CLA-2-58:OT:RR:NC:N2:352
Flavio Pessoa
Glen Raven
142 Glen Raven Road
Burlington, NC 27217
RE: The tariff classification, country of origin, and eligibility of the United States-Mexico-Canada
Agreement (USMCA) of a chenille fabric from Canada.
Dear Mr. Pessoa:
In your letter dated May 23, 2025, you requested a binding ruling on the tariff classification and eligibility of
a chenille fabric under the United States-Mexico-Canada Agreement (USMCA). Samples were provided to
this office and will be retained for reference purposes.
FACTS:
Style CHE42097 is a woven fabric of crowfoot weave construction. The fabric is composed wholly of acrylic
staple fibers and is woven with chenille yarns in the weft (filling) direction of the fabric. The fabric weighs
487.07 g/m2. There is no coating applied to the face or back of the fabric. You indicate the fabric will be
imported in widths of 54 inches and will be used for upholstery.
The manufacturing process for style CHE42097 is as follows:
Acrylic staple fiber is made and shipped from a non-USMCA region to the United States.
The acrylic staple fibers are used to make a two ply yarn and chenille yarn in the United States
The two ply yarns and chenille yarns are shipped to Canada.
The two ply yarns and chenille yarns are woven into a chenille fabric in Canada.
The chenille fabric is then shipped to the United States.
ISSUES:
What is the classification, country of origin, and USMCA eligibility for style CHE42097?
CLASSIFICATION:
The applicable subheading for style CHE42097 will be 5801.36.0020, Harmonized Tariff Schedule of the
United States (HTSUS), which provides for Woven pile fabrics and chenille fabrics, other than fabrics of
heading 5802 and 5806: Of man-made fibers: Chenille fabrics: Other. The rate of duty will be Free.
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/.
COUNTRY OF ORIGIN:
Section 334 of the Uruguay Round Agreements Act (“URAA”) (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December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for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
5801-5803 (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of
heading 5801 through 5803 to finished fabric of heading 5801 through 5803 by both
dyeing and printing when accompanied by two or more of the following finishing
operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening,
weighting, permanent embossing, or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to heading
5801 through 5803 from any other heading, including a heading within that group,
except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311,
5407 through 5408, 5512 through 5516, and 6002 through 6006, and provided that the
change is the result of a fabric-making process.
“Fabric-making process” is defined in paragraph (b)(2) of Section 102.21 as:
… any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarn, twine,
cordage, rope, or fabric strips and results in a textile fabric.
In this case, (1) above regarding the tariff shift rule for headings 5801-5803 is inapplicable to the chenille
fabric, because it does not go through a process of both dyeing and printing while being accompanied by two
or more of the other allowable finishing operations.
Alternatively, (2) above regarding the tariff shift rule for headings 5801-5803 provides for a “change to
heading 5801 through 5803 from any other heading, including a heading within that group, except from
heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through
5516, and 6002 through 6006, and provided that the change is the result of a fabric-making process.” The
yarns of the subject fabric were formed in the United States. The fabric was manufactured in Canada, from
two ply acrylic yarns classified in heading 5509, and chenille yarns classified in 5606. Since the fabric was
formed in Canada, and since according to the above rule there was an applicable tariff shift as a result of a
fabric-making process in Canada, as per the terms of the tariff shift requirements, the country of origin is
conferred in Canada.
USMCA ELIGIBILITY:
The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30,
2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the
USMCA Implementation Act. General Note (“GN”) 11 of the HTSUS implements the USMCA. GN 11(b)
sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN
11(b) states, in relevant part:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff
treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule
as a “good originating in the territory of a USMCA country” only if--
(i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;
(ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from
originating materials;
(iii) the good is a good produced entirely in the territory of one or more USMCA countries using
nonoriginating materials, if the good satisfies all applicable requirements set forth in this note (including the
provisions of subdivision (o))
Since the chenille fabric contains non-originating materials, it is not considered a good wholly obtained or
produced entirely in a USMCA country under GN 11(b)(i). Moreover, under GN 11(b)(ii), the fabric is not a
good produced entirely in Canada, exclusively from originating materials. Therefore, we must next determine
whether the non-originating materials undergo the tariff shift and other requirements provided for in GN
11(b)(iii) and GN 11(o).
The applicable rule of origin for merchandise under heading 5801 is located within GN 11(o), HTSUS, which
provides in relevant part, the following tariff shift:
Chapter 58
Subheading rule: For the purposes of trade between the territory of Canada and the territory of the United
States of goods of subheading 5801.36 the following rule of origin applies:
(a) A change to subheading 5801.36 from any other chapter, except headings 5106 through 5113,
5204 through 5212, 5310 through 5311, chapter 54, headings 5501 through 5502, subheadings
5503.10 through 5503.20 or 5503.40 through 5503.90 or headings 5504 through 5516.
According to the requisite tariff shift rule under GN 11(o), subheading rule (a) to Chapter 58, HTSUS, a tariff
shift must occur.
The chenille fabric is woven in Canada from the following materials:
Warp: Two ply yarn spun in the United States of acrylic staple fiber from a non-USMCA originating region,
classified in heading 5509.
Weft: Chenille yarn, spun in the United States of acrylic staple fibers from a non-USMCA originating region,
classified in heading 5606.
Based on the facts provided, the fabric described above does not qualify for preferential treatment under the
USMCA. The two ply acrylic yarn is classifiable in heading 5509. As the rule specifically exempts heading
5509, HTSUS, the required tariff shift does not occur.
Lastly, a good may be considered “originating in the territory of a USMCA country” and eligible for
preferential tariff treatment if it satisfies GN 11(b)(iv). The first requirement of GN 11(b)(iv), however, is
that the good must be produced entirely in the territory of one or more USMCA countries. As the chenille
fabric is not produced entirely within one or more USMCA countries, the fabric is not considered originating
under GN 11(b)(iv).
Based upon the preceding analysis, the fabric does not qualify for preferential treatment under the USMCA.
HOLDING:
The applicable subheading for style CHE42097 will be 5801.36.0020, HTSUS, which provides for Woven
pile fabrics and chenille fabrics, other than fabrics of heading 5802 and 5806: Of man-made fibers: Chenille
fabrics: Other. The rate of duty will be Free.
The country of origin of style CHE42097 is Canada.
The criteria required for preferential treatment under the USMCA has not been satisfied based upon an
analysis of the facts provided. Therefore, style CHE42097 is ineligible for preferential treatment under the
USMCA and will be subject to the column 1 General Rate of duty within the HTSUS.
Products of Canada as provided by heading 9903.01.10 in Section XXII, Chapter 99, Subchapter III, U.S.
Note 2(j), HTSUS, other than products classifiable under headings 9903.01.11, 9903.01.12, 9903.01.13,
9903.01.14, and 9903.01.15, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At
the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.10, in addition to
subheading 5801.36.0020, HTSUS, listed above. Articles that are entered free of duty under the terms of
general note 11 to the HTSUS (U.S.-Mexico-Canada Agreement (USMCA)), including any treatment set
forth in subchapter XXIII of Chapter 98 and subchapter XXII of chapter 99 of the HTSUS, will not be
subject to the additional ad valorem duties provided for in heading 9903.01.10. If your product is entered
duty free as originating under the USMCA, you must report heading 9903.01.14, HTSUS, in addition to
subheading 5801.36.0020, HTSUS.
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, in addition to subheading
5801.36.0020, 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, contact
National Import Specialist Nicole Rosso at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division