aspect of the 
Act would be following the existing Part 10 regulations applicable to 
subheading 9802.00.80, HTSUS, because some of those existing regulatory 
provisions appear to be equally relevant for purposes of this provision 
of the Act. Therefore, Customs proposes to add a new Sec. 10.25 (19 CFR 
10.25) that would reflect the relevant terms of section 334(b)(4)(A) of 
the Act and that would also provide for the applicability of certain of 
those existing regulatory standards and procedures (for example, the 
U.S. component valuation principles, the assembly and incidental 
operations principles, and the documentation requirements).
    With regard to the second aspect of section 334(b)(4)(A) of the 
Act, which allows the value of textile components cut to shape in the 
United States to be applied toward the 35 percent value-content 
requirement under the CBI duty-free program, Customs proposes to 
reflect this provision in the context of the CBI implementing 
regulations by adding a new paragraph (d) to Sec. 10.195 (19 CFR 
10.195). Although modeled on present paragraph (c) of that section, the 
following particular points are noted regarding this new paragraph (d): 
(1) The proposed text mentions the percentage ``referred to in 
paragraph (c)'' (that is, the 15 percent maximum attributable to U.S. 
materials) rather than the percentage referred to in paragraph (a) 
(that is, the overall 35 percent value-content requirement), in order 
to clarify that the new allowance operates as part of, or an 
alternative to, but not in addition to, the pre-existing 15 percent 
allowance for U.S.-produced materials; and (2) contrary to present 
Sec. 10.195(c), which refers to materials produced in the ``customs 
territory of the U.S. (other than the Commonwealth of Puerto Rico)'' 
and thus reflects the specific terms of the CBI statute (19 U.S.C. 
2703(a)(1)), the text of this new Sec. 10.195(d) refers to a textile 
component that is cut to shape in the ``U.S. (including the 
Commonwealth of Puerto Rico)'', because Customs believes that the 
reference to the ``United States'' in section 334(b)(4)(A) of the Act 
was intended to cover Puerto Rico.
Section 334(b)(4)(B) of the Act
    Section 334(b)(4)(B) of the Act provides that no article (except a 
textile or apparel product) assembled in whole of components described 
in section 334(b)(4)(A) of the Act, or of such components and 
components that are products of the United States, in a CBI beneficiary 
country shall be treated as a foreign article, or as subject to duty, 
if the components after exportation from the United States, and the 
article itself before importation into the United States, do not enter 
into the commerce of any foreign country other than such a beneficiary 
country.
    U.S. Note 2(b), Subchapter II, Chapter 98, HTSUS, provides that no 
article (except a textile article, apparel article, or petroleum, or 
any product derived from petroleum, provided for in heading 2709 or 
2710) may be treated as a foreign article or as subject to duty if the 
article is assembled or processed in a CBI beneficiary country in whole 
of fabricated components that are a product of the United States or if 
the article is processed in a CBI beneficiary country in whole of 
ingredients (other than water) that are a product of the United States, 
provided that neither the fabricated components, materials or 
ingredients after exportation from the United States, nor the article 
itself before importation into the United States, enters the commerce 
of any foreign country other than a CBI beneficiary country. The effect 
of section 334(b)(4)(B) of the Act is to continue this Note 2(b) 
treatment for textile and apparel articles which would meet the 
requirements of the Note but for the fact that, under the origin 
principles in section 334(b) of the Act, components cut to shape in the 
United States from foreign fabric would no longer qualify as products 
of the United States.
    Customs notes that the provisions of Note 2(b) discussed above have 
not been implemented in the Customs Regulations. Accordingly, based on 
the same rationale stated above regarding the addition of new 
Sec. 10.25 to implement section 334(b)(4)(A) of the Act, Customs 
proposes to add a new Sec. 10.26 (19 CFR 10.26) which would cover both 
Note 2(b) and the provisions of section 334(b)(4)(B) of the Act. To 
reflect that these are discrete statutory provisions, paragraph (a) of 
the proposed new section covers only Note 2(b) and paragraph (b) 
thereof covers only the provisions of section 334(b)(4)(B) of the Act. 
Paragraph (c) sets forth definitions or rules for purposes of the 
section and includes, as subparagraph (c)(3), a rule regarding 
[[Page 27380]] entry into the commerce (of a non-beneficiary country) 
which is modeled on the ``imported directly'' principle contained in 
Sec. 10.193 of the CBI implementing regulations.
    Customs proposes to define the terms ``textile article'', ``apparel 
article'', and ``textile or apparel product'' for purposes of new 
Sec. 10.26 more narrowly than the term ``textile or apparel product'' 
is defined for purposes of the new Part 102 provisions (see the below 
discussion of the proposed Part 102 amendments in regard to the 
latter). As noted above, Sec. 10.26(a) would implement the provisions 
of U.S. Note 2(b), Subchapter II, Chapter 98, HTSUS, and Sec. 10.26(b) 
would implement section 334(b)(4)(B) of the Act. With regard to the 
scope of the terms ``textile article'' and ``apparel article'' as used 
in Note 2(b), in T.D. 91-88, 25 Cust.Bull. 226, Customs issued an 
interpretive rule which concluded that articles (other than footwear 
and parts of footwear) classifiable in HTSUS provisions that have a 
textile and apparel category number designation should be considered 
``textile'' and ``apparel'' articles for purposes of Note 2(b). 
Footwear and parts of footwear were determined in this interpretive 
rule not to constitute ``textile'' and ``apparel'' articles under Note 
2(b). As indicated above, Customs believes that the primary purpose of 
section 334(b)(4)(B) of the Act is to preserve the current duty 
exemption granted under Note 2(b) for articles assembled abroad from 
components cut to shape in the United States from foreign fabric. For 
example, under Customs current interpretation of Note 2(b), foreign 
fabric components cut to shape in the United States that are assembled 
in a CBI beneficiary country into a footwear upper or assembled into 
gloves classifiable in a provision that does not have a textile quota 
category number have been considered to be outside the scope of the 
articles excluded from this duty exemption. If, however, the term, 
``textile or apparel product'' as used in Sec. 334(b)(4)(B) of the Act 
is interpreted to cover the same articles covered by the term ``textile 
or apparel product'' as used elsewhere in section 334(b) of the Act 
[which include footwear and parts thereof and many articles that are 
not classified in quota provisions], Customs would fail to give effect 
to the legislative purpose behind this provision. Indeed, under such an 
interpretation this provision would be nullified by the exception 
contained therein, since no good can be ``assembled in whole of 
components [cut to shape from foreign fabric in the United States] * * 
*'' and still be considered to fall outside the scope of goods excluded 
from the duty-free treatment allowed under the provision in question. 
Therefore, solely for purposes of section 334(b)(4)(B) of the Act, it 
is proposed to define the term ``textile or apparel product'' to 
reflect the same interpretation previously given by Customs to the 
terms ``textile article'' and ``apparel article'' under Note 2(b).

