OT:RR:NC:N3:351

Ms. Carina He
Darkei International Co., Ltd
No. 13, Alley 1, Lane 108, Yazhou Rd., Tucheng Dist.,
New Taipei City, Taipei 23677
Taiwan

RE: The classification and country of origin determination for a textile basket; 19 CFR 102.21(c)(2)

Dear Ms. He:

In your letter dated July 1, 2025, you requested a country of origin ruling on behalf of your client, Walgreens. In lieu of a sample, photographs of the basket were provided with your request.

Item #WIC954363, described as a “Fabric Bunny Basket,” is a decorative basket designed and intended for use in the home. The open top, round-shaped basket is composed of 100 percent polyester woven fabric over ethylene vinyl acetate (EVA) plastic. The liner is composed of 100 percent nylon woven striped dyed pink or blue fabric. The rim of the basket is folded over a 2 ½ millimeter diameter iron wire and sewn closed. The item measures 8 ½ inches in diameter and 14 ½ inches in height and features a handle and two floppy bunny ears composed of the same fabric sewn to the top edge. The bunny ears measure 7 ½ inches in length by 3 inches in width and hang down on the front of the basket. The basket also features a white pompom glued to the bottom front of the basket to depict a tail.

You state the pertinent manufacturing operations for the bunny basket are as follows:

China: Outer layer: 100 percent polyester fabric is woven, dyed, and shipped in rolls to Cambodia. Liner: 100 percent nylon fabric is woven, dyed, and shipped in rolls to Cambodia. Iron wire, EVA, pompom, and sewing thread are produced and shipped to Cambodia.

Cambodia: The fabric, EVA, and iron wire are cut. The outer layer fabric is laminated to the EVA. The outer layer, liner, handle, and bunny ears are sewn. The pompom is glued to the basket. The finished basket is packaged and shipped to the United States.

ISSUE:

What is the classification and country of origin of the textile basket?

CLASSIFICATION:

The applicable subheading for item #WIC954363 will be 6307.90.9891, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.” The general 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 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 textile basket is comprised of two textile fabrics sewn together, and each of these fabrics are formed by a fabric-making process in a single country, that is China. Therefore, pursuant to 19 CFR 102.21(c)(2), the country of origin of the textile basket is China. HOLDING:

The applicable subheading for item #WIC954363 will be 6307.90.9891, HTSUS, and the country of origin is China.

Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 6307.90.9891, HTSUS, listed above.

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 6307.90.9891, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.90.9891, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6307.90.9891, 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 Kristine Dodge at [email protected].

Sincerely,

(for)
James Forkan
Acting Director
National Commodity Specialist Division