CLA-2 CO:R:C:T 951903 CAB
Loretta J. Evans
Fritz Companies, Inc.
P.O. Drawer "G"
Blaine, WA 98230
RE: Country of origin of pillow cover kit; classifiable in
Heading 6304; similar to a pillow sham
Dear Ms. Evans:
This letter is in response to your inquiry of April 22,
1992, on behalf of Mariah Laine, requesting a tariff
classification and country of origin determination of an
unassembled pillow cover.
Your request for marking requirements has been forwarded to
our Value and Marking Branch. As such, a separate ruling will be
sent to you concerning the marking issue.
FACTS:
Bolts of woven fabric will be imported into Canada from
China. The cotton and polyester fabric's chief weight is
polyester. The fabric is cut into a 41 by 51 centimeter
rectangle, a 9 by 378 centimeter rectangle, and two rectangles
measuring 40.5 centimeters by 28 centimeters. These pieces will
be added to ribbon measuring 42.5 by 0.7 centimeters from Canada,
four strips of eyelet trim measuring 43 by 2.5 centimeters from
Indonesia, and a 43 by 2.5 centimeter strip of entredeaux from
Indonesia. The items are packed with sewing instructions in a
transparent, resealable bag. There is also an "Heirloom Pillow
Kit" retail insert in the package. The package is then imported
into the United States. The purchaser supplies thread, a pillow
form, and assembles the pillow by cutting, trimming and sewing.
ISSUE:
I. What is the applicable tariff classification for the article
in question?
II. What is the country of origin for the article in question?
LAW AND ANALYSIS:
I. Tariff Classification
Classification of goods under the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA) is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes, taken in
order.
GRI 2(a) provides the following:
Any reference in a heading to an article shall be taken to
include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete or
unfinished article has the essential character of the
complete or finished article. It shall also include a
reference to that article complete or finished (or falling
to be classified as complete or finished by virtue of this
rule), entered unassembled or disassembled.
Customs has consistently ruled that articles, other than
pillowcases, which are designed to cover a pillow (i.e. pillow
shams) are classifiable in Heading 6304 as other furnishing
articles, not bed linen. See Headquarters Ruling Letter (HRL)
087062, dated August 20, 1990. In this instance, the sample
article is a pillow kit with pre-cut pieces that consist of woven
fabric, trim, ribbon and entredeaux. Given the general
appearance of each of the sample pieces, and the fact they are
all pre-cut, it is clear that sample article has the essential
character of a covering for a pillow. The instant article is
decorative, designed to cover a pillow, and very similar to a
pillow sham; thus, the article in question is classifiable in
Heading 6304.
II. Country of Origin
Country of origin determinations for textile products are
subject to Section 12.130 of the Customs Regulations (19 CFR
12.130). Section 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. Section 12.130(e)(2)(ii) states
that a material will usually not be considered to be a product of
a particular foreign country by virtue of merely having undergone
cutting to length or width and hemming or overlocking fabric
which are readily identifiable as being intended for a particular
commercial use. T.D. 85-38, published in the Federal Register on
March 5, 1985, (50 FR 8714) explains that "where fabric which is
readily identifiable as being intended for a particular
commercial use (e.g. toweling or bed linen material) is merely
cut to length or width, with the edges then being either hemmed
or overlocked...the foreign territory or country which produced
the fabric is the country of origin and not the country where the
fabric was cut." As a result of the foregoing, Customs has
consistently ruled that the mere cutting of fabric does not
result in a substantial transformation. See (HRL) 733787 of
March 14, 1991, which determined that flat sheets cut and sewn in
one country from fabric of another country are considered
products of the country in which the fabric was woven.
In this case, the fabric will be imported from China and cut
into pieces in Canada. The operation performed in Canada simply
involves cutting fabric pieces and adding ribbon and lace to the
package. This simple process is not enough to substantially
transform the fabric into a new and different article of
commerce. Thus, when applying the above rationale to this case,
the country of origin is determined by the component which
imparts the essential character to the kit. In this instance, it
is the fabric woven in China that imparts the essential character
of the pillow cover kit because it is the component that actually
forms the finished article. Consequently, the country of origin
of the pillow cover kit is China.
HOLDING:
Based on the foregoing, the pillow cover kit is properly
classifiable as a composite article under subheading
6304.93.0000, HTSUSA, which provides for other furnishing
articles, excluding those of heading 9404. The rate of duty is
10.6 percent ad valorem, and the textile restraint category is
666. The country of origin of the pillow cover kit for textile
restraint purposes is China.
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).
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report on Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service, which is available for
inspection at your local Customs office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division