B. Proposed Amendments to Part 102

    The proposed amendments to Part 102 set forth in this document 
specifically implement sections 334(b) (1)-(3) and (5) of the Act. 
These proposed changes affect Part 102 and other provisions of the 
Customs Regulations.
    The proposed amendments to Part 102 set forth in this document 
represent the view of Customs on the application of the principles 
contained in sections 334(b) (1)-(3) and (5) and are intended to be 
used in all determinations of whether a textile good is the product of 
a particular country, territory, or possession, except where other 
statutory authority provides for application of a different origin 
standard. Accordingly, starting on July 1, 1996, the final regulations 
resulting from these proposed regulatory texts would take precedence 
over any other conflicting provisions in Part 102 or elsewhere in the 
Customs Regulations but would not control origin determinations 
regarding textile and apparel products of Israel.
Scope of ``Textile or Apparel Product''
    Section 334(b) of the Act sets forth principles governing the 
determination of the origin of ``a textile or apparel product'' for 
purposes of laws enforced by Customs. However, nowhere in the 
legislation is ``textile or apparel product'' defined. Customs believes 
that the principles in section 334(b) were intended to be applicable to 
essentially the same goods to which Customs has applied the principles 
of Sec. 12.130 of the Customs Regulations (19 CFR 12.130).
    Section 12.130, which Customs currently follows in determining the 
country of origin of textile products for most purposes, specifically 
states that its provisions cover textiles and textile products subject 
to section 204, Agricultural Act of 1956, as amended (7 U.S.C. 1854), 
that is, merchandise which is the subject of an international textile 
agreement. Customs has interpreted this to include all goods 
classifiable in Section XI of the HTSUS and all goods classifiable 
outside Section XI under a provision that has a textile and apparel 
category number designation. However, Customs has ruled that while the 
provisions of Sec. 12.130 are specifically applicable only for 
international textile agreement purposes, the principles of Sec. 12.130 
are applicable to all textiles and textile products for all purposes 
(i.e., quota, marking and duty assessment).
    The United States is a signatory to the Agreement Establishing the 
World Trade Organization (the WTO Agreement) and to the Agreement on 
Textiles and Clothing annexed thereto. In the Annex to the Agreement on 
Textiles and Clothing, textile and clothing products are defined by 
means of a listing of subheadings in the international Harmonized 
Commodity Description and Coding System, or Harmonized System (which 
has been implemented in the United States in the HTSUS). The 
subheadings listed in the Annex to the Agreement on Textiles and 
Clothing include some provisions which presently do not have a textile 
and apparel category number currently associated with them. They also 
do not include every provision contained in Harmonized System/HTSUS 
Section XI (which covers textiles and textile articles).
    Customs notes that sections 101(d)(4), 331 and 332 of the Act 
specifically refer to the Agreement On Textiles And Clothing of the WTO 
Agreement. Moreover, section 332 of the Act amended the second sentence 
of section 204 of the Agricultural Act of 1956 to specifically 
authorize the President to issue, in order to carry out a multilateral 
agreement (``including but not limited to the Agreement on Textiles and 
Clothing'' of the WTO Agreement), regulations governing the entry or 
withdrawal from warehouse of articles covered by such an agreement that 
are the products of countries which are not parties to the agreement or 
to which the United States does not apply the agreement.
    Customs believes that, in order to reflect the overall context in 
which section 334 of the Act was enacted, the regulations implementing 
the principles of section 334(b) must, with slight technical 
modifications, have reference to the subheadings listed in the Annex to 
the Agreement on Textiles and Clothing of the WTO Agreement. Customs 
believes that, in the absence of a specific statutory definition, 
Customs is required to determine the scope of section 334. In doing 
this, Customs has considered the wording of section 334, its 
development, and the context in which it was enacted.
    Accordingly, it is the position of Customs that the regulations 
implementing section 334(b) of the Act should apply to (1) all goods 
classifiable in Section XI of the HTSUS and (2) with [[Page 27381]] one 
exception, all goods classifiable under any subheading outside Section 
XI that is listed in the Annex to the Agreement on Textiles and 
Clothing of the WTO Agreement. This will avoid any possibility of 
interpreting ``apparel product'' to include apparel products consisting 
entirely of plastic or other nontextile component parts, which clearly 
are not intended to be covered by section 334 of the Act.
    The one exception to the subheadings listed in the WTO Agreement 
concerns subheading 9113.90 which provides for watch straps, watch 
bands, watch bracelets, and parts thereof. That subheading is further 
broken down in the HTSUS into two 8-digit subheadings, only one of 
which, subheading 9113.90.40, provides for goods of textile materials. 
Customs believes that it would be inappropriate to treat clearly 
nontextile goods as falling within the scope of ``textile or apparel 
article'' as used in section 334(b) of the Act. Accordingly, the 
definition of ``textile or apparel product'' in the proposed Part 102 
regulatory texts set forth in this document includes a reference to 
subheading 9113.90.40 but does not refer to subheading 9113.90.80 which 
covers the remainder of the goods falling under subheading 9113.90.
    Customs recognizes that, by referring to the Agreement on Textiles 
and Clothing, the proposed rules of origin in this document will cover 
some goods not presently considered to be within the purview of 
Sec. 12.130 (for example, wadding and gauze impregnated or coated with 
medicinals, umbrellas, automobile seat belts, parachutes, watch straps, 
doll clothing).
General Approach in Proposed Rules
    Customs proposes to implement the section 334(b) origin principles 
within Part 102 as a new Sec. 102.21. This proposed new Sec. 102.21 
includes an applicability provision (paragraph (a)) to clarify the 
scope of the section, various definitions of terms used in the section 
(paragraph (b)), five general origin rules (paragraph (c)) which apply 
in a hierarchical and sequential manner, a special provision for sets 
(paragraph (d)), and specific change in tariff classification rules 
(paragraph (e)) which apply for purposes of the second general origin 
rule. The proposed regulatory texts, and the section 334(b) principles 
which they implement, are discussed in more detail below.
    Proposed Sec. 102.21 would supersede those provisions of 
Secs. 102.1 through 102.20 for those products that fall within the 
scope of Sec. 102.21, except for the purpose of identifying products of 
Israel for which Secs. 102.1 through 102.20 will remain in effect. 
Customs expects that Part 102 will have been made effective for all 
imports prior to July 1, 1996, when Sec. 102.21 will become effective.
Wholly Obtained or Produced
    The first Sec. 102.21 general origin rule (paragraph (c)(1)) 
provides that 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. This rule sets forth the principle 
contained in section 334(b)(1)(A) of the Act. The definition of ``a 
good wholly obtained or produced'' contained in present Sec. 102.1(g) 
would apply for purposes of this proposed rule.
Change in Tariff Classification
    Where a textile or apparel product is not wholly obtained or 
produced in a single country, territory, or insular possession, the 
second general origin rule (paragraph (c)(2)) provides that the country 
of origin of such a good is the single country, territory, or insular 
possession in which each material incorporated in the good underwent an 
applicable change in tariff (HTSUS) classification specified in 
paragraph (e). The proposed tariff shift rules contained in paragraph 
(e) reflect the views of Customs on the results obtained when the 
principles of section 334(b) of the Act are applied to specific textile 
goods. Because Customs believes that the tariff shift approach 
represents the most transparent and predictable method for determining 
origin under the principles contained in section 334(b) of the Act, an 
attempt has been made to reflect the application of those principles 
within the proposed tariff shift rules to the greatest extent 
practicable.
Assembly Versus Cutting
    Under the rulings presently issued by Customs, the country of 
origin of some textile products, particularly apparel products, is 
often determined on the basis of where the components thereof were cut 
to shape. Since promulgation of Sec. 12.130 in 1984, it has been 
suggested to Customs that cutting components from fabric is an 
extremely minor manufacturing operation and thus should not determine 
origin. The position of Customs in regard to cutting, however, was not 
predicated on the time or expense involved in that operation. Rather, 
it was based on the physical change of the fabric and the result of the 
cutting operation--a change from material which could be used for a 
number of different purposes to a garment part that was dedicated to a 
specific use in a specific type of garment.
    Under section 334(b)(1)(D) of the Act, which applies to all goods 
not covered by the preceding provisions of paragraph (b)(1) other than 
goods covered by the special rules of section 334(b)(2), a textile or 
apparel product has its origin in the country, territory, or possession 
in which it is wholly assembled from its component pieces. In addition, 
the ``multicountry rule'' of section 334(b)(3) of the Act discussed 
below refers to the place in which the most important assembly or 
manufacturing process occurs or the last place in which important 
assembly or manufacturing occurs.
    In view of the overall approach taken in section 334(b) of the Act, 
including the fact that assembly is mentioned in three contexts as a 
process conferring origin while no mention whatsoever is made of 
cutting, and in view of its historical context, Customs believes that 
section 334(b) was intended to eliminate cutting from playing any role 
in determining the country of origin of textile and apparel products. 
Accordingly, many of the tariff shift rules contained in paragraph (e) 
of proposed new Sec. 102.21 have been drafted to reflect this 
consideration.
Fabric-Making Process
    Section 334(b)(1)(C) of the Act provides that if the product is a 
fabric, its country of origin is the country, territory, or insular 
possession in which ``the constituent fibers, filaments, or yarns are 
woven, knitted, needled, tufted, felted, entangled, or transformed by 
