CLA 2-OT:RR:E:NC:TA:349
Ms. Ruby H. Chan
Williams-Sonoma, Inc.
151 Union Street, 1 Ice House
San Francisco, CA 94111
RE: Classification and country of origin determination for quilts and quilted shams; 19 CFR 102.21(c)(4)
Dear Ms. Chan:
This is in reply to your letter dated April 8, 2008, requesting a classification and country of origin determination for quilts and quilted shams which will be imported into the United States.
FACTS:
The subject merchandise consists of quilts and quilted shams. Samples were not submitted but photographs were supplied. The quilts, referred to as WH Oxford Narrow Stripe & Solid Reversible Quilt SKU# 5462015, are made from 100 percent cotton woven fabrics and are stuffed with 100 percent cotton batting. One side features a striped fabric while the reverse is a solid color. Quilt stitching extends through all three layers. The quilts will be imported in twin, full/queen and king sizes.
The quilted shams, WH Oxford Narrow Stripe & Solid Reversible Sham SKU# 5461579, are also made from 100 percent cotton woven fabrics. The face and reverse panels are made from the striped or solid color fabric, cotton batting and an inner cotton fabric lining. The panels are quilted through all three layers. The shams have an inner fabric flap and button closure along one side. The shams will be imported in standard, king and euro sizes. You indicated in your letter that the quilts and shams do not contain any embroidery, lace, braid, edging, trimming, piping or appliqué work.
The manufacturing operations for the quilts and quilted shams are as follows:
PORTUGAL:
-cotton striped and solid color fabrics are woven and finished.
-fabrics are shipped to China.
CHINA:
-cotton batting fabric is formed.
-cotton lining fabric for the shams is woven.
-fabrics are cut to size.
-components are sewn and quilted, creating the quilts and shams.
-quilts and shams are packaged and shipped.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the quilts 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 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 general rate of duty will be 4.4 percent ad valorem.
The applicable subheading for the quilted shams will be 9404.90.8040, 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… other. The general rate of duty will be 4.4 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, “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 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
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.
Subheading 9404.90.80 is not included in the paragraph (e)(2) exception to the above tariff shift rule. The quilts are made from shell fabrics and batting fabrics and the shams are made from shell fabrics, batting fabric and lining fabric. As the fabrics comprising the quilts and shams are formed in more than one country, Section 102.21(c)(2) is inapplicable.
Section 102.21(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 quilts and shams are not knit and subheading 9404.90 is excepted from provision (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, the most important manufacturing process occurs at the time of fabric making. Basing the country of origin determination on the fabric making process as opposed to the assembly process carries out the clear intent of Section 334 as expressed in Section 334 (b)(2) and Part 102.21(c)(3)(ii). In the case of the subject quilts, the fabric making process of the outer shell constitutes the most important manufacturing process. The outer shell of the quilts is made from fabrics formed in a single country. Accordingly, the fabric making process in Portugal, where the fabrics for the outer shell are formed, constitutes the most important manufacturing process and the country of origin for the quilts is Portugal.
The quilted shams consist of two shell fabrics woven in Portugal and a batting fabric and woven lining fabric formed in China. While all of the fabrics are important to the construction of the shams, in this case it is the outer shell fabrics that are more important as they provide the aesthetic appeal of the item. Accordingly, the fabric making process in Portugal, where the fabrics for the outer shell are formed, constitutes the most important manufacturing process and the country of origin for the quilted shams is Portugal.
HOLDING:
The country of origin of the quilts and quilted shams is Portugal.
The quilts fall within textile category 362 and the quilted shams fall within textile category 369. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.
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