CLA-2 RR:CR:TE 965739 ss
Mr. Ralph Saunders
Deringer Logistics Consulting Group
1 Lincoln Blvd., Suite 225
Rouses Point, NY 12979
RE: Country of origin of bedskirt; Modification of NY I80828
Dear Mr. Saunders:
On May 10, 2002, our New York Office issued to you, on behalf of C.S. Brooks Canada, Inc., New York Ruling Letter (NY) I80828, addressing the classification, status under the North American Free Trade Agreement (NAFTA) and country of origin of a bed skirt imported from Canada as part of a bedding set.
This letter is to inform you that although the classification and status under the NAFTA are correct, the county of origin determination rendered for the bed skirt is in error. Accordingly, we are modifying NY I80828 with respect to the country of origin of the bed skirt. This ruling does not affect the remaining items in the bedding set. The correct country of origin for the bed skirt is Canada pursuant to the analysis which follows below.
FACTS:
The merchandise at issue is a bed skirt or bed ruffle designed to hang over the edge of a box spring on three sides. The skirt has an approximately 13-inch drop. The skirt portion of the bed skirt will be made from either a 70 percent polyester and 30 percent cotton woven printed fabric or a 50 percent polyester and 50 percent cotton woven printed fabric. The platform section of the bed skirt is made from spunbond nonwoven fabric.
The manufacturing operations for the bed skirt are as follows:
PAKISTAN
-polyester and cotton (70/30 or 50/50) fabric is woven
-fabric may be bleached
-rolls of greige or bleached fabric are shipped to Canada
CANADA
-nonwoven fabric for platform section of the bed skirt is formed
-70/30 and 50/50 fabrics are bleached (if necessary), printed and finished
-fabrics are cut, sewn, etc. forming the bed skirt
-bed skirt is packed for retail sale with the other components of the bedding set and shipped
ISSUE:
What is the country of origin of the bed skirt?
LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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.
Section 102.21(d) addresses the treatment of sets for country of origin purposes. Section 102.21(d) provides the following:
Where a good classifiable in the HTSUS as a set includes one or more components that are textile or apparel products and a single country of origin for all of the components of the set cannot be determined under paragraph (c) of this section, the country of origin of each component of the set that is a textile or apparel product shall be determined separately under paragraph (c) of this section.
As a single country of origin could not be determined for all the components of the bedding set in NY I80828, Customs made a separate determination for each component. The proper origin analysis for the bed skirt is set forth below.
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 bed skirt 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 of the foreign materials 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) in pertinent part 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:”
HTSUS Tariff shift and/or other requirements
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.
As the fabrics comprising the bed skirt are formed in more than one country, Section 102.21(c)(2) is inapplicable.
Section 102.21(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 bed skirt is not knit and heading 6303, HTSUSA, is 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 most products of Chapter 63, Customs has stated that the most important manufacturing process occurs at the time of fabric making. Basing the country of origin determination on the fabric making process as opposed to the assembly process carries out the clear intent of Section 334 as expressed in Section 334(b)(2) and Part 102.21(c)(3)(ii).
In the instant case, the fabrics for the bed skirt are sourced in more than one country. In NY I80828 Customs concluded that the fabric making process of the skirt fabric was more important than the fabric making process of the platform fabric and based the origin determination on the country where the skirt fabric was formed, that is, Pakistan. When classifying bed skirts, Customs has concluded that the skirt or ruffle portion provided the essential character. However, the reasoning used for classification is not the same as that used for origin determination.
In other rulings where the fabrics for bed skirts were sourced in more than one country, Customs held that no one fabric was more important than the other and that paragraph (c)(4) was also inapplicable. See Headquarters Ruling Letter (HQ) 959912, dated November 1, 1996; HQ 959304, dated September 3, 1996; NY G89146, dated May 9, 2001; NY G89147, dated May 9, 2001; NY G89149, dated May 2, 2001; NY G89150, dated May 2, 2001; and NY G88229, dated April 2, 2001. The rulings go on to determine, as per Section 102.21(c)(5), that the origin of the bed skirts will be the last country where an important assembly or manufacturing step occurred.
Thus, in order to maintain uniformity, the skirt and platform fabrics should be considered equally important and Section 102.21(c)(4) is inapplicable. Following Section 102.21(c)(5) the country of origin of the instant bed skirt should be the last country where an important assembly or manufacturing process occurred, that is, Canada.
HOLDING:
NY I80828 is hereby modified.
The country of origin of the bed skirt is Canada.
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 181.100(a)(2). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 181.100(a)(2), 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.
Sincerely,
John Durant, Director
Commercial Rulings Division