CLA-2-94:OT:RR:E:NC:N4:433
Meredith Covey
Director, Customs Operations & Compliance
Williams-Sonoma, Inc
151 Union Street
San Francisco, CA 94111
RE: The tariff classification of fitted furniture covers from China.
Dear Ms. Covey:
In your letter dated June 8, 2009, you requested a tariff classification ruling.
The subject items are described as textile covers for the “comfort and comfort grand” upholstered furniture collection. The covers will be offered in regular and grand sizes, and are made of 80% polyester and 20% cotton woven fabric from China and 100% cotton woven fabric made in Taiwan. The 80% polyester/20% cotton fabric forms the seat portion of the cover and is less than 7% by weight and value of the finished cover. The 100% cotton fabric forms the four inch band around the seat and the remaining sections of the covers including the cushion covers. The covers and cushions will have self-fabric 100% cotton piping and the cushions will have zipper closures. These covers will be sold under the name “Classic Basket Weave” and will be made in the following colors: Ivory, Camel and Red.
The covers will be cut to size and shape in China to fit unfinished upholstered sofa and chair frames that are made in the United States. It is stated that the sofas and chairs have muslin coverings to help secure the batting, but the items are unusable without the addition of the slipcovers; each cover is fitted for use on its respective upholstered furniture piece and does not fit any other upholstered furniture sold at Pottery Barn.
You suggest that the fitted covers should be classified as parts for sofas and chairs as they are necessary to complete the upholstered furniture; you reference Harmonized Tariff Schedule of the United States (HTSUS) subheading 9401.90.5020 – the provision for parts of seats of textile material, cut to shape. The Explanatory Notes (ENs) to the HTSUS state in pertinent part that Chapter 94 covers “Parts” whether or not in the rough, of the goods of headings 9401 to 9403, when identifiable by their shape or other specific feature as parts designed solely or principally for an article of those headings. As these fitted covers are designed for sofas and chairs, and are integral to the finishing of the furniture items, we concur with the suggested classification.
The applicable subheading for the fitted furniture covers will be 9401.90.5020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Parts: Other; Other.” The rate of duty will be free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. §1304), Part 134, Customs Regulations (19 C.F.R. §134), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States, the English name of the country of origin of the article.
19 C.F.R. §134, implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304. Section 134.1(b), CBP Regulations (19 C.F.R. §134.1(b)), defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the ‘country of origin’ within the meaning of [the marking laws and regulations].” For country of origin making purposes, a substantial transformation of an article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the article before the processing.
Customs (CBP) has previously held that cutting materials to defined shapes or patterns suitable for use in the assembly of a finished article, as opposed to mere cutting to length and/or width which does not render the article suitable for a particular use, constitutes a substantial transformation. See, e.g., Headquarters Ruling Letter (HQ) H005728, dated April 19, 2007, HQ 562156, dated July 5, 2001, and HQ 734539, dated June 8, 1992. Based on the information provided, we find that the component materials: (1) fabric from China which is then subsequently cut to size and shape to form fitted furniture covers is a product of China; and (2) fabric from Taiwan sent to China which is then cut to size and shape to form fitted furniture covers, undergoes a substantial transformation in China.
For the imported fitted furniture covers, we concur with the suggested country of origin marking of China. Additionally the “marking requirements” provides that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process that results in a substantial transformation. According to United States v. Gibson-Thomsen Company, Inc., 27 CCPA 267 (C.A.D.98), a U.S. manufacturer is considered to be an ultimate purchaser if a manufacturing process is performed on an imported item so that the item is substantially transformed in that it loses its identity and becomes an integral part of a new article with a new name, character or use. As Pottery Barn is taking fitted furniture covers and attaching them to upholstered sofa and chair frames in the manufacturer of finished furniture items a substantial transformation has occurred, and only the outermost container is required to be marked with country of origin China – see Sections 134.32(d) and 134.35(a), Customs Regulations (19 CFR §134.32(d), 19 CFR 134.35(a)).
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division