OT:RR:NC:N3:351

Ms. Maggie Miao
Wuxi Asian Front Import and Export Co., Ltd
No. 137-2208 Wuyun Road, Huishan Zone
Wuxi 214174
China

RE: Country of origin determination for a Santa and wine bag; 19 CFR 102.21(c)(2) and 19 CFR 102.21(c)(4)

Dear Ms. Miao:

This is in response to samples received on August 13, 2025, requesting a country of origin determination on behalf of your client, Home Dept U.S.A., Inc. The country of origin of the woven pajamas, the women’s jogger pajamas, the men’s pajamas, and the men’s jogger pajamas will be addressed separately under New York Ruling N352609, N352610, N352611, and N352612. The Santa and wine bag will be addressed herein. Samples of the bags were provided to this office and will be returned as per your request.

Item #60023H, described as a “Santa Bag,” is a textile bag intended to be used as an alternative to Christmas gift-wrap or to hold multiple wrapped presents. The bag is composed of 100 percent cotton woven flannel printed fabric. The rectangular-shaped bag measures 25 ½ inches in width and 30 ½ inches in height and is sewn on three sides. The opened end is hemmed and features a woven ribbon closure 5 inches from the top.

Item #60023I, described as a “Wine Bag,” is a textile bag intended as gift-wrap for a bottle of wine. The bag is composed of 100 percent cotton woven flannel printed fabric. The rectangular-shaped bag measures 6 ¼ in width and 14 ½ inches in height and is sewn on three sides. The opened end is hemmed and features a woven ribbon closure 2 ½ inches from the top.

You state the manufacturing operations for the Santa and wine bag are as follows:

Pakistan: Woven griege fabrics are formed and shipped in rolls to China.

China: Greige fabrics are washed, scoured, brushed, dyed, and printed. Polyester sewing thread is formed and dyed. Polyester grosgrain ribbon is woven and dyed. Cutting and sewing of the fabrics. Ribbon is cut to length, heat-sealed, and inserted into the gift bag by hand. The finished gift bags are packaged and shipped 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customs laws and the administration of quantitative restrictions, unless otherwise provided by the statute, entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.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 bags are 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)(1) provides the rules used to determine the country of origin of a textile or apparel product under paragraph (c)(2) of this section. These rules are dependent on the classification of the good. The Santa and wine bag are classified under subheading 6307.90.9891, Harmonized Tariff Schedule of the United States (HTSUS).

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 the 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.”

The Santa and wine bags are each comprised of two fabrics formed in two different countries. The main body fabric is woven in Pakistan and the ribbon is woven in China. 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.

As you have stated, the ribbon is not more than 7 percent of the total weight of the finished Santa bag, the ribbon is disregarded when determining the country of origin. Accordingly, the Santa bag complies with the terms of the tariff shift rule for heading 6307, HTSUS; the country of origin is conferred by the single country in which the main body fabric comprising the Santa bag was formed by the fabric-making process. Hence, the country of origin of the Santa bag is Pakistan.

With respect to the wine bag, the fabrics are manufactured in China and Pakistan. The fabric for the bag body is woven in Pakistan. The ribbon is woven in China. As the fabrics comprising the wine bag did not occur in a single country and the ribbon is more than 7 percent of the total weight of the finished bag, the tariff shift rule is not applicable.

Section 102.21(c)(3) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section: (i) if the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or (ii) except for fabrics of chapter 59 and goods of headings 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6307.10, 6307.90, 9404.90, and 9619.00.31-33 if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.”

As the wine bag is not knit to shape and subheading 6307.90 is listed in the exception to the above provision, Section 102.21 (c)(3) is inapplicable.

Section 102.21(c)(4) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory, or insular possession in which the most important assembly or manufacturing process occurred.”

In the case of the wine bag, the most important manufacturing process occurs at the time of fabric-making. Basing the country of origin determination on the fabric making process as opposed to the assembly process carries out the clear intention of Section 334 as expressed in Section 334(b)(2) and Part 102.21(c)(3)(ii). In the case of the wine bag, it is our opinion, the fabric making process of the main body fabric constitutes the most important manufacturing process; the ribbon is comparatively insubstantial to the main body fabric of the wine bag. As the main body fabric is formed by greige fabric woven in Pakistan, the country of origin of the wine bag is Pakistan.

HOLDING:

The country of origin of the Santa bag is Pakistan pursuant to 19 CFR 102.21(c)(2). The country of origin of the wine bag is Pakistan pursuant to 19 CFR 102.21(c)(4).

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 of Pakistan will be subject to an additional ad valorem rate of duty of 19 percent. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.02.51 in addition to subheading 6307.90.9891, HTSUS, listed above.

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)
Denise Faingar
Acting Director
National Commodity Specialist Division