any other fabric-making process''. In view of the wording of this 
statutory provision, Customs proposes to define the term ``fabric-
making process'' for purposes of proposed new Sec. 102.21 as including 
only processes which advance basic materials (fibers, yarns, etc.) into 
a fabric, thereby excluding any process which starts with a fabric and 
ends up with a different type of fabric. Because of the existence of 
spunbonded fabrics, which are produced by extruding polymers directly 
into fabric form, the term ``polymers'' has been included in the 
proposed definition. In addition, since twine, cordage, or rope may be 
used to make a textile fabric (for example, a fabric of heading 5608), 
those terms have also been included in the proposed definition.
Scope of ``Wholly Assembled''
    The ``wholly assembled'' principle of section 334(b)(1)(D) of the 
Act as discussed above has been assimilated into the tariff shift rules 
under paragraph (e) of proposed Sec. 102.21. In 
[[Page 27382]] addition, because the tariff shift rules will not always 
yield an origin result, this principle has also been incorporated 
within the third general origin rule under paragraph (c) of proposed 
Sec. 102.21 with specific reference to goods not knit to shape which 
are not covered by the special rules of section 334(b)(2) of the Act 
and thus remain subject to the section 334(b)(1)(D) principle. For 
purposes of Sec. 102.21, Customs proposes a definition of ``wholly 
assembled'' which would embody the following principles:
    1. The entire good must be assembled, and the assembly must take 
place in a single country, territory, or insular possession. This is 
intended to reflect the concept of ``wholly'' and to ensure, consistent 
with the overall aim of the section 334(b) principles, the attribution 
of a good to only one country, territory, or insular possession.
    2. The assembly must, at a minimum, involve two separate components 
that are combined to form the good. Section 334(b)(1)(D) of the Act 
uses the terminology ``wholly assembled * * * from its component 
pieces.'' Since the statute uses the plural ``pieces'', Customs 
believes that Congress intended that the assembled good incorporate 
more than one previously separate component. Accordingly, while it may 
be argued that folding a fabric over on itself and stitching that fold 
in place is an assembly, Customs does not believe that such a process 
constitutes an assembly ``from its component pieces.'' Also, Customs 
will not normally consider materials used to join components (for 
example, sewing thread, rivets) as falling within the purview of the 
term ``components'' as that term is used in this context.
    3. Minor attachments and embellishments (for example, appliques, 
beads, spangles, embroidery, buttons) which do not appreciably affect 
the identity of the good are not required to be added to the good in 
the country, territory, or insular possession where the ``component 
pieces'' are assembled into the good in order for that good to qualify 
as ``wholly assembled'' in a single country, territory, or insular 
possession. This principle is included in the proposed definition 
because, once assembled, the product exists whether or not minor 
attachments and embellishments are attached and because Customs does 
not believe that Congress intended that a simple process, such as 
attaching a few buttons or beads to a good, should be allowed to 
nullify the assembly rule of origin principle. Moreover, Customs notes 
that the origin result would be the same even if the addition of minor 
attachments and embellishments were to disqualify the good from being 
``wholly assembled'' in one country, territory, or insular possession. 
For example, where fabric from Country A is cut in Country B, all the 
cut pieces are assembled into a shirt in Country C, and the buttons are 
attached to the shirt in Country D, even if it were argued that the 
shirt does not qualify as ``wholly assembled'' in Country C, that shirt 
would still have its origin in Country C by application of the first 
``multicountry rule'' under section 334(b)(3) of the Act because 
Country C is the country in which the most important assembly or 
manufacturing process occurs. For essentially the same reasons, the 
proposed definition of ``wholly assembled'' also contains an exception 
for minor subassemblies (for example, collars, cuffs, plackets, 
pockets).
Special Rules for Certain HTSUS Headings and Subheadings
    Section 334(b)(2)(A) of the Act provides that the origin of a good 
classifiable under one of the HTSUS provisions enumerated therein 
``shall be determined under subparagraph (A), (B), or (C) of paragraph 
(1), as appropriate''. Subparagraph (A) provides for products ``wholly 
obtained or produced'' in a country, territory, or possession. 
Subparagraph (B) provides rules for determining the country of origin 
of yarn, thread, twine, cordage, rope, cable, and braiding. 
Subparagraph (C) sets out a rule of origin for fabric.
    The words ``as appropriate'' in section 334(b)(2)(A) of the Act 
appear to have created some confusion regarding the application of that 
statutory provision. In this regard it has been suggested to Customs, 
for example, that because neither a bed sheet nor a comforter (each of 
which is classifiable in a tariff provision listed in section 
334(b)(2)(A)) is a fabric, it would not be appropriate to determine the 
origin of the sheet or comforter by resorting to subparagraph (1)(C) 
which on its face covers only fabric. Customs does not agree with this 
suggested interpretation because all of the HTSUS provisions listed in 
section 334(b)(2)(A) cover goods that have been advanced beyond the 
form of (in other words, have been made from) yarn, thread, etc., or 
fabric. Accordingly, the suggested interpretation would make a nullity 
of section 334(b)(2)(A).
    Customs believes that the words ``as appropriate'' in section 
334(b)(2)(A) of the Act are simply intended to alert the reader to use 
common sense. For example, when determining the origin of a bed sheet 
cut and finished in Country B from fabric woven in Country A, the 
appropriate rule is subparagraph (1)(C) which concerns the origin of 
fabrics. Subparagraph (1)(A) cannot be used because the sheet was not 
wholly produced in a single country, and subparagraph (1)(B), which 
concerns yarns, twine, etc., obviously is not applicable because the 
sheet is made from a fabric. The proposed tariff shift rules set forth 
in this document for goods classified in the HTSUS provisions 
enumerated in section 334(b)(2)(A) of the Act have been drafted to 
reflect this position.
Knit-To-Shape Garments
    Section 334(b)(2)(B) of the Act provides that ``a textile or 
apparel product which is knit to shape'' shall be considered to 
originate in the country, territory, or insular possession in which it 
is knit. This statutory provision is reflected in proposed Sec. 102.21 
both under the third general origin rule (paragraph (c)(3)) and in the 
tariff shift rules under paragraph (e).
    While Sec. 12.130(e)(2)(iii) of the Customs Regulations presently 
addresses the assembly of ``knit-to-shape component parts'', section 
334(b)(2)(B) of the Act applies the knit-to-shape concept to the 
imported article as a whole. Because of the wording used in 
Sec. 12.130, the present position of Customs is that if a garment 
contains at least one major knit-to-shape component, the presence of 
that component will preclude the assembly of that garment from 
conferring origin.
    Customs believes that the phrase ``knit to shape'' should be 
defined for purposes of proposed new Sec. 102.21. Accordingly, focusing 
on the entire article (as opposed to the components comprising that 
article), Customs proposes to define the phrase ``knit to shape'' as 
referring to a good with an exterior surface wholly comprised of fabric 
knitted directly to the shape used in the good (except for neck and 
front opening trim), with no consideration being given to minor cutting 
or trimming. This means that if an article consists of more than one 
component, all exterior components (except for neck and front opening 
trim) must be formed by knitting into the general shape that they are 
found in the article in order for the knitting to confer origin.
Multicountry Rule
    In some cases the proposed tariff shift rules were drafted to 
reflect an origin result that would be reached for specific goods by 
application of the ``multicountry rule'' contained in section 334(b)(3) 
of the Act. The ``multicountry rule'' provides that where the origin of 
a good cannot be determined under the general or special 
[[Page 27383]] rules set forth in section 334(b)(1) or (2) of the Act, 
the good shall be considered to have its origin either in the country, 
territory, or insular possession in which the most important assembly 
or manufacturing process occurs or (in effect, if two or more equally 
important assembly or manufacturing processes are attributable to 
different countries, territories or insular possessions) in the last 
country, territory, or insular possession in which important assembly 
or manufacturing occurs. The two parts of this ``multicountry rule'' 
are also set forth separately as the proposed fourth (paragraph (c)(4)) 
and fifth (paragraph (c)(5)) general origin rules in recognition of the 
fact that the tariff shift rules will not always yield an origin 
result.
Treatment of Sets
    A set is two or more articles, each classifiable under a different 
tariff heading, which, when packaged together, meet a particular need 
or carry out a specific activity. As such, the entire set is usually 
classifiable as a unit under a single tariff subheading. In T.D. 91-7, 
25 Cust. Bull. 7 (1991), Customs determined that each component not 
substantially transformed as a result of its inclusion in a set must be 
individually marked to indicate its own country of origin. This marking 
requirement is applicable to all goods, not just textiles. In addition, 
in order to prevent circumvention of international textile agreements, 
Customs, at the direction of the Committee for the Implementation of 
Textile Agreements, has for years been requiring that textile 
components of a set be broken out on a Customs Form 7501 (Customs 
Entry/Entry Summary) to meet quota/visa requirements.
    Section 334(b) of the Act, and the legislative history relating 
thereto, are silent on the determination of the country of origin of 
sets. Customs believes that this omission was not inadvertent and that 
Congress intended that the present practice of Customs continue for 
purposes of applying the origin principles contained in section 334(b). 
Accordingly, Customs proposes to include in new Sec. 102.21 a paragraph 
(d) to provide that in the case of goods which are classifiable as sets 
and which include one or more components that are textile or apparel 
products, the country, territory, or insular possession of origin of 
each such textile or apparel component shall be determined separately 
under the rules set forth in paragraph (c) of Sec. 102.21.

