CLA-2 RR:TC:TE 960281 CAB

6303.92.2000

Laurie Everill, CHB
J.C. Penney Purchasing Corporation
P.O. Box 10001
Dallas, Texas 75301-0001

RE: Country of origin and tariff classification of various articles; Bath in a Box Set; Heading 3924; Heading 69t 2; Heading 9403; Heading 6303

Dear Ms. Everill:

This is in response to your inquiry of January 13, 1997, in which you requested country of origin, tariff classification, and marking determinations for the articles comprising a "Bath In A Bed Set." This ruling will address the tariff classification issues for all the articles, and the country of origin questions for the textile articles. The remainder of the country of origin determinations, and the marking issues, will be addressed in a separate ruling by our Special Classification and Marking Branch.

FACTS:

The merchandise at issue consists of various articles which comprise J.C. Penney Purchasing Corporation's (JCPPC's)lot Nos.9000 (retail) and 742-3155 (catalog). The items that comprise the set are a printed textile shower curtain with a vinyl liner and plastic shower curtain rings, a printed plastic coated fabric wastebasket, a printed plastic hamper, a ceramic or plastic lotion dispenser, a ceramic or plastic toothbrush holder, a ceramic or plastic tumbler, a ceramic or plastic tissue cover, and areceramic or plastic soap dish. You state that there may be additional lot numbers (styles) for this item but in different patterns, colors and designs which are not available at the present time. A representative sample of each article has been submitted to Customs with the exception of the tissue cover and soap dish. You also state that all items will be packaged together, shipped and sold as a "Bath In A Box Set" and all pieces in the set will be color coordinated and designed to match.

The plastic shower curtain rings will be completely manufactured in China. The lotion dispenser, toothbrush holder, tumbler, tissue cover, and soap dish, whether made of plastic or ceramic materials will be completely manufactured in China. The vinyl shower liner material will be formed in Taiwan and shipped to China where it will be cut to shape and size, ring holder holes formed, hemmed, and finished. The fabric for the textile shower curtain which will be either 100 percent woven polyester or 65 percent polyester/35 percent cotton, will be formed in Taiwan and shipped to China. In China, the fabric will be cut to size and shape, ring holder holes formed, hemmed, and finished. The fabric for both the knockdown hamper and waste basket will be formed and plastic coated in Taiwan and then transported to China where the fabric will be cut to size and shape, assembled, and packaged with its frame. The frame pieces for both the waste basket and hamper will be manufactured in China. All assembly and packaging of these items will be completed in China.

ISSUES:

I. What is the tariff classification pursuant to the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) for the subject merchandise?

II. What is the country of origin of the textile goods?

LAW AND ANALYSIS:

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI I provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's, taken in order.

GRI 2(b) states that any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.

GRI 3(a), in referring to "sets", states that 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.

GRI 3(b) states that mixtures, composite goods, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

GRI 3(c) provides that when goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

You believe that for tariff classification purposes, (1) the shower curtain, the vinyl liner, and the plastic shower curtain rings are classifiable as a set; (2) the lotion dispenser, tooth brush holder, tumbler, soap dish, and tissue cover, are classifiable as a set; and (3) the waste basket and the hamper are separately classifiable.

The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN), although not legally binding, are the official interpretation of the tariff at the international level. In applying the provisions of the HTSUSA, Customs will look to the Explanatory Notes for guidance, In determining whether two or more articles imported together constitute a "set put up for retail sale" and are, therefore, classifiable under a single tariff provision, the Explanatory Notes for GRI 3(b), provide, in part:

(X) For the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which:

(a) consist of at least two different articles which are, pnma facie, classifiable in different headings . .,

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and

(c) are put up in a manner suitable for sale directly to users without repacking.

Pursuant to GRI 3(b) and the Explanatory Notes, articles put up together that are dedicated to more than one purpose (that is, more than one particular need or specific activity) cannot be considered a set for tariff classification purposes.

In this case, the subject articles meet criteria (a)and (c) since they are put up together for retail sale directly to users without repacking and are classifiable under more than one heading. However, at least several articles of the "set" perform functions unrelated to the functions performed by the other articles (e.g. the tumbler is for drinking; the hamper is used to hold articles prior to washing; and the lotion dispenser is to store and facilitate access to lotion).

