CLA 2-OT:RR:NC:N3:349
Ms. Gita Yao
Milgram & Company Ltd.
400 – 645 Wellington
Montreal, QC H3C 0L1, Canada
RE: Classification, marking and country of origin determination for tablecloths, table runners and napkin rings; 19 CFR 102.21(c)(2); tariff shift
Dear Ms. Yao:
This is in reply to your letter dated March 4, 2014, received by this office on March 19, 2014, requesting whether the proposed marking is an acceptable country of origin marking for tablecloths, table runners and napkin rings which will be imported into the United States. As the textile products are processed in more than one country a classification and country of origin determination must also be made for those items. This request is made on behalf of Myles International.
FACTS:
The subject merchandise consists of tablecloths, table runners and napkin rings. You submