CLA-2 RR:TC:TE 959200 jb
Margaret R. Polito, Esq.
Neville, Peterson & Williams
80 Broad Street, 34th Floor
New York, NY 10004
RE: Country of origin determination for duvet covers, pillow
shams and pillow cases; 19 CFR 102.21(c)(2); tariff shift;
19 CFR 102.21 (c)(5); last country in which an important assembly or manufacturing process occurs
Dear Ms. Polito:
This is in reply to your letter dated May 1, 1996, on behalf
of your client, WestPoint Stevens, requesting a country of origin
determination for duvet covers, pillow shams and pillow cases
which will be imported into the United States sometime on or
after July 1, 1996. Samples were submitted to this office for
examination.
FACTS:
The subject merchandise consists of certain duvet covers,
pillow shams and pillow cases which complement various styles of
bedding products. You have submitted information for four
manufacturing scenarios. Scenario I involves manufacturing in
both the United States and Israel and will be addressed in a
subsequent ruling. As such, this ruling will address only
scenarios II, III and IV. The manufacturing operations for this
merchandise are as follows:
SCENARIO II- Duvet covers and Pillow shams
Country A
- fabric A is woven.
Country B
- fabric B is woven.
United States
- fiberfill interlining is produced;
- the fabrics for the duvet covers and pillow shams are cut to
length and width;
- assembly.
SCENARIO III- Pinebluff Pillow case and Flat sheet
United States
- fabric for pillow case body and flat sheet are woven.
India
- plaid cuff fabric is woven.
United States
- the fabrics for the pillow case and flat sheet are cut to
length and width;
- the body of both the pillow case and flat sheet are sewn and
the plaid cuff is sewn onto the body of the respective pillow
case and flat sheet by folding the fabrics over such that the
same print appears on the inside and outside of the
pillow case and flat sheet.
* You state that the fabric used to produce the cuff for
both the pillow case and the flat sheet accounts for less than
seven percent of the total fabric weight of the finished pillow
case and flat sheet.
SCENARIO IV- Duvet covers
Italy
- fabric is woven and finished.
United States
- cutting;
- sewing.
ISSUE:
What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act provides
new rules of origin for textiles and apparel entered, or
withdrawn from warehouse, for consumption, on and after July 1,
1996. On September 5, 1995, Customs published Section 102.21,
Customs Regulations, in the Federal Register, implementing
Section 334 (60 FR 46188). Thus, effective July 1, 1996, the
country of origin of a textile or apparel product shall be
determined by sequential application of the general rules set
forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states 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." As the subject merchandise is not wholly obtained or
produced in a single country, territory or insular possession,
paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states that "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".
Paragraph (e) states that "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:"
6301- 6306 The country of origin of a good
classifiable under heading 6301 through 6306 is
the country, territory, or insular possession, in which the fabric comprising the good was formed by a
fabric- making process.
General Rule (c) of Part 102.21 states that "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 102.12 through
102.19 of this part". Section 102.13, which sets out the De
Minimis rule states, in relevant part:
(c) Foreign components or materials that do not undergo the
applicable change in tariff classification set out in
102.21 or satisfy the other applicable requirements of that section when incorporated into a textile or apparel
product covered by that section shall be
disregarded in determining the country of orgin of the good if
the total weight of those components or materials is not
more than 7 percent of the total weight of the good.
The subject merchandise is classifiable in various
subheadings of heading 6302, HTSUSA, and heading 6304, HTSUSA.
In scenario II, as the fabric for the duvet covers and pillow
shams is formed in two countries, the tariff shift rule is not
applicable. However, in scenario III, the pillow case and flat
sheet feature a contrasting cuff which you state accounts for
less than seven percent of the total fabric weight of the
finished pillow case and flat sheet. As such, the incorporation
of the cuff on to the pillow case and flat sheet meets the terms
of the De Minimis rule and the cuff is to be disregarded when
determining country of origin. Accordingly, the pillow case and
flat sheet meet the terms of the tariff shift, that is country of
origin is conferred by the single country where fabric-making
occurs, that is, the United States. Additionally, in scenario
IV, the fabric for the duvet covers is entirely woven and
finished in Italy. As the fabric comprising the duvet covers was
formed by a fabric making process in a single country, that is,
Italy, the country of origin of the duvet covers is Italy.
Paragraph (c)(3) states that "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) Except for goods of heading 5609, 5807, 5811,
6213, 6214, 6301 through 6306, and 6308, and subheadings
6209.20.5040, 6307.10, 6307.90, and 9404.90, 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.
As the subject merchandise is not knit, and headings 6302,
HTSUSA, and 6304, HTSUSA, are excepted from provision (ii),
Section 102.21 (c)(3) is inapplicable.
Section 102.21 (c)(4) states, "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". In the case of the duvet covers and pillow
shams in scenario II, the most important manufacturing process
occurs at the time of the fabric making. As the fabric for the
merchandise is sourced in more than one country, and no one
fabric is more important than the other, country of origin cannot
be readily determined based on the fabric making process.
Paragraph (c)(5) states, "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." Accordingly, in the case of the
duvet covers and pillow shams, in scenario II, country of origin
is conferred by the last country in which an important assembly
or manufacturing process occurred, that is, the United States.
The proposed markings "Made in the U.S.A of Imported
Fabric", or "Made in the U.S.A. of Imported and Domestic Fabric",
in regard to the duvet covers and pillow shams in scenarios II
and III are consistent with the origin rules set forth in section
334 of the Uruguay Round Agreements Act (URAA). Please be aware
that the use of the marking "Made in the U.S.A." is within the
jurisdiction of the Federal Trade Commission, Division of
Enforcement, located at 6th & Pennsylvania Avenue, N.W.,
Washington, D.C. 20508.
Additionally, you request that Customs confirm the proposed
marking "Made in Italy- Sewn in the U.S.A.", in regard to the
duvet covers in scenario IV. This language is also consistent
with the origin rules set forth in section 334 of the URAA.
Accordingly, the proposed marking would satisfy the country of
origin requirements of 19 U.S.C. 1304 and 19 CFR 134.46.
HOLDING:
In scenario II the country of origin of the subject duvet
covers and pillow shams is the United States.
In scenario III the country of origin of the subject
Pinebluff pillow cases and flat sheets is
the United States.
In scenario IV the country of origin of the subject duvet
covers is Italy.
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