CLA-2 RR:TC:TE 959982 jb
Steven J. Block, Esq.
American Pacific Enterprises, Inc.
70 W. 40th Street
New York, NY 10018
RE: Country of origin determination for a comforter, comforter
shells, pillow sham and dust ruffle; 19 CFR Section 102.21(c)(2);
tariff shift; 19 CFR Section 102.21(c)(5); last country in which
an important assembly or manufacturing process occurs
Dear Mr. Block:
This is in reply to your letter dated November 8, 1996,
requesting a country of origin determination for a comforter,
pillow sham and dust ruffle which will be imported into the
United States. Samples were submitted to this office for
examination. The manufacturing operations for the merchandise at
issue are as follows:
Comforter
Scenario I and II
COUNTRY A
- fabric for one side and part of the second side of the
comforter shell is formed.
COUNTRY B
- fabric for the remaining part of the second side of the
comforter shell is formed;
- fabrics from Country A and Country B are cut and sewn to
form the comforter shell.
UNITED STATES
- polyester non-woven wadding is formed for the batting;
- comforter shell is filled with the polyester wadding and
closed by sewing;
- comforter is quilted.
Scenario III
COUNTRY A
- fabric for one side and part of the second side of the
comforter shell is formed.
COUNTRY B
- fabric for the remaining part of the second side of the
comforter shell is formed;
- fabric formed in Country A and Country B is combined to
form one complete side of the comforter shell.
COUNTRY C
- fabric from Country A is sewn to the side of the comforter
shell produced in Country B to form the finished comforter
shell.
UNITED STATES
- polyester non-woven wadding is formed for the batting;
- comforter shell is filled with the polyester wadding and
closed by sewing;
- comforter is quilted.
Pillow Sham
Scenario I
COUNTRY A
- fabric for the ruffle and one side of the pillow sham is
formed.
COUNTRY B
- fabric for the other side of the pillow sham is formed;
- fabric from Country A and Country B are cut and sewn to
form the completed sham.
Scenario II
COUNTRY A
- fabric for the ruffle is formed.
COUNTRY B
- fabric for one side of the pillow sham is formed;
- fabric formed in Country A is combined with the fabric
formed in Country B to produce one side of the pillow sham
together with the ruffle.
UNITED STATES
- fabric comprising the other side of the pillow sham is
formed;
- the side of the pillow sham with the ruffle produced in
Country B is sewn to the fabric formed in the United States
to form the finished pillow sham.
Scenario III
COUNTRY A
- fabric for the ruffle and one side of the pillow sham is
formed.
COUNTRY B
- fabric for the other side of the pillow sham is formed.
COUNTRY C
- sewing together the one side of the pillow sham and ruffle
formed in Country A to the fabric for the other side of the
pillow sham formed in Country B to form the finished pillow
sham.
Dust Ruffle
Scenario I and II and III
COUNTRY A
- fabric used to create the entire dust ruffle is formed.
COUNTRY B
- fabric from Country A is cut and sewn to create the
finished dust ruffle.
* You state that any reference to Countries A, B and C does
not include a NAFTA party. We also assume for the purposes of
this ruling that any reference to Countries A, B, and C does not
include Israel.
ISSUE:
What is the country of origin of the submitted merchandise?
LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act (codified
at 19 U.S.C. 3592) provides new rules of origin for textiles and
apparel entered, or withdrawn from warehouse, for consumption, on
and after July 1, 1996. On September 5, 1995, Customs published
Section 102.21, Customs Regulations, in the Federal Register,
implementing Section 334 (60 FR 46188). Thus, effective July 1,
1996, the country of origin of a textile or apparel product shall
be determined by sequential application of the general rules set
forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states that "The country of origin of a
textile or apparel product is the single country, territory, or
insular possession in which the good was wholly obtained or
produced." As the subject merchandise is not wholly obtained or
produced in a single country, territory or insular possession,
paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states that "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".
Paragraph (e) states that "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":
6301-6306 The country of origin of a good classifiable
under heading 6301 through 6306 is the
country, territory, or insular possession in
which the fabric comprising the good was
formed by a fabric-making process.
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.
9404.90 The country of origin of a good classifiable
under subheading 9404.90 is the country,
territory, or insular possession in which the
fabric comprising the good was formed by a
fabric-making process.
The subject merchandise is classifiable as follows: the
finished comforter is classified in subheading 9404.90,
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), the comforter shells are classified in subheading
6307.90, HTSUS, the dust ruffle is classified in heading 6303,
HTSUS, and the pillow sham is classified in heading 6304, HTSUS.
As the comforter (and comforter shells), and pillow sham are
comprised of fabric sourced in more than one country, there is no
single country in which the fabric was formed. Accordingly,
Section 102.21(c)(2) is not applicable to this merchandise.
However, as the dust ruffle is comprised of fabric sourced in one
country, Country A, the country of origin of the dust ruffle in
scenarios I through III is Country A.
Paragraph (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.
As the subject merchandise is not knit to shape and headings
6301 through 6306, HTSUS, and subheadings 6307.90, and 9404.90,
HTSUSA, are excepted by provision (ii), paragraph (c)(3) is
inapplicable.
Paragraph (c)(4) states that, "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". In the case of the subject merchandise the
most important manufacturing process occurs at the time of the
fabric making. As the fabric for these articles is sourced in
more than one country and no one fabric is more important than
the other, that is, in the case of the comforter (and comforter
shells), and pillow sham both the bottom and top panels
contribute equally to the identity of the good, the country of
origin cannot be readily determined based on the fabric making
process. As such, paragraph (c)(4) is not applicable to this
merchandise.
Paragraph (c)(5) states that, "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". Accordingly, in the case of the subject
merchandise the country of origin is conferred by the last
country in which an important assembly or manufacturing process
occurred. In the case of the comforter in scenarios I through
III, the country of origin is the United States. In the case of
the pillow sham, in scenario I the country of origin is Country
B, in scenario II the country of origin is the United States and
in scenario III the country of origin is Country C. In the case
of the comforter shells imported into the United States for
further processing, the country of origin in scenarios I and II
is Country B, and the country of origin in scenario III is
Country C.
The marking statute, 19 U.S.C. 1304, only requires articles
of foreign origin imported into the United States to be marked to
indicate to the ultimate purchaser in the United States the
country of origin of the article. In this case, as the
comforters' manufacturer is the ultimate purchaser of the
comforter shells, upon importation of the comforter shells it
will be sufficient to mark the containers in which the comforter
shells are imported with the country of origin of the comforter
shells (in this case, Country B or Country C) . We suggest
however, that you contact the Federal Trade Commission Division
of Enforcement, 6th and Pennsylvania Avenue, N.W. Washington,
D.C. 20508, concerning the labeling of the finished comforters,
as they have jurisdiction of the use of "Made in the USA".
HOLDING:
The country of origin of the subject comforter in scenarios
I through III is the United States.
The country of origin of the comforter shells in scenarios I
and II is Country B and in scenario III it is Country C.
The country of origin of the pillow sham in scenario I is
Country B. In scenario II the country of origin is the United
States. In scenario III the country of origin is Country C.
The country of origin of the dust ruffle in scenarios I
through III is Country A.
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 a 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