CLA-2 RR:TC:TE 960058 jb
Michael G. Teeter
The Industry Government Relations Group
350 Sparks Street, Suite 1110
Ottawa, Ontario
Canada K1R 7S8
RE: Country of origin determination for quilted piece goods;
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 December 12, 1996, and
subsequent submission of May 7, 1997, requesting a country of
origin determination for quilted piece goods which will be
imported into the United States. We regret the delay in our
response. Samples were submitted to this office for examination.
FACTS:
The subject merchandise consists of quilted piece goods
comprised of woven outer shells of either 100 percent polyester
or 100 percent nylon material attached to 100 percent polyester
batting or wadding fabric. The wadding or batting is formed in
Canada from fibers sourced in the United States and/or Canada.
Also in Canada, the fabric is quilted and rolled for exportation
to the United States. In approximately 25 percent of the
shipments, either a non-woven polyester or nylon or polypropylene
spun-bonded backing fabric is attached to the outer shell fabric
prior to quilting in Canada. The spun-bonded fabric is formed in
the United States from fibers sourced in the United States.
You state that on an annual basis, in the production of
these articles, approximately 25 percent of the outer shell
fabrics are woven in the United States from yarn sourced in the
United States. The outer shell fabrics are exported to Canada in
the greige where they are dyed and finished. Approximately 25
percent of the time, the outer shell greige fabrics are imported
from Belgium and dyed and finished in Canada. In the remaining
50 percent of the time the outer shells are comprised of greige
fabrics that are sourced in Malaysia or Thailand and dyed and
finished in Canada.
Specifically, the submitted samples consist of:
TNSO 64"
Belgium
greige nylon outer shell is sourced
Canada
nylon outer shell is dyed and finished
quilting to Canadian manufactured wadding
assembly (by quilting) to a United States formed
polypropylene spun-bonded backing
TNUS 62"
United States
nylon outer shell is sourced
Canada
nylon outer shell is dyed and finished
quilting to Canadian manufactured wadding
TNH 60"
Malaysia
nylon outer shell is sourced
Canada
nylon outer shell is dyed and finished
quilting to Canadian manufactured wadding
assembly (by quilting) to a United States woven greige
fabric which is dyed and finished in Canada
ISSUE:
What is the country of origin of the subject 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 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:"
5811 The country of origin of a good classifiable under
heading 5811 is the country, territory, or insular
possession in which the fabric comprising the good
was formed by a fabric-making process.
Heading 5811, Harmonized Tariff Schedule of the United States
(HTSUS), is the provision for quilted textile products in the
piece, composed of one or more layers of textile materials
assembled with padding by stitching or otherwise, other than
embroidery of heading 5810, HTSUS. The subject quilted piece
goods are properly classified in heading 5811, HTSUS. As the
fabric comprising the subject merchandise is formed in more than
one country 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 heading 5811,
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 quilted piece goods is
sourced from more than one country. In the opinion of this
office all of the fabrics comprising the piece goods are of equal
importance. 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, and HQ 959742, dated October 28, 1996,
discussing an ironing board pad and cover, and furniture moving
pads, respectively, which determined that the country of origin
of the merchandise was the last country in which an important
assembly and manufacturing process occurred.
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.
HOLDING:
The country of origin of the subject quilted piece goods is
Canada.
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
Commercial Rulings Division