CLA-2 RR:TC:TE 959538 CAB
Christopher L. Thayer, Esq.
Hallmark Cards, Inc.
Kansas City, MO 64141
RE: Country of origin and Classification of a flag, windsock,
pillow, and gift pouch; Section 102.21(c)(2); Section
102.21(c)(5)
Dear Mr. Thayer:
This is in response to your inquiry of July 24, 1996,
requesting a country of origin determination and verification of
the tariff classification of various textile articles under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). Samples were submitted for examination and will be
returned to you under separate cover.
FACTS:
There are four textile articles at issue. Style 595VB01695
is referred to as a gift pouch/bottle bag. The pouch measures
approximately 6« inches by 5« inches, contains cord trimming and
a paper heart applique. You state that the pouch is designed to
hold wine bottles. Style XPF3451 is a Christmas pillow. The
pillow measures 9« inches by 5« inches, contains a Christmas
motif, and is comprised of a solid-color woven fabric on one side
and a plaid woven fabric on the other side. Style 1995ZXS7001 is
referred to as a "Maxine Christmas Flag". The flag is comprised
of green background fabric and various other multi-colored
fabrics sewn onto the background fabric, is rectangular in shape,
measures 39 inches by 49 inches, and depicts a snowman. Style
119F0R2006 is a windsock which depicts the Philadelphia Eagles
football motif. A string is attached to the windsock for hanging
purposes.
The fabric for the gift pouch is woven in Japan. All other
materials including the thread, cording, and paper heart are
manufactured in China. The fabric and all the materials are
wholly assembled into a finished gift pouch in China.
Both textile fabrics for the Christmas pillow are woven,
cut, sewn, and embroidered in China. The stuffing which is
comprised of polyester fibers (not fabric) is manufactured in
Taiwan. All the other materials used to construct the pillow
including thread and cording are sourced in China. The fabric
and all other materials are fully assembled into the finished
pillow in China.
You pose the question of whether the country of origin would
be affected if the plaid fabric was woven in a third country
instead of China. You also question whether the country of
origin would be affected if the cutting, sewing, and packing for
the Christmas pillow was completed in the Philippines.
The fabric for the Christmas flag is woven in Taiwan. The
fabric is then transported to China where it is cut, sewn, and
embroidered. The thread used for the Christmas flag is
manufactured in China. The fabric and all other materials are
fully assembled into the finished flag in China.
You question if the country of origin would be affected if
the background fabric for the Christmas flag was sourced from a
different unidentified country and the other fabrics remained
from Taiwan.
The fabric for the windsock is woven in Taiwan. The thread,
cord, and plastic ring are manufactured in China. The windsock
is cut, sewn, and fully assembled in China.
You also request that we advise you as to which
components/materials would be considered de minimis in accordance
with Section 102.13 and which components/materials would be
considered minor attachments and/or minor embellishments.
ISSUE:
What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
Pursuant to Section 334 of the Uruguay Round Agreements Act
(codified at 19 USC Section 3592), new rules of origin were
effective for textile products entered, or withdrawn from
warehouse, for consumption on or after July 1, 1996. These rules
were published in the Federal Register, 60 Fed. Reg. 46188
(September 5, 1995). Section 102.21, Customs Regulations
(19 CFR Section 102.21), sets forth the general rules to
determine country of origin. Thus, the country of origin of a
textile product is determined by a hierarchy of rules set forth
in paragraphs (c)(1) through (c)(5) of Section 102.21.
Section 102.21(c)(1) sets forth the general rule for
determining the country of origin of a textile or apparel product
when the good was wholly obtained or produced in a single
country, territory, or insular possession. As the subject
merchandise has not been wholly obtained or produced in a single
country, territory, or insular possession, this section is
inapplicable.
Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under Section 102.21(c)(1).
Section 102.21(c)(2) provides, in pertinent part:
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 foreign material 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.
Section 102.21(e) 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:"
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 a
fabric-making process.
