CLA-2-RR:NC:TA:349 G87250
Mr. Eric S. Limbert
Dolly Incorporated
320 North Fourth Street
Tipp City, OH 45371-0228
RE: Classification and country of origin determination for an infant's bedding set; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(4); most important assembly or manufacturing process
Dear Mr. Limbert:
This is in reply to your letter dated February 9, 2001, requesting a classification and country of origin determination for an infant's bedding set which will be imported into the United States.
FACTS:
The subject merchandise consists of an infant's bedding set. A sample was not submitted. The set was the subject of New York Ruling Letter (NY) F89932 dated August 15, 2000. The set is comprised of a comforter, fitted sheet and bumper pad. The outer shell of the comforter and bumper pad are stated to be made from a 50 percent cotton and 50 percent polyester woven fabric. They are stuffed with a polyester batting fabric. The comforter will measure 33 x 42 inches. The bumper pad will measure 9 x 152 inches and ½ inch in thickness. It will include tie straps on each end and at five points along its length used to secure the pad to the crib. The fitted sheet will be made from the same fiber blend as the outer shell of the comforter and bumper pad. It will measure approximately 40 x 50 inches. All of the items are packaged together for retail sale at the time of import.
You have proposed three manufacturing scenarios. The manufacturing operations for the bedding set are as follows:
SCENARIO 1:
CHINA:
-50/50 polyester and cotton fabric is woven.
-polyester batting fabric is formed.
-rolls of 50/50 woven fabric are shipped to the United States.
UNITED STATES:
-50/50 fabric is printed.
-rolls of printed fabric are returned to China.
CHINA:
-fabrics are cut and sewn creating the components of the set.
-comforter, bumper pad and sheet are packed for retail sale and shipped.
SCENARIO 2:
THAILAND:
-50/50 polyester and cotton fabric is woven.
-rolls of 50/50 woven fabric are shipped to the United States.
UNITED STATES:
-50/50 fabric is printed.
-rolls of printed fabric are shipped to China.
CHINA:
-polyester batting fabric is formed.
-fabrics are cut and sewn creating the components of the set.
-comforter, bumper pad and sheet are packed for retail sale and shipped.
SCENARIO 3:
UNITED STATES:
-50/50 polyester and cotton fabric is woven.
-50/50 fabric is printed.
-rolls of printed fabric are shipped to China.
CHINA:
-polyester batting fabric is formed.
-fabrics are cut and sewn creating the components of the set.
-comforter, bumper pad and sheet are packed for retail sale and shipped
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
As noted in NY F89932, the subject set meets the qualifications of "goods put up in sets for retail sale" and the comforter is the component that gives the set its essential character. The applicable subheading for the bedding set will be 9404.90.8522, Harmonized Tariff Schedule of the United States (HTS), 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: quilts, eiderdowns, comforters and similar articles… with outer shell of man-made fibers. The duty rate will be 13.3 percent ad valorem.
Although classified as a set, the components are subject to quota and visa restrictions as if they were separately classified. The comforter and sheet fall within textile category designation 666. The bumper pad would fall under a subheading that is not currently assigned a textile category. 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
6301-6306 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 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.
As the fabric comprising the fitted sheet is formed in a single country in all three scenarios, following the terms of the tariff shift requirement, the country of origin of the fitted sheet is conferred in China for scenario 1, Thailand for scenario 2 and the United States for scenario 3. The other components of the set are made from two fabrics that are formed in different countries. Accordingly, as the fabrics comprising the comforter and bumper pad are formed in more than one country, Section 102.21(c)(2) is inapplicable for the comforter and bumper pad.
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 comforter and bumper pad are not knit and subheadings 6307.90 and 9404.90, HTS, 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). In the case of the subject comforter and bumper pad, the fabric making process of the outer shell constitutes the most important manufacturing process. The outer shell of the bumper pad and comforter are formed by a single fabric and that fabric is formed in a single country in each scenario. Accordingly, the country of origin for the comforter and bumper pad in scenario 1 is conferred in China, the country of origin for the comforter and bumper pad in scenario 2 is conferred in Thailand and the country of origin for the comforter and bumper pad in scenario 3 is conferred in the United States.
As a single country of origin for all of the components in each scenario has been determined, the country of origin for the bedding set in scenario 1 is China, the country of origin for the bedding set in scenario 2 is Thailand and the country of origin for the bedding set in scenario 3 the United States.
However, there is an exception for textile products from the United States that are sent abroad for processing. Section 12.130(c), Customs Regulations, provides that any product of the United States that is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article.
Section 12.130, which remains in effect, was originally intended to be used to determine the country of origin of textiles and textile products for quota/visa requirements. In T.D. 90-17, issued February 23, 1990, Customs announced a change in practice and position. This change resulted in Customs using Section 12.130 for quota, duty, and marking purposes when making country of origin determinations for textile goods. In accordance with T.D. 90-17 and Section 12.130(c), the country of origin of the bedding set made from U.S. woven fabric is China, for quota, marking, and duty purposes. However, this position has recently been modified. On July 11, 2000, Customs published T.D. 00-44 in the Federal Register (65 FR 42634), stating that effective October 10, 2000, Customs will no longer apply 19 CFR 12.130(c) for purposes of country of origin marking. Therefore, in accordance with T.D. 00-44, Section 12.130(c), Section 102.21(c)(2) and Section 102.21(c)(4), the country of origin of the bedding set in scenario 3 will be the United States. Section 12.130(c) remains in effect for duty and quota purposes and the bedding set is subject to the general rate of duty noted previously.
HOLDING:
The country of origin of the infant’s bedding set in scenario 1 is China. The country of origin of the infant’s bedding set in scenario 2 is Thailand. The country of origin of the infant’s bedding set in scenario 3 is the United States for marking purposes. Based upon international textile trade agreements products of Thailand are subject to visa requirements. The bedding sets in scenario 1 and 3 are subject to quota and the requirement of a visa from China.
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