OT:RR:NC:N2:349
Ms. Sylvia Wang
EverGrace Home Inc.
5th Floor, No.2000 Pudong Avenue
200135 Shanghai
China
RE: Classification and country of origin determination for a bathmat; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.13; De Minimis
Dear Ms. Wang:
This is in reply to your letter dated April 10, 2024, requesting a classification and country of origin determination for a bathmat, which will be imported into the United States. A sample bathmat was submitted with your request and will be retained for training purposes.
FACTS:
The sample, Item #EG2403005, is a grey bathmat. Though you refer to the bathmat as a flannel bathmat, it is not made from flannel fabric. The bathmat consists of an exposed upper surface of plush polyester knitted fabric of cut pile construction. The knitted fabric is laminated to a layer of foam, approximately 5/8 inch thick, and is backed with a non-skid polyvinyl chloride (PVC) coated polyester fabric. The bathmat, measuring 17 24 inches, is finished along the edges with a knitted binding. You state each component weighs the following: pile face fabric, 84.3 grams; foam, 71 grams; PVC coated polyester backing, 52.6 grams; and binding, 8 grams.
The manufacturing operations for the bathmat are as follows:
SCENARIO 1
China:
Polyester pile face fabric is formed and dyed.
PVC coated polyester backing is formed.
Knitted binding fabric is formed.
Vietnam:
Foam is formed.
Foam and PVC coated polyester are laminated to face fabric.
Laminated fabric is cut to size.
Knitted binding is sewn along the edges.
Packaged and exported to the United States.
SCENARIO 2
China:
Polyester face fabric is formed and dyed.
Foam is formed.
PVC coated polyester is formed.
Knitted binding fabric is formed.
Foam and PVC coated polyester are laminated to face fabric.
Vietnam:
Laminated fabric is cut to size.
Knitted binding is sewn along the edges.
Packaged and exported to the United States.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the bathmat will be 5705.00.2030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other carpets and other textile floor coverings, whether or not made up: Other: Of man-made fibers. The general rate of duty will be 3.3 percent 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 - 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,
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
5701-5705
A change to heading 5701 through 5705 from any other chapter.
In scenario 1, all of the materials undergo the tariff shift in a single country, that is, Vietnam, at which time the face fabric, foam and backing are laminated together and the binding fabric is sewn around the edges. Therefore, as per the terms of the tariff shift requirement, the country of origin of this bathmat is conferred in Vietnam.
In scenario 2, the knitted fabric forming the upper surface of the bathmat, the foam and PVC coated polyester material make the tariff shift to heading 5705, HTSUS, in China at the time the materials are laminated together. The knitted binding fabric makes the tariff shift to heading 5705, HTSUS, in Vietnam. In this case, however, the knitted binding material is disregarded in accordance with Section 102.13, the De Minimis rule.
Section 102.21(c), "General Rules," inter alia, state the requirements or conditions of Sections 102.12 through 102.19, where appropriate, are applicable when determining origin under Section 102.21(c)(1) through (5).
Section 102.13 "De Minimis," states the following, in pertinent part:
(c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in Section 102.21 or satisfy the other applicable requirements of that section when incorporated into a textile or apparel product covered by that Section shall be disregarded in determining the country of origin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good.
With respect to Item EG2403005, you state the binding material represents 3.7 percent of the total weight of the bathmat. Consequently, the binding is disregarded when determining the country of origin of the bathmat.
Therefore, as the remaining foreign materials undergo the applicable change in tariff classification in a single country, that is, China, as per the terms of the tariff shift requirement, country of origin is conferred in China.
SECTION 301 TRADE REMEDIES:
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 5705.00.2030, 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 5705.00.2030, 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, including information on exclusions and their effective dates, 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.
HOLDING:
Item #EG2403005 is classified under subheading 5705.00.2030, HTSUS. The country of origin of the bathmat under scenario 1 is Vietnam. Under scenario 2, the country of origin of the bathmat is China; as a result, under scenario 2, Section 301 remedies apply.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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, please contact National Import Specialist Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division