CLA-2-94:OT:RR:NC:N4:433
Jennifer R. Diaz, Esq.
Diaz Trade Law
12700 Biscayne Boulevard, Suite 301
North Miami, FL 33181
RE: The tariff classification, marking, and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of stuffed mattress covers from El Salvador.
Dear Ms. Diaz:
In your letter dated March 21, 2019, you requested a binding ruling on behalf of your client, Dolven Enterprises, Inc. Illustrative literature, product descriptions and samples were received.
Dolven Enterprises items, S-10”, S-12”, S-14”, T-10”, and T-12” are manmade, nonwoven, zippered, stuffed mattress covers used to encase and protect twin, twin long, full, queen, king, and California king mattress frames. You indicate the expectation of the subject merchandise are to provide an additional layer of cushioned surface for slumbering.
You assert classification of the subject merchandise to be within subheading 9404.90.2000, Harmonized Tariff Schedule of the United States, (HTSUS). This office disagrees.
The applicable subheading for the subject merchandise is 9404.90.9522, 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: Other: Other: With outer shell of man-made fibers.”
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.
Dolven Enterprises presents a group of circumstances wherein the subject merchandise raw material components (fabric, zippers, labels) originates in the United States, China, Mexico and El Salvador. In each circumstance cutting, sewing, and assembly operations will be performed in El Salvador along with folding, packaging, boxing, marking, and loading into a container for export.
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592) (URAA), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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, “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, “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, “The following rules will 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
9404.90 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.
The subject merchandise are made from manmade fabrics and polyester fill. As the material components comprising the subject merchandise are formed in more than one country, Section 102.21(c)(2) is inapplicable.
Paragraph (c)(3) states, “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 neither knit to shape, nor wholly assembled in a single country, territory, or insular possession, and subheading 9404.90 is excepted from provision (ii), Section 102.21 (c)(3) is inapplicable.
Paragraph (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.”
As the most important assembly or manufacturing process of the subject merchandise is the cutting, sewing, and assembly of the fabric panels and zippers, Section 102.21(c)(4) is applicable. Therefore, the country of origin is El Salvador, the country in which those operations are performed.
Marking
Part 134, of 19 CFR implements the country of origin marking requirements of 19 U.S.C. 1304. Unless excepted by law, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. As a product of El Salvador, the subject merchandise is to be marked accordingly.
Trade Agreement - DR-CAFTA
GN29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. To be an “originating good” the material components must be transformed in the territory of El Salvador pursuant to GN29(b)(ii)(A)(n), HTSUS, which states:
Chapter 94, Rule 5: A change to subheading 9404.90 from any other chapter, except from headings 5007, 5111 thru 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408 or 5512 through 5516 or subheading 6307.90.
A change in tariff occurs in El Salvador as a result of manufacturing operations. Based on the circumstances presented, the material components from the United States, China, and Mexico are classifiable outside of Section XX (miscellaneous manufactured articles), and a change in tariff occurs in El Salvador as a result of manufacturing, therefore, the subject merchandise is eligible for DR-CAFTA preferential duty treatment.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 CFR 177.9(b)(1). In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and resubmit for a new ruling in accordance with 19 CFR 177.2.
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, please contact National Import Specialist Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division