Comments

    Before adopting the proposed amendments as a final rule, 
consideration will be given to any written comments (preferably in 
triplicate) timely submitted to Customs. Comments submitted will be 
available for public inspection in accordance with the Freedom of 
Information Act (5 U.S.C. 552), Sec. 1.4, Treasury Department 
Regulations (31 CFR 1.4), and Sec. 103.11(b), Customs Regulations (19 
CFR 103.11(b)), on regular business days between the hours of 9:00 a.m. 
and 4:30 p.m. at the Regulations Branch, Office of Regulations and 
Rulings, Franklin Court, 1099 14th Street, NW., Suite 4000, Washington, 
DC.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Regulatory Flexibility Act

    Pursuant to the provisions of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.), it is certified that, if adopted, the proposed 
amendments will not have a significant economic impact on a substantial 
number of small entities. Accordingly, the proposed amendments are not 
subject to the regulatory analysis or other requirements of 5 U.S.C. 
603 and 604.

Paperwork Reduction Act

    The collection of information requirements contained in this notice 
of proposed rulemaking have been submitted to the Office of Management 
and Budget for review in accordance with the Paperwork Reduction Act of 
1980 (44 U.S.C. 3504(h)). Comments on the collection of information 
should be sent to the Office of Management and Budget, Attention: Desk 
Officer for the Department of the Treasury, Office of Information and 
Regulatory Affairs, Washington, DC. 20503. A copy should also be sent 
to Customs at the address set forth previously.
    The collection of information in these proposed regulations is in 
Sec. 10.25. This information is used by Customs to determine whether 
articles assembled abroad from textile components cut to shape in the 
United States from foreign fabric are entitled to reduced or duty-free 
treatment under section 334(b)(4)(A) of the Act or under the CBI. The 
likely respondents are business organizations including importers, 
exporters, and manufacturers.
    Estimated total annual reporting and/or recordkeeping burden: 750 
hours.
    Estimated average annual burden per respondent/recordkeeper: 1.5 
hours.
    Estimated number of respondents and/or recordkeepers: 500.
    Estimated annual frequency of responses: 2,000.

    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

19 CFR Part 10

    Customs duties and inspection, Imports, Reporting and recordkeeping 
requirements.

19 CFR Part 12

    Customs duties and inspection, Labeling, Marking, Reporting and 
recordkeeping requirements, Textiles and textile products.

19 CFR Part 102

    Customs duties and inspections, Imports, Reporting and 
recordkeeping requirements, Rules of origin, Trade agreements.

Proposed Amendments to the Regulations

    For the reasons stated above, it is proposed to amend Parts 10, 12 
and 102, Customs Regulations (19 CFR Parts 10, 12 and 102), as set 
forth below.

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

    1. The general authority citation for Part 10 and the specific 
authority citations for Secs. 10.191-10.198 continue to read, and a 
specific authority citation for Secs. 10.25 and 10.26 is added to read, 
as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States), 1321, 1481, 1484, 1498, 1508, 
1623, 1624;
* * * * *
    Sections 10.25 and 10.26 also issued under 19 U.S.C. 3592;
* * * * *
    Sections 10.191-10.198 also issued under 19 U.S.C. 2701 et seq.;
* * * * *
    2. Sections 10.25 and 10.26 are added under the heading ``Articles 
assembled abroad with United States components'' to read as follows:


Sec. 10.25  Textile components cut to shape in the United States and 
assembled abroad.

    Where a textile component is cut to shape (but not to length, 
width, or both) in the United States from foreign fabric and exported 
to another country, territory, or insular possession for assembly into 
an article that is then returned to the United States and entered, or 
withdrawn from warehouse, for consumption on or after July 1, 1996, the 
value of the textile component shall not be included in the dutiable 
value of [[Page 27384]] the article. For purposes of determining 
whether a reduction in the dutiable value of an imported article may be 
allowed under this section:
    (a) The terms ``textile component'' and ``fabric'' have reference 
only to goods covered by the definition of ``textile or apparel 
product'' set forth in Sec. 102.21(b)(4) of this chapter;
    (b) The operations performed abroad on the textile component shall 
conform to the requirements and examples set forth in Sec. 10.16 
insofar as they may be applicable to a textile component; and
    (c) The valuation and documentation provisions of Secs. 10.17, 
10.18, 10.21 and 10.24 shall apply.


Sec. 10.26  Articles assembled or processed in a beneficiary country in 
whole of U.S. components or ingredients; articles assembled in a 
beneficiary country from textile components cut to shape in the United 
States.

    (a) No article (except a textile article, apparel article, or 
petroleum, or any product derived from petroleum, provided for in 
heading 2709 or 2710, Harmonized Tariff Schedule of the United States 
(HTSUS)) shall be treated as a foreign article or as subject to duty:
    (1) If the article is assembled or processed in a beneficiary 
country in whole of fabricated components that are a product of the 
United States; or
    (2) If the article is processed in a beneficiary country in whole 
of ingredients (other than water) that are a product of the United 
States; and
    (3) Neither the fabricated components, materials or ingredients 
after their exportation from the United States, nor the article before 
its importation into the United States, enters into the commerce of any 
foreign country other than a beneficiary country.
    (b) No article (except a textile or apparel product) entered, or 
withdrawn from warehouse, for consumption on or after July 1, 1996, 
shall be treated as a foreign article or as subject to duty:
    (1) If the article is assembled in a beneficiary country in whole 
of textile components cut to shape (but not to length, width, or both) 
in the United States from foreign fabric; or
    (2) If the article is assembled in a beneficiary country in whole 
of both textile components described in paragraph (b)(1) and components 
that are products of the United States; and
    (3) Neither the components after their exportation from the United 
States, nor the article before its importation into the United States, 
enters into the commerce of any foreign country other than a 
beneficiary country.
    (c) For purposes of this section:
    (1) The terms ``textile article'', ``apparel article'', and 
``textile or apparel product'' cover all articles, other than footwear 
and parts of footwear, that are classifiable in an HTSUS subheading 
which carries a textile and apparel category number designation;
    (2) The term ``beneficiary country'' has the meaning set forth in 
Sec. 10.191(b)(1); and
    (3) A component or an article shall be deemed to have not entered 
into the commerce of any foreign country other than a beneficiary 
country if:
    (i) The component was shipped directly from the United States to a 
beneficiary country, or the article was shipped directly to the United 
States from a beneficiary country, without passing through the 
territory of any non-beneficiary country; or
    (ii) Where the component or article passed through the territory of 
a non-beneficiary country while en route to a beneficiary country or 
the United States:
    (A) The invoices, bills of lading, and other shipping documents 
pertaining to the component or article show a beneficiary country or 
the United States as the final destination and the component or article 
was neither sold at wholesale or retail nor subjected to any processing 
or other operation in the non-beneficiary country; or
    (B) The component or article remained under the control of the 
customs authority of the non-beneficiary country and was not subjected 
to operations in that non-beneficiary country other than loading and 
unloading and activities necessary to preserve the component or article 
in good condition.
    3. In Sec. 10.195, paragraphs (d) and (e) are redesignated as 
paragraphs (e) and (f) respectively and a new paragraph (d) is added to 
read as follows:


Sec. 10.195  Country of origin criteria.

* * * * *
    (d) Textile components cut to shape in the U.S. The percentage 
referred to in paragraph (c) of this section may be attributed in whole 
or in part to the cost or value of a textile component that is cut to 
shape (but not to length, width, or both) in the U.S. (including the 
Commonwealth of Puerto Rico) from foreign fabric and exported to a 
beneficiary country for assembly into an article that is then returned 
to the U.S. and entered, or withdrawn from warehouse, for consumption 
on or after July 1, 1996. For purposes of this paragraph, the terms 
``textile component'' and ``fabric'' have reference only to goods 
covered by the definition of ``textile or apparel product'' set forth 
in Sec. 102.21(b)(4) of this chapter.
* * * * *

PART 12--SPECIAL CLASSES OF MERCHANDISE

    1. The authority citation for Part 12 continues to read in part as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States (HTSUS)), 1624;
* * * * *
    Sections 12.130 and 12.131 also issued under 7 U.S.C. 1854;
* * * * *


Sec. 12.130  [Amended]

    2. In Sec. 12.130:
    a. The last sentence of paragraph (b) is amended by adding after 
``Mexico'' the words ``, and the origin of textile and apparel products 
covered by Sec. 102.21 of this chapter,'';
    b. The last sentence of the introductory text of paragraph (d) is 
amended by adding after ``Mexico'' the words ``, and the origin of 
textile and apparel products covered by Sec. 102.21 of this chapter,''; 
and
    c. The introductory text of paragraph (e)(1) is amended by adding 
after ``Mexico'' the words ``and except for textile and apparel 
products''.

PART 102--RULES OF ORIGIN

    1. The authority citation for Part 102 is revised to read as 
follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States), 1624, 3314, 3592.

    2. Section 102.0 is amended by removing the word ``This'' at the 
beginning of the first sentence and adding, in its place, the words 
``Except in the case of goods covered by Sec. 102.21, this'' and by 
adding a sentence at the end to read as follows:


Sec. 102.0  Scope.

    * * * The rules for determining the country of origin of textile 
and apparel products set forth in Sec. 102.21 apply for the foregoing 
purposes and for the other purposes stated in that section.
    2. Section 102.11 is amended by adding an introductory paragraph 
before paragraph (a) to read as follows:


Sec. 102.11  General rules.

    The following rules shall apply for purposes of determining the 
country of origin of imported goods other than textile and apparel 
products covered by Sec. 102.21.
* * * * *
    3. Section 102.21 is added to read as follows:


Sec. 102.21  Textile and apparel products.

