CLA-2 CO:R:C:G 088053 CC
Mr. Steven L. Markowitz
President
Max Kahn Curtain Corporation
261 Fifth Avenue
New York, NY 10016
RE: Classification and country of origin of comforter shells;
not classifiable in Headings 9404 or 6304; classifiable in
6307
Dear Mr. Markowitz:
This letter is in response to your request for tariff
classification, country of origin, and eligibility for partial
duty exemption determinations for comforter shells. A sample was
submitted for examination.
FACTS:
The submitted merchandise is a comforter shell, which
measures approximately 80 inches by 90 inches and is not stuffed.
It consists of two layers. The front layer of the sample is
made of a woven blend of 70 percent polyester and 30 percent
cotton fabric and is printed with representations of flowers and
other designs. You state that sometimes the front layer will not
be printed and will be of a solid color. The back layer of the
sample is made of 100 percent woven polyester fabric and is plain
white. You state that sometimes the back layer will be made of a
blend of cotton and polyester.
You state that the fabric used to make the comforter shells
will be of both United States and foreign origin. In addition,
you state that the following operations will be performed in
Haiti to create the comforter shells:
1. Move goods to cutting area, using 90 inch fabric for the
top and 60 inch fabric for the back
2. Cut goods to be used for Top by spreading plies on
cutting table and cutting entire spread with knife
3. Cut goods to be used for Back by spreading plies on
cutting table and cutting entire spread with knife
4. Piece together Top by using overlock machine with 100
percent polyester thread
5. Piece together Back by using overlock machine with 100
percent polyester thread
6. Attach Top to Back using single needle lockstitch with
100 percent polyester thread, with face sides in
7. Fold one comforter shell
8. Box 25 comforter shells per carton
ISSUE:
Whether the comforter shells at issue are classifiable in
Heading 6304 of the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), Heading 6307, HTSUSA, or Heading 9404,
HTSUSA?
What is the country of origin for the comforter shells?
Whether the comforter shells are entitled to the partial
duty exemption under subheading 9802.00.80, HTSUSA?
LAW AND ANALYSIS:
Classification
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes.
We classified comforter shells in Headquarters Ruling Letter
(HRL) 084273, dated June 14, 1989. In that ruling we stated
that comforter shells were not classifiable in Heading 9404,
HTSUSA, since articles classified in this heading must be stuffed
or internally fitted with material. In addition, they were not
classifiable in Heading 6304, HTSUSA, as incomplete or unfinished
furnishings because if they were finished, they would be
classifiable in Heading 9404. Therefore the comforter shells
were classified in Heading 6307, HTSUSA, which provides for other
made up articles.
The comforter shells at issue are similar to those
classified in HRL 084273. Consequently, they are classifiable in
Heading 6307.
Country of Origin
Section 12.130 provides that a textile product that is
processed in more than one country or territory shall be a
product of that country or territory where it last underwent a
substantial transformation. A textile product will be considered
to have undergone a substantial transformation if it has been
transformed by means of substantial manufacturing or processing
operations into a new and different article of commerce.
Section 12.130(d)(2) of the Customs Regulations states that
in determining whether merchandise has been subjected to
substantial manufacturing or processing operations, the following
will be considered:
(i) The physical change in the material or article as a
result of the manufacturing or processing operations in each
foreign territory or country, or insular possession of the
U.S.
(ii) The time involved in the manufacturing or processing
operations in each foreign territory or country, or insular
possession of the U.S.
(iii) The complexity of the manufacturing or processing
operations in each foreign territory or country, or insular
possession of the U.S.
(iv) The level or degree of skill and/or technology required
in the manufacturing or processing operations in each
foreign territory or country, or insular possession of the
U.S.
(v) The value added to the article or material in each
foreign territory or country, or insular possession of the
U.S., compared to its value when imported into the U.S.
