CLA 2-RR:NC:TA:350 L89513
Mr. R. Kevin Williams
Rodriguez O’ Donnell Ross Fuerst
Gonzalez Williams & England, P.C.
1211 Connecticut Avenue, N.W.
Washington, DC 20036
RE: Classification and country of origin determination for a prepared artist’s canvas, produced in China, using canvas material woven and primed with gesso in India; 19 CFR 102.21(c)(4)
Dear Mr. Williams:
This is in reply to your letter dated December 15, 2005, on behalf of Design Ideas, Ltd., Springfield, IL, requesting a classification and country of origin determination for an artist’s canvas, which will be imported into the United States from China.
FACTS:
The transaction in question is as follows: A canvas material composed of 100% cotton is woven from yarn that is spun from the same factory in India. This is done in two weights: 225 grams per square meter and 310 grams per square meter. The canvas is then primed in India with gesso to make the material suitable for painting, before being shipped to China for further fabrication. In China, the primed rolls are cut to the appropriate size and stretched over a wooden frame, which is produced in China. The edges of the canvas are folded into a groove on the back of the frame and a spline is inserted to hold the stretched canvas in place. The canvas and spline are then stapled to hold them in place. The completed artist’s canvas is finally labeled and packaged for shipment to the United States.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the prepared artists canvas will be 5901.90.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for ... prepared painting canvases. The general rate of duty will be 4.1 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 5901-5903
Except for fabric of wool or of fine animal hair, a change form greige fabric of heading 5901 through 5903 to finished fabric of heading 5901 through 5903 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping decating, permanent stiffening, weighting, permanent embossing, or moiering: or,
If the country of origin cannot be determined under (1) above, a change to heading 5901 through 5903 from any other heading, including a heading within that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407, 5512 through 5516, 5803, 5806, 5808, and 6002 through 6006, and provided that the change is the result of a fabric making process.
We concur, that Subsection (1) of this rule does not apply because greige fabric is not exported to China from India. Further, the primed canvas from India is not dyed, printed or otherwise finished in China. Subsection (2) is likewise inapplicable because any tariff shift that occurs is not the result of a fabric making process. In fact, no tariff shift occurs at all in this situation. Both the primed canvas in bulk rolls and the framed artist canvases are classified in heading 5901.
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.
The product is certainly not knit to shape, and, with regard to the reference “wholly assembled”, the term wholly assembled means that there must be at least two, preexisting components which exist in essentially the same condition as found in the finished good, and which were combined to form the finished good in a single country, territory, or insular possession. In this case, the gesso-primed canvas is imported into China in bulk rolls where it is then cut to the proper size and shape in China before being stapled and folded over a wooden frame to make the finished product.
Accordingly, as the subject merchandise is neither knit to shape, nor wholly assembled within the meaning of Section 102.21(c)(3)(ii), Section 102.21 (c)(3) is inapplicable.
Section 102.21 (c)(4) states, "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, it is the making of the fabric, itself, specifically, the weaving of the fabric in India as well as the application of the gesso material that constitutes the two most important manufacturing operations.
HOLDING:
The country of origin of the prepared artist’s canvas is India.
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 Deborah Walsh at 646-733-3044.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division