    (a) Applicability. Except for purposes of determining whether goods 
originate [[Page 27385]] in Israel or are the growth, product, or 
manufacture of Israel, and except as otherwise provided for by statute, 
the provisions of this section shall control the determination of the 
country of origin of imported textile and apparel products for purposes 
of the Customs laws and the administration of quantitative 
restrictions. The provisions of this section shall apply to goods 
entered, or withdrawn from warehouse, for consumption on or after July 
1, 1996.
    (b) Definitions. The following terms shall have the meanings 
indicated when used in this section:
    (1) Country of origin. The term ``country of origin'' means the 
country, territory, or insular possession in which a good originates or 
of which a good is the growth, product, or manufacture.
    (2) Fabric-making process. A ``fabric-making process'' is any 
manufacturing operation which begins with polymers, fibers, filaments 
(including strips), yarns, twine, cordage, or rope, and results in a 
textile fabric.
    (3) Knit to shape. The term ``knit to shape'' applies to any good 
with an exterior surface area wholly comprised of one or more fabrics 
knitted or crocheted directly to the shape used in the good (except for 
fabric used for trimming the neck or front opening). Minor cutting or 
trimming of fabric will not affect the determination of whether a good 
is ``knit to shape.''
    (4) Textile or apparel product. A ``textile or apparel product'' is 
any good classifiable in Chapters 50 through 63, Harmonized Tariff 
Schedule of the United States (HTSUS), and any good classifiable under 
one of the following HTSUS headings or subheadings:

3005.90
3921.12.15
3921.13.15
3921.90.2550
4202.12.40-80
4202.22.40-80
4202.32.40-95
4202.92.15-30
4202.92.60-90
6405.20.60
6406.10.77
6406.10.90
6406.99.15
6501
6502
6503
6504
6505.90
6601.10-99
7019.10.15
7019.10.28
7019.20
8708.21
8804
9113.90.40
9404.90.10
9404.90.80-95
9502.91
9612.10.9010

    (5) Wholly assembled. The term ``wholly assembled'' when used with 
reference to a good means that all components, of which there must be 
at least two, preexisted in essentially the same condition as found in 
the finished good and were combined to form the finished good in a 
single country, territory, or insular possession. Minor attachments and 
minor embellishments (for example, appliques, beads, spangles, 
embroidery, buttons) not appreciably affecting the identity of the 
good, and minor subassemblies (for example, collars, cuffs, plackets, 
pockets), will not affect the status of a good as ``wholly assembled'' 
in a single country, territory, or insular possession.
    (c) General rules. Subject to paragraph (d) of this section, the 
country of origin of a textile or apparel product shall 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 
Secs. 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.
    (3) Where the country of origin of a textile or apparel product 
cannot be determined under paragraph (c) (1) or (2) of this section:
    (i) If the good was knit to shape, the country of origin of the 
good is the single country, territory, or insular possession in which 
the good was knit; or
    (ii) If the good was not knit to shape and the good was wholly 
assembled in a single country, territory, or insular possession, the 
country of origin of the good is the country, territory, or insular 
possession in which the good was wholly assembled.
    (4) Where the country of origin of a textile or apparel product 
cannot be determined under paragraph (c) (1), (2) or (3) of this 
section, the country of origin of the good is the single country, 
territory, or insular possession in which the most important assembly 
or manufacturing process occurred.
    (5) Where the country of origin of a textile or apparel product 
cannot be determined under paragraph (c) (1), (2), (3) or (4) of this 
section, the country of origin of the good is the last country, 
territory, or insular possession in which an important assembly or 
manufacturing process occurred.
    (d) Treatment of sets. Where a good classifiable in the HTSUS as a 
set includes one or more components that are textile or apparel 
products and a single country of origin for all of the components of 
the set cannot be determined under paragraph (c) of this section, the 
country of origin of each component of the set that is a textile or 
apparel product shall be determined separately under paragraph (c) of 
this section.
    (e) Specific rules by tariff classification. The following rules 
shall apply for purposes of determining the country of origin of a 
textile or apparel product under paragraph (c)(2) of this section:

----------------------------------------------------------------------------------------------------------------
              HTSUS                                    Tariff shift and/or other requirements                   
----------------------------------------------------------------------------------------------------------------
3005.90..........................  If the good contains pharmaceutical substances, a change to subheading       
                                    3005.90 from any other heading; or, If the good does not contain            
                                    pharmaceutical substances, a change to subheading 3005.90 from any other    
                                    heading, except from heading 5007, 5111 through 5113, 5208 through 5212,    
                                    5309 through 5311, 5407 through 5408, 5512 through 5516, 5601 through 5603, 
                                    5801 through 5804, 5806, 5809, 5903, 5906 through 5907, and 6001 through    
                                    6002.                                                                       
3921.12.15.......................  A change to subheading 3921.12.15 from any other heading.                    
3921.13.15.......................  A change to subheading 3921.13.15 from any other heading.                    
3921.90.2550.....................  A change to subheading 3921.90.2550 from any other heading.                  
4202.12.40-4202.12.80............  A change to subheading 4202.12.40 through 4202.12.80 from any other heading, 
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
[[Page 27386]]
                                                                                                                
4202.22.40-4202.22.80............  A change to subheading 4202.22.40 through 4202.22.80 from any other heading, 
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
4202.32.40-4202.32.95............  A change to subheading 4202.32.40 through 4202.32.95 from any other heading, 
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
4202.92.15-4202.92.30............  A change to subheading 4202.92.15 through 4202.92.30 from any other heading, 
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
4202.92.60-4202.92.90............  A change to subheading 4202.92.60 through 4202.92.90 from any other heading, 
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
5001-5002........................  A change to heading 5001 through 5002 from any other chapter.                
5003.............................  A change to heading 5003 from any other heading, provided that the change is 
                                    the result of garnetting. If the change to heading 5003 is not the result of
                                    garnetting, the country of origin of the good is the country of origin of   
                                    the good prior to its becoming waste.                                       
5004-5006........................  (1) If the good is of staple fibers, a change to heading 5004 through 5006   
                                    from any heading outside that group, provided that the change is the result 
                                    of a spinning process.                                                      
                                   (2) If the good is of filaments, a change to heading 5004 through 5006 from  
                                    any heading outside that group, provided that the change is the result of an
                                    extrusion process.                                                          
5007.............................  A change to heading 5007 from any other heading, provided that the change is 
                                    the result of a fabric-making process.                                      
5101-5103........................  A change to heading 5101 through 5103 from any other chapter.                
5104.............................  A change to heading 5104 from any other heading.                             
5105.............................  A change to heading 5105 from any other chapter.                             
5106-5110........................  A change to heading 5106 through 5110 from any heading outside that group,   
                                    provided that the change is the result of a spinning process.               
5111-5113........................  A change to heading 5111 through 5113 from any heading outside that group,   
                                    provided that the change is the result of a fabric-making process.          
5201.............................  A change to heading 5201 from any other chapter.                             
5202.............................  A change to heading 5202 from any other heading, provided that the change is 
                                    the result of garnetting. If the change to heading 5202 is not the result of
                                    garnetting, the country of origin of the good is the country of origin of   
                                    the good prior to its becoming waste.                                       
5203.............................  A change to heading 5203 from any other chapter.                             
5204-5207........................  A change to heading 5204 through 5207 from any heading outside that group,   
                                    provided that the change is the result of a spinning process.               
5208-5212........................  A change to heading 5208 through 5212 from any heading outside that group    
                                    provided the change is the result of a fabric-making process.               
5301-5305........................  (1) Except for waste, a change to heading 5301 through 5305 from any other   
                                    chapter.                                                                    
                                   (2) For waste, a change to heading 5301 through 5305 from any heading outside
                                    that group, provided that the change is the result of garnetting. If the    
                                    change is not the result of garnetting, the country of origin of the good is
                                    the country of origin of the good prior to its becoming waste.              
5306-5307........................  A change to heading 5306 through 5307 from any heading outside that group,   
                                    provided that the change is the result of a spinning process.               
5308.............................  (1) Except for paper yarns, a change to heading 5308 from any other heading, 
                                    provided that the change is the result of a spinning process.               
                                   (2) For paper yarns, a change to heading 5308 from any other heading, except 
                                    from heading 4707, 4801 through 4806, 4811, and 4818.                       
5309-5311........................  A change to heading 5309 through 5311 from any heading outside that group,   
                                    provided that the change is the result of a fabric-making process.          
5401-5406........................  A change to heading 5401 through 5406 from any other heading, provided that  
                                    the change is the result of an extrusion process.                           
5407-5408........................  A change to heading 5407 through 5408 from any heading outside that group,   
                                    provided that the change is the result of a fabric-making process.          
5501-5502........................  A change to heading 5501 through 5502 from any other chapter, provided that  
                                    the change is the result of an extrusion process.                           
5503-5504........................  A change to heading 5503 through 5504 from any other chapter, except from    
                                    Chapter 54.                                                                 
5505.............................  A change to heading 5505 from any other heading, provided that the change is 
                                    the result of garnetting. If the change is not the result of garnetting, the
                                    country of origin of the good is the country of origin of the good prior to 
                                    its becoming waste.                                                         
5506-5507........................  A change to heading 5506 through 5507 from any other chapter, except from    
                                    Chapter 54.                                                                 
5508-5511........................  A change to heading 5508 through 5511 from any heading outside that group,   
                                    provided that the change is the result of a spinning process.               
5512-5516........................  A change to heading 5512 through 5516 from any heading outside that group,   
                                    provided that the change is the result of a fabric-making process.          
5601.............................  (1) A change to wadding of heading 5601 from any other heading, except from  
                                    heading 5105, 5203, and 5501 through 5507.                                  
                                   (2) A change to flock, textile dust, mill neps, or articles of wadding, of   
                                    heading 5601 from any other heading or from wadding of heading 5601.        
5602-5603........................  A change to heading 5602 through 5603 from any heading outside that group,   
                                    provided that the change is the result of a fabric-making process.          
5604.............................  (1) If the textile component is of continuous filaments, including strips, a 
                                    change of those filaments, including strips, to heading 5604 from any other 
                                    heading, except from heading 5001 through 5007, 5401 through 5408, and 5501 
                                    through 5502, and provided that the change is the result of an extrusion    
                                    process.                                                                    
                                   (2) If the textile component is of staple fibers, a change of those fibers to
                                    heading 5604 from any other heading, except from heading 5004 through 5006, 
                                    5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through   
                                    5511, and provided that the change is the result of a spinning process.     
[[Page 27387]]
                                                                                                                
