CLA-2 RR:TC:TE 959778 CAB
Abraham Saw
P.O. Box 611213
San Jose, CA 95161-1213
RE: Country of origin of wool quilt; Section 102.21(c)(4),
Customs Regulations
Dear Mr. Saw:
This is in response to your inquiry of September 18, 1996,
requesting a country of origin determination for certain wool
quilts pursuant to Section 102.21, Customs Regulations. This
request is on behalf of AusWool Pty. Ltd. A sample was submitted
for examination.
FACTS:
The merchandise at issue is a wool quilt. The manufacturing
process is as follows: Raw wool is processed into pure wool
nonwoven fabric. This process includes grading, scouring,
secondary grading, treating the wool with acid and chemicals to
remove non-wool residue and drying (carbonizing), and quality
checking. The pure wool then undergoes, carding which involves
drawing the wool through multiple barrels, which results in a
layer of wool mat as it enters the layering machine. The thin
layer of wool mat is further layered until desired wool mat
density is achieved. The wool mat goes through a needle-hook
punching machine which will weave fiber across the thickness of
the wool mat. This ensures continuity between the layers of wool
before it is rolled up for final quilting. Finally, the layers
of wool undergo another quality check to ensure consistency in
thickness and density. The wool mat roll is quilted with a layer
of fabric on the top and bottom. This processing results in a
wool quilt. The wool quilt is cut to specified sizes. The wool
quilt is edged with fabric or a zipper. The wool quilt is
checked for overall quality and finishing, which includes
ensuring that it is labeled and packaged properly.
All of the manufacturing is completed in Australia. The
fabric used for the outer covering of the wool quilts will be
sourced from a variety of countries which you have not
identified. Although not provided in your request, you stated
verbally to Customs that the wool fabric used to make the subject
comforter is sourced in Australia.
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effective for textile products entered, or withdrawn from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 is 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, 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) 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:
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 wool comforter is classifiable in subheading
9404.90 of the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), which provides for among other articles,
articles of bedding and similar furnishing (for example,
mattresses, quilts, quilts, eiderdowns, cushions, pouffes and
pillows). The wool comforter is comprised of two types of
fabric. The
wool fabric is formed in Australia. The fabric used to construct
the outer shell has not been identified, though you have stated
that it will not be Australian. As the fabrics comprising the
wool comforter are not formed in a single country, Section
102.21(c)(2) is inapplicable.
Section 102.21(c)(3) provides for goods that have been
wholly assembled (with certain enumerated exceptions) in a single
country, insular possession, or territory or which are knit to
shape. Section 102.21(c)(3) is inapplicable to the subject
merchandise since it is not a knit to shape good and as an
article classifiable under subheading 9404.90, HTSUSA, it is
specifically excepted by provision 102.21(c)(3)(ii).
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.
The relevant analysis is provided by Section 102.21(c)(4),
which looks to the country, territory, or insular possession in
which the most important assembly or manufacturing process
occurred to confer origin. It is Customs belief that the most
important manufacturing process occurs at the time of the
formation of the outer shell fabric. It is the outer shell
fabric which in essence, identifies the merchandise, and thus
creates its saleability. See, HQ 959547, dated August 22, 1996.
Consequently, pursuant to Section 102.21(c)(4), the country of
origin of the subject merchandise is the country where the outer
shell fabric is formed. As you do not provide us with a specific
country as to where the outer shell fabric is formed, Customs is
unable to make a specific country of origin determination.
HOLDING:
The country of origin of the subject wool comforter is the
country where the outer shell fabric comprising the comforter is
formed in accordance with Section 102.21(c)(4).
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 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