CLA-2 CO:R:C:T 952225 SK
TARIFF NO.'s: 6302.21.2030; 6302.21.2040
Kenneth R. Paley
Sharretts, Paley, Carter & Blauvelt, P.C.
67 Broad Street
New York, N.Y. 10004
RE: Classification of napped and unnapped bedding sets;
6302.21.2030; 6302.21.2040; GRI 3(c); country of origin;
19 CFR 12.130; ornamented flat sheets undergo cutting and
sewing processes that constitute a substantial manufacturing
operation; fitted sheet also undergoes a substantial
processing operation in Thailand.
Dear Mr. Paley:
This is in response to your inquiry of July 9, 1992, on
behalf of your client, Haywin Textile Products, Inc., requesting
the tariff classification and country of origin status of four
sets of bed linen. Samples were submitted to this office for
examination and will be returned to you under separate cover.
FACTS:
The subject merchandise consists of various sets of woven
sheets and pillow cases that will be imported into the United
States from Thailand. The sets are packaged as follows:
1) One pillowcase, one twin-size fitted sheet, and one twin-
size flat sheet of 100 percent cotton, napped;
2) Two pillow cases, one full-, queen-, or king-size fitted
sheet, and one matching size flat sheet of 100 percent
cotton, napped;
3) One pillow case, one twin-size fitted sheet, and one twin-
size flat sheet of 70 percent cotton/ 30 percent polyester,
not napped; and
- 2 -
4) Two pillow cases, one full-, queen-, or king-size fitted
sheet, and one matching size flat sheet of 70 percent cotton/
30 percent polyester, not napped.
Each flat sheet has either a double ruffle or piping along
the top edge. The other items of each set will contain no
embroidery, lace, braid, edging, trimming, piping or applique
work.
The subject merchandise is manufactured and printed in one
country and then shipped to Thailand in rolled stock form. In
Thailand, the printed fabric will be cut to both length and
width, and sewn into sheets. The printed fabric which remains
from the cutting operations for the sheets will be used to
produce the ruffles for the flat sheets, or the additional panels
of fabric for the flat sheets with piping.
The flat sheets will be hemmed at both the top and bottom
edges, and side stitching may be required. For those sheets with
ruffles, the printed fabric for the ruffles will be cut to size,
pleated, and sewn in two layers along the edges of the flat
sheets. For the sheets with piping, rolls of piping produced in
Thailand will be sized and cut and then sewn to the sheets along
the outside top edge.
With regard to the fitted sheets, once they are cut to
length and width, they will be stitched on both sides. Pockets
will then be cut and formed at all four corners of the sheet. An
elastic tape will then be sewn in and the pocket will be stitched
closed.
The pillow cases will be produced in Thailand by cutting the
fabric to size, folding it, stitching it across the top and
bottom, and hemming it on three sides, including the open side
which will require hemming on both ends.
ISSUES:
1) What is the classification of the subject merchandise?
2) What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
CLASSIFICATION
Classification of merchandise 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
- 3 -
order. Merchandise that cannot be classified in accordance with
GRI 1 is to be classified in accordance with subsequent GRI's.
Heading 6302, HTSUSA, provides for bed linen, table linen,
toilet linen and kitchen linen. The Explanatory Notes (EN) to
the Harmonized Commodity Description and Coding System, although
not legally binding, are the official interpretation of the
tariff at the international level and define bed linen to include
sheets, pillow cases, bolster cases, eiderdown cases, and
mattress covers.
As the instant merchandise is comprised of sheets and pillow
cases, it is prima facie provided for in heading 6302, HTSUSA.
Our analysis now turns on whether the subject merchandise is
classified as bed linen "containing any embroidery, lace, braid,
edging, trimming, piping or applique work" or bed linen without
such adornment. The flat sheets in each of the submitted samples
feature either a two-layered, pleated ruffle or a strip of
contrasting colored piping near the top edge of the sheet. The
pillow cases and the flat sheets in all the sets are without
ruffles or piping. A determination must be made as to whether
classification will be based on the flat sheets with ruffles and
piping under subheading 6302.21.10, HTSUSA, or on the unadorned
components of the bed linen set under subheading 6302.21.20,
HTSUSA. Since neither of the two subheadings under
consideration, when read in conjunction with the pertinent legal
notes, cover all the component in the sets, GRI 3 provides the
relevant analysis, as per GRI 6.
When, by application of rule 2(b) or for any other
reason, goods are, prima facie, classifiable under
two or more headings, classification shall be affected
as follows:
(a) The heading which provides the most specific
description shall be preferred to headings
providing a more general description.
However, when two or more headings each refer
to part only ... of the items in a set put up
for retail sale, those headings are to be
regarded as equally specific in relation to
those goods, even if one of them gives a more
complete or precise description of the goods.
