CLA-2-63:OT:RR:NC:N3:349
Margaret Polito, Attorney at Law
222 Riverside Drive, Suite 14E
New York, NY 10025
RE: The tariff classification and status under the United States-Bahrain Free Trade Agreement (BFTA) of bed skirts from Bahrain.
Dear Ms. Polito:
In your letter dated August 22, 2012 you requested a ruling on the status of bed skirts from Bahrain under the BFTA. This request is made on behalf of WestPoint Home Inc.
The submitted bed skirt consists of a skirt section and a platform section. The skirt or drop measures approximately 15 inches and is made from a 100 percent cotton yarn dyed fabric. The platform section is made from 100 percent polypropylene non-woven fabric. The skirt is sewn to three sides of the platform section. Cotton fibers are imported into Bahrain from an unspecified country. The fibers are spun into a yarn and dyed in Bahrain. The yarns are woven into a fabric and cut into the skirt component in Bahrain. The platform section fabric is formed in China and shipped to Bahrain in rolls. It is cut to size and sewn to the skirt section in Bahrain. The finished bed skirts are shipped to the United States. The cotton fabric skirt portion provides the essential character of the bed skirt.
The applicable tariff provision for the bed skirts will be 6303.91.0020, Harmonized Tariff Schedule of the United States (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.
General Note 30, HTSUS, sets forth the criteria for determining whether a good is originating under the BFTA. General Note 30(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (e), (g) and (h) thereof, a good imported into the United States is eligible for treatment as an originating good of a UBFTA country under the terms of this note only if –
(i) the good is a good wholly the growth, product or manufacture of Bahrain or of the United States, or both;
(ii) for goods not covered by subdivision (b)(iii) below, the good is a new or different article of commerce that has been grown, produced or manufactured in the territory of Bahrain or of the United States, or both, and the sum of—
(A) the value of each material produced in the territory of Bahrain or of the United States, or both, and
(B) the direct costs of processing operations performed in the territory of Bahrain or of the United States, or both,
is not less than 35 percent of the appraised value of the good at the time the good is entered into the territory of the United States; or
(iii) the good falls in a heading or subheading covered by a provision set forth subdivision (h) of this note and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in such subdivision (h) as a result of production occurring entirely in the territory of Bahrain or of the United States, or both; or
(B) the good otherwise satisfies the requirements specified in such subdivision (h);
and is imported directly into the territory of the United States from the territory of Bahrain and meets all other applicable requirements of this note. For purposes of this note, the term “good” means any merchandise, product, article or material.
The bed skirts at issue will be eligible for the BFTA preferential treatment if they are transformed in Bahrain so that the non-originating material undergoes a change in tariff classification described in subdivision (h) to General Note 30, HTSUS. For heading 6303, HTSUS, the appropriate subdivision (h) change in tariff classification rule requires:
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 chapter 54 or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Bahrain or of the United States, or both.
In addition to the above heading rule, subdivision (h) to General Note 30, HTSUS, provides a Chapter rule for Chapter 63. That rule states:
For purposes of determining the origin of a good of this chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good.
The non-originating materials imported into Bahrain are the cotton fibers and nonwoven fabric. Although both materials meet the requirements of the change in tariff classification rule, per the Chapter rule only the component that determines the tariff classification needs to satisfy the tariff change requirements. The cotton skirt is the component that determines the tariff classification and the non-originating cotton fibers satisfy the tariff change requirement.
Based on the facts provided, the goods described above qualify for BFTA preferential treatment, because they will meet the requirements of HTSUS General Note 30 (b)(iii)(A). The goods will therefore be entitled to a Free rate of duty under the BFTA upon compliance with all applicable laws, regulations, and agreements.
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/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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,
Thomas J. Russo
Director
National Commodity Specialist Division