OT:RR:NC:N2:349
Mr. Richard Writsman
Continental Agency Inc.
1768 W Second St
Pomona, CA 91766
RE: Classification and country of origin determination for surgical towels; 19 CFR 102.21(c)(2); tariff shift;
De Minimis
Dear Mr. Writsman:
This is in reply to your letter dated May 5, 2025, requesting a classification and country of origin
determination on behalf of your client, A Plus International Group, for surgical towels which will be
imported into the United States. Samples were submitted with your request and will be retained for training
purposes.
FACTS:
The submitted sample is a bundle of five blue operating room (OR) or surgical towels, SKU # 0603-160-050,
used to wipe or to place under surgical instruments. The surgical towels are constructed from 100 percent
cotton huck weave fabric. The towels are hemmed on all four sides, measure approximately 17 x 26 inches
and feature a 100 percent cotton narrow woven fabric carrying loop sewn to the top right corner. The
surgical towels feature either a data matrix tag (DMT) or Radio Frequency Identification (RFID) tag to assist
with inventory management. The DMT tagged towels are assigned a SKU # beginning with “0603.” The
RFID tagged towels are assigned a SKU # beginning with “0623.” The color of the surgical towels is
denoted by the second set of numbers in the SKU #: blue, “160”; green, “260”; and white, “360.” Finally,
the last set of numbers represents the number of towels included under each paper ban: 2 pieces, “020”, or 5
pieces, “050.” Following this coding system, the imported SKU #s include: 0603-160-020, 0603-160-050;
0603-260-020; 0603-260-050; 0603-360-020; 0603-360-050; 0623-160-020; 0623-160-050; 0623-260-020;
0623-260-050; 0623-360-020; and 0623-360-050.
The manufacturing operations for the surgical towels are as follows:
VIETNAM
Cotton yarns are formed.
Cotton huck fabric is woven.
Rolls of greige huck fabric are shipped to China.
CHINA
Loop fabric is woven.
Cotton huck fabric is dyed.
Cotton huck fabric is cut into rectangular shapes.
Cotton huck cut fabric is hemmed along all four sides.
A narrow woven carrying loop is sewn to the right top side edge.
A DMT or RFID label is heat pressed to each towel.
The towels are folded.
The DMT or RFID labels are scanned and towels are banded together with a paper band.
The finished surgical towels are packaged and shipped to United States.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the surgical towels will be 6307.90.8910, Harmonized Tariff Schedule of the
United States (HTSUS), which provides for other made up articles, including dress patterns: other: other:
surgical towels. The rate of duty will be 7 percent ad valorem.
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
6307.90 The country of origin of a good classifiable under subheading 6307.90 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 102.21(b)(2) as follows:
A fabric-making process is 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 surgical towels are made from two fabrics formed in two different countries. The huck fabric is formed
in Vietnam and the narrow woven loop fabric is formed in China; however, the narrow woven loop 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.
With respect to the surgical towels, you state the loop fabric represents .74 percent of the total weight of the
towel. Consequently, the loop fabric is disregarded when determining the country of origin of the surgical
towel.
Therefore, as the only fabric comprising the surgical towels to consider is formed in a single country, that is,
Vietnam, as per the terms of the tariff shift requirement, country of origin is conferred in Vietnam.
HOLDING:
The surgical towels are classified under subheading 6307.90.8910, HTSUS and the country of origin is
Vietnam pursuant to 19 CFR 102.21(c)(2).
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.01.25 for country-of-origin Vietnam,
in addition to subheading 6307.90.8910, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.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 Kim Wachtel at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division