OT:RR:CTF:FTM H309368 TJS
Ms. Dolores Hunt
Keeco, LLC
30736 Wiegman Road
Hayward, CA 94544
RE: Reconsideration of NY N306605; Country of Origin of Reversible Polyester Comforters.
Dear Ms. Hunt,
This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered New York Ruling Letter (“NY”) N306605, issued to you on October 25, 2019, regarding the country of origin of certain reversible polyester comforters. In that ruling, CBP determined the country of origin to be India. We have reviewed NY N306605 and determined that it is incorrect. For the reasons stated below, we hereby revoke NY N306605.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625 (c)(1)), as amended by section 623 of title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), a notice was published in the Customs Bulletin, Volume 54, No. 23, on June 17, 2020, proposing to revoke NY N306605, and revoke any treatment accorded to substantially identical transactions. No comments were received in response to the notice.
FACTS:
The merchandise at issue is reversible, dyed and printed 100% polyester comforters. The comforters contain no embroidery, lace, braid, edging, trimming, piping exceeding 6.35 mm or applique work. The comforters, in Twin, Queen and King sizes (65” x 88”, 86” x 102”, and 104” x 93”, respectively), are made of a 100% polyester woven fabric and filled with 100% polyester batting. The fabric comprising one side of the comforter has been printed and the fabric comprising the reverse has been dyed.
NY N306605 described the manufacturing operations as follows:
The 100% polyester greige fabric comprising both sides of the comforter shell is woven in China and shipped to India where a portion of it will be dyed and submitted to the following operations:
Batching
Peaching (napping process)
Bleaching
Dyeing
Hydrowashing
Finishing-heat setting to stabilize fabric weight and width (shrinking)
An equal portion of the fabric will be printed and subject to the following operations:
Batching
Peaching (napping process)
Bleaching
Heat setting (shrinking process to control shrinkage after finishing)
Disperse Printing
High temperature steaming
Washing
Finishing
Subsequent to fabric dyeing, printing and finishing operations, the dyed fabric will be cut to size and sewn to make one side of the comforter shell and the printed fabric will be cut to size and sewn to make the other. The comforter will then be filled with 100% polyester fill batting of Indian origin and sewn closed.
The subject comforters are classified in subheading 9404.90.8522 of the Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”), which provides for “Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: Other: Other: Other: Quilts, eiderdowns, comforters and similar articles: With outer shell of man-made fibers (666).”
ISSUE:
What is the country of origin for marking purposes of the reversible polyester comforters?
LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act, codified at 19 U.S.C. § 3592, provides rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. 19 C.F.R. § 102.21 implements section 334, and 19 C.F.R. § 102.0 refers to 19 C.F.R. § 102.21 for determining the country of origin of textile and apparel products. Pursuant to 19 C.F.R. § 102.21(c), the country of origin of a textile or apparel product will be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5).
Section 102.21(c)(1) provides 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 comforters are not wholly obtained or produced in a single country, territory, or insular possession, paragraph (c)(1) is inapplicable.
Paragraph (c)(2) provides, “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 of the foreign materials 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:”
The applicable subheading for the subject comforters is 9404.90.8522, HTSUSA. Section 102.21(e)(1) in pertinent part provides, “The following rules will apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:”
HTSUS Tariff shift and/or other requirements
9404.90 Except for goods of subheading 9404.90 provided for in paragraph (e)(2) of this section, 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.
Subheading 9404.90.85, HTSUS, is included in the paragraph (e)(2) exception to the above tariff shift rule. 19 C.F.R. § 102.21(e)(2)(i) provides:
(i) The country of origin of the good is the country, territory, or insular possession in which the fabric comprising the good was both dyed and printed when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing;
It has been a longstanding CBP position that the fabric comprising the good must be both dyed and printed for § 102.21(e)(2)(i) to apply. See Headquarters Ruling Letter (“HQ”) H304571 (Jan. 6, 2020); NY J89052 (Oct. 31, 2003); NY I81934 (June 4, 2002); NY H81451; (June 18, 2001); and NY H81279 (June 4, 2001). For example, in HQ H304571, CBP determined the country of origin of certain stuffed mattress covers classified in subheading 9404.90.95, HTSUS, which is included in the paragraph (e)(2) exception. The fabric comprising the mattress covers was formed in the United States, China, and/or Mexico and was cut, sewn, and assembled into the finished products in El Salvador. CBP found that paragraph (e)(2)(i) was inapplicable because the fabric comprising the covers were dyed but not printed. NY J89052 concerned the country of origin of a bed sheet set consisting of a flat sheet, fitted sheet, and one or two pillowcases. In that ruling, CBP considered two manufacturing scenarios: in Scenario 1, the sets were printed and not dyed while the sets in Scenario 2 were both printed and dyed. Under both scenarios, the fabric comprising the goods was woven in Country A and shipped to Tanzania where it was subject to singing, scouring, bleaching, drying, printing, curing, shrinking, stiffening and finishing. Under Scenario 2, the dyeing would also occur in Tanzania. The fabric was then cut to size and shape and the components were sewn together to form the finished sheets and pillowcases. CBP determined that, as the sheet sets under Scenario 2 were both dyed and printed and subject to two or more finishing operations in Tanzania, as per the terms of the tariff shift requirement, the country of origin of the sheet sets was conferred in Tanzania. Conversely, CBP held that paragraph (e)(2)(i) was not applicable to the sheet sets in Scenario 1 as the fabric comprising the sets were not both dyed and printed. NY H81279 concerned two woven fabrics composed of 97% cotton and 3% spandex, designated as styles C-0138 and C-0156. Each fabric was woven in Tajikistan and shipped to China where the fabric for style C-0138 was bleached, dyed, and finished including drying and the fabric for style C-0156 was bleached, printed, washed, and finished including tentering. CBP determined that because both fabrics were formed by a fabric forming process in a single country, and neither fabric was both dyed and printed in China, as per the terms of the tariff shift requirement, country of origin was conferred in Tajikstan.
Therefore, paragraph (e)(2)(i) applies when the fabric comprising the good is both dyed and printed. In India, the fabric comprising one side of the subject comforters is dyed while the fabric comprising the reverse side is printed. Here, the dyeing and printing are mutually exclusive processes. Because the fabric is either dyed or printed, not both, paragraph (e)(2)(i) is inapplicable.
Paragraph (e)(2)(ii) provides, “If the country of origin cannot be determined under paragraph (e)(2)(i) of this section, [. . .] the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.” As the fabric comprising the subject comforters is manufactured in China, the country of origin is China.
HOLDING:
The country of origin for marking purposes of the reversible polyester comforters is China.
EFFECT ON OTHER RULINGS:
NY N306605, dated October 25, 2019, is hereby REVOKED in accordance with the above analysis. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
For Craig T. Clark, Director
Commercial and Trade Facilitation Division