CLA 2-OT:RR:NC:N3:350
Ms. Evelyn Suarez
The Suarez Firm
5523 Sherier Pl. NW
Washington, DC 20016
RE: The tariff classification and country of origin of a laminated nonwoven fabric from Germany; 19 CFR 102.21(c)(4)
Dear Ms. Suarez:
In your letter dated February 8, 2021, you requested a tariff classification and country of origin ruling. On February 10, 2021 your request was opened, and a control number was provided to your office. This office will retain the samples accompanied by your letter.
FACTS:
The subject merchandise is referred to as “HydroGap® drainable housewrap” (henceforth referred to as “HydroGap”). The material subject to this request is sold in 9’x100’ and 10’x100’ rolls. The material is said to contain two main components: (1) a 100 g/m2 “trilaminate” consisting of a water-resistant polypropylene film sandwiched between two layers of nonwoven fabrics composed wholly of polypropylene filaments and (2) plastic drainage spacers. The plastic drainage spacers provide a partial plastic coating on one surface only of the fabric. The weight of the finished product will be approximately 150 to 155 g/m2.
The manufacturing process is as follows: In Germany, polypropylene fibers are extruded, formed into nonwoven fabrics and the nonwovens are then laminated together. The laminated nonwoven fabric is shipped in an 1100-meter roll from Germany to China. The application of the plastic drainage spacers then occurs in China. The material is then imported in 100-foot rolls into the United States from China.
ISSUES:
What are the tariff classification and country of origin of the subject merchandise?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) is made in accordance with 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.
As stated above, the laminated nonwoven fabric is partially coated with plastics on one surface. Note 3 to chapter 56, HTSUS, specifically covers nonwovens, impregnated, coated, covered or laminated with plastics.
CLASSIFICATION:
The applicable subheading for the HydroGap fabric will be 5603.14.3000, HTSUS, which provides for “Nonwovens, whether or not impregnated, coated, covered or laminated: Of man-made filaments: Weighing more than 150 g/m2: Laminated fabrics.” 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 the 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 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 foreign material 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:
5602-5603… (1) Except for fabric of wool or of final 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 other heading outside that group, provided that the change is the result of a fabric-making process.
The fabric was not subjected to dyeing or printing as detailed in (1) above, nor does it undergo any of the processes listed. Subject to (2) above, the nonwoven German fabric of heading 5603 is shipped to China for additional processing before being exported to the United States. The additional processing does not result in a tariff shift from any other heading outside of 5602 through 5603. The above requirements specified in paragraph (e) are not met.
Paragraph (c)(3) in pertinent part 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;
(ii) Except for fabrics of chapter 59 and 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.”
Subject to (i) above, the material is not knit to shape. Subject to (ii) above, in order for a good to be considered “wholly assembled” the components must have preexisted in essentially the same condition as found in the finished good prior to their assembly and were combined to form the finished good in a single country, territory, or insular possession. Any additional work which would appreciably affect the good would disqualify it as being considered “wholly assembled.” It is the opinion of this office that when the nonwoven component undergoes the process of coating with a plastic in China, the fabric no longer preexists “in essentially the same condition as found in the finished good prior to their assembly.”
Paragraph (c)(4) in pertinent part 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.”
Subject to paragraph (c)(4) above, Customs and Border Protection has generally held that the most important assembly or manufacturing process, as it pertains to textiles, is the fabric-making process.
Section 102.21(1) defines the “fabric-making process” as:
…any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope or fabric strips and results in a textile fabric.
In the instant case, the laminated nonwoven fabric is manufactured in Germany and the plastic drainage spacers are added in China. The fabrics which comprise the laminated nonwoven are manufactured in Germany from synthetic filaments also manufactured in Germany.
It is the opinion of this office that, subject to paragraph (c)(4) above, the fabric-making process occurs in Germany, which is the most important assembly or manufacturing process.
HOLDING:
The country of origin of the HydroGap fabric is Germany.
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