CLA-2-63:OT:RR:NC:N3:349
Ms. Sandra Tovar
Consulting by Sandra Tovar, Inc.
500 Lanier Avenue West
Fayetteville, Georgia 30214
RE: Status under the North American Free Trade Agreement (NAFTA) and country of origin determination of a duvet cover, sheets, pillowcases, shower curtains and valances from Mexico; 19 CFR 102.21(c)(2); tariff shift; General Note 12
Dear Ms. Tovar:
In your letter dated February 12, 2020, you requested a ruling on the status of duvet covers, sheets, pillowcases, valances and shower curtains from Mexico under the North American Free Trade Agreement (NAFTA). This request is made on behalf of your client, Kaltex Home, a supplier of bath and bed products located in Mexico.
The merchandise consists of duvet covers, sheets, pillowcases and curtains. Samples of the products were not submitted. You state these items will be constructed from 100 percent cotton woven fabric classified under either heading 5208 or 5209, Harmonized Tariff Schedule of the United States (HTSUS), depending on the weight of the fabric and that the duvet covers, sheets and pillowcases do not contain any embroidery, lace, braid, edging, trimming, piping or applique work and are not napped.
The manufacturing operations for the items are stated to be as follows:
PAKISTAN:
Cotton fabric is woven from Pakistani yarns.
Greige fabric is shipped to Mexico.
MEXICO:
Fabric is bleached, dyed, printed, shrunk and sanforized.
Fabric is cut to size and shape.
Components are sewn creating duvet covers, sheets, pillowcases, valances, and shower curtains.
The applicable subheading for the pillowcases will be 6302.21.9010, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen, printed: Of cotton: Other: Not napped: Pillowcases, other than bolster cases.” The general rate of duty will be 6.7 percent ad valorem.
The applicable subheading for the sheets will be 6302.21.9020, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen, printed: Of cotton: Other: Not napped: Sheets.” The general rate of duty will be 6.7 percent ad valorem.
The applicable subheading for the duvet covers, sheets and pillowcases will be 6302.21.9050, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen, printed: Of cotton: Other: Not napped: Other.” The general rate of duty will be 6.7 percent ad valorem.
The applicable tariff provision for the valances will be 6303.91.0010, HTSUS, which provides for “Curtains (including drapes) and interior blinds; curtain or bed valances: Other: Of cotton…Window curtains (including drapes) and window valances.” The general rate of duty will be 10.3 percent ad valorem.
The applicable tariff provision for the shower curtains will be 6303.91.0020, HTSUS, which provides for “Curtains (including drapes) and interior blinds; curtain or bed valances: Other: Of cotton…Other.” The general rate of duty will be 10.3 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.
NAFTA ELIGIBILITY
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
* * *
The duvet cover, sheets, pillowcases and curtains undergo processing operations in Mexico. Mexico is a country provided for under the NAFTA. These products will be eligible for the NAFTA preference if they are wholly obtained or produced in the NAFTA territories or transformed in Mexico so that the non-originating materials undergo a change in tariff classification described in subdivision (t) to General Note 12, HTSUS, and qualify to be marked as a good of Mexico. For headings 6302 and 6303, HTSUS, the appropriate subdivision (t) rules state 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 or more of the NAFTA parties.
A change to heading 6303 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 or more of the NAFTA parties.
When the non-originating cotton greige fabric leaves Pakistan, it is classified under heading 5208 or 5209, HTSUS, depending on the weight of the fabric. As fabrics of these headings are excepted from meeting the tariff change to subheadings 6302 or 6303, the non-originating material from Pakistan does not undergo the requisite change in tariff classification. Accordingly, the merchandise does not qualify for preferential treatment under the NAFTA.
II. COUNTRY OF ORIGIN
In your ruling request, you suggest that the processing in Mexico of bleaching, dying, printing, shrinking and sanforizing changes the origin of the fabric to Mexico and that the goods are eligible to be marked with an origin of Mexico.
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 the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
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 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) 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.
Subheadings 6302.21 and 6303.91 are not included in the paragraph (e)(2) exception to the above tariff shift rule. The duvet covers, sheets, pillow cases, valances, and shower curtains are made from a single fabric formed in Pakistan. Therefore, the country of origin is conferred in Pakistan and the goods must be marked as such.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
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].
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 and Border Protection, Regulations & Rulings, 90 K Street N.E. – 10th floor, Washington, DC 20229-1177.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division