CLA-2-94:OT:RR:NC:N4:463
William Ortiz
Executive VP
S.J. Stile Associates LTD
181 South Franklin Ave.
Valley Stream, NY 11581
RE: The country of origin of a cotton quilt; 19 CFR 102.21(c)(4), most important assembly or manufacturing process
Dear Mr. Ortiz:
In your letter dated October 14, 2019, on behalf of your client Kam Hing, DBA Sunham Home Fashion, you requested a country of origin ruling on cotton quilts that you will offer retailers in the United States. You provided product, material and manufacturing information.
FACTS:
Based upon the descriptive literature and subsequent communications, the quilts, with stitching in various patterns and various dye and print combinations, will be manufactured in full/queen, king/California king and possibly twin sizes. They are made of the 100% cotton fabric on the face and the same fabric on the reverse, and contain cotton fill weighing 200 grams per square meter (gsm) that is needle-punch bonded to a thin, non-woven carrier fabric. The quilts will be straight hemmed along the four edges with a thin strip of edge-folded, quilt fabric. They display no embroidery, lace, braid, edging, trimming, piping exceeding 6.35 mm or applique work.
The manufacturing operations for the quilts are as follows:
PAKISTAN:
Greige cotton fabric is woven.
CHINA:
The greige cotton fabric is dyed or dyed and printed.
The face, reverse and Chinese origin fill fabrics are cut to size.
The fill fabric is inserted between the face and reverse fabric and the three layers are quilted.
The quilts are hemmed on four sides with a thin strip of quilt fabric and labeled.
The quilts are washed, packaged and exported to the United States.
ISSUE:
What is the country of origin of the subject merchandise?
CLASSIFICATION:
This office notes that although classification was not requested, a country of origin ruling cannot be issued without first determining classification.
The Harmonized Tariff Schedule of the United States (HTSUS) subheading for these quilts will be 9404.90.8020, 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: Of cotton, not containing any embroidery, lace, braid, edging, trimming, piping exceeding 6.35 mm or appliqué work: Quilts, eiderdowns, comforters and similar articles.” The rate of duty will be 4.4% 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.
COUNTRY OF ORIGIN:
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 334 of the Uruguay Round Agreements Act ("Section 334") provides the 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) implements Section 334. Pursuant to 19 CFR 102.21, 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 (c)(5).
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)(1) states the rules that apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section. In its pertinent part, it states:
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.
Subheading 9404.90.8020, HTSUS, is not included in the paragraph (e)(2) exception to the above tariff shift rule.
Since the quilts are comprised of a cotton woven face and reverse fabrics formed in Pakistan, and a non-woven batting fabric formed in China, the fabrics are not formed in a single country, territory or insular possession and 102.21(c)(2) and the corresponding (e)(1) paragraph, above, are inapplicable.
Paragraph (c)(3) states, “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 quilts are not knit to shape, the exception under paragraph (c)(3)(i) does not apply and since subheading 9404.90 is listed in the exceptions to (c)(3)(ii), it too is inapplicable.
Paragraph (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.”
U.S. Customs and Border Protection (CBP) previously held that, with respect to comforters, the fabric making process of the outer shell constitutes the most important manufacturing process. See HQ 562721 and HQ 959304. CBP applied this same analysis to the country of origin analysis of quilts in N302194. Moreover, basing the country of origin determination on the fabric making process and not 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).
Therefore, the fabric making process of the face and reverse fabrics constitute the most important manufacturing process.
HOLDING: In accordance with the tariff shift rules in 19 CFR 102.21(c)(4), above, the country of origin of the quilts is conferred in Pakistan, the country in which the face and reverse fabrics are woven.
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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division