Heading 6307, HTSUSA, provides for, among other things,
other made up articles. This heading is a basket provision for a
variety of goods not more specifically provided for in the
tariff. In this case, the windsock, Christmas pillow, gift
pouch, and Christmas flag are made up textile articles not
specifically provided for elsewhere in the tariff. Thus, they
are all properly classifiable under Heading 6307, HTSUSA.
Further, they are all specifically classifiable in subheading
6307.90, HTSUSA.
Section 102.21(c)(3) states that "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 goods of heading 5609, 5807, 5811, 6213,
6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040,
6307.10, 6307.90, and 9404.90, 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.
Section 102.21(c)(4) provides the first multi-country rule.
Section 102.21(c)(4), states the following:
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.
Section 102.21(c)(5) provides the second multi-country rule.
Section 102.21(c)(5), states the following:
Where the country of origin of a textile or apparel product
cannot be determined under paragraph (c) (1), (2), (3) or
(4) of this section, the country of origin of the good is
the last country, territory, or insular possession in which
an important assembly or manufacturing process occurred.
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).
As stated above, you ask which components/materials would be
considered de minimis in accordance with Section 102.13 and which
components/materials would be considered minor attachments and/or
minor embellishments.
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.
It is important to note that the terms "minor attachments
and minor embellishments" are used when determining whether a
good is "wholly assembled". Section 102.21(b)(6), states the
following, in pertinent part:
Minor attachments and minor embellishments (for
example, appliques, beads, spangles, embroidery,
buttons) not appreciably affecting the identity of the
good, and minor subassemblies (for example, collars,
cuffs, plackets, pockets), will not affect the status
of a good as "wholly assembled" in a single country,
territory, or insular possession.
Therefore, in this case, the issue of whether certain materials
constitute minor attachments or embellishments will only be
addressed in the context of ascertaining whether a particular
good is wholly assembled in accordance with paragraph (e) of
Section 102.21.
In the case of the gift pouch, it is comprised of fabric,
thread, cording, and a paper heart applique. If you separately
evaluate the heart applique, thread, and cording, all of which
are materials that make up the finished pouch, it is clear that
the total weight of these materials is not more than 7 percent of
the total weight of the good and therefore, they meet the de
minimis rule stipulated in Section 102.13. Consequently, they
are to be disregarded when determining the country of origin of
the finished pouch. Thus, in accordance with Sections
102.21(c)(2) and 102.21(e), the country of origin of the subject
pouch is the country where the fabric was formed by a fabric-making process, Japan.
The Christmas pillow is made up of two types of textile
fabric woven in China, stuffing (polyester fibers) from Taiwan,
in addition to thread and cording manufactured in China.
Pursuant to Section 102.13, the thread and cording will be
disregarded as de minimis when making the country of origin
determination. As the stuffing is composed of polyester fibers
and not fabric, in accordance with the applicable paragraph of
Section 102.21(e), it does not affect the origin determination.
Finally, since both textile fabrics comprising the pillow are
woven in China, pursuant to Sections 102.21(c)(2) and 102.21(e),
the country of origin of the pillow is China, as this is the
country where the fabric was formed by a fabric-making process.
You inquire about the impact on the country of origin
determination for the pillow if all the cutting, sewing, and
packing is performed in the Philippines. Applying the tariff
shift rule in accordance with Section 102.21(c)(2) and 102.21(e),
the country of origin determination is based on where the fabric
is formed by a fabric-making process. The fact that the cutting,
sewing, and packing is completed in the Philippines will have no
effect on the country of origin determination. The country of
origin remains China, where the fabric was formed.
