Daily Rules, Proposed Rules, and Notices of the Federal Government
Notice is hereby given that on September 22, 2008, pursuant to subpart B of part 177, Customs and Border Protection (CBP)
Section 177.29, CBP Regulations (19 CFR 177.29), provides that notice of final determinations shall be published in the
Dear Mr. Fuller: This ruling is in response to your request of August 6, 2008, for a determination as to the country of origin of Tegaderm
3M imports nonwoven cotton fiber fabric which is produced by and purchased from suppliers outside the United States. At the time of importation, the nonwoven cotton fabric is in large (Jumbo) rolls and has no finishing on it. It is classifiable as a nonwoven fabric of heading 5603 of the Harmonized Tariff Schedule of the United States (HTSUS).
After importation, the nonwoven cotton fabric is processed so as to be impregnated with silver sulfate which is manufactured in the United States. The impregnated fabric is then slit to desired widths, cut to size (length), and packaged into pouches which are then sealed. The pouches are labeled, packed into cases, and then sent for sterilization. The finished Tegaderm
The silver sulfate with which the nonwoven fabric is impregnated is the “active ingredient” in the product. It is the silver sulfate which causes wounds to heal quicker. On its web site, 3M claims with regard to this product: “Silver sulfate releases as silver ions in the dressing creates an effective antimicrobial barrier for up to 7 days.” It is further claimed that these silver ions reduce the number of bacteria and yeast.
You assert that the finished dressings are products of the United States under application of the rules of origin for textile and apparel products set forth in the Customs and Border Protection (CBP) regulations at 19 CFR 102.21 (implementing 19 U.S.C. 3592). In the alternative, you assert that the finished dressings are products of the United States under the traditional substantial transformation test set forth in 19 U.S.C. 2518.
What is the country of origin of the finished Tegaderm
Pursuant to Subpart B of Part 177, 19 CFR 177.21
Initially, we note that 3M is permitted to request this ruling as it is the importer of record and thus meets the requirements of 19 CFR 177.23(a) and 177.24. In addition, 3M meets the definition of a party-at-interest as defined at 19 CFR 177.22(d) and is entitled to a final determination as to the country of origin of the finished Tegaderm
The rule of origin set forth in 19 U.S.C. 2518(4)(B) states:
An article is a product of a country or instrumentality only if (i) it is wholly the growth, product, or manufacture of that country or instrumentality, or (ii) in the case of an article which consists in whole or in part of materials from another country or instrumentality, it has been substantially transformed into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was so transformed.
In rendering advisory rulings and final determinations for purposes of U.S. Government procurement, CBP applies the provisions of Subpart B of Part 177 consistent with the Federal Procurement Regulations. See 19 CFR 177.21. In this regard, CBP recognizes that the Federal Procurement Regulations restrict the U.S. Government's purchase of products to U.S.-made or designated country end products for acquisitions subject to the TAA. See 48 CFR 25.403(c)(1). The Federal Procurement Regulations define “U.S.-made end product” as: * * * an article that is mined, produced, or manufactured in the United States or
The rules of origin for textile products for purposes of the customs laws and the administration of quantitative restrictions are set forth in 19 U.S.C. 3592. These provisions are implemented in the CBP Regulations at 19 CFR 102.21. The rules set forth in § 3592 apply to textile and apparel products, unless otherwise provided for by statute. The rule of origin in § 2518(4)(B) is a rule of origin otherwise provided for by statute, however, it is a general rule, whereas § 3592 is specific to textile products. Section 3592 has been described as Congress's expression of substantial transformation as it relates to textile products.
The rules of origin in 19 U.S.C. 3592 are implemented in the CBP Regulations in 19 CFR 102.21. The imported product is a nonwoven textile fabric. The finished product, Tegaderm
As the finished dressing is produced by processing in more than one country, its origin cannot be determined by application of § 102.21(c)(1), wholly obtained or produced rule, and resort must be made to § 102.21(c)(2). Section 102.21(c)(2) states that the origin of a good is the country “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 [102.21].” Section 102.21(e) provides in pertinent part:
(1) The following rules will apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:
Based on the facts and analysis set forth above, the finished Tegaderm
Notice of this final determination will be given in the