CLA-2 RR:TC:TE 959742 jb
Michael G. Teeter
The Industry Government Relations Group
350 Rue Sparks Street, Suite 1110
Ottawa, Ontario
Canada K1R 7S8
RE: Country of origin determination for furniture moving pads;
Section 102.21(c)(5); last country in which an important
assembly or manufacturing process occurs
Dear Mr. Teeter:
This is in reply to your letter dated July 18, 1996,
requesting a country of origin determination for furniture moving
pads which will be imported into the United States.
FACTS:
The subject merchandise consists of furniture moving pads
composed of a top and bottom fabric made of either 100 percent
cotton woven fabric or 50/50 percent polyester/cotton woven
fabric. In both cases a non-woven 65/35 percent or 50/50 percent
polyester synthetic/cotton batting fabric is sandwiched in
between the woven fabrics. The three fabrics are quilted and
machine stitched together to create the moving pads. You state
than on an annual basis, in the production of these articles, the
woven fabrics are commingled such that the following
manufacturing scenarios occur:
Scenario I- approximately 30 percent of the moving pads
consist of:
UNITED STATES
- top and bottom woven fabrics are woven.
CANADA
- top and bottom fabrics are dyed and finished;
- non-woven polyester/cotton batting is formed from mixed
Canadian and foreign fibres;
- all the fabrics are quilted and machine stitched together;
- cutting;
- sewing.
Scenario II- approximately 30 percent of the moving
pads consist of:
PAKISTAN
- top fabric is woven and dyed.
UNITED STATES
- bottom fabric is woven.
CANADA
- bottom fabric is dyed;
- top and bottom fabrics are finished;
- non-woven polyester/cotton batting is formed from mixed
Canadian and foreign fibres;
- all the fabrics are quilted and machine stitched together;
- cutting;
- sewing.
Scenario III- approximately 40 percent of the moving
pads consist of:
PAKISTAN
- top and bottom fabrics are woven and dyed.
CANADA
- top and bottom fabrics are finished;
- non-woven polyester/cotton batting is formed from mixed
Canadian and foreign fibres;
- all the fabrics are quilted and machine stitched together;
- cutting;
- sewing.
Additionally, you state in your letter that the furniture
moving pads are shrink-wrapped in bundles of 12 pads in Canada
and shipped to furniture moving supply companies in the U.S. You
ask for guidance in determining the appropriate marking for this
merchandise and whether it is appropriate to mark the origin of
this merchandise on the shrink wrap container instead of
individually labeling the furniture moving pads.
ISSUE:
1. What is the country of origin of the subject merchandise?
2. What is the proper marking of the subject merchandise?
3. Is it proper to mark the packaging of this merchandise
instead of individually marking each moving pad?
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 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 (c)(5) of Section 102.21.
Section 102.21(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, Section 102.21(c)(1) is not
applicable.
Section 102.21(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."
Section 102.21(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":
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.
As the fabric comprising the subject furniture moving pads is
formed in more than one country (the woven top and bottom fabrics
are formed in either the United States or Pakistan, or a
combination thereof, and the non-woven batting is formed in
Canada) in each of the three scenarios, the merchandise does not
meet the terms of the tariff shift.
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.
As the subject merchandise is not knit to shape and subheading
6307.90, HTSUS, is excepted by provision (ii), Section
102.21(c)(3) is inapplicable.
Section 102.21(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. The fabric for the subject furniture moving pads
is sourced from more than one country. In the opinion of this
office both the woven fabrics for the top and bottom panels and
the non-woven batting are of equal importance. Given the
particular identity of this commodity, the furniture moving pads
could not perform their designated use without either the top or
bottom fabrics, or the padding which acts as a cushion of
protection for furniture that has to be moved from one location
to another As no one fabric is more important than the other,
Section 102.21(c)(4) cannot readily be used to make a
determination.
Section 102.21(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 Canada is the last country in which an important
assembly and manufacturing process occurs. See also HQ 959557,
dated September 9, 1996, discussing an ironing board pad and
cover which determined that the country of origin of the
merchandise was the last country in which an important assembly
and manufacturing process occurred due to the importance of the
batting to that particular article.
The marking statute (19 U.S.C. 1304) requires articles of
foreign origin imported into the United States to be marked to
indicate the name of the country of origin of the article. In
the case of the subject merchandise, "Made in Canada", "Product
of Canada", or "Canada" would be appropriate markings. 19 CFR
134.32 sets out the general exceptions to the marking
requirements. Included within those exceptions from the marking
requirements is:
(d) Articles for which the marking of the containers will
reasonably indicate the origin of these articles.
As regards the subject merchandise so long as the
merchandise reaches the ultimate purchaser in the packaged
containers you have stipulated, it is our opinion that placing
the origin marking on the packaged containers reasonably
indicates the origin of the merchandise.
HOLDING:
The country of origin of the subject furniture moving pads
is Canada.
Placing the origin marking, that is "Made in Canada",
"Product of Canada" or "Canada", on the packaged containers, as
you have stipulated, reasonably indicates the origin of the
subject merchandise.
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