5605-5606........................  If the good is of continuous filaments, including strips, a change of those  
                                    filaments, including strips, to heading 5605 through 5606 from any other    
                                    heading, except from heading 5001 through 5007, 5401 through 5408, and 5501 
                                    through 5502, and provided that the change is the result of an extrusion    
                                    process; or                                                                 
                                   If the good is of staple fibers, a change of those fibers to heading 5605    
                                    through 5606 from any other heading, except from heading 5106 through 5110, 
                                    5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided   
                                    that the change is the result of a spinning process.                        
5607.............................  If the good is of continuous filaments, including strips, a change of those  
                                    filaments, including strips, to heading 5607 from any other heading, except 
                                    from heading 5001 through 5007, 5401 through 5406, and 5501 through 5511,   
                                    and provided that the change is the result of an extrusion process; or      
                                   If the good is of staple fibers, a change of those fibers to heading 5607    
                                    from any other heading, except from heading 5106 through 5110, 5204 through 
                                    5207, 5306 through 5308, and 5508 through 5511, and provided that the change
                                    is the result of a spinning process.                                        
5608.............................  (1) A change to netting of heading 5608 from any other heading, except from  
                                    heading 5804, and provided that the change is the result of a fabric-making 
                                    process.                                                                    
                                   (2) A change to fishing nets or other made up nets of heading 5608:          
                                   (a) If the good does not contain nontextile attachments, from any other      
                                    heading, except from heading 5804 and 6002, and provided that the change is 
                                    the result of a fabric-making process; or                                   
                                   (b) If the good contains nontextile attachments, from any heading, including 
                                    a change from another good of heading 5608, provided that the change is the 
                                    result of the good being wholly assembled in a single country, territory, or
                                    insular possession.                                                         
5609.............................  (1) If the good is of continuous filaments, including strips, a change of    
                                    those filaments, including strips, to heading 5609 from any heading, except 
                                    from heading 5001 through 5007, 5401 through 5406, 5501 through 5502, and   
                                    5604 through 5607, and provided that the change is the result of an         
                                    extrusion process.                                                          
                                   (2) If the good is of staple fibers, a change of those fibers to heading 5609
                                    from any other heading, except from heading 5106 through 5110, 5204 through 
                                    5207, 5306 through 5308, 5508 through 5511, and 5604 through 5607, and      
                                    provided that the change is the result of a spinning process.               
5701-5705........................  A change to heading 5701 through 5705 from any other chapter.                
5801-5803........................  A change to heading 5801 through 5803 from any other heading, including a    
                                    heading within that group, except from heading 5007, 5111 through 5113, 5208
                                    through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, and  
                                    6002, and provided that the change is the result of a fabric-making process.
5804.10..........................  A change to subheading 5804.10 from any other heading, except from heading   
                                    5608, and provided that the change is the result of a fabric-making process.
5804.21-5804.30..................  A change to subheading 5804.21 through 5804.30 from any other heading,       
                                    provided that the change is the result of a fabric-making process.          
5805.............................  A change to heading 5805 from any other heading, except from heading 5007,   
                                    5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 
                                    and 5512 through 5516, and provided that the change is the result of a      
                                    fabric-making process.                                                      
5806.............................  A change to heading 5806 from any other heading, except from heading 5007,   
                                    5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 
                                    5512 through 5516, and 5801 through 5803, and provided that the change is   
                                    the result of a fabric-making process.                                      
5807.............................  A change to heading 5807 from any other chapter, except from heading 5007,   
                                    5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 
                                    5512 through 5516, 5602 through 5603, and 6001 through 6002, and subheading 
                                    6307.90, and provided that the change is the result of a fabric-making      
                                    process.                                                                    
5808.10..........................  (1) If the good is of continuous filaments, including strips, a change of    
                                    those filaments, including strips, to subheading 5808.10 from any heading,  
                                    except from heading 5001 through 5007, 5401 through 5406, 5501 through 5502,
                                    and 5604 through 5607, and provided that the change is the result of an     
                                    extrusion process.                                                          
                                   (2) If the good is of staple fibers, a change of those fibers to heading     
                                    5808.10 from any other heading, except from heading 5106 through 5113, 5204 
                                    through 5212, 5306 through 5311, 5401 through 5408, 5508 through 5516, and  
                                    5604 through 5607, and provided that the change is the result of a spinning 
                                    process.                                                                    
5808.90..........................  (1) For ornamental fabric trimmings, a change to subheading 5808.90 from any 
                                    other chapter, except from heading 5007, 5111 through 5113, 5208 through    
                                    5212, 5309 through 5311, 5407 through 5408, and 5512 through 5516, and      
                                    provided that the change is the result of a fabric-making process.          
                                   (2) For nonfabric ornamental trimmings:                                      
                                   (a) If the trimming is of continuous filaments, including strips, a change to
                                    subheading 5808.90 from any other heading, except from heading 5001 through 
                                    5007, 5401 through 5408, 5501 through 5502, and 5604 through 5607, and      
                                    provided that the change is the result of an extrusion process; or          
                                   (b) If the trimming is of staple fibers, a change to subheading 5808.90 from 
                                    any other heading, except from heading 5106 through 5113, 5204 through 5212,
                                    5306 through 5311, 5401 through 5408, 5508 through 5516, and 5604 through   
                                    5607, and provided that the change is the result of a spinning process.     
                                   (3) For tassels, pompons and similar articles:                               
                                   (a) If the good has been wholly assembled in a single country, territory, or 
                                    insular possession, a change to subheading 5808.90 from any other heading;  
                                   (b) If the good has not been wholly assembled in a single country, territory,
                                    or insular possession and the good is of staple fibers, a change to         
                                    subheading 5808.90 from any other heading, except from heading 5004 through 
                                    5006, 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508     
                                    through 5511, and 5604 through 5607, and provided that the change is the    
                                    result of a spinning process; or                                            
                                   (c) If the good has not been wholly assembled in a single country, territory,
                                    or insular possession and the good is of filaments, including strips, a     
                                    change to subheading 5808.90 from any other heading, except from heading    
                                    5001 through 5007, 5401 through 5406, and 5501 through 5502, and provided   
                                    that the change is the result of an extrusion process.                      
5809.............................  A change to heading 5809 from any other heading, except from heading 5007,   
                                    5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 
                                    5512 through 5516, 5801 through 5802, 5804, and 5806, and provided that the 
                                    change is the result of a fabric-making process.                            
5810.10..........................  A change to subheading 5810.10 from any other heading.                       
[[Page 27388]]
                                                                                                                