As noted supra, classification of the subject merchandise is
possible under two subheadings in the Nomenclature, and GRI 3(b)
applies as follows:
(b) ... goods put up in sets for retail sale, which
cannot be classified by reference to 3(a), shall
- 4 -
be classified as if they consisted of the material
or component which gives them their essential
character.
Explanatory Note VIII to GRI 3(b) states that:
The factor which determines essential character will
vary as between different kinds of goods. It may,
for example, be determined by the nature of the
material or component, its bulk, quantity, weight
or value, or by the role of a constituent material
in relation to the use of the goods.
In the instant case, it is impossible to determine which
component in these sets imparts the essential character as all
the articles in the set play an equal role in the sets' function
of dressing a bed. While the flat sheets are larger than the
fitted sheets, and are slightly more decorative because of the
use of ruffles and piping, the fitted sheets require a more
substantial sewing operation and require that elastic be sewn
around their edges to ensure a snug fit. Similarly, the pillow
cases fulfill a unique function and require a more detailed
sewing operation than do the flat sheets. Consequently, it is
this office's opinion that reasonable persons may differ as to
which component imparts the essential character to these sets and
therefore GRI 3(c) governs classification.
GRI 3(c) sets forth that when goods cannot be classified by
reference to 3(a) or 3(b), they shall be classified under the
subheading which occurs last in numerical order among those which
equally merit consideration. Accordingly, the articles at issue
are properly classified under heading 6302.21.20 of the HTSUSA as
that is the heading which occurs last in numerical order as
between the relevant subheadings set forth above.
COUNTRY OF ORIGIN
Section 12.130 of the Customs Regulations (19 CFR 12.130) is
applicable to the merchandise at issue. Section 12.130(b) of the
Customs Regulations 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
- 5 -
these criteria are not exhaustive; one or any combination of
criteria may be determinative, and additional factors may be
considered.
Section 12.130(d)(1) states that a new and different article
of commerce will usually result from a manufacturing or
processing operation if there is a change in:
(i) Commercial designation or identity;
(ii) Fundamental character;
(iii) Commercial use.
Section 12.130(d)(2) of the Customs Regulations states that
in determining whether merchandise has been subjected to
substantial manufacturing or processing operations, the following
will be considered:
(i) The physical change in the material or article;
(ii) The time involved in the manufacturing or processing;
(iii) The complexity of the manufacturing or processing;
(iv) The level or degree of skill and/or technology
required in the manufacturing or processing
operations;
(v) The value added to the article or material;
Section 12.130(e)(1) provides that an article or material
usually will be a product of a particular foreign territory or
country, or insular possession of the United States, when, prior
to importation into the United States, it has undergone in that
foreign territory or country or insular possession, any of the
following:
(v) substantial assembly by sewing and/or tailoring of
all cut pieces ...
Customs has consistently determined that the sewing
operations entailed in making fitted sheets and pillow cases is
substantial enough so as to make the country where this operation
takes place the country of origin. See Headquarters Ruling
Letter (HRL) 086523, dated April 25, 1990, HRL 733180, dated
December 13, 1990 and HRL 733269, dated April 30, 1991. In these
cases Customs ruled that the country of origin of pillow cases
and fitted sheets were the countries from which the finished
products emerged (i.e., where they were sewn). With regard to
flat sheets, generally Customs has regarded the cutting and
hemming operations used in their manufacture to be relatively
limited in complexity and duration and therefore not a
- 6 -
"substantial manufacturing process". In the instant case,
however, the flat sheets have ruffles and piping sewn to their
top edges and this adornment requires an extra manufacturing step
that is commensurate in degree of skill and amount of time to
that required in the manufacture of fitted sheets and pillow
cases. (Note, that while the affixation of the ruffles and
piping to the flat sheets qualifies as a substantial
manufacturing process, the resulting adornment is not elaborate
enough so that the flat sheet imparts the essential character to
the bedding set).
HOLDING:
The two sets of bed linen which are constructed from napped
fabric are classifiable under subheading 6302.21.2030, HTSUSA,
which provides for "bed linen ...: other bed linen, printed: of
cotton, napped", dutiable at a rate of 7.6 percent ad valorem.
The unnapped sets of bed linen are classifiable under subheading
6302.21.2040, HTSUSA, dutiable at rate of 7.6 percent ad valorem.
Although classified as sets, the individual components are
subject to textile category numbers as if they were classified
separately. Accordingly, the pillow cases are subject to visa
requirements under textile quota category 360, and the sheets are
subject to visa requirements under textile quota category 361.
The designated textile and apparel categories may be
subdivided into parts. If so, the 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 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 updated weekly and
is available for inspection at your local Customs office.
Due to the nature of the statistical annotation (the ninth
and tenth digits of the classification) and the restraint
(quota/visa) categories, you should contact your local Customs
office prior to importation of this merchandise to determine the
current status of any import restraints or requirements.
The country of origin for the merchandise at issue is
Thailand.
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
- 7 -
section states that a ruling letter is issued on the assumption
that all 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