CLA-2-94:OT:RR:NC:N4:433
Macie Cooper
Compliance Analyst
Samuel Shapiro & Co. Inc.
1215 E. Fort Avenue, Suite 20
Baltimore, MD 21230
RE: The tariff classification of duvets/comforters from Canada; North American Free Trade Agreement (NAFTA) eligibility.
Dear Ms. Cooper:
In your letter dated September 1, 2016, on behalf of Brook Linen, Inc., you requested a tariff classification ruling. Two samples were received in one box, and will be returned to you.
Sample 1 is identified on the packaging as the “brooklinen – All Season Comforter.” The outer packaging also has markings: “Responsible Sourced Canadian Hutterite Down,” “Hypoallergenic – Made in Canada,” and “100% Cotton 500 Thread Count Sateen Shell – Loft Factor 700 Fill Power.” The outer packaging indicates that the size of the duvet/comforter is a full/queen. The sewn in label confirms the outer shell, front and back, is of 100% cotton and the fill is of Canadian Hutterite duck down. An additional printed card within the packaging indicates, the fill to be Canadian Hutterite White Duck Down, from mature ducks raised by the Hutterites in Western Canada.
For the “brooklinen – All Season Comforter,” filled with Canadian Hutterite duck down, Pillowtex Corporation v. United States, No. 98-1227 dated March 16, 1999, is controlling to the classification of the duvet/comforter. It was the Court of Appeals’ (Federal Circuit) finding/position that the “comforters of 100% cotton stuffed with white duck down” were classified in accordance with the General Rules of Interpretation (GRIs), GRI 3 (b) to the Harmonized Tariff Schedule of the United States (HTSUS), and that the essential character of the comforters was imparted by the white duck down fill material.
Sample 2 is identified on the packaging as the “brooklinen Lightweight Comforter.” The outer packaging also has markings: “Suprelle – Down Alternative,” “Hypoallergenic – Made in Canada,” and “100% Cotton 300 Thread Count Percale Shell – Loft Factor 600 Fill Power.” The outer packaging indicates that the size of the duvet/comforter is a full/queen. The sewn in label confirms the outer shell, front and back, is of 100% cotton and the fill is of 100% polyester.
The applicable subheading for the “brooklinen – All Season Comforter,” filled with Canadian Hutterite duck down, will be 9404.90.8505, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: Other: Other: Quilts, eiderdowns, comforters and similar articles: With outer shell of cotton.” The rate of duty will be free, for NAFTA eligible goods.
The applicable subheading for the “brooklinen Lightweight Comforter,” filled with 100% polyester, will be 9404.90.8020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: Other: Other: Of cotton, not containing any embroidery, lace, braid, edging, trimming, piping exceeding 6.35 mm or appliqué work: Quilts, eiderdowns, comforters and similar articles.” The rate of duty will be free, for NAFTA eligible goods.
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 https://hts.usitc.gov/current.
Your classification and NAFTA eligibility ruling request indicates a good described as a “duvet/comforter” made of an outer shell of 100% manmade fibers filled with 100% polyester material, however no sample was received for such an item. At this time, we are unable to rule upon this item. Upon receipt of the sample with its descriptive literature this office will issue a binding ruling.
In this particular case, to be an “originating good” the duvets/comforters must be transformed in the territory of Canada pursuant to General Note 12 (b) (ii), (A) or (B), which states: (A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or (B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note.
General Note 12 (t), Chapter 94, Note 7 to the HTSUS is applicable. The rule states at Note 7: A change to subheading 9404.90 from any other chapter, except from headings 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408 or 5512 through 5516. We note based on company provided information that (1) the outer shells of samples 1 and 2 are made of 100% cotton, and agree with your suggested classification of subheading 6307.90.8985, HTSUS, the provision for “Shells of comforters: Containing 85 percent or more by weight of cotton,” and (2) the fill for the “brooklinen Lightweight Comforter” is made of 100% polyester, and accept without verification the suggested classification of subheading 5601.30.0000, HTSUS, the provision for “Textile flock and dust and mill neps.” Consistent with N252377 dated May 5, 2014, the Canadian Hutterite duck down of the “brooklinen – All Season Comforter” is classifiable in subheading 0505.10, HTSUS. For samples 1 and 2, the constituent materials are classified outside of the applicable “Change in Tariff Classification Rule” of General Note 12 (t), Chapter 94, Note 7 to the HTSUS, and as such the “brooklinen – All Season Comforter,” filled with Canadian Hutterite duck down and the “brooklinen Lightweight Comforter,” filled with 100% polyester material are NAFTA originating for duty-purposes.
With a few exceptions, Code of Federal Regulations (CFR), Title 19, Part 134 (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 USC 1304. In Section 134.1 (b), the country of origin of an article is defined as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the country of origin for country of origin marking purposes. 19 CFR Part 134 with its Section 134.1 (b) is not applicable to NAFTA goods, as the country of origin of NAFTA goods will be determined in accordance with 19 CFR 102 – Rules of Origin.
19 CFR, Section 102.20, “Specific Rules by Tariff Classification,” redirects goods classifiable in 9404.10 and 9404.90.80 through 9404.90.95 to 19 CFR, Section 102.21 “Specific Rules by Tariff Classification.” For NAFTA country of origin purposes, the applicable tariff rule states: Except for goods of subheading 9404.90 provided for in paragraph (e) (2) of this section, 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. For sample 1, the exception to subheading 9404.90 in (e) (2) is not applicable, because the duvet/comforter is classified under the provision of 9404.90.85[05], “With an outer shell of cotton,” and as such we follow the rule specified in 102.21 for subheading 9404.90, which provides “the county of origin of a goods is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.” For sample 2, the county of origin of a good is “the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.” Accordingly, for samples 1 and 2 the only fabric-making process is the outer shells made in China, and therefore the country of origin for both goods at [first] examination appears to be China.
In spite of failing to meet the “Specific Rule by Tariff Classification” of 19 CFR 102.21, we turn to 19 CFR 102.19, “NAFTA Preference Override,” which provides an exception to the rules under19 CFR 102.21. 102.19 states: (a) Except in the case of goods covered by paragraph (b) of this section (not applicable), if a good which is originating within the meaning of 181.1 (q) of this chapter is not determined under 102.11 (a) or (b) or 102.21 to be a good of a single NAFTA country, the country of origin of such good is the last NAFTA country in which that good underwent production other than minor processing, provided that a Certificate of Origin (see 181.11 of this chapter) has been completed and signed for the good. 19 CFR 181 (q) states: Originating, when used with regard to a good or a material, means a good or material which qualifies as originating in the United States, Canada and/or Mexico under the rules set forth in General Note 12, HTSUS, and in the appendix to this part. The duvets/comforters, samples 1 and 2 are NAFTA originating in accordance with General Note 12 (t), Chapter 94, Note 7 to the HTSUS. Consequently, we find that the assembling of the “brooklinen – All Season Comforter,” filled with Canadian Hutterite duck down in Canada and the assembling of the “brooklinen Lightweight Comforter,” filled with 100% polyester material in Canada to be beyond minor processing as defined in 19 CFR 102.1 (m). The NAFTA Preference Override is satisfied. With case in point, the duvets/comforters, samples 1 and 2 are products of Canada.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 Neil H. Levy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division