CLA-2-RR:NC:TA:349 I87806
Ms. Wendy L. Burns
Northern Customs Services
P.O. Box 331
Lewiston, NY 14092
RE: Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for an infant’s bedding set; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(5); last country where an important assembly or manufacturing process occurred; 19 CFR 102.21(d); sets; Article 509
Dear Ms. Burns:
This is in reply to your letter dated October 18, 2002, requesting a classification, status under the NAFTA and country of origin determination for an infant’s bedding set which will be imported into the United States. This request is being made on behalf of Clair de la lune Inc.
FACTS:
The subject merchandise referred to as an infant’s bedding set consists of a duvet cover, fitted sheet, flat sheet, two pillowcases, bed skirt, bumper pads and an accent pillow. You submitted a sample of the duvet cover and a catalog depicting the other components. The duvet cover is made from two fabrics. The top or face is made from a 100 percent cotton fabric printed with a nursery rhyme theme. The fabric is cut and sewn creating a checkerboard patchwork design. The patchwork face is lined with a plain white 100 percent cotton fabric. The back of the duvet cover is made from the same plain white cotton fabric. A 60 percent polyester and 40 percent cotton stuffed piping is inserted in the edge seams. The cover has a zippered opening along the back to allow the insertion of a duvet or comforter. The 100 percent cotton woven fitted sheet will be elasticized. The flat sheet will be made from both the printed and plain white 100 percent cotton woven fabrics. The polyester and cotton trim is inserted in the seam between the top hem and the body of the sheet.
The pillowcases are made from the printed cotton fabric and the polyester and cotton trim is inserted in a seam between the hem and the body of the pillowcase. The skirt portion of the bed skirt is made from the printed cotton fabric while the platform section is made from the plain white cotton woven fabric. The outer shell of the bumper pads is made from the printed cotton fabric and they are stuffed with a polyester fiberfill. The accent pillow will be one of two types. One version is a free form pillow based on the characters depicted on the bedding while the other version will be a square pillow. The outer shell of both versions will be made from a printed or dyed cotton fabric and they will be stuffed with polyester fiberfill. The pillows will be approximately 12 x 12 inches. The polyester and cotton trim used on the duvet cover, flat sheet and pillowcases is less than seven percent of the total weight of those components. The duvet cover, flat sheet, fitted sheet, two pillowcases, bed skirt, bumper pads and pillow will be packed together for retail sale.
The manufacturing operations for these items are as follows:
CHINA:
-cotton fabric is woven (will be used for the lining and back of the duvet cover,
platform section of the bed skirt, part of the flat sheet and the pillow shell).
-60/40 polyester trim fabric is woven.
-greige fabric is shipped to Canada.
INDONESIA:
-cotton fabric is woven (will be used for the patchwork face of the duvet cover,
the fitted sheet, pillowcases, shell of the bumper pads, skirt portion of the bed
skirt and part of the flat sheet).
-greige fabric is shipped to Canada.
UNITED STATES:
-polyester fiberfill is formed.
-fiberfill is shipped to Canada
CANADA:
-Chinese and Indonesian cotton fabrics are bleached.
-cotton fabrics may be dyed, printed or dyed and printed (some are left plain white).
-cotton fabrics are finished.
-cotton fabrics and polyester/cotton trim are cut and sewn to form the duvet cover,
flat sheet, fitted sheet, pillow cases and bed skirt.
-cotton fabrics are cut, sewn and stuffed with fiberfill creating the bumper pads and
pillow.
-duvet cover, fitted sheet, flat sheet, two pillowcases, bed skirt, bumper pads and
pillow packed as a retail set and shipped.
ISSUE:
What are the classification, eligibility under NAFTA and country of origin of the subject merchandise?
CLASSIFICATION:
The infant’s bedding set meets the qualifications of “goods put up in sets for retail sale”. The components of the sets consist of different articles which are, prima facie, classifiable in different headings. They are put up together to carry out the specific activity of furnishing a bed and they are packaged for sale directly to users without repacking. It is our opinion that the duvet cover is the component that gives this set its essential character.
The applicable subheading for the infant’s bedding set will be 6302.21.5050, Harmonized Tariff Schedule of the United States Annotated, (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen, printed: of cotton: containing any embroidery, lace braid, edging, trimming, piping or applique work: not napped… other. The general rate of duty will be 21.5 percent ad valorem.
Although classified as a set, the individual components are subject to textile category numbers as if they were classified separately. The duvet cover falls within textile category designation 362. The fitted and flat sheets fall within category designation 361. The pillowcases fall within textile category designation 360. The bed skirt and pillow fall under textile category designation 369. The bumper pads would fall under a subheading that is not assigned a textile category number. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at www.customs.gov. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.
NAFTA ELIGIBILITY:
The infant’s bedding set undergoes processing operations in Canada and the United States which are countries provided for under the North American Free Trade Agreement. These products will be eligible for the NAFTA preference if they qualify to be marked as a good of Canada and if they are wholly obtained or produced in the NAFTA territories or transformed in Canada so that the non-originating materials undergo a change in tariff classification described in subdivision (t) to General Note 12, HTSUSA. All of the components of the set, not just the item that imparts the essential character to the set, must meet the terms of General Note 12(b). For heading 6302, HTSUSA, the appropriate subdivision (t) rule states that:
A change to headings 6301 through 6302 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one of more of the NAFTA parties.
When imported into Canada, the Chinese and Indonesian cotton fabrics are classifiable under headings 5208 or 5209, HTSUSA, depending on the weight of the fabric. As fabrics of heading 5208 and 5209, HTSUSA, are excepted from meeting the tariff change to heading 6302, HTSUSA, the non-originating materials from China and Indonesia do not undergo the requisite change in tariff classification. If the producer of the set, following the “self-produced materials” rule set forth in the Appendix to Part 181 of the Customs Regulations (19 CFR Part 181), were to take the option of identifying the components of the set (the “self-produced materials”) as non-originating, the components (with the exception of the pillow) would not undergo the requisite change in tariff classification as they are classifiable within Chapter 63. Accordingly, the infant’s bedding set is not eligible for the NAFTA preference.
COUNTRY OF ORIGIN - 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.
The classification of the subject bedding set, as per an essential character determination, is based on the duvet cover, however, per the terms of Section 102.21(d), one must determine whether or not a single country of origin exists for the entire set.
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 duvet cover, bed skirt, bumper pads, pillow, pillowcases, fitted sheet and flat sheet are 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 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, 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.
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.
9404.90 Except for goods of subheading 9404.90 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under subheading 9404.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
Subheadings 6302.21, 6302.31, 6303.91, and 9404.90.10 are not included in the paragraph (e)(2) exception to the above tariff shift rules. As the fabrics comprising the flat sheet, bed skirt and duvet cover are formed in more than one country, Section 102.21(c)(2) is inapplicable for those items. The pillow and bumper pads are made from a shell fabric and a fiberfill. As the fabric comprising the pillow was formed in a single country, that is, China, as per the terms of the tariff shift requirement, country of origin is conferred in China. The shell fabric of the bumper pads and the fabrics comprising the fitted sheet and pillowcases were formed in a single country. As per the terms of the tariff shift requirement, the country of origin of the bumper pads, fitted sheet and pillowcases is Indonesia.
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 flat sheet, duvet cover and bed skirt are not knit and headings 6302 and 6303, 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 subject merchandise, 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). The fabrics that make up the duvet cover, bed skirt and flat sheet are sourced in more than one country. As no one fabric is more important than the other, a single country of origin determination cannot be made based on Section 102.21(c)(4).
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". Accordingly, in the case of the subject duvet cover, bed skirt and flat sheet, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Canada.
HOLDING:
The country of origin of the pillow is China. Based upon international textile trade agreements products of China are not subject to quota or visa requirements. The country of origin of the bumper pads, fitted sheet and pillowcases is Indonesia. Based upon international textile trade agreements Indonesian sheets and pillowcases are subject to quota and the requirement of a visa. The bumper pads are not subject to quota or visa restrictions. The country of origin of the duvet cover, flat sheet and bed skirt is Canada. The infant’s bedding set is not eligible for the NAFTA preferential rate.
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.
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 John Hansen at 646-733-3043.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division