5810.91-5810.99..................  A change to subheading 5810.91 through 5810.99 from any other chapter, except
                                    from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 
                                    5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5903, 5907,  
                                    and 6001 through 6002, and provided that the change is the result of a      
                                    fabric-making process.                                                      
5811.............................  A change to heading 5811 from any other heading, except from heading 5007,   
                                    5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 
                                    5512 through 5516, 5601 through 5604, 5801 through 5804, 5806, 5809 through 
                                    5810, 5903, 5907, and 6001 through 6002, and subheading 6307.90, and        
                                    provided that the change is the result of a fabric-making process.          
5901-5903........................  A change to heading 5901 through 5903 from any other heading, including a    
                                    heading within that group, except from heading 5007, 5111 through 5113, 5208
                                    through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5803,
                                    5806, 5808, and 6002, and provided that the change is the result of a fabric-
                                    making process.                                                             
5904.............................  A change to heading 5904 from any other heading, provided that the change is 
                                    the result of the good being wholly assembled in a single country,          
                                    territory, or insular possession.                                           
5905.............................  A change to heading 5905 from any other heading, except from heading 5007,   
                                    5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 
                                    5512 through 5516, 5603, 5803, 5806, 5808, and 6002, and provided that the  
                                    change is the result of a fabric-making process.                            
5906-5907........................  A change to heading 5906 through 5907 from any other chapter, except from    
                                    heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 
                                    through 5408, 5512 through 5516, 5803, 5806, 5808, and 6002, and provided   
                                    that the change is the result of a fabric-making process.                   
5908.............................  (1) Except for yarns, twine, cord, and braid, a change to heading 5908 from  
                                    any other heading, except from heading 5007, 5111 through 5113, 5208 through
                                    5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5801 through 
                                    5802, 5806, 5808, and 6001 through 6002.                                    
                                   (2) For yarns, twine, cord, and braid:                                       
                                   (a) If the good is of continuous filaments, including strips, a change to    
                                    heading 5908 from any other heading, except from heading 5001 through 5007, 
                                    5401 through 5406, and 5501 through 5502, and provided that the change is   
                                    the result of an extrusion process; or                                      
                                   (b) If the good is of staple fibers, a change to heading 5908 from any other 
                                    heading, except from heading 5106 through 5110, 5204 through 5207, 5306     
                                    through 5308, and 5508 through 5511, and 5605 through 5607, and provided    
                                    that the change is the result of a spinning process.                        
5909.............................  A change to heading 5909 from any other chapter, except from heading 5007,   
                                    5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 
                                    5512 through 5516, 5603, 5801 through 5804, 5806, 5808, and 6001 through    
                                    6002, and provided that the good does not contain armor or accessories of   
                                    nontextile material and provided that the change is the result of a fabric- 
                                    making process; or                                                          
                                   A change to textile hosepiping with armor or accessories of nontextile       
                                    material, of heading 5909, from any heading, including a change from another
                                    good of heading 5909, provided that the change is the result of the good    
                                    being wholly assembled in a single country, territory, or insular           
                                    possession.                                                                 
5910.............................  (1) For belts and belting of braid, rope, or cord:                           
                                   (a) If the good is of continuous filaments, including strips, a change of    
                                    those filaments, including strips, to heading 5910 from any other heading,  
                                    except from heading 5001 through 5006, 5401 through 5406, and 5501 through  
                                    5502, and provided that the change is the result of an extrusion process; or
                                   (b) If the good is of staple fibers, a change of those fibers to heading 5910
                                    from any other heading, except from heading 5106 through 5110, 5204 through 
                                    5207, 5306 through 5308, and 5508 through 5511, and provided that the change
                                    is the result of a spinning process.                                        
                                   (2) For fabric belting and belts, not braids and not combined with nontextile
                                    components, whether or not reinforced with metal or other material, a change
                                    to heading 5910 from any other heading, except from heading 5007, 5111      
                                    through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 
                                    through 5516, 5602 through 5603, 5801 through 5804, 5806, 5808 through 5809,
                                    and 6001 through 6002, and provided the change is the result of a fabric-   
                                    making process.                                                             
                                   (3) For fabric belts, including belts of braided materials, combined with    
                                    nontextile components, whether or not reinforced with metal or other        
                                    material, a change to heading 5910 from any heading, including a change from
                                    another good of heading 5910, provided that the change is the result of the 
                                    good being wholly assembled in a single country, territory, or insular      
                                    possession.                                                                 
5911.10-5911.40..................  A change to subheading 5911.10 through 5911.40 from any other heading, except
                                    from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 
                                    5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 
                                    5806, and 6001 through 6002, and provided that the change is the result of a
                                    fabric-making process.                                                      
5911.90..........................  (1) For goods of yarn, rope, cord, braid:                                    
                                   (a) If the good is of continuous filaments, including strips, a change of    
                                    those filaments, including strips, to subheading 5911.90 from any other     
                                    heading, except from heading 5001 through 5006, 5401 through 5406, and 5501 
                                    through 5502, and provided that the change is the result of an extrusion    
                                    process; or                                                                 
                                   (b) If the good is of staple fibers, a change of those fibers to subheading  
                                    5911.90 from any other heading, except from heading 5106 through 5110, 5204 
                                    through 5207, 5306 through 5308, and 5508 through 5511, and provided that   
                                    the change is the result of a spinning process.                             
                                   (2) If the good is a fabric, a change to subheading 5911.90 from any other   
                                    heading, except from heading 5007, 5111 through 5113, 5208 through 5212,    
                                    5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 
                                    5801 through 5804, 5806, 5809, and 6001 through 6002, and provided that the 
                                    change is the result of a fabric-making process.                            
                                   (3) If the good is a made up article, a change to subheading 5911.90 from any
                                    heading, including a change from another good of heading 5911, provided that
                                    the change is the result of the good being wholly assembled in a single     
                                    country, territory, or insular possession.                                  
6001-6002........................  A change to heading 6001 through 6002 from any heading outside that group,   
                                    provided that the change is the result of a fabric-making process.          
[[Page 27389]]
                                                                                                                
6101-6117........................  (1) If the good is not knit to shape and consists of two or more component   
                                    parts, a change to an assembled good of heading 6101 through 6117 from      
                                    unassembled components, provided that the change is the result of the good  
                                    being wholly assembled in a single country, territory, or insular           
                                    possession.                                                                 
                                   (2) If the good is not knit to shape and does not consist of two or more     
                                    component parts, a change to heading 6101 through 6117 from any heading     
                                    outside that group, except from heading 5007, 5111 through 5113, 5208       
                                    through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5806,
                                    5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and      
                                    subheading 6307.90, and provided that the change is the result of a fabric- 
                                    making process.                                                             
                                   (3) If the good is knit to shape, a change to heading 6101 through 6117 from 
                                    any heading outside that group, provided that the knit-to-shape components  
                                    are knit in a single country, territory, or insular possession.             
6201-6208........................  (1) If the good consists of two or more component parts, a change to an      
                                    assembled good of heading 6201 through 6208 from unassembled components,    
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
                                   (2) If the good does not consist of two or more component parts, a change to 
                                    heading 6201 through 6208 from any heading outside that group, except from  
                                    heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 
                                    through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 
                                    through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and
                                    provided that the change is the result of a fabric-making process.          
6209.10.0000-6209.20.5035........  (1) If the good consists of two or more component parts, a change to an      
                                    assembled good of subheading 6209.10.0000 through 6209.20.5035 from         
                                    unassembled components, provided that the change is the result of the good  
                                    being wholly assembled in a single country, territory, or insular           
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more component parts, a change to 
                                    subheading 6209.10.0000 through 6209.20.5035 from any other heading, except 
                                    from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 
                                    5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 
                                    5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading        
                                    6307.90, and provided that the change is the result of a fabric-making      
                                    process.                                                                    
6209.20.5040.....................  A change to subheading 6209.20.5040 from any other heading, except from      
                                    heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 
                                    through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 
                                    through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and
                                    provided that the change is the result of a fabric-making process.          
6209.20.5045-6209.90.9000........  (1) If the good consists of two or more component parts, a change to an      
                                    assembled good of subheading 6209.20.5045 through 6209.90.9000 from         
                                    unassembled components, provided that the change is the result of the good  
                                    being wholly assembled in a single country, territory, or insular           
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more component parts, a change to 
                                    subheading 6209.20.5045 through 6209.90.9000 from any other heading, except 
                                    from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 
                                    5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 
                                    5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading        
                                    6307.90, and provided that the change is the result of a fabric-making      
                                    process.                                                                    
6210-6212........................  (1) If the good consists of two or more component parts, a change to an      
                                    assembled good of heading 6210 through 6212 from unassembled components,    
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
                                   (2) If the good does not consist of two or more component parts, a change to 
                                    heading 6210 through 6212 from any heading outside that group, except from  
                                    heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 
                                    through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 
                                    through 5811, 5903, 5906 through 5907, 6001 through 6002, and 6217, and     
                                    subheading 6307.90, and provided that the change is the result of a fabric- 
                                    making process.                                                             
6213-6214........................  A change to heading 6213 through 6214 from any other heading, except from    
                                    heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 
                                    through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 
                                    through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and
                                    provided that the change is the result of a fabric-making process.          
6215-6217........................  (1) If the good consists of two or more component parts, a change to an      
                                    assembled good of heading 6215 through 6217 from unassembled components,    
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
                                   (2) If the good does not consist of two or more component parts, a change to 
                                    heading 6215 through 6217 from any heading outside that group, except from  
                                    heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 
                                    through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 
                                    through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and
                                    provided that the change is the result of a fabric-making process.          
6301-6306........................  A change to heading 6301 through 6306 from any heading outside that group,   
                                    except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through
                                    5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 
                                    5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and
                                    subheading 6307.90, and provided that the change is the result of a fabric- 
                                    making process.                                                             
6307.10..........................  A change to subheading 6307.10 from any other heading, except from heading   
                                    5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 
                                    5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, 5809   
                                    through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided  
                                    that the change is the result of a fabric-making process.                   
6307.20..........................  A change to subheading 6307.20 from any other heading, provided that the     
                                    change is the result of the good being wholly assembled in a single country,
                                    territory, or insular possession.                                           
6307.90..........................  A change to subheading 6307.90 from any other heading, except from heading   
                                    5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 
                                    5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, 5807   
                                    through 5811, 5903, 5906 through 5907, and 6001 through 6002, and provided  
                                    that the change is the result of a fabric-making process.                   
[[Page 27390]]
                                                                                                                
6308.............................  A change to heading 6308 from any other heading, except from heading 5007,   
                                    5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 
                                    5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, 5809 through 
                                    5811, 5903, 5906 through 5907, and 6001 through 6002, and provided that the 
                                    change is the result of a fabric-making process.                            
6309-6310........................  The country, territory, or insular possession in which the good was last     
                                    collected and packaged for shipment.                                        
6405.20.60.......................  A change to subheading 6405.20.60 from any other heading, provided that the  
                                    change is the result of the good being wholly assembled in a single country,
                                    territory, or insular possession.                                           
6406.10.77.......................  (1) If the good consists of two or more components, a change to subheading   
                                    6406.10.77 from any other heading, provided that the change is the result of
                                    the good being wholly assembled in a single country, territory, or insular  
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more components, a change to      
                                    subheading 6406.10.77 from any other heading, except from heading 5007, 5111
                                    through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 
                                    through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through
                                    5810, 5903, 5906 through 5907, and 6001 through 6002, and provided that the 
                                    change is the result of a fabric-making process.                            
6406.10.90.......................  (1) If the good consists of two or more components, a change to subheading   
                                    6406.10.90 from any other heading, provided that the change is the result of
                                    the good being wholly assembled in a single country, territory, or insular  
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more components, a change to      
                                    subheading 6406.10.90 from any other heading, except from heading 5007, 5111
                                    through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 
                                    through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through
                                    5810, 5903, 5906 through 5907, and 6001 through 6002, and provided that the 
                                    change is the result of a fabric-making process.                            
6406.99.15.......................  (1) If the good consists of two or more components, a change to subheading   
                                    6406.99.15 from any other heading, provided that the change is the result of
                                    the good being wholly assembled in a single country, territory, or insular  
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more components, a change to      
                                    subheading 6406.99.15 from any other heading, except from heading 5007, 5111
                                    through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 
                                    through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through
                                    5810, 5903, 5906 through 5907, and 6001 through 6002, and provided that the 
                                    change is the result of a fabric-making process.                            
6501.............................  (1) If the good consists of two or more components, a change to heading 6501 
                                    from any other heading, provided that the change is the result of the good  
                                    being wholly assembled in a single country, territory, or insular           
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more components, a change to      
                                    heading 6501 from any other heading, except from heading 5603, and provided 
                                    that the change is the result of a fabric-making process.                   
6502.............................  (1) If the good consists of two or more components, a change to heading 6502 
                                    from any other heading, provided that the change is the result of the good  
                                    being wholly assembled in a single country, territory, or insular           
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more components, a change to      
                                    heading 6502 from any other heading, except from heading 5007, 5111 through 
                                    5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through 
                                    5603, 5608, 5801 through 5804, 5806, 5808 through 5810, 5903, 5906 through  
                                    5907, and 6001 through 6002, and provided that the change is the result of a
                                    fabric-making process.                                                      
6503.............................  (1) If the good consists of two or more components, a change to heading 6503 
                                    from any other heading, provided that the change is the result of the good  
                                    being wholly assembled in a single country, territory, or insular           
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more components, a change to      
                                    heading 6503 from any other heading, except from heading 5603, and provided 
                                    that the change is the result of a fabric-making process.                   
6504.............................  (1) If the good consists of two or more components, a change to heading 6504 
                                    from any other heading, provided that the change is the result of the good  
                                    being wholly assembled in a single country, territory, or insular           
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more components, a change to      
                                    heading 6504 from any other heading, except from heading 5007, 5111 through 
                                    5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through 
                                    5603, 5608, 5801 through 5804, 5806, 5808 through 5810, 5903, 5906 through  
                                    5907, and 6001 through 6002, and provided that the change is the result of a
                                    fabric-making process.                                                      
6505.90..........................  (1) If the good consists of two or more components, a change to subheading   
                                    6505.90 from any other heading, provided that the change is the result of   
                                    the good being wholly assembled in a single country, territory, or insular  
                                    possession.                                                                 
                                   (2) If the good does not consist of two or more components, a change to      
                                    subheading 6505.90 from any other heading, except from heading 5007, 5111   
                                    through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 
                                    through 5603, 5608, 5801 through 5804, 5806, 5808 through 5811, 5903, 5906  
                                    through 5907, and 6001 through 6002, and provided that the change is the    
                                    result of a fabric-making process.                                          
6601.10-6601.91..................  A change to subheading 6601.10 through 6601.91 from any other heading,       
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
7019.10.15.......................  (1) If the good is of filaments, a change to subheading 7019.10.15 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 7019.10.15 from  
                                    any other subheading, except from subheading 7019.10.30 through 7019.10.90  
                                    and 7019.31 through 7019.90, and provided that the change is the result of a
                                    spinning process.                                                           
7019.10.28.......................  (1) If the good is of filaments, a change to subheading 7019.10.28 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 7019.10.28 from  
                                    any other subheading, except from subheading 7019.10.30 through 7019.10.90  
                                    and 7019.31 through 7019.90, and provided that the change is the result of a
                                    spinning process.                                                           
7019.20..........................  A change to subheading 7019.20 from any other heading, provided that the     
                                    change is the result of a fabric-making process.                            
[[Page 27391]]
                                                                                                                
8708.21..........................  (1) For seat belts not combined with nontextile components, a change to      
                                    subheading 8708.21 from any other heading, except from heading 5007, 5111   
                                    through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, and  
                                    5512 through 5516, and provided that the change is the result of a fabric-  
                                    making process.                                                             
                                   (2) For seat belts combined with nontextile components, a change to an       
                                    assembled good of subheading 8708.21 from unassembled components, provided  
                                    that the change is the result of the good being wholly assembled in a single
                                    country, territory, or insular possession.                                  
8804.............................  (1) If the good consists of two or more component parts, a change to an      
                                    assembled good of heading 8804 from unassembled components, provided that   
                                    the change is the result of the good being wholly assembled in a single     
                                    country, territory, or insular possession.                                  
                                   (2) If the good does not consist of two or more component parts, a change to 
                                    heading 8804 from any other heading, except from heading 5007, 5111 through 
                                    5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 
                                    5516, 5603, 5801 through 5804, 5806, 5809 through 5811, 5903, 5906 through  
                                    5907, and 6001 through 6002, and subheading 6307.90, and provided that the  
                                    change is the result of a fabric-making process.                            
9113.90.40.......................  (1) If the good consists of two or more component parts, a change to an      
                                    assembled good of subheading 9113.90.40 from unassembled components,        
                                    provided that the change is the result of the good being wholly assembled in
                                    a single country, territory, or insular possession.                         
                                   (2) If the good does not consist of two or more component parts, a change to 
                                    subheading 9113.90.40 from any other heading, except from heading 5007, 5111
                                    through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 
                                    through 5516, 5603, 5801 through 5802, 5806, 5809, 5903, 5906 through 5907, 
                                    and 6001 through 6002, and subheading 6307.90, and provided that the change 
                                    is the result of a fabric-making process.                                   
9404.90.10.......................  A change to subheading 9404.90.10 from any other heading, except from heading
                                    5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 
                                    5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 
                                    5811, 5903, 5906 through 5907, and 6001 through 6002, and subheading        
                                    6307.90, and provided that the change is the result of a fabric-making      
                                    process.                                                                    
9404.90.80-9404.90.95............  A change to subheading 9404.90.80 through 9404.90.95 from any other heading, 
                                    except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through
                                    5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 
                                    5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6002, and
                                    subheading 6307.90, and provided that the change is the result of a fabric- 
                                    making process.                                                             
9502.91..........................  A change to an assembled good of subheading 9502.91 from unassembled         
                                    components, provided that the change is the result of the good being wholly 
                                    assembled in a single country, territory, or insular possession.            
9612.10.9010.....................  A change to subheading 9612.10.9010 from any other heading, except from      
                                    heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 
                                    through 5408, 5512 through 5516, 5603, 5806, 5903, 5906 through 5907, and   
                                    6002, and provided that the change is the result of a fabric-making process.
----------------------------------------------------------------------------------------------------------------

  Approved: May 15, 1995.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
George J. Weise,
Commissioner of Customs.
[FR Doc. 95-12655 Filed 5-22-95; 8:45 am]
BILLING CODE 4820-02-P