[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]] _______________________________________________________________________ Part II Department of the Treasury _______________________________________________________________________ Customs Service _______________________________________________________________________ 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. ----------------------------------------------------------------------- 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