According to your submissions, the entire top and back are
cut with a knife. We would assume therefore that the top and
back are cut to length and width. In addition, the top and back
are sewn together on three sides. We believe that the physical
change of the fabric into comforter shells in Haiti, as well as
the processing operations performed there, is substantial.
Therefore the country of origin for the comforter shells at issue
is Haiti.
Applicability of subheading 9802.00.80, HTSUSA
Subheading 9802.00.80, HTSUSA, provides a partial duty
exemption for:
[a]rticles assembled abroad in whole or in part of
fabricated components, the product of the United States,
which (a) were exported in condition ready for assembly
without further fabrication, (b) have not lost their
physical identity in such articles by change in form,
shape or otherwise, and (c) have not been advanced in
value or improved in condition abroad except by being
assembled and except by operations incidental to the
assembly process such as cleaning, lubricating and
painting.
All three requirements of subheading 9802.00.80, HTSUSA, must be
satisfied before a component may receive a duty allowance. An
article entered under subheading 9802.00.80, HTSUSA, is subject
to duty upon the full value of the imported assembled article
less the cost or value of the U.S. components, upon compliance
with the documentary requirements of section 10.24, Customs
Regulations (19 CFR 10.24).
A fabricated component is defined as "a manufactured article
ready for assembly in the condition as exported except for
operations incidental to the assembly." Section 10.12(d),
Customs Regulations (19 CFR 10.12(d)). Operations incidental to
the assembly process are not considered further fabrication
operations, as they are of a minor nature and cannot always be
provided for in advance of the assembly operation. See section
10.16(a), Customs Regulations (19 CFR 10.16(a)). However, any
significant process, operation, or treatment whose primary
purpose is the fabrication, completion, or physical or chemical
improvement of a component precludes the application of the
exemption under subheading 9802.00.80, HTSUSA. See 19 CFR
10.16(c). An example of an operation considered not incidental
to the assembly process is cutting garment parts according to a
pattern from exported material. See 19 CFR 10.16(c)(2).
Similarly, uncut textile fabrics exported in bolts and cut abroad
according to a pattern to make wearing apparel components are
not regarded as fabricated components. See section 10.14(a),
Customs Regulations (19 CFR 10.14(a)).
Assuming that the U.S. origin fabric in the instant case is
exported to Haiti uncut in bolts, and cut there to length and
width to form the top and back components of the comforter shell,
we find that these operations constitute a fabrication of the
components abroad. See 19 CFR 19.16(c)(2). Therefore, no
allowance in duty is permitted under subheading 9802.00.80,
HTSUSA, for the cost or value of the U.S. origin fabric, when the
comforter shells are imported into the U.S.
HOLDING:
The comforter shells at issue are classified under
subheading 6307.90.9590, HTSUSA, which provides for other made up
articles, other, other, other, other. The rate of duty is 7
percent ad valorem. Goods classified under this subheading from
Haiti are subject to duty free treatment under the Generalized
System of Preferences.
The country of origin for the merchandise at issue is Haiti.
The comforter shells are not entitled to a partial duty
exemption under subheading 9802.00.80, HTSUSA, because the U.S.
origin fabric is not exported in condition ready for assembly
without further fabrication. Further, no allowance in duty is
permitted for the cost or value of the foreign origin fabric
because subheading 9802.00.80, HTSUSA, is applicable only to
fabricated components which are products of the U.S.
The holding set forth above applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in section
177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)). This
section states that a ruling letter is issued on the assumption
that all of the information furnished in connection with the
ruling request and incorporated in the ruling letter, either
directly, by reference, or by implication, is accurate and
complete in every material respect. Should it subsequently be
determined that the information furnished is not complete and
does not comply with 19 CFR 177.9(b)(1), the ruling will be
subject to modification or revocation. In the event there is a
change in the facts previously furnished this may affect the
determination of country of origin. Accordingly, it is
recommended that a new ruling request be submitted in accordance
with section 177.2, Customs Regulations (19 CFR 177.2).
Sincerely,
John Durant, Director
Commercial Rulings Division