CLA-2-58:S:N:N6:351 805214
Mr. T. Randolph Ferguson
Glad & Ferguson
1 Sutter Street
San Francisco, CA 94104
RE: The tariff classification and country of origin marking
requirements of various pieces of embroidered fabric from China
Dear Mr. Ferguson:
In your letter dated December 5, 1994 you requested a ruling
on the tariff classification and country of origin marking
requirements for four pieces of 100% cotton woven embroidered
fabric from China. You have filed this request on behalf of H.K.
Enterprises Inc.
FACTS
The four samples, identified as Samples 1A, 1B, 2 and 3, are
all made of 100% cotton plain woven fabric which weighs 167.4 grams
per square meter. The fabric is bleached and has 60 warp ends and
58 filling picks per square inch. All samples are embroidered with
floral and eyelet patterns, and will be imported in the following
forms:
Sample 1A, identified as a panel for a pillow sham, has been
cut on all sides to form a 21" by 25" rectangular shape with
rounded corners.
Sample 1B, identified as a panel for a duvet cover, has been
cut on three sides (with one end being the selvage) to a 85"
by 68" rectangular shape. Two of the corners are square and
two are rounded.
Sample 2, identified as trim, is a continuous roll of material
3«" in width. One edge has been finished with a simple
scalloped edge and the other is a roughly cut unfinished edge.
Sample 3, also identified as trim, is a continuous roll of
material 13" in width. One edge has been finished with a
simple scalloped edge and the other is a roughly cut
unfinished edge.
You indicate in your letter that after importation into the
United States, H.K. Enterprises will
(1) unroll, unfold and inspect the materials,
(2) repair any defects,
(3) cut and trim the trimming material to the size needed,
(4) trim and prepare the panels for sewing,
(5) cut and trim backing material (of U.S. origin) to the sizes
and shapes needed,
(6) assemble (by sewing) duvet covers and pillow shams from the
various panels backing pieces and trim pieces,
(7) assemble (by sewing) dust ruffles from panels and trim pieces
and
(8) clean, press and package the finished goods for sale.
All of this work will be done in the United States by the importer,
H.K. Enterprises Inc.
ISSUES
You ask for a ruling on (1) the tariff classification, (2) the
quota category, (3) whether the imported panels and trims qualify
for a country of origin marking exemption under 19 U.S.C.
1304(3)(G), and (4) the proper country of origin designation for
the finished goods assembled in the United States.
CLASSIFICATION AND TEXTILE QUOTA CATEGORY
The applicable subheading for Samples 1A and 1B will be
6307.90.9989, Harmonized Tariff Schedule of the United States
(HTS), which provides for other made up articles. The duty rate
will be 7 percent ad valorem.
The applicable subheading for Samples 2 and 3 will be
5810.91.0020, HTS, which provides for embroidery in the piece, of
cotton, other. The duty rate will be 8.4 percent ad valorem.
Samples 2 and 3 fall within textile category designation 229.
Based upon international textile trade agreements products of China
are subject to quota and the requirement of a visa.
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. Since part
categories are the result of international bilateral agreements
which are subject to frequent renegotiations and changes, to obtain
the most current information available, we suggest that you check,
close to the time of shipment, the Status Report on Current Import
Quotas (Restraint Levels), an internal issuance of the U.S. Customs
Service, which is available for inspection at your local Customs
office.
COUNTRY OF ORIGIN MARKING
The marking statute, section 304, Tariff Act of 1930, as
amended (19 U.S.C. 1304), provides that, unless excepted, every
article of foreign origin (or its container) imported into the U.S.
shall be marked in a conspicuous place as legibly, indelibly and
permanently as the nature of the article (or its container) will
permit, in such a manner as to indicate to the ultimate purchaser
in the U.S. the English name of the country of origin of the
article.
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR
134.41(b)), mandates that the ultimate purchaser in the U.S. must
be able to find the marking easily and read it without strain.
Section 134.1(d), defines the ultimate purchaser as generally the
last person in the U.S. who will receive the article in the form in
which it was imported. 19 CFR 134.1(d)(1) states that if an
imported article will be used in manufacture, the manufacturer may
be the ultimate purchaser if he subjects the imported article to a
process which results in a substantial transformation of the
article. The case of U.S. v. Gibson-Thomsen Co.. Inc., 27 C.C.P.A.
267 (C.A.D. 98) (1940), provides that an article used in
manufacture which results in an article having a name, character or
use differing from that of the constituent article will be
considered substantially transformed and that the manufacturer or
processor will be considered the ultimate purchaser of the
constituent materials. In such circumstances, the imported article
is excepted from marking and only the outermost container is
required to be marked. See, 19 CFR 134.35.
In this case, the imported panels and trim materials are
substantially transformed as a result of the U.S. processing, and
therefore the U.S. manufacturer , H.K. Enterprises, is the ultimate
purchaser of the imported materials and under 19 CFR 134.35 only
the containers which reach the ultimate purchaser are required to
be marked with the country of origin "China".
Regarding the question of the proper country of origin marking
for the finished products that are made in the U.S.A., the Federal
Trade Commission (FTC) has jurisdiction concerning the marking of
such goods; consequently, any inquiries on that subject should be
directed to the FTC in the future. The address is: Federal Trade
Commission, Division of Enforcement, 6th and Pennsylvania Avenue,
N.W., Washington, D.C. 20508.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport