CLA-2 RR:TC:TE 961161 RH
Arlen T. Epstein, Esq.
Serko & Simon, LLP
One World Trade Center
Suite 3371
New York, NY 10048
RE: Classification and country of origin of miniature pillows;
heading 6307;
19 C.F.R. 102.21(c)(5); last country where an important
assembly
or manufacturing process occurred
Dear Mr. Epstein:
This is in reply to your letter dated September 18, 1997, on
behalf of Russ Berrie and Company, Inc., requesting a ruling on
the classification and country of origin of miniature fabric
pillows.
You enclosed samples of three miniature pillows for us to
examine. In order to return the samples, as you requested, you
will need to contact this office and provide us with your Federal
Express account number.
FACTS:
The merchandise under consideration consists of three miniature
fabric pillows used as a decorative accent in the household. All
of the pillows measure less than 8" x 6" and are too small to
support the head or neck.
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Style number 17090(a) is a circular pillow approximately 7.5
inches in diameter. The back of the pillow is constructed from
satin fabric. The front of the pillow is composed of four
triangular panels. Two panels are made from jacquard tapestry
fabrics. One panel is made from polyester knit pile fabric and
the last panel is made from a woven cord fabric. A decorative
tassel and cord are sewn onto the center of the pillow.
Production of the pillow occurs in three countries:
South Korea
- weave 100 percent acetate satin fabric
Taiwan
- weave jacquard woven tapestry fabrics composed of 65
percent polyester and 35 percent cotton
- knit 100 percent polyester pile fabric
- weave 100 percent polyester cord fabric
- form polyester tassel and cord
China
- form batting material
- cut and sew Korean and Taiwanese fabrics to form pillow
- attach tassel
- stuff batting material into pillow and finish
Style 17090(b) is a rectangular shaped pillow which measures
approximately 7 inches long and 5 inches wide. The back of this
pillow is manufactured from polyester woven fabric. The front of
the pillow has three rectangular panels. The two outer panels
are made from polyester knit pile fabric. The center panel is
100 percent acetate satin fabric. An embroidered sheer plain
woven fabric is inserted over the center panel. A polyester
trimming tape with fringe is sewn onto two edges of the pillow.
Production of the pillow occurs as follows:
South Korea
- weave 100 percent acetate satin fabric
Taiwan
- weave 100 percent polyester fabric
- weave and embroider 100 percent nylon fabric
- knit 100 percent pile fabric
- form polyester trimming tape with fringe
China
- form batting material
- cut and sew Korean and Taiwanese fabrics to form pillow
- sew trimming tape to edges of pillow
- stuff batting material into pillow and finish
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The last style, 17090(c), is a square pillow that measures
approximately 6 inches on a side. The back is made of 100
percent polyester pile fabric. The front is composed of two
panels made of 100 percent polyester pile fabrics and two panels
from 100 percent embossed woven polyester fabric (we note that
you incorrectly describe these fabrics as knit). Trimming tape
with fringe is sewn along two edges of the pillow. Production of
this pillow occurs in the following countries:
South Korea
- weave embossed polyester fabric
Taiwan
- knit 100 percent pile fabric
- form trimming tape with fringe
China
- form batting material
- cut and sew Korean and Taiwanese fabrics to form pillow
- sew trimming tape with fringe onto edges of pillow
- stuff batting material into pillow and finish
You contend that the correct classification of the miniature
pillows is in subheading 6307.90.9989 of the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA), as an other
made up textile article, and that their country of origin is
Taiwan, where the fabric that predominantly comprises the outer
covering was formed. You claim that fabric provides the
decorative and aesthetic appeal to the pillows.
ISSUE:
What are the classification and country of origin of the
miniature pillows?
LAW AND ANALYSIS:
Classification under the HTSUSA is made in accordance with the
General Rules of Interpretation (GRI's). The systematic detail
of the harmonized system is such that virtually all goods are
classified by application of GRI 1, that is, according to the
terms of the headings of the tariff schedule and any relative
Section or Chapter Notes. In the event that the goods cannot be
classified solely on the basis of GRI 1, and if the headings and
legal notes do not otherwise require, the remaining GRI's may
then be applied.
The classification of miniature pillows which are not capable of
being used to cushion the head or bodies, such as the ones at
issue, is well established under heading 6307, as other made up
textile articles. See Headquarters Ruling Letter (HQ) 086646,
dated June 8, 1990; HQ 087446, dated July 16, 1990; HQ 089911,
dated September 4, 1991; HQ 089773, dated August 29, 1991.
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As you know, 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, 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." The three miniature pillows at issue would be
classified under subheading 6307.90, HTSUSA. The rule for
subheading 6307.90, HTSUSA, states:
6307.90 The 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.
In another case involving decorative pillows, Customs ruled in HQ
960337, dated April 22, 1997, that paragraph (c)(2) is not
applicable where fabric comprising the pillows was formed in both
Belgium and the United States. See also, HQ 959742, dated
October 28, 1996 (where the furniture moving pad fabric is formed
in more than one country paragraph (c)(2) is not applicable).
Like those cases, the fabric comprising the miniature pillows was
formed in more than one country (South Korea, Taiwan and China)
and, therefore, country of origin cannot be determined under
102.21(c)(2).
Paragraph (c)(3) states that "Where the country of origin of a
textile or apparel product cannot be determined under paragraph
(c)(1) or (c)(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
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(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 to shape and falls within
an excepted provision under (c)(3)(ii), the country of origin is
not determinable under paragraph (c)(3).
Paragraph (c)(4) states that "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 this case, the most important process is fabric
formation. However, we disagree with you that forming Taiwanese
fabric is the most important operation. Since fabric formations
occurred in three countries, we resort to the last multi-country
rule.
Paragraph (c)(5) states that "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."
It is clear in this case that China is the last country where an
important assembly occurred because that is where all of the
components were assembled into the miniature pillows.
Accordingly, the country of origin is China.
Finally, marking the pillows "Made in China" is consistent with
the origin rules set forth in section 102.21, Customs
Regulations, and with the country of origin marking requirements
in Part 134, Customs Regulations. To obtain more information on
marking requirements or to obtain a binding ruling on that
subject, you may write to the Chief, Marking and Special
Classification Branch, U.S. Customs Service, Office of
Regulations and Rulings, 1300 Pennsylvania Avenue, N.W.,
Washington, D.C. 20229.
HOLDING:
The miniature pillows are classifiable under subheading
6307.90.9989, HTSUSA, as other made up textile articles. They
are dutiable at the general column one rate of duty at 7 percent
ad valorem.
The country of origin 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 C.F.R. 177.9(b)(1).
This section states that a ruling letter, either directly, by
reference, or by implication, is accurate and complete in every
material respect.
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Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 C.F.R.
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 C.F.R. 177.2.
The designated textile and apparel category may be subdivided
into parts. If so, visa and quota requirements applicable to the
subject merchandise may be affected. Since part categories are
the result of international bilateral agreements which are
subject to frequent renegotiations and changes, to obtain the
most current information available, we suggest that you check,
close to the time of shipment, the Status Report On Current
Import Quotas (Restraint Levels), an internal issuance of the
U.S. Customs Service, which is available for inspection at your
local Customs office.
Due to the changeable nature of the statistical annotation (the
ninth and tenth digits of the classification) and the restraint
(quota/visa) categories, you should contact your local Customs
office prior to importing the merchandise to determine the
current applicability of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division