A group of articles put up for retail sale either qualifies as one set or fails. Customs will not choose items out of a particular retail grouping and determine that these specific articles are classifiable as a set while the remaining articles that do not meet the requirements for the set are classifiable separately. See, HQ 954815, dated January 31, 1994, where Customs determined that articles of a "Personal Care Amenities Set," which included a manicure stick, emery board, plastic cotton swabs with cotton balls, and a sewing kit containing thread, needle, buttons, and a safety pin were classified separately since they were dedicated to more than one purpose. HQ 954815 stated, "Customs will not attempt to construct a qualifying set or sets out of a failed set. When articles put up together are determined not to form a proper set for GRI 3(b), they are classified separately."

Accordingly, the combined articles do not meet the requirements for classification as a set since all the articles in the "set" do not perform, or are not dedicated to, a single particular need or a single specific activity. Therefore, each article in the "Bath In A Box Set" is separately classifiable according to the applicable General Rule of Interpretation.

COUNTRY OF ORIGIN OF THE SHOWER CURTAIN AND WASTE BASKET

Pursuant to section 334 of the Uruguay Round Agreements Act (19 U.S.C. 3592), new rules of origin became effective for textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. Customs codified these rules in section 102.21, Customs Regulations (19 CFR 102.21 ), published in the Federal Register on September 5, 1995 (60 Fed. Reg. 46188). Section 102.21 sets forth the general rules used to determine country of origin of textile and apparel goods. 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. The shower curtain and waste basket are the only articles in the "set" which are governed by 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 in which the good was wholly obtained or produced. As the subject merchandise has not been wholly obtained or produced in a single country, 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).

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) provides, in pertinent part:

Specific rules by tariff classification. 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 was formed by a fabric-making process.

In this instance, the subject textile waste basket is classifiable in subheading 6307.90, HTSUSA, while the shower curtain is classifiable under heading 6303, HTSUSA. The fabric for both the waste basket and the shower curtain was woven in Taiwan. In accordance with Sections 102.21 (c)(2) and 102.21 (e), the country of origin of the waste basket and shower curtain is Taiwan, the country where the fabric comprising them was formed by a fabric-making process.

HOLDING:

In accordance with Sections 102.21(c)(2) and 102.21(e), the country of origin of both the textile waste basket and shower curtain is Taiwan.

The classification of the articles comprising the "Bath In A Box" set are as follows:

(1) The plastic, the lotion dispenser, toothbrush holder, tissue box cover, soap dish, and shower curtain rings are classifiable in subheading 3924.90.5500, HTSUSA, which is the provision for plastic toilet articles, with duty at the rate of 3.4 percent ad valorem. If ceramic, those articles are classifiable in subheading 6912.00.5000, HTSUSA, which is the provision for ceramic toilet articles, with duty at the rate of 6.4 percent ad valorem.

(2) The shower curtain liner is classifiable in subheading 3924.90.1010, HTSUSA, which provides for plastic curtains and drapes, with duty at t he rate of 3.3 percent ad valorem.

(3) The tumbler is classifiable in subheading 3924.10.5000, HTSUSA, if of plastics, with duty at the rate of 3.4 percent ad valorem, and in subheading 6912.00.5000, HTSUSA, if ceramic, with duty at the rate of 6.4 percent ad valorem.

(4) The hamper is classifiable in subheading 9403.80.6040, HTSUSA, which provides for other household furniture (other than wood, plastics, rattan, bamboo, or similar materials), with duty at the rate of 1.6 percent ad valorem.

(5) The shower curtain is classifiable in subheading 6303.92.2000, HTSUSA, which provides for other curtains of synthetic fibers, with duty at the rate of 12.4 percent ad valorem. The designated textile restraint for goods classifiable in subheading 6303.92.2000 is category is 666.

(6) The textile waste basket is classifiable in subheading 6307.90.9989, HTSUSA, which provides for other made up textile articles, with duty at the rate of 7 percent ad valorem.

The holdings set forth above apply only to the specific factual situations and the merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1 ), which states that a ruling letter is issued on the assumption that all of the information furnished in that 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.

The designated textile and apparel category may be subdivided into pans. 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 importing the merchandise to determine the current status of any import restraints or requirements.

Sincerely,
John Durant, Director
Commercial Rulings Division