CLA-2-94:OT:RR:NC:N4:463
Sheri G. Lawson
Willson International Inc.
160 Wales Avenue, Suite 100
Tonawanda, NY 14150
RE: The tariff classification, North American Free Trade Agreement (NAFTA) applicability, country of origin, and marking of fiberfill pillows with a water bladder from Canada.
Dear Ms. Lawson:
In your letter dated May 31, 2019, you requested a binding ruling on behalf of your client, Mediflow Inc. A finished pillow and the intermediate article, a pillow shell, were received, as were a costed bill of materials, product descriptions, manufacturing flow charts, product literature, etc.
The goods subject of this ruling request are as follows:
Mediflow item #1006, the “Waterbase Fiberfill Pillow,” is a pillow constructed of an insulated water pouch with a threaded stopper sewn into the inside back of a 100% cotton, 200-thread count, fiberfill-stuffed pillow shell. The pillow measures approximately 20” in length by 28” in width.
Mediflow item #1066, the “Waterbase Elite Pillow,” is a pillow constructed of an insulated water pouch with a threaded stopper sewn into the inside back of a 100% cotton, 300-thread count, fiberfill-stuffed pillow shell. The pillow measures approximately 20” in length by 28” in width.
Mediflow item #1106, the “Waterbase Chiroflow Pillow,” is a pillow constructed of an insulated water pouch with a threaded stopper sewn into the inside back of a 60% polyester, 40% cotton, 300-thread count, fiberfill-stuffed pillow shell. The pillow measures approximately 20” in length by 28” in width.
You assert classification of the subject merchandise to be within subheading 9404.90.1000 and 9404.90.2000, Harmonized Tariff Schedule of the United States, (HTSUS) for the cotton and polyester/cotton pillows, respectively.
The applicable subheading for items #1006, the “Waterbase Fiberfill Pillow,” and #1066, the “Waterbase Elite Pillow,” is 9404.90.1000, HTSUS, which provides for “Mattress supports; articles of bedding and similar furnishings (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: Pillows, cushions and similar furnishings: Of cotton.” The rate of duty is 5.3% ad valorem.
The applicable subheading for item #1106, the “Waterbase Chiroflow Pillow,” is 9404.90.2000, HTSUS, which provides for “Mattress supports; articles of bedding and similar furnishings (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: Pillows, cushions and similar furnishings: Other.” The rate of duty is 6% 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 https://hts.usitc.gov/current.
Mediflow presented a scenario in which the components (polyvinyl chloride (PVC) bags, thermal insulators, textile fabrics, etc.) of various origins are assembled in China into a pillow shell classified in 6307.90.8945, HTSUS. (See NY F85987, 5/8/2000.) The pillow shell is then exported to Canada, where it is stuffed with fiberfill, the open seam sewn closed, and finishing and packaging operations performed.
Trade Agreement – NAFTA
General Note (GN) 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. In the case of a pillow classified in 9404.90, HTSUS, to be an “originating good,” the non-originating materials must undergo the tariff shift prescribed in HTSUS GN 12(t) 94.7, which states:
Chapter 94, Rule 7
A change to subheading 9404.90 from any other chapter, except from headings 5007, 5111, through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408 or 5512 through 5516.
Since the non-originating materials (pillow shell, fiberfill, sewing thread, etc.) used to produce the pillows in 9404.90, HTSUS, are neither classified in chapter 94, nor in the excluded headings indicated above, HTSUS GN 12(t) 94.7 is met, and the pillows, subject of this ruling are eligible for NAFTA preferential duty treatment provided that they are eligible to be marked as a good of a NAFTA country. The NAFTA preferential rate of duty for pillows in 9404.90.1000 and 9404.90.2000, HTSUS, is “free.”
Country of Origin
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592) (URAA), 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 §334 (60 FR 46188). Section 334 of the URAA was amended by §405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, §102.21 was amended (68 FR 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 §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 §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 its pertinent part states: “The following rules will 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 Except for goods of subheading 9404.90 provided for in paragraph (e)(2) of this
section, 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.
Since the cotton and polyester/cotton fabric used to make the pillows, the subject of this ruling, are made in China, “China” should be the country of origin of the Mediflow pillows. However, since only goods of a NAFTA beneficiary country are eligible for NAFTA preference, §102.19(a), NAFTA Preference Override, applies. It states that, “Except in the case of goods covered by paragraph (b) of this section, if a good which is originating within the meaning of §181.1(q) of this chapter is not determined under §102.11(a) or (b) §102.21 to be a good of a single NAFTA country, the country of origin of such good is the last NAFTA country in which that good underwent production other than minor processing, provided that a Certificate of Origin (See §181.11 of this chapter) has been completed and signed for the good.”
The manufacturing operations performed in Canada (stuffing with fiberfill, sewing) are not among those defined as minor processing in §102.1(m). Therefore, since Canada is the last country where the goods underwent production other than minor processing, the country of origin of the Mediflow pillows is “Canada,” provided that a NAFTA Certificate of Origin is completed and signed.
Marking
Part 134 of 19 CFR implements the country of origin marking requirements of 19 U.S.C. 1304. Unless excepted by law, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. As a product of Canada, the pillows must be marked accordingly.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
Please note that 19 C.F.R. § 177.9(b)(1) provides that “Each ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
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, please contact National Import Specialist Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division