CLA 2-OT:RR:NC:N3:349
Mr. Michael Baratta
Corbett International
One Cross Island Plaza, Suite 203F
Rosedale, NY 11422
RE: Classification and country of origin determination for a duvet cover and pillow sham; 19 CFR 102.21(c)(5)
Dear Mr. Baratta:
This is in reply to your letter dated October 26, 2009, on behalf of Sferra Brothers Ltd., requesting a classification and country of origin determination for a duvet cover and pillow sham which will be imported into the United States.
FACTS:
The subject merchandise is a duvet cover and pillow sham. Both items are made from 100 percent cotton woven fabrics. The fabrics are not printed or napped. The submitted cover and sham feature a 3 inch flange or picture frame effect that is created by a banded or cuffed hem on all four sides. The body of both the duvet cover and pillow sham is a cotton percale fabric, while the flange is a cotton sateen fabric. The pillow sham is Euro size.
The manufacturing operations for the duvet cover and pillow sham are as follows:
ITALY:
-cotton sateen fabric (flange) is woven and finished.
-fabric is shipped to China.
CHINA:
-cotton percale (body) fabric is woven and finished.
-the fabrics are cut and sewn to form duvet cover and pillow sham.
-the duvet cover and pillow sham are packed and shipped.
You state that the sateen fabric used for the flange in both of these items is 10.4 percent by weight of the duvet cover and 35 percent by weight of the pillow sham. As the sateen fabric is over 7 percent of the total weight of each item it is included in the origin determination and not considered De Minimis following Section 102.13 (c).
ISSUE:
What are the classification and country of origin for the subject merchandise?
CLASSIFICATION:
The applicable subheading for duvet cover will be 6302.31.9050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of cotton: other: not napped… other. The general rate of duty will be 6.7 percent ad valorem.
The applicable subheading for the shams will be 6304.92.0000, HTSUS, which provides for other furnishing articles, excluding those of heading 9404: other: not knitted or crocheted, of cotton. The general rate of duty will be 6.3 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 World Wide Web at http://www.usitc.gov/tata/hts/.
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
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 subject duvet cover and pillow sham are made from two different fabrics. Accordingly, as the fabrics comprising the duvet cover and pillow sham are formed in more than one 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 duvet cover and sham are not knit to shape and heading 6302 and 6304, HTSUS 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 the 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). As the fabrics for the subject duvet cover and pillow sham are formed in more that one country and 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, “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 duvet cover and pillow sham, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, China.
HOLDING:
The country of origin of the duvet cover and pillow sham is 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 (646) 733-3043.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division