CLA-2-94:OT:RR:NC:N4:463
Gilberto Arias
Arias International, Inc.
543 S Americas Ave.
Suite A1
El Paso, TX 79907
RE: Tariff classification, origin, USMCA status and Section 301 applicability of a pillow made in Mexico
Dear Mr. Arias:
In your ruling request dated December 28, 2020, on behalf of your client FXI Inc., you requested a binding ruling on the tariff classification, origin, U.S.-Mexico-Canada Agreement (USMCA) status and Section 301 applicability of a pillow. In the request and subsequent emails, you provided a product description, manufacturing information and a bill of materials (BOM) with the classification number and cost corresponding to each material. A sample was not provided.
The product which is the subject of this ruling request, as imported into the United States, is a 20" x 26" bed pillow made in Mexico of U.S.-origin foam fill, a Chinese-origin non-woven 100% polypropylene inner pillow shell, and a Chinese-origin 90% polyester/10% nylon embossed-woven fabric, outer zippered pillowcover.
The foam fill, pillow shell, pillowcover, labels, literature and packaging are imported into Mexico, where the inner pillow shell is filled with the foam fill and sealed shut prior to being inserted and zipped into the outer pillowcover. The pillow is then packaged for shipment to the U.S.
The requester suggests that the finished pillow be classified in subheading 9404.90.2000, Harmonized Tariff Schedule of the United States (HTSUS). This office is in agreement.
The applicable classification for the pillow subject of this ruling will be subheading 9404.90.2000, HTSUS, 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: Pillows, cushions and similar furnishings: Other.” The rate of duty will be 6 percent ad valorem.
USMCA Status
General Note (“GN”) 11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b), in its relevant part, states the following: For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a “good originating in the territory of a USMCA country” only if— the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries; the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials; the good is a good produced entirely in the territory of one or more USMCA countries using non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); or … Since the pillow contains non-originating materials, it is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i). Moreover, under GN 11(b)(ii), the pillow is not a good produced entirely in Mexico, exclusively from originating materials. We must next determine whether the pillow qualifies under GN 11(b)(iii). As previously noted, the imported pillow is classified under subheading 9404.90.2000, HTSUS. The applicable rule of origin for a pillow classified under subheading 9404.90.2000, HTSUS, is in GN 11(o)/94.7, HTSUS, which provides “[a] change to subheadings 9404.90 from any other chapter, except from headings 5007, 5111 through 5113, 5208 through 5212, 5310 through 5311, 5407 through 5408 or 5512 through 5516.”
The foam fill of Chapter 39, the inner pillow shell of Chapter 63 and the outer pillowcover of Chapter 63 all meet the tariff shift requirement. Based upon the preceding analysis, this office finds that the subject pillow is an originating good under the USMCA.
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 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 also 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) of 19 CFR 102.21 states that "[t]he 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 not applicable. Paragraph (c)(2) states that "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 that "[t]he 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:" For goods of subheading 9404.90.2000, HTSUS, the following tariff shift and/or other requirements apply:
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 subheading 9404.90.2000, HTSUS, is not among the paragraph (e)(2) exceptions, the country of origin of the subject pillow is conferred in the country where the fabric comprising the good was formed. As both the inner pillow shell fabric and the outer pillowcover fabric were formed in China, this office finds that the pillow is of Chinese origin.
Trade Remedy Products of China classified under subheading 9404.90.2000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 9404.90.2000, 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 Section 301 trade remedy, 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.
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.
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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division