CLA-2-63:OT:RR:NC:N3:349
Mr. Flavio Pessoa
Glen Raven Customs Fabrics
142 Glen Raven Road
Burlington, NC 27217
RE: The country of origin of curtain panels from Guatemala
Dear Mr. Pessoa:
In your letter dated August 9, 2022, you requested a country of origin ruling for a curtain panel. The classification of this curtain panel, Style SDP-1, and eligibility under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) were determined under NY N325002, dated April 8, 2022. In that ruling, the classification was found to be 6303.92.2010, Harmonized Tariff Schedule of the United States (HTSUS). You have advised, since the issuance of N325002, the country of production has been moved from Costa Rica to Guatemala for this item, Style SDP-1.
With respect to the origin of the curtain panel, you have described the manufacturing process as follows:
Non-DR-CAFTA Country A:
Metal grommets and metal weights are manufactured.
100 percent polyester staple fiber woven lining fabric is formed and shipped to Guatemala.
Non-DR-CAFTA Country B:
Solution dyed acrylic fiber is extruded, cut and staple fibers are shipped to the United States.
United States:
Acrylic staple fibers are spun into a yarn.
Acrylic yarns are woven into a fabric.
100 percent acrylic fabric is shipped to Guatemala.
Guatemala:
Polypropylene filament for the buckram is extruded.
Buckram nonwoven fabric is formed.
Polyester filament for the sewing thread is extruded.
Sewing thread of polyester filament is formed.
Fabrics are cut to size and shape.
Face and lining fabrics are sewn, other components added and attached (i.e., weights, grommets).
Finished curtain panel is packaged and shipped to the United States directly from Guatemala.
COUNTRY OF ORIGIN – LAW AND ANALYSIS
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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 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 that “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:”
HTSUS Tariff shift and/or other requirements
6301-6306 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6301 through 6306 is the country, territory or insular possession in which the fabric comprising the good was formed by a fabric making process.
Subheading 6303.92 is included in the paragraph (e)(2) exception to the above tariff shift rule; therefore, Section 102.21(e)(2) must be considered. Section 102.21(e)(2) states:
(i) The country of origin of the good is the country, territory, or insular possession in which the fabric comprising the good was both dyed and printed when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing;
(ii) If the country of origin cannot be determined under paragraph (e)(2)(i) of this section...the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process;
As the fabrics comprising the curtain panel are neither dyed nor printed, Section 102.21(e)(2)(i) is inapplicable. As the fabrics comprising the curtain panel are not formed in a single country, Section 102.21(e)(2)(ii) is also inapplicable. Therefore, we turn to 19 CFR 102.21(c)(3).
Section 102.21(c)(3) states that, “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 curtain panel is not knit to shape and heading 6303 is excepted from paragraph (ii), Section 102.21(c)(3) is inapplicable.
Section 102.21(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.” In the case of the subject merchandise, the most important manufacturing process occurs at the time of fabric making. Basing the country of origin determination on the fabric making process as opposed to 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). The fabrics for the subject curtain panels are sourced in more than one country; the face fabric is made in the United States and the lining is made in a non-DR-CAFTA country. As no one fabric is more important than the other, a single country of origin determination cannot be made based on Section 102.21(c)(4).
Paragraph (c)(5) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred.” Accordingly, in the case of the subject curtain panel, the country of origin is conferred by the last country in which an important manufacturing assembly occurred, that is, Guatemala.
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 Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division