19 U.S.C. § 3592 — Rules of origin for textile and apparel

Page 883 TITLE 19—CUSTOMS DUTIES § 3592 (B) to prevent or eliminate discrimination with respect to matters affecting the avail- ability, acquisition, scope, maintenance, use, and enforcement of intellectual prop- erty rights, (3) to secure fair, equitable, and nondiscrim- inatory market access opportunities for United States persons that rely upon intellec- tual property protection, (4) to take an active role in the development of the intellectual property regime under the World Trade Organization to ensure that it is consistent with other United States objec- tives, and (5) to take an active role in the World Intel- lectual Property Organization (WIPO) to de- velop a cooperative and mutually supportive relationship between the World Trade Organi- zation and WIPO. (Pub. L. 103–465, title III, § 315, Dec. 8, 1994, 108 Stat. 4942.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 103–465, title III, § 316, Dec. 8, 1994, 108 Stat. 4943, provided that: ‘‘(a) IN GENERAL.—Except as provided in subsection (b), this subtitle [subtitle B (§§ 311–316) of title III of Pub. L. 103–465, enacting this section and amending sec- tions 2241, 2242, 2411, 2414, 2416, and 2420 of this title] and the amendments made by this subtitle take effect on the date on which the WTO Agreement enters into force with respect to the United States [Jan. 1, 1995]. ‘‘(b) SECTION 314(f).—The amendment made by section 314(f) [amending section 2420 of this title] takes effect on the date of the enactment of this Act [Dec. 8, 1994].’’ PART B—TEXTILES § 3591. Textile product integration Not later than 120 days after the date that the WTO Agreement enters into force with respect to the United States, the Secretary of Com- merce shall publish in the Federal Register a no- tice containing the list of products to be inte- grated in each stage set out in Article 2(8) of the Agreement on Textiles and Clothing referred to in section 3511(d)(4) of this title. After publica- tion of such list, the list may not be changed un- less otherwise required by statute or the inter- national obligations of the United States, to correct technical errors, or to reflect reclassi- fications. Within 30 days after the publication of such list, the Trade Representative shall notify the list to the Textiles Monitoring Body estab- lished under Article 8 of the Agreement on Tex- tiles and Clothing. (Pub. L. 103–465, title III, § 331, Dec. 8, 1994, 108 Stat. 4947; Pub. L. 104–295, § 20(c)(7), Oct. 11, 1996, 110 Stat. 3528.) Editorial Notes AMENDMENTS 1996—Pub. L. 104–295 struck out ‘‘, as defined in sec- tion 3501(9) of this title,’’ after ‘‘WTO Agreement’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 103–465, title III, § 335, Dec. 8, 1994, 108 Stat. 4951, provided that: ‘‘Except as provided in section 334 [enacting section 3592 of this title], this subtitle [sub- title D (§§ 331–335) of title III of Pub. L. 103–465, enacting this part and section 1592a of this title, and amending section 1854 of Title 7, Agriculture] and the amend- ments made by this subtitle take effect on the date on which the WTO Agreement enters into force with re- spect to the United States [Jan. 1, 1995].’’ Executive Documents URUGUAY ROUND AGREEMENTS: ENTRY INTO FORCE The Uruguay Round Agreements, including the World Trade Organization Agreement and agreements an- nexed to that Agreement, as referred to in section 3511(d) of this title, entered into force with respect to the United States on Jan. 1, 1995. See note set out under section 3511 of this title. § 3592. Rules of origin for textile and apparel products (a) Regulatory authority The Secretary of the Treasury shall prescribe rules implementing the principles contained in subsection (b) for determining the origin of tex- tiles and apparel products. Such rules shall be promulgated in final form not later than July 1, 1995. (b) Principles (1) In general Except as otherwise provided for by statute, a textile or apparel product, for purposes of the customs laws and the administration of quantitative restrictions, originates in a coun- try, territory, or insular possession, and is the growth, product, or manufacture of that coun- try, territory, or insular possession, if— (A) the product is wholly obtained or pro- duced in that country, territory, or posses- sion; (B) the product is a yarn, thread, twine, cordage, rope, cable, or braiding and— (i) the constituent staple fibers are spun in that country, territory, or possession, or (ii) the continuous filament is extruded in that country, territory, or possession; (C) the product is a fabric, including a fab- ric classified under chapter 59 of the HTS, and the constituent fibers, filaments, or yarns are woven, knitted, needled, tufted, felted, entangled, or transformed by any other fabric-making process in that country, territory, or possession; or (D) the product is any other textile or ap- parel product that is wholly assembled in that country, territory, or possession from its component pieces. (2) Special rules (A) Notwithstanding paragraph (1)(D) and except as provided in subparagraphs (B) and (C)— (i) the origin of a good that is classified under one of the following HTS headings or subheadings shall be determined under sub- paragraph (A), (B), or (C) of paragraph (1), as appropriate: 5609, 5807, 5811, 6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 6304, 6305, 6306, 6307.10, 6307.90, 6308, or 9404.90; and (ii) a textile or apparel product which is knit to shape shall be considered to origi- Page 884 TITLE 19—CUSTOMS DUTIES § 3592 nate in, and be the growth, product, or man- ufacture of, the country, territory, or pos- session in which it is knit. (B) Notwithstanding paragraph (1)(C), fabric classified under the HTS as of silk, cotton, man-made fiber, or vegetable fiber shall be considered to originate in, and be the growth, product, or manufacture of, the country, terri- tory, or possession in which the fabric is both dyed and printed when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing. (C) Notwithstanding paragraph (1)(D), goods classified under HTS heading 6117.10, 6213.00, 6214.00, 6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 6304.99, 9404.90.85, or 9404.90.95, except for goods classified under such headings as of cotton or of wool or consisting of fiber blends containing 16 percent or more by weight of cotton, shall be considered to originate in, and be the growth, product, or manufacture of, the country, territory, or possession in which the fabric is both dyed and printed when accom- panied by two or more of the following fin- ishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiff- ening, weighting, permanent embossing, or moireing. (3) Multicountry rule If the origin of a good cannot be determined under paragraph (1) or (2), then that good shall be considered to originate in, and be the growth, product, or manufacture of— (A) the country, territory, or possession in which the most important assembly or man- ufacturing process occurs, or (B) if the origin of the good cannot be de- termined under subparagraph (A), the last country, territory, or possession in which important assembly or manufacturing oc- curs. (4) Components cut in the United States (A) 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 pos- session for assembly into an article that is then returned to the United States— (i) shall not be included in the dutiable value of such article, and (ii) may be applied toward determining the percentage referred to in General Note 7(b)(i)(B) of the HTS, subject to the limita- tion provided in that note. (B) No article (except a textile or apparel product) assembled in whole of components de- scribed in subparagraph (A), or of such compo- nents and components that are products of the United States, in a beneficiary country as de- fined in General Note 7(a) of the HTS shall be treated as a foreign article, or as subject to duty if— (i) the components after exportation from the United States, and (ii) the article itself before importation into the United States do not enter into the commerce of any foreign country other than such a beneficiary coun- try. (5) Exception for United States-Israel Free Trade Agreement This section shall not affect, for purposes of the customs laws and administration of quan- titative restrictions, the status of goods that, under rulings and administrative practices in effect immediately before December 8, 1994, would have originated in, or been the growth, product, or manufacture of, a country that is a party to an agreement with the United States establishing a free trade area, which entered into force before January 1, 1987. For such purposes, such rulings and administrative practices that were applied, immediately be- fore December 8, 1994, to determine the origin of textile and apparel products covered by such agreement shall continue to apply after December 8, 1994, and on and after the effec- tive date described in subsection (c), unless such rulings and practices are modified by the mutual consent of the parties to the agree- ment. (c) Effective date This section shall apply to goods entered, or withdrawn from warehouse, for consumption on or after July 1, 1996, except that this section shall not apply to goods if— (1) the contract for the sale of such goods to the United States is entered into before July 20, 1994; (2) all of the material terms of sale in such contract, including the price and quantity of the goods, are fixed and determinable before July 20, 1994; (3) a copy of the contract is filed with the Commissioner of Customs within 60 days after December 8, 1994, together with a certification that the contract meets the requirements of paragraphs (1) and (2); and (4) the goods are entered, or withdrawn from warehouse, for consumption on or before Janu- ary 1, 1998. The origin of goods to which this section does not apply shall be determined in accordance with the applicable rules in effect on July 20, 1994. (Pub. L. 103–465, title III, § 334, Dec. 8, 1994, 108 Stat. 4949; Pub. L. 104–295, § 20(c)(9), Oct. 11, 1996, 110 Stat. 3528; Pub. L. 106–200, title IV, § 405(a), May 18, 2000, 114 Stat. 292.) Editorial Notes AMENDMENTS 2000—Subsec. (b)(2). Pub. L. 106–200 designated exist- ing provisions as subpar. (A), in introductory provi- sions substituted ‘‘Notwithstanding paragraph (1)(D) and except as provided in subparagraphs (B) and (C)’’ for ‘‘Notwithstanding paragraph (1)(D)’’, added subpars. (B) and (C), and redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A). 