CLA-2-RR:NC:TA:349 J89052
Mr. Mohammed Owais
NIDA Textile Mills (T) Ltd.
P.O. Box 22745
Dar Es Salaam, TANZANIA
RE: Classification and country of origin determination for bed sheet sets; 19 CFR 102.21(c)(2); tariff shift; AGOA eligibility
Dear Mr. Owais:
This is in reply to your letter dated September 26, 2003, received by this office on October 16, 2003, requesting a classification and country of origin determination for bed sheet sets which will be imported into the United States.
FACTS:
The subject merchandise consists of bed sheet sets. Samples were not submitted. The sets will consist of a flat sheet, fitted sheet and one or two pillowcases. You state that they will be made from 85 percent polyester and 15 percent cotton woven fabric. For the purpose of this ruling it is assumed that the sheets and pillowcases will be similar to the sets that were the subject of Headquarters Ruling Letter (HQ) 966237 dated March 21, 2003. Those items did not contain any embroidery, lace, braid, edging, trimming, piping or applique work. They were also not considered to be “goods put up in sets for retail sale” as the sheets and pillowcases were classifiable within the same subheading.
In your letter you refer to a printing and dyeing process. The manufacturing steps for the sets that were the subject of HQ 966237 also referred to printing and dyeing operations. However, the samples that you submitted with that request were not both printed and dyed. For that reason, we will consider two manufacturing scenarios. In Scenario 1 the sets are printed and not dyed (as in HQ 966237) while the sets in Scenario 2 will be both printed and dyed. The manufacturing operations for the sheet sets are as follows:
SCENARIO 1:
COUNTRY A:
-85/15 polyester and cotton fabric is woven.
-greige fabric is shipped to Tanzania.
TANZANIA:
-fabric is subject to singing, scouring, bleaching, drying, printing, curing,
shrinking, stiffening and finishing.
-fabric is cut to size and shape.
-components are sewn creating the sheets and pillowcases.
-sheets and pillowcases are packed and shipped.
SCENARIO 2:
COUNTRY A:
-85/15 polyester and cotton fabric is woven.
-greige fabric is shipped to Tanzania.
TANZANIA:
-fabric is subject to singing, scouring, bleaching, drying, dyeing and printing,
curing, shrinking, stiffening and finishing.
-fabric is cut to size and shape.
-components are sewn creating the sheets and pillowcases.
-sheets and pillowcases are packed and shipped.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the pillowcase will be 6302.22.2010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen, printed: of man-made fibers: other… pillowcases. The rate of duty will be 11.6 percent ad valorem.
The applicable subheading for the flat and fitted sheets will be 6302.22.2020, HTSUSA, which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen, printed: of man-made fibers: other… sheets. The rate of duty will be 11.6 percent ad valorem.
The sheets and pillowcases fall within textile category designation 666. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.gov. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (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, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (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 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:"
Paragraph (e) in pertinent part 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":
HTSUS Tariff shift and/or other requirements
6301-6306 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, 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.
Subheading 6302.22 is included in the paragraph (e)(2) exception to the above tariff shift rule. Unlike your previous polyester and cotton sheet sets, which were ruled on in HQ 966237, the instant sheet sets are not excluded from paragraph (e)(2) due to the fact the cotton content is stated to be less than 16 percent by weight. Paragraph (e)(2)(i) states that “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.” As the sheet sets in Scenario 2 are both dyed and printed and subject to two or more finishing operations in Tanzania, as per the terms of the tariff shift requirement, country of origin of the Scenario 2 sheet sets is conferred in Tanzania.
The sheet sets are not eligible for preferential treatment under the African Growth and Opportunity Act (AGOA). The benefits provided by the AGOA are available to eligible textile and apparel articles imported directly from a designated beneficiary sub-Saharan African country. The textile provisions of AGOA do not include machine woven bed sheets and pillowcases.
Please note that in Scenario 2, country of origin is conferred in Tanzania due to the stated processing operations and due to the stated fiber content. Even a slight change in the fiber content may result in a change of country of origin, as well as visa and quota requirements. The sheet sets may be subject to Customs and Border Protection’s (CBP) laboratory analysis at the time of importation, and if the fabric contains 16 percent or more by weight cotton, the origin determination will be made following paragraph (e)(1) rather than (e)(2). This will result in a different country of origin determination.
Paragraph (e)(2)(i) is not applicable to the sheet sets in Scenario 1 as the fabrics comprising the sets are not dyed and printed. Paragraph (e)(2)(ii) states that “If the country of origin cannot be determined under paragraph (e)(2)(i) of this section, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, 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 sheets and pillowcases in Scenario 1 is formed in a single country, that is, Country A, as per the terms of the tariff shift requirement, country of origin for the Scenario 1 sheet sets is conferred in Country A.
HOLDING:
The country of origin of the sheet sets in Scenario 2 is Tanzania. The sheet sets are not eligible for preferential treatment under the African Growth and Opportunity Act (AGOA). The country of origin of the sheet sets in Scenario 1 is Country A. Products of Country A may be subject to quota and visa restrictions.
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, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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.
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist John Hansen at 646-733-3043.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division