CLA-2-95:OT:RR:NC:N4:424
Neo Qian
Shanghai Sunwin Industry Group Co., Ltd
NO.17, Lane 688, Hengnan Road,
Minhang District, Shanghai, China 200000
RE: Country of origin determination for a plush toy elephant and blanket; 19 CFR 102.21(c)(2); tariff shift
Dear Neo Qian:
This is in reply to your letter dated January 16, 2025, requesting a country-of-origin determination for a plush toy elephant and blanket, item # SWBP21003, which will be imported into the United States.
FACTS:
The blanket and plush toy elephant are composed of 100 percent polyester knit pile fabric. The blanket measures 30 x 40 inches with edges folded over and sewn. The plush toy elephant measures 14 x 5.5 inches.
The manufacturing operations are as follows:
China:
Pile fabric is knitted and exported to Vietnam in rolls.
Vietnam:
Blanket fabric is cut and sewn.
Plush toy is cut, sewn to shape, stuffed and hand stitched closed.
Requestor indicates this will be sold in the United States as a set.
ISSUE:
What is the country of origin of the subject merchandise?
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
At the outset, we do not consider the plush toy elephant and blanket to be a set under the General Rules of Interpretation (GRI), as they are easily separated from one another and each may be used alone for distinctly different activities. Due to the independent nature of the plush toy elephant and blanket, they will be classified separately.
With regard to your request for the appropriate country of origin of the plush toy elephant, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of this part.
As stated in HQ 735009, dated July 30, 1993, “The country of origin is the country where the article last underwent a ‘substantial transformation’ that is, processing which results in a change in the article's name, character, or use.” The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, and use, different from that possessed by the article prior to processing. In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly operations that are minimal will generally not result in a substantial transformation.
Regarding the plush toy elephant, the fabric composing the toy’s body shell is sourced in China and shipped to Vietnam in rolls (i.e., uncut and not sewn to shape). In Vietnam the plush toy elephant is cut and sewn to shape using the fabric sourced in, and shipped from, China. It is the cutting and sewing to shape that determines the character of the article, namely the elephant toy shape. Therefore, the fabric sourced in China and shipped to Vietnam undergoes a substantial transformation by being cut to shape, sewn, stuffed and hand-stitched into the plush toy. Therefore, the country of origin of the plush toy elephant is Vietnam.
With regard to your request for the appropriate country of origin of the blanket, which is classified as a “blanket” under heading 6301, HTSUS, Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provides the rules of origin for textiles and apparel products for purposes of the customs laws and the administration of quantitative restrictions, unless otherwise provided by the statute, entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. Section 3592 has been described as Congress’s expression of substantial transformation as it relates to textile and apparel products. Section 102.21 of the Code of Federal Regulations (19 CFR 102.21), implements the URAA. 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. See 19 CFR 102.21(c).
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
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.
19 C.F.R. 102.21(b)(2) defines a “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.” The fabric comprising the blanket is formed by a fabric-making process in China. Thus, per the terms of the tariff shift requirement under paragraph (e) and in accordance with 19 C.F.R. 102.21(c)(2), the country of origin of the blanket is China.
HOLDING:
The blanket is classified under 6301.40.0020, HTSUS. The country of origin of the blanket is China.
The plush toy elephant is classified under 9503.00.0071, HTSUS. The country of origin of the plush toy elephant is Vietnam. As the plush toy elephant and blanket are not considered a set for tariff purposes, both must be marked with their respective country of origin in accordance with Customs regulations, 19 C.F.R. Part 134.
Please note that separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. You should contact the Federal Trade Commission, Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to this item. Information can also be found at the FTC website www.ftc.gov.
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.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Roseanne Murphy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division