CLA-2-OT:RR:NC:N3:349
Ms. Cathy Lopez
C.H. Robinson International
1452 Hughes Road, Suite 350
Grapevine, TX 76051
RE: Classification and country of origin determination for a microfiber towel, a pet bowl mat, and a door mat; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(4); most important assembly
Dear Ms. Lopez:
This is in reply to your letter dated November 14, 2019, requesting a country of origin determination for a microfiber towel, a pet bowl mat and a door mat which will be imported into the United States. The request was sent on behalf of your client, Schroeder & Tremayne, Inc. Samples were submitted with your letter. The samples will be retained by this office for training purposes.
FACTS:
The microfiber towel, item 853400, is a general purpose cleaning towel made of 85 percent polyester and 15 percent polyamide pile fabric. The towel measures 12 X 16 inches and is finished along the four edges with an overlock stitch. The towel is retail packed and imported in a 24-pack of assorted colors: green, blue and yellow. The packaging identifies the contents as all-purpose auto cloths suitable for removing wax and polish, cleaning windows and dusting interior surfaces.
The manufacturing operations for the microfiber towel are as follows:
China
- Yarn formed.
- Fabric is knitted and dyed.
- Fabric is exported to Vietnam.
Vietnam
- Fabric is cut to size.
- An overlocking stitch is sewn around the edges.
- Labels and tags are sewn.
- Towel is washed and packaged.
- Towel is exported to the United States.
The pet bowl mat, item 535900, is a knitted floor covering consisting of three layers laminated together: a printed, knit pile face fabric of 100 percent polyester followed by a layer of foam and a 100 percent polyester knit backing fabric with polyvinyl chloride dots applied 3/8" apart from one another on one side to create a non-skid backing for the mat. The mat measures 10 X 20 inches and is finished along the four edges with an overlock stitch. The mat is folded and a cardboard sleeve is placed over the mat.
The manufacturing operations for the Pet Bowl Mat are as follows:
China
- Yarn is formed for the face and backing fabrics.
- Face and backing fabrics are knitted.
- Face fabric is dyed and printed.
- Backing fabric is dyed.
- PVC anti-slip dots are applied to one side of the backing fabric.
- Fabrics are exported to Vietnam.
Vietnam
- Fabrics are cut to size.
- Foam is formed.
- Face fabric, foam and backing fabric are laminated together.
- The mat is finished with an overlock stitch around the edges.
- Rug is folded and packaged under a printed cardboard sleeve and exported to the United States.
The chenille door mat (no item number provided) is a tufted mat. The pile surface is made from twisted, uncut loops of polyester chenille yarns that are tufted into a pre-existing polyester woven base fabric. The tufts are approximately 1/2 inch in length from the surface. A clear thermoplastic elastomer is lightly applied to the back of the mat to create a non-skid surface. The edges of the mat are capped with a narrow strip of woven binding fabric. The finished mat measures 18 x 25 inches. In your letter, you state the mat will be sold as a door mat to wipe feet when entering the home.
The manufacturing operations for the chenille door mat are as follows:
China
- Yarn is formed.
- Polyester fabric is tufted with polyester chenille yarns.
- Tufted fabric is exported to Vietnam.
Vietnam
- Tufted fabric is cut to size.
- Styrene-ethylene-butylene-styrene (SEBS) thermoplastic elastomer (TPE) is applied to back.
- Edges are capped with a polyester narrow woven fabric.
- Mat is folded and packaged under a printed cardboard sleeve and exported to the United States.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the microfiber towel will be 6307.10.2030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Other made up articles, including dress patterns: Floorcloths, dishcloths, dusters and similar cleaning cloths: Other: Other." The general rate of duty will be 5.3 percent ad valorem.
The applicable subheading for the pet bowl mat will be 5705.00.2030, HTSUS, which provides for "Other carpets and other textile floor coverings, whether or not made up: Other: Of man-made fibers." The general rate of duty will be 3.3 percent ad valorem.
The applicable subheading for the chenille door mat will be 5703.30.8030, HTSUS, which provides for "Carpets and other textile floor coverings, tufted, whether or not made up: Of other man-made textile materials: Other: Measuring not more than 5.25 m2 in area." The general rate of duty will be 6 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 World Wide Web at https://hts.usitc.gov/current.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states, "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, "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,
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
5701 - 5705 A change to heading 5701 through 5705 from any other chapter.
6307.10 The country of origin of a good classifiable under subheading 6307.10 is the country, territory or insular possession in which the fabric comprising the good was formed by the fabric-making process.
As the microfiber towels are constructed from fabric 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 pet bowl mat is formed from knit fabrics from China which undergo the tariff shift in Vietnam along with the added foam padding, as such, per the terms of the tariff shift requirement, the country of origin of this mat is Vietnam.
With respect to the chenille door mat, which also includes fabric formed in China sent to Vietnam for cutting and making up into the mat, consideration must be made as to the classification of the tufted fabric.
Heading 5802, HTSUS, provides for, "Terry toweling and similar woven terry fabrics, other than narrow fabrics of heading 5806; tufted textile fabrics, other than products of heading 5703." [Emphasis added.]
The Harmonized Commodity Description and Coding System Explanatory Notes (EN), although not legally binding, constitute the official interpretation of the Harmonized System at the international level.
The EN to heading 5802, HTSUS, read as follows:
Products of this heading are distinguished from the tufted carpets and floor coverings of heading 5703 by, for example, their lack of stiffness, thickness and strength which renders them unsuitable for use as floor coverings.
The EN to heading 5703, HTSUS, describe the same distinction between the two headings, and read as follows:
Products of this heading are distinguished from the tufted fabrics of heading 5802 by, for example, their stiffness, thickness and strength, which render them suitable for use as floor coverings.
Further, the General Explanatory Notes to Chapter 57 state, in pertinent part,
This Chapter covers carpets and other textile floor coverings in which textile materials serve as the exposed surface of the article when in use. In includes articles having the characteristics of textile floor coverings (e.g., thickness, stiffness, and strength) but intended for use for other purposes (for example, as wall hangings or table covers or for other furnishing purposes).
The above products are classified in this Chapter whether made up (i.e., made directly to size, hemmed, lined, fringed, assembled, etc.), in the form of carpet squares, bedside rugs, hearth rugs, or in the form of carpeting for installation in rooms, corridors, passages or stairs, in the length for cutting and making up.
The tufted chenille fabric has the thickness and strength to render it suitable for use as a floor covering of heading 5703 without any added materials. Therefore, the chenille tufted fabric is classified under heading 5703, HTSUS, rather than heading 5802, HTSUS, at the time of export to Vietnam.
As all of the foreign materials incorporated in chenille door mat did not undergo an applicable change in tariff classification in a single country, territory, or insular possession, Section 102.21(c)(2) is inapplicable.
Section 102.21(c)(3) states,
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 merchandise is neither knit to shape nor wholly assembled in a single country, 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 chenille door mats, the tufting of the base fabric constitutes the most important assembly process. Accordingly, the country of origin of the door mat is China.
SECTION 301 TRADE REMEDIES:
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 5703.30.8030, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 5703.30.8030, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.10.2030, HTSUS, unless specifically excluded, are subject to an additional 15 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6307.10.2030, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
HOLDING:
The country of origin of the microfiber towel and chenille door mat is China. The country of origin of the pet bowl mat is Vietnam.
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 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.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 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 CFR 177.2.
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