CLA-2 CO:R:C:G 084873 CC

Mr. Steven L. Markowitz
President
Max Kahn Curtain Corporation
261 Fifth Avenue
New York, N.Y. 10016

RE: Classification and country of origin of a pillow sham

Dear Mr. Markowitz:

This letter is in response to your inquiry of June 15, 1989, requesting country of origin and tariff classification determinations for a pillow sham under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A sample was submitted for examination.

FACTS:

The sample at issue, style number SH2-934, is a pillow sham assembled in Haiti. It consists of three layers of fabric quilted together, with ruffle and back flaps attached. The top layer of the quilted portion, the back of the sham, which is not quilted, and the ruffle are made of 100 percent knit polyester fabric. The filling of the quilted portion is made of 100 percent polyester fiberfill, and the backing of the quilted portion is made of 100 percent polyester warp knit tricot.

According to your submissions, unmarked, uncut fabric of 100 percent knit polyester, fiberfill, and backing are imported into Haiti on separate bolts. There the three types of fabric are layered and sewn together by a quilting machine and then are cut to length and width to form the body of the pillow sham. Identical knit fabric to be used for the back of the sham and the ruffles is cut to length and width. The fabric to be used for the back of the sham is sewn to the quilted portion. The fabric to be used for the ruffles is hemmed with a shirttail hem and then attached to all four sides of the pillow sham by shirred stitching. The pillow sham is then packaged.

ISSUE:

Whether the submitted pillow sham is classifiable in Heading 6302, 6304, or 9404, HTSUSA?

Whether the processing done in Haiti is sufficient to effect a substantial transformation for country of origin purposes for the submitted merchandise?

LAW AND ANALYSIS:

Classification

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Heading 6302, HTSUSA, provides for bed linen, among other articles. According to the Explanatory Notes, the official interpretation of the HTSUSA at the international level, bed linen includes, e.g., sheets, pillow cases, bolster cases, eiderdown cases, and mattress covers.

The submitted pillow sham is a decorative article designed to enclose a pillow and pillow case. It appears to be an article that could match and be used with a bedspread or comforter. Also, the sample pillow sham would be used primarily for decorative purposes and normally would be removed when the pillow is used. We believe that it is more similar to a bed covering, e.g., a bedspread or comforter, than to bed linen, e.g., a pillow case and sheets. Therefore, the submitted pillow sham is not classifiable in Heading 6302, HTSUSA.

Heading 6304, HTSUSA, provides for other furnishing articles, excluding those of Heading 9404, HTSUSA. According to the Explanatory Notes, Heading 6304 does not include bed coverings of Heading 9404. The Explanatory Notes to Heading 9404 state that this heading covers the following articles:

(B) Articles of bedding and similar furnishing which are sprung or stuffed or internally fitted with any material (cotton, wool, horsehair, down, synthetic fibers, etc.) or are of cellular rubber or plastics (whether or not covered with woven fabric, plastics, etc.).

The submitted pillow sham contains an internal layer of fiberfill. It is an article of bedding that would be considered internally fitted with fiberfill. Thus, according to the Explanatory Notes, the submitted pillow sham is classifiable in Heading 9404, HTSUSA.

Country of Origin

Section 12.130 of the Customs Regulations (19 CFR 12.130) provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

Section 12.130(d) of the Customs Regulations sets forth criteria in determining whether a substantial transformation of a textile product has taken place. This regulation states that these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered.

Section 12.130(d)(2) of the regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following factors will be considered in each country: the physical change in the material or article, the time involved in manufacturing or processing operations, the complexity of the operations, the level or degree of skill and/or technology required, and the value added to the article.

Processing of the submitted merchandise consists basically of the following operations: layering three types of fabric and sewing them together; cutting the layered fabric to length and width to form the body of the pillow sham; cutting fabric to length and width to form ruffles and the back of the sham; sewing the ruffles to all four sides of the sham; and sewing the back of the sham to the quilted portion. In applying the criteria for determining country of origin under 19 CFR 12.130, we believe that the processing operations performed in Haiti on the submitted merchandise are substantial. Therefore, the last substantial transformation for the submitted merchandise occurs in Haiti.

HOLDING:

The submitted pillow sham is classified under subheading 9404.90.9040, HTSUSA, which provides for articles of bedding and similar furnishing internally fitted with any material, other, other, other, other. The rate of duty is 14.5 percent ad valorem.

Although no textile category number is currently assigned to articles classified under subheading 9404.90.9040, HTSUSA, please be advised that one may be assigned in the future.

The country of origin of the submitted merchandise is Haiti.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Should it subsequently be determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished this may affect the determination of country of origin. Accordingly, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2).


Sincerely,

John Durant, Director
Commercial Rulings Division