CLA-2-RR:NC:TA:349 G81251
Mr. Patrick Fullum
A. N. Deringer, Inc.
173 W. Service Road
Champlain, NY 12919
RE: Classification and country of origin determination for a quilted bedspread; 19 CFR 102.21(c)(5); last country where an important assembly or manufacturing process occurred
Dear Mr. Fullum:
This is in reply to your letter dated August 25, 2000, on behalf of Encore Draperies, requesting a classification and country of origin determination for a quilted bedspread which will be imported into the United States.
FACTS:
The subject merchandise consists of a "Deluxe" quality quilted bedspread. You have submitted a sample of a full size bedspread and note that it will also be imported in twin, queen and king sizes. The bedspread is composed of three layers. The face panel is made from a transfer printed 100 percent polyester woven fabric. The back panel is made from a 50 percent polyester and 50 percent cotton woven fabric and the bedspread is filled with a polyester batting fabric. Quilt stitching extends through all three layers. The bedspread is hemmed on all four sides and the two bottom corners are rounded. The submitted sample has a 21-inch drop. The sample will be returned as requested.
The manufacturing operations for the bedspread are as follows:
Indonesia:
-polyester face fabric is woven.
-fabric is shipped to Canada.
Pakistan:
-polyester/cotton backing fabric is woven.
-fabric is shipped to Canada.
Canada:
-polyester batting fabric is formed.
-polyester face fabric is printed using transfer paper from the United Kingdom.
-fabrics are cut, sewn and assembled into a quilted bedspread.
-bedspreads are packed and shipped.
ISSUE:
What are the classification and country of origin for the subject merchandise?
CLASSIFICATION:
Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.
Heading 9404, HTSUSA, provides for among other things, articles of bedding and similar furnishing fitted with springs or stuffed or internally fitted with any material. The Explanatory Notes to heading 9404, HTSUSA, include mattresses, quilts and bedspreads as examples of articles of bedding and similar furnishing.
The applicable subheading for the quilted bedspread will be 9404.90.9522, HTSUSA, which provides for mattress supports; articles of bedding and similar furnishing (for example mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: other: other: other… with outer shell of man-made fibers. The rate of duty will be 10.2 percent ad valorem. You have indicated in your letter that you are not interested in a determination of the status of the bedspread under the North American Free Trade Agreement (NAFTA).
The bedspread falls within textile category designation 666. 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.
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.
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
9404.90 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
Accordingly, as the fabrics comprising the bedspread are not formed in a single country, Section 102.21(c)(2) is inapplicable.
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 subject merchandise is not knit and subheading 9404.90, HTSUSA, is 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). In the case of the subject bedspread, the fabric making process of the outer shell constitutes the most important manufacturing process. However, the fabrics for the outer shell of the bedspread 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 bedspread, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Canada.
HOLDING:
The subject bedspread is classified in subheading 9404.90.9522, HTSUSA, which provides for other articles of bedding with an outer shell of man-made fibers.
The country of origin of the quilted bedspread is Canada. The bedspread is not subject to quota or visa restrictions.
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 John Hansen at 212-637-7078.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division