CLA 2-OT:RR:NC:N3:350
Mr. Isaac Merriman
Suzuran Medical Inc.
4-1-29 Yasui, Kita-KU
Nagoya, Japan 4620023
RE: The tariff classification, country of origin and country of origin marking of cotton pads; 19 CFR 102.21(c)(2); 19 CFR 134
Dear Mr. Merriman:
In your letter dated April 8, 2020, you requested a tariff classification and country of origin ruling. This office will retain the samples accompanied by your letter.
FACTS:
The subject merchandise, which encompasses two different samples, referred to as “LilyBell Cotton Rounds,” are individually described as “1 ply, 230 gsm” and “2 ply, 200+30 gsm.” We will refer to the samples collectively as “cotton pads.”
In your letter you state the cotton pads consists of cotton comber noils, raw cotton and recycled cotton waste. In Vietnam these materials are carded, formed into a web, bleached, chemically cleaned, hydro-entangled and then dried. The three resulting textile fabrics are put onto rolls and are refered to as “230 gsm,” “200 gsm,” and “30 gsm.” The rolls of textile which will comprise the cotton pads are then exported to China. In China, the rolls are inspected prior to further working and, only in the case of the 200 gsm and 30 gsm fabrics, are bonded together. Each roll of material is then placed into machines which cut the material into 58mm round shapes. The cotton pads are then packaged and put into cartons for shipping. This product will be used in the skincare and healthcare industries.
U.S. Customs and Border Protection laboratory analysis was conducted on each roll of material. The textile fabrics referred to as 230 gsm and 200 gsm were determined to be wholly of wadding in construction. The textile fabrics are composed wholly of cotton fibers and weigh 248.97 g/m2 and 226.06 g/m2, respectively. The textile fabric referred to as 30 gsm was determined to be nonwoven in construction with mechanical bonding. The sample is wholly of cotton staple fibers and weighs 27.89 g/m2.
ISSUES:
What are the tariff classification, country of origin and country of origin marking of the subject merchandise?
CLASSIFICATION:
Classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) is governed by the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.
Regarding the 1 ply, 230 gsm cotton pad, the language of heading 5601, HTSUS, specifically provides for wadding of textile materials and articles thereof.
Regarding the 2 ply, 200+30 gsm cotton pad, the textile article is composed of a layer of cotton wadding and a layer of nonwoven fabric and is considered a composite good. The terms of GRI 1 do not provide the necessary guidance for classification of the composite good. GRI 3(a) indicates that the most specific description of a heading shall be preferred to headings providing a more general description. Otherwise the components or material of the combined product are regarded as equally specific.
The competing headings for the composite good are 5601 (wadding and articles thereof) and 6307 (other textile articles), HTSUS. It is the opinion of this office that, as it relates to GRI 3(a) above, heading 5601, HTSUS, provides the most specific description of the cotton pad at issue. Heading 6307, HTSUS, is a residual provision for “other made up articles of textile” within Section XI that are not more speicifically provided elsewhere within the HTSUS.
The applicable subheading for the cotton pads will be 5601.21.0090, HTSUS, which provides for “Wadding of textile materials and articles thereof; textile fibers not exceeding 5mm in length (flock), textile dust and mill neps: Wadding of textile materials and articles thereof: Of cotton… Other.” The rate of duty will be 3.6% 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 the World Wide Web at https://hts.usitc.gov/current.
COUNTRY OF ORIGIN:
Section 334 of the Uruguay Round Agreements Act (URAA) (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:
5601… (2) A change to flock, textile dust, mill neps, or articles of wadding, of heading 5601 from any other heading, or from wadding of heading 5601.
The cotton pads meet the terms of the tariff shift above. The materials exported from Vietnam to China are cotton wadding in the piece of heading 5601, HTSUS and nonwoven fabric of heading 5603, HTSUS, which are subsequently transformed into articles of heading 5601, HTSUS. The country of origin will be China.
COUNTRY OF ORIGIN MARKING:
The marking statute, 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.
To ensure compliance with the Textile Fiber Products Identification Act (15 U.S.C. 70), which is applicable to textile products, we suggest that you contact the Federal Trade Commission (FTC) for information regarding guidelines for the proper marking of your merchandise. Customs does not issue rulings or decisions interpreting FTC guidelines. The address and website of the FTC follow: Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580 and www.ftc.gov
HOLDING:
Per the terms of the tariff shift the country of origin is conferred in China.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 5601.21.0090, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 5601.21.0090, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 Michael Capanna at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division