If one of the textile fabrics for the pillow (plaid fabric)
is sourced from a third country, you ask what impact this would
have on the aforementioned country of origin. In this scenario,
a pillow is composed of a solid-color fabric on one side, a plaid
fabric on the other side, and the fabrics are woven in different
countries. The fabrics and the other materials are assembled
into the finished pillow in China. If the fabrics used to make
the pillow are produced in different countries, a country of
origin determination cannot be based on Section 102.21(c)(2) as
the tariff shift rule is not met in a single country. As the
subject pillow is not knit to shape and subheading 6307.90,
HTSUSA, is excepted from Section 102.21(c)(3)(ii), Section
102.21(c)(3) is inapplicable. Since the manufacturing of the
fabrics is the most important process in the production of the
pillow, and the fabrics are from different countries and no one
fabric is more important than the other in the production of this
good, a single country of origin determination cannot be based on
Section 102.21(c)(4). Consequently, Section 102.21(c)(5) must be
consulted to make the country of origin determination in this
scenario. In accordance with Section 102.21(c)(5), country of
origin is conferred by the last country in which an important
assembly or manufacturing process occurred. Therefore, in this
scenario, the country of origin of the pillow is China, where it
was wholly assembled.
The subject flag is comprised of various pieces of material
woven in Taiwan. The fabrics are then transported to China where
they are cut, sewn, embroidered, and packed. You also state that
the flag is composed of thread manufactured in China. In
accordance with Section 102.21(c)(2) and the applicable paragraph
of Section 102.21(e), the country of origin of the subject flag
is Taiwan, the country where the fabrics are formed by a fabric-making process.
You inquire as to what the country of origin would be if the
green background fabric used for the construction of the flag was
from one country and all the other fabrics were from Taiwan. If
the fabrics used to make the flag are produced in different
countries, a country of origin determination cannot be based on
Section 102.21(c)(2) as the tariff shift rule is not met in a
single country. As the subject flag is not knit to shape and
subheading 6307.90, HTSUSA, is excepted from Section
102.21(c)(3)(ii), Section 102.21(c)(3) is inapplicable. Since
the manufacturing of the fabrics is the most important process in
the production of the flag, and the fabrics are from different
countries, and no one fabric is more important than the other in
the production of this good, a single country of origin
determination cannot be based on Section 102.21(c)(4).
Consequently, Section 102.21(c)(5) must be consulted to make the
country of origin determination in this scenario. In accordance
with Section 102.21(c)(5), country of origin is conferred by the
last country in which an important assembly or manufacturing
process occurred. Therefore, in this scenario, the country of
origin of the flag is China, where it was wholly assembled.
The windsock is comprised of fabric from Taiwan, in addition
to cording and a plastic ring from China. The fabric and all of
the other materials are transported to China where they are cut,
sewn into the finished windsock, and packed. The total weight of
the thread and cording makes up less than 7 percent of the total
weight of the flag and are each de minimis in accordance with
Section 102.13. Since the plastic ring makes up more than 7
percent of the total weight of the windsock, it is not considered
de minimis. However, in accordance with Section 102.21(c)(2) and
the applicable provision of 102.21(e), the country of origin of
the subject windsock is based on where the fabric is made and
thus, the origin of the plastic ring does not affect the origin
determination of the windsock. Consequently, the country of
origin of the windsock is Taiwan, the country where the fabric
was made.
HOLDING:
The gift pouch, Christmas pillow, flag, and windsock are
classifiable in subheading 6307.90.9989, HTSUSA, which provides
for other made up articles, other, other, other. The applicable
rate of duty is 7 percent ad valorem.
The country of origin of the gift pouch is Japan. The
country of origin of the pillow comprised of fabrics woven in
China, is China. The country of origin of the pillow that is
cut, sewn, and packed in the Philippines, is China, the country
where the fabric was formed. The country of origin of the pillow
comprised of textile fabrics from differing countries is China,
the country where the last important processing occurs. The
country of origin of the flag is Taiwan. The country of origin
of the flag comprised of background fabric from an unidentified
country with the remainder of fabric from Taiwan, is China, the
country where the last important assembly process occurred. The
country of origin of the windsock is Taiwan.
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 19 CFR
177.9(b)(1). This section states that the ruling letter is
issued on the assumption that all of the information furnished in
the ruling letter, either directly, by reference, or by
implication, is accurate and complete in every material respect.
Should it be subsequently 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, if there is any
change in the facts submitted to Customs, it is recommended that
a new ruling request be submitted in accordance with 19 CFR
177.2.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division