CLA-2-63:OT:RR:NC:TA:349
Ms. Margaret Polito
Neville Peterson LLP
17 State Street, 19th Floor
New York, NY 10004
RE: The tariff classification, status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), and status under the North American Free Trade Agreement (NAFTA), of an electric mattress pad; Article 509
Dear Ms. Polito:
In your letter dated August 22, 2008 you requested a ruling on the status of an electric mattress pad under both the DR-CAFTA and the NAFTA. This request is made on behalf of WestPoint Home, Inc.
The submitted sample is an electric mattress pad. It is made from 100 percent polyester needle loomed felt. The pad is designed to cover the top and sides of a mattress in a manner similar to a fitted sheet. The edges are elasticized. Although referred to as a pad this mattress cover is not stuffed. Electric wires and strips of a nonwoven backing fabric are sewn to the underside of the mattress cover. The wires are attached to a control unit and an electric cord.
You have proposed two different manufacturing scenarios. In both scenarios the needle loomed felt, nonwoven fabric, and the control unit are formed in China. The electrical wires are made in the United Kingdom. These components will be shipped to Mexico in one scenario and to a country that is a party to the DR-CAFTA in the other. The components will be cut to size and shape and assembled into the mattress pad/cover. In the DR-CAFTA scenario the sewing thread will be wholly formed in a DR-CAFTA country. The electric mattress pad is packaged and shipped to the United States.
The applicable tariff provision for the electric mattress pad or cover will be 6302.32.2060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of man-made fibers: other…. other: other. The general rate of duty will be 11.4 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/.
The mattress cover falls within textile category 666. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries.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.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(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; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). For subheading 6302.32, HTSUS, the appropriate subdivision (t) change in tariff classification rule requires:
A change to headings 6301 through 6302 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one of more of the NAFTA parties.
When exported from China the felt and nonwoven fabrics are classifiable in Chapter 56. The control unit from China and the wires from the United Kingdom are classifiable in Chapter 85. As those components undergo the requisite change in tariff classification the electric mattress pad qualifies for the preferential treatment. The goods will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if—
(i)the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
The mattress pad/cover at issue will be eligible for the DR-CAFTA preferential treatment if it is transformed in country that is a party to the DR-CAFTA so that the non-originating materials undergo a change in tariff classification described in subdivision (n) to General Note 29, HTSUS. For heading 6302, HTSUS, the appropriate subdivision (n), Chapter 63 rule states that:
A change to headings 6301 through 6302 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.
As in the above NAFTA scenario the nonoriginating materials undergo the requisite change in tariff classification. Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 29(b)(ii)(A) when cut, sewn and assembled in a country that is a party to the DR-CAFTA. The goods will therefore be entitled to a Free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
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