OT:RR:NC:N2:349

Mr. Harry Yao
Down Home Manufacturing LLC
402 Maxwell Avenue
Greenwood, SC 29646

RE: Country of origin determination for a sheet set; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.13(c); De Minimis

Dear Mr. Yao:

This is in reply to your letter dated April 17, 2025, requesting a country of origin determination for a sheet set, which will be imported into the United States. Photographs were submitted in lieu of a sample.

FACTS:

The subject merchandise, described as a “Cool Lyocell Sheet Set,” consists of a flat sheet, fitted sheet and pillowcase(s) made from 100 percent lyocell, dyed, woven fabric. The fabric is neither napped nor printed. You state the finished items do not contain any embroidery, lace, braid, edging, trimming, piping, or applique work. The fitted sheet is fully elasticized with an enclosed knitted fabric. You state the knitted elasticized fabric accounts for 7 percent of the total weight of the fitted sheet. The top sheet has a 3-inch top hem with two straight stitches holding two folds in the fabric. The hem on the pillowcase matches the top sheet. The sets will be imported in a self-fabric bag with a hook and loop closure in sizes Twin XL with one pillowcase and Full, Queen and King with two pillowcases. The sheet set is not considered a “set put up for retail sale” under General Rule of Interpretation 3(b) of the Harmonized Tariff Schedule of the United States (HTSUS).

The manufacturing operations for the sheet set are as follows:

China

Elasticized fabric is knit. Lyocell yarns are spun. Lyocell yarns are exported to Egypt. Egypt

Lyocell fabric is woven. Lyocell fabric is exported to China.

China

Lyocell fabric is dyed. Lyocell fabric is cut and sewn into a fitted sheet, flat sheet and pillowcase. The finished sheet set is exported to the United States.

ISSUE:

What is the country of origin of the subject merchandise?

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

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customs laws and the administration of quantitative restrictions, unless otherwise provided by the statute, entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.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.

The “fabric-making process” is defined in 19 CFR 102.21(b)(2) 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.” Each of the components of the sheet set are classified under subheading 6302.32, HTSUS. Subheading 6302.32, HTSUS, is not among the exceptions under paragraph (e)(2). As the flat sheet and pillowcase are made of fabric formed in a single country, territory, or insular possession, that is, Egypt, as per the terms of the tariff shift requirement, country of origin is conferred in Egypt. The fitted sheets are made of two fabrics; the lyocell fabric woven in Egypt and the elasticized fabric knit in China. In this case, however, the knitted elasticized fabric 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.

Therefore, as you have indicated the elasticized fabric knit in China does not constitute more than 7 percent of the total weight of the fitted sheet, the fabric is disregarded in determining the country of origin of the fitted sheet. As the remaining fabric, the lyocell woven fabric, was formed in a single country, that is, Egypt, as per the terms of the tariff shift requirement, country of origin is also conferred in Egypt.

HOLDING:

The country of origin of the fitted sheet, flat sheet, and pillowcase included in the Cool Lyocell Sheet Set is Egypt.

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 Kim Wachtel at [email protected].
Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division