CLA-2 RR:TC:TE 959199 CAB
Mr. Josefa M. Dizon
Embassy of the Philippines
Office of the Commercial Counselor
1600 Massachusetts Avenue, N.W.
Washington, D.C. 20036
RE: Clarification of HRL 959039, dated April 9, 1996
Dear Mr. Dizon:
This is regarding Headquarters Ruling Letter (HRL) 959039,
issued to you from this office on April 9, 1996. In HRL 959039
Customs determined the country of origin of a dust ruffle
pursuant to Section 102.21, Customs Regulations (19 CFR 102.21).
Upon further review, Customs has determined that the rationale
stated in HRL 959039 should be clarified.
The top portion of the dust ruffle was made of fabric woven
in Indonesia. Lace sourced in Singapore was attached to the
bottom portion of the finished dust ruffle and ribbon from the
United States was inserted through the lace. All of the
processing required to finish the dust ruffle was completed in
the Philippines.
HRL 959039 correctly determined that in accordance with
Sections 102.21(c)(2) and 102.21(e), that the country of origin
for the subject merchandise was Indonesia, the country where the
fabric used to construct the major components of the dust ruffle
was formed by a fabric-making process. The ribbon and lace were
considered minor embellishments that would not confer country of
origin. HRL 959039, failed however, to cite Section 102.13,
which sets out the De Minimis rule and is applicable to the
ribbon and lace components of the dust ruffle. Section
102.21(c), "General Rules", inter alia, state the requirements or
conditions of Sections 102.12 through 102.19, where appropriate,
that are applicable when determining origin under Section
102.21(c)(1) through (5).
Section 102.13 "De Minimus", 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 102.20 or satisfy the other applicable
requirements of that section when incorporated into a
good classified in Chapter 50 through 63 of the
Harmonized System 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.
The weight of the ribbon and lace is not more than 7 percent
of the total weight of the finished dust ruffle, and thus, meets
the De Minimis rule stipulated in Section 102.13. As such the
lace and the ribbon are to be disregarded when determining the
country of origin of the finished product. Therefore, the
country of origin of the dust ruffle at issue in HRL 959039
remains Indonesia, the country where the fabric-making process
occurs.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division