CLA-2-63:OT:RR:NC:N3:349
Ms. Leila Behan
Stilo LB
4540 Louisville Drive
Plano, TX 75093
RE: The tariff classification, country of origin and marking of duvet sets; 19 CFR 102.21 (c)(2); tariff shift
Dear Ms. Behan:
In your letter dated May 22, 2017, you requested a tariff classification, country of origin and marking ruling for two duvet sets. Swatches of fabric were provided; however, complete samples were not submitted. You subsequently withdrew your request for a ruling on one of the styles, Omidah.
Style Priyah consists of a duvet cover and two pillow shams. The items are made from 55 percent linen and 45 percent rayon printed woven fabric. The fabric is not napped. The face and back panels are joined together creating a flange or picture frame effect. A strip of piping is inserted between the front center panel and the 1 ½ inch wide flange. The duvet set will be packaged as a set for retail sale in both Queen and King sizes.
The manufacturing operations for the set are as follows:
Pakistan:
55 percent linen and 45 percent rayon fabric is woven.
fabric is exported to the United States.
United States
fabric is bleached, dyed and printed;
fabric is cut to shape and size;
fabric is sewn and hemmed to create the pillow shams and duvet cover; and
shams and duvet covers are packed in sets.
LAW AND ANALYSIS:
Classification:
The Priyah set meets the qualifications of “goods put up in sets for retail sale.” The components of the set consist of at least two different articles which are, prima facie, classifiable in different headings. Heading 6302, Harmonized Tariff Schedule of the United States (HTSUSA), provides for bed linen among other things. The Explanatory Notes to heading 6302, HTSUSA, include sheets, pillowcases, bolster cases, eiderdown cases and mattress covers as examples of bed linen. Pillow shams have been consistently classified as other furnishing articles within Heading 6304, HTSUSA. The duvet cover and shams are put up together to meet a particular need or carry out a specific activity, and they are packed for sale directly to users without repacking. The duvet cover imparts the essential character of the set.
The applicable subheading for style Priyah will be 6302.29.0020, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen: Of other textile materials: Other.” The rate of duty will be 4.5 percent ad valorem.
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 the World Wide Web at https://hts.usitc.gov/current.
Country of origin:
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 334 has since been amended by the issuance of Section 405 within Title IV of the Trade and Development Act of 2000 (68 FR 37) and the implementing regulations, 19 CFR 102.21, have been amended accordingly (See 68 FR 8711).
Additionally, 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.
Thus, per the terms of Section 102.21(d), the country of origin of each item in the set must be determined separately if there is not a single country of origin 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 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 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)(1), in pertinent part, states that "The following rules will 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.
The subheading for the Priyah set, 6302.29, HTSUS, is included in the exception under Paragraph (e)(2). Paragraph (e)(2), in pertinent part, states that for goods of subheading 6302.29, except for goods classified under the subheading as of cotton or of wool or consisting of fiber blends containing 16 percent or more by weight of cotton:
The country of origin of the good is the country, territory, or insular possession in which the fabric comprising the good was both dyed and printed when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent embossing, or moireing.
The subject duvet sets are subject to dying, printing and bleaching in the United States but the sets do not have any of the other finishing operations named above performed.
Paragraph (e)(2)(ii), states,
(ii.) If the country of origin cannot be determined under paragraph (e)(2)(i) of this section, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
The duvet set is classified under subheading 6302.29 and is not subject to the exception for subheading 6117.10 under paragraph (e)(2)(ii). As the fabric comprising the duvet set is formed, in a single country, the country of origin for the duvet set Priyah is conferred in Pakistan.
Marking
You have also requested a ruling on whether the proposed markings are acceptable country of origin markings for the duvet set. You have proposed three different markings for three separate locations; the product label, the packaging label and the carton label. However, samples of the markings were not provided.
The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article, at the time of importation into the Customs territory of the United States.
Further, Sections 134.23 and 134.24, Customs Regulations (19 CFR 134.23 through 134.24), provide the marking requirements for the containers and holders. You have not provided information concerning the type of packaging for the duvet sets. For purposes of this analysis, we will assume the sets are imported in a disposable container or package. Sections 134.24(d)(2) and 134.24(d)(3) indicate, that if the container or holder is either sold without normally being opened by the ultimate purchaser or if the article is marked so that it is not visible without the packaging being removed, the container shall be marked to indicate the country of origin of the contents.
Your proposed marking for the product label is “55% Linen 45% Rayon Made in USA from Imported Fabric” and for the packaging and carton labels, “Made in USA.”
Section 134.46, Customs Regulations (19 CFR 134.46), requires that when the words “United States,” “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality which is not the country of origin appears on the imported article or its container the name of the country of origin shall appear legibly, permanently, in close proximity, and in at least comparable size, preceded by the additional words “Made in,” “Product of,” or other words of similar meaning. The purpose of this section is to prevent the possibility of misleading or deceiving the ultimate purchaser.
The origin rules indicate the country of origin of the Priyah duvet set is Pakistan, the country where the fabric was formed by a fabric-making process. Since the proposed markings are in direct conflict with the origin determination made pursuant to Section 102.21, they do not satisfy the marking requirements of 19 U.S.C. 1304 and, thus, are not acceptable country of origin markings for the duvet set. Marking the Priyah set as “Made in Pakistan” or “Made in Pakistan, Finished in the United States” follows the 19 CFR 102.21 origin determination, satisfies the requirements of 19 CFR 134.46 and is acceptable country of origin marking for the finished bed linen under 19 U.S.C. 1304.
Further, approval of markings of "Made in USA" is within the jurisdiction of the Federal Trade Commission (FTC) and not Customs and Border Protection. The Federal Trade Commission also has separate marking requirements regarding country of origin, fiber content, and other information that must appear on many textile items. For more information on the applicability of the requirements under the Textile Fiber Products Identification Act (TFPIA) and the “Made in USA” marking, you should contact the Federal Trade Commission, Textile Program, Division of Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580.
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 Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division