CLA-2-56:OT:RR:NC:N3:350
Barbara M. Carman
BCB International
1010 Niagara Street
Buffalo, NY 14213
RE: The tariff classification, country of origin and country of origin marking of nonwoven polyester scouring pads from China; 19 CFR 102.21; 19 CFR 134
Dear Ms. Carman:
In your letter dated March 21, 2017, you requested a tariff classification and country of origin ruling on behalf of Royal Sponge Manufacturing, Limited. Samples of each style, packaged for retail, were submitted to this office.
FACTS:
Royal Sponge Items 1903, 1940, and 1941 are scouring pads made of a stiff nonwoven material. The scouring pads are rectangular in shape (approximately 6” x 6” or 6” x 4”), packaged for retail sale in different colors, sizes and quantities. According to the information provided and subsequent communication, these scouring pads weigh 290 g/m2, are composed wholly of polyester staple fibers and are all of the same chemically bonded nonwoven construction. You state that the polyester fibers have been sprayed with a water-based latex. The scouring pads are intended to be used primarily for household cleaning.
The scouring pads are cut from large sheets of nonwoven fabric, measuring 35.5 inches by 39.5 inches, which are manufactured in China from polyester staple fibers and exported to Canada. In Canada, the scouring pads are cleaned, cut into smaller rectangular shapes and packaged for retail before being exported to the United States.
ISSUES:
What are the tariff classification, country of origin and country of origin marking of the subject merchandise?
CLASSIFICATION:
The applicable subheading for Royal Sponge Items 1903, 1940, and 1941 will be 5603.94.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Nonwovens, whether or not impregnated, coated, covered or laminated: Other: Weighing more than 150 g/m2: Other: Other: Other nonwovens, whether or not impregnated, coated or covered: Other. Of staple fibers. The rate of duty will be Free.
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 https://hts.usitc.gov/current.
COUNTRY OF ORIGIN:
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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 CFR 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.” Since 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
5602-5603 (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5602 through 5603 to finished fabric of heading 5602 through 5603 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to heading 5602 through 5603 from any heading outside that group, provided that the change is the result of a fabric-making process.
“Fabric-making process” is defined in paragraph (b)(2) of Section 102.21 as:
… any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarn, twine, cordage, rope, or fabric strips and results in a textile fabric.
Since the fabric was formed in China, and since according to the above rule there was no tariff shift resulting from the operations done to this fabric in Canada, as per the terms of the tariff shift requirements the country of origin is conferred in China.
COUNTRY OF ORIGIN MARKING: The country of origin for marking purposes is defined in Section 19 CFR 134.1(b), to mean the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of Part 134. A substantial transformation is effected when a manufacturer or processor converts or combines an article into a new and different article resulting in a change in name, character, or use. However, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. Since the further processing that takes place in Canada prior to importation of the finished product into the United States does not constitute substantial transformation for the purposes of Section 19 CFR 134.1(b) above, and the country of origin has been determined to be China as per 19 CFR Part 102, the goods must be marked accordingly.
The marking 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 to 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 USC 1304. The packaging of each of the samples submitted was marked to indicate that the items were “Made in Canada.” Such marking on the packages does not conform to the country of origin, which was determined above to be China.
HOLDING:
The country of origin and country of origin for marking purposes of Royal Sponge Items 1903, 1940, and 1941 is China.
The applicable subheading for Royal Sponge Items 1903, 1940, and 1941 will be 5603.94.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Nonwovens, whether or not impregnated, coated, covered or laminated: Other: Weighing more than 150 g/m2: Other: Other: Other nonwovens, whether or not impregnated, coated or covered: Other. Of staple fibers. The rate of duty will be Free.
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).
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 Maribeth Dunajski via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division