CLA-2 RR:TC:TE 958894 SK
John M. Peterson
Neville, Peterson & Williams
80 Broad Street
34th Floor
New York, New York 10004
RE: Country of origin determination; pillow shells; Section
102.21(c)(4), Customs Regulations.
Dear Mr. Peterson:
This is in response to your inquiry of January 24, 1996, on
behalf of your client, Pac-Fung Feather Company, Ltd. and Natural
Feather & Textiles, Inc., requesting a country of origin
determination for pillow shells pursuant to Section 334 of the
Uruguay Round Agreements Act (19 USC Section 3592) and
implementing Customs Regulations (19 CFR Section 102.21). On
April 4, 1996, you met with a representative from this office to
further discuss the issues raised in your request.
FACTS:
The merchandise at issue consists of 100 percent cotton
pillow shells which will be assembled in Hong Kong using fabric
which is woven in the People's Republic of China and in one or
more additional countries. You have stated that the second
country in which fabric will be formed will either be Taiwan,
Hong Kong, Japan or another unspecified country. Fabric, having
down-proof qualities, will be woven and dyed in China and
imported into Hong Kong. Fabric, not possessing down-proof
qualities, will be woven and dyed in a second country and
imported into Hong Kong. In Hong Kong, the Chinese fabric will
be cut to length and width to form equal-sized top and bottom
panels of a pillow shell. The fabric formed in a second country
will also be cut to length and width in Hong Kong to form a
"chamber divider" for the
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pillow shell. This "Chamber divider" will have the same
dimensions as the top and bottom panels, but consists of only a
single piece of fabric. The top, Chamber divider and bottom
panel are then sewn together on three sides. The shells will be
imported into the United States and sold to pillow manufacturers
who will fill them with down, feathers, polyester batting or
other materials and sew them closed to be sold as finished
pillows.
ISSUE:
What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
Pursuant to the Section 334 of the Uruguay Round Agreements
Act (19 USC Section 3592) new rules of origin will be effective
for textile or apparel products entered, or withdrawn from
warehouse for consumption, on or after July 1, 1996. These rules
were published in the Federal Register, 60 Fed. Reg. 46188
(September 5, 1995). Section 102.21, Customs Regulations (19 CFR
Section 102.21), sets forth the general rules which determine
country of origin. The country of origin of a textile or apparel
product will be determined by a hierarchy of rules set forth in
paragraphs (c)(1) through (c)(5) of Section 102.21.
Section 102.21(c)(1) sets forth the general rule for
determining the country of
origin of a textile or apparel product in which the good is
wholly obtained or produced in a single country, territory, or
insular possession.
Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under Section 102.21(c)(1). Section 102.21 (c)(2)
provides:
"[W]here 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."
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Section 102.21(c)(3) governs instances where country of
origin of a textile or apparel product cannot be determined
pursuant to paragraphs (c)(1) or (c)(2) and where the subject
merchandise consists of either a good that was knit to shape in a
single country or, except for goods of certain specifically
enumerated headings, if the good was not knit to shape and was
wholly assembled in a single country.
Section 102.21(c)(4) provides:
"[W]here 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."
In the manufacturing scenarios set forth above, Section
102.21(c)(1) does not provide the relevant country of origin
analysis because the pillow shells are not wholly obtained or
produced in a single country.
Section 102.21(c)(2) is also inapplicable. The pillow
shells are classifiable under subheading 6307.90.89, Harmonized
Tariff Schedule of the United States Annotated (HTSUSA).
Accordingly, we are directed to paragraph (e) of this section
which states, in pertinent part, that origin is conferred in the
following situations:
6307.90 [T]he country of origin of a good classifiable
under subheading 6307.90 is the country, territory, or insular
possession in which the fabric comprising the good was formed
by a fabric-making process.
The fabric comprising the pillow shells was formed in more
than a single country. Accordingly, Section 102.21(c)(2) is
inapplicable and our hierarchical application of Section
102.21(c) continues.
Section 102.21(c)(3) does not provide the relevant country
of origin analysis inasmuch as the subject pillow cases are not
knit to shape goods and, as articles classifiable under
subheading 6307.90, HTSUSA, they are specifically exempted from
paragraph (c)(3)(ii)'s application.
The relevant analysis in the instant case is provided by
Section 102.21(c)(4), cited supra, which looks to the country,
territory, or insular possession in which the most important
assembly or manufacturing process occurred as conferring origin.
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In the instant case, the fabric manufactured in China
possesses down-proof qualities which are meaningful in terms of
their importance to the finished pillow shell. The manufacturing
process which transpires in China also serves to create the outer
shell of the subject merchandise. Accordingly, the most
important manufacturing process takes place in China and this
country confers origin to the subject merchandise.
HOLDING:
The country of origin of the subject pillow shells is China.
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 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 the
ruling letter, either directly, by reference, or by implication,
is accurate and complete in every material respect.
Should it be subsequently 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, if there is any change in the
facts submitted to Customs, it is recommended that a new ruling
request be submitted in accordance with 19 CFR 177.2.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division