1996—Subsec. (b)(1)(B)(ii). Pub. L. 104–295 substituted ‘‘possession;’’ for ‘‘possession,’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2000 AMENDMENT Pub. L. 106–200, title IV, § 405(b), May 18, 2000, 114 Stat. 293, provided that: ‘‘The amendments made by this sec- Page 885 TITLE 19—CUSTOMS DUTIES § 3601 tion [amending this section] apply to goods entered, or withdrawn from warehouse for consumption, on or after the date of the enactment of this Act [May 18, 2000].’’ TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and li- abilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Se- curity, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended gen- erally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6. SUBCHAPTER IV—AGRICULTURE-RELATED PROVISIONS PART A—MARKET ACCESS § 3601. Administration of tariff-rate quotas (a) Orderly marketing In implementing the tariff-rate quotas set out in Schedule XX for the entry, or withdrawal from warehouse, for consumption of goods in the United States, the President shall take such ac- tion as may be necessary to ensure that imports of agricultural products do not disrupt the or- derly marketing of commodities in the United States. (b) Inadequate supply Where imports of an agricultural product are subject to a tariff-rate quota, and where the President determines and proclaims that the supply of the same or directly competitive or substitutable agricultural product will be inad- equate, because of a natural disaster, disease, or major national market disruption, to meet do- mestic demand at reasonable prices, the Presi- dent may temporarily increase the quantity of imports of the agricultural product that is sub- ject to the in-quota rate of duty established under the tariff-rate quota. (c) Monitoring The Secretary of Agriculture shall monitor the domestic supply of agricultural products subject to a tariff-rate quota as the Secretary considers appropriate and shall advise the Presi- dent when the domestic supply of the products and substitutable products combined with the estimated imports of the products under the tar- iff-rate quota may be inadequate to meet domes- tic demand at reasonable prices. (d) Coverage of tariff-rate quotas (1) Exclusions The President may, subject to terms and conditions determined appropriate by the President, provide that the entry, or with- drawal from warehouse, for consumption in the United States of an agricultural product shall not be subject to the over-quota rate of duty established under a tariff-rate quota if the agricultural product— (A) is imported by, or for the account of, any agency of the United States or of any foreign embassy; (B) is imported as a sample for taking or- ders, for the personal use of the importer, or for the testing of equipment; (C) is a commercial sample or is entered for exhibition, display, or sampling at a trade fair or for research; or (D) is a blended syrup provided for in sub- headings 1702.20.28, 1702.30.28, 1702.40.28, 1702.60.28, 1702.90.58, 1806.20.92, 1806.20.93, 1806.90.38, 1806.90.40, 2101.10.38, 2101.20.38, 2106.90.38, or 2106.90.67 of Schedule XX, if en- tered from a foreign trade zone by a foreign trade zone user whose facilities were in oper- ation on June 1, 1990, to the extent that the annual quantity entered into the customs territory from such zone does not contain a quantity of sugar of nondomestic origin greater than the quantity authorized by the Foreign Trade Zones Board for processing in that zone during calendar year 1985. (2) Reclassification Subject to the consultation and layover re- quirements of section 3524 of this title, the President may proclaim a modification to the coverage of a tariff-rate quota for any agricul- tural product if the President determines the modification is necessary or appropriate to conform the tariff-rate quota to Schedule XX as a result of a reclassification of any item by the Secretary of the Treasury. (3) Allocation The President may allocate the in-quota quantity of a tariff-rate quota for any agricul- tural product among supplying countries or customs areas and may modify any allocation as determined appropriate by the President. (4) Bilateral agreement The President may proclaim an increase in the tariff-rate quota for beef if the President determines that an increase is necessary to implement— (A) the March 24, 1994, agreement between the United States and Argentina; or (B) the March 9, 1994, agreement between the United States and Uruguay. (5) Continuation of sugar headnote The President is authorized to proclaim ad- ditional United States note 3 to chapter 17 of the HTS, and to proclaim the modifications to the note, as determined appropriate by the President to reflect Schedule XX. (Pub. L. 103–465, title IV, § 404, Dec. 8, 1994, 108 Stat. 4959.) Editorial Notes CODIFICATION Section is comprised of section 404 of Pub. L. 103–465. Subsec. (e) of section 404 of Pub. L. 103–465 amended sections 1313, 2463, 2703, and 3203 of this title and sec- tion 1359a of Title 7, Agriculture, and enacted provi- sions set out as a note under section 1313 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 103–465, title IV, § 451, Dec. 8, 1994, 108 Stat. 4973, provided that: ‘‘Except as otherwise provided in this title, this title [enacting this subchapter, sections