MAR-2 OT:RR:NC:N3:349
Ms. Shirley Moore
D.B. Group America, Ltd.
245 Country Club Drive, Bldg. 100 A
Stockbridge, GA 30281
RE: Marking and Country of Origin determination for bed linen that is cut and sewn in the United States from foreign fabric; 19 CFR 102.21(c)(2); tariff shift
Dear Ms. Moore:
This is in response to your letter dated June 21, 2012, requesting a marking and country of origin determination for bed linen that is cut and sewn in the United States from foreign fabric. This request is made on behalf of DWI Holdings, Inc.
FACTS:
You submitted a pillowcase as a representative sample of the subject bed linen. The pillowcase is made from 100 percent cotton woven fabric that has been both dyed and printed. The 2-inch wide self hem at the opening is held with a line of single needle stitching. The pillowcase is sized to fit a standard pillow. The manufacturing operations are as follows:
Pakistan:
-cotton fabric is woven.
-greige fabric is shipped on rolls to Italy.
Italy:
-fabric is bleached.
-fabric is dyed.
-fabric is printed.
-fabric is swan finished.
-fabric is shipped to the United States.
United States:
-fabric is cut and sewn to create finished bed linen.
You have proposed to mark the bed linen “100% cotton, sewn in USA of fabric made in Italy.” Although woven in Pakistan you note that the origin of a fabric is conferred in the country where the fabric is both dyed and printed when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing. We note however that this dye, print and finish rule only applies to the origin of certain articles made from those fabrics.
ISSUE:
What is the country of origin and is the proposed marking acceptable country of origin marking for the bed linen?
CLASSIFICATION:
Although woven cotton fabric is the actual product imported, this ruling request concerns the origin and marking of the finished product. The applicable subheading for the finished bed linen will be 6302.21.90, Harmonized Tariff Schedule of the United States (HTSUS), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen, printed: of cotton: other: not napped.
COUNTRY OF ORIGIN AND MARKING - LAW AND ANALYSIS:
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. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” United States v. Friedlaender & Co. Inc. 27 CCPA 297, 302, C.A.D. 104 (1940).
Part 134, Customs Regulations (19 CFR Part 134), implements country of origin marking requirements and exceptions of 19 U.S.C. 1304. As cited above, the marking statute specifically states that “every article of foreign origin (or its container) imported into the U.S. ... shall be marked ... in such a manner as to indicate to the ultimate purchaser in the U.S. ... the country of origin of the article.” In this case, the article imported into the U.S. is the foreign-origin fabric. In order to determine whether the imported foreign-origin fabric, after it has been used to make bed linen, remains an article of foreign origin for purposes of the marking requirements under 19 U.S.C. 1304, Customs must apply the statutory rules of origin set forth in section 334 of the Uruguay Round Agreements Act. In HQ 559625 dated January 19, 1996, the marking of down comforters produced in the U.S. from imported Chinese origin comforter shells was considered. Without reiterating the law and rationale applied in HQ 559625, it was held that since section 334 applies “for purposes of the customs laws” and 19 U.S.C. 1304 is a Customs law, section 334 must be applied to determine the country of origin of the down comforters finished in the U.S. for purposes of 19 U.S.C. 1304.
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
6302-6306 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6301 through 6306 is the country, territory or insular possession in which the fabric comprising the good was formed by a fabric-making process.
Subheading 6302.21.90 is not included in the paragraph (e)(2) exception to the above tariff shift rule. If it were applicable one of the parts of the (e)(2) exception would confer origin based on the country where the good was dyed, printed and subject to two or more specific finishing operations. However the exception is not applicable to bed linen containing 16 percent or more by weight cotton. The submitted bed linen is made from a fabric that was formed in a single country. As the fabric comprising the bed linen is formed in a single country, that is, Pakistan, as per the terms of the tariff shift requirement, country of origin for the bed linen is conferred in Pakistan.
You have proposed to mark the bed linen with the phrase “100% cotton, sewn in USA of fabric made in Italy.” According to Section 334 of the URAA and 19 CFR 102.21, the country of origin of the finished bed linen is the country where the imported fabric is made by a fabric-making process, then pursuant to 19 U.S.C. 1304 we find that the imported foreign-origin fabric remains foreign when further processed into bed linen in the U.S. in the manner described above.
Section 134.46, Customs Regulations (19 CFR 134.46), requires that when the words “United States,” “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality which is not the country of origin appears on the imported article or its container the name of the country of origin shall appear legibly, permanently, in close proximity, and in at least comparable size, preceded by the additional words “Made in,” “Product of,” or other words of similar meaning. The purpose of this section is to prevent the possibility of misleading or deceiving the ultimate purchaser.
Accordingly, since the fabric's country of origin remains foreign, for purposes of 19 U.S.C. 1304, the article which reaches the ultimate purchaser must indicate that the fabric is a product of a foreign country. As the country of origin of the bed linen per 19 CFR 102.21 was determined to be Pakistan, the marking “100% cotton, sewn in USA of fabric made in Italy” is not an acceptable country of origin marking for the finished bed linen under 19 U.S.C. 1304. Marking the bed linen with the phrase “Sewn in the USA from fabric Made in Pakistan” follows the 19 CFR 102.21 origin determination, satisfies the requirements of 19 CFR 134.46 and is acceptable country of origin marking for the finished bed linen under 19 U.S.C. 1304.
HOLDING:
The country of origin of the bed linen is Pakistan. The proposed marking “100% cotton, sewn in USA of fabric made in Italy” is not an acceptable country of origin marking for the finished bed linen produced in the United States from Pakistani origin fabric.
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 CFR Part 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,
Thomas J. Russo
Director
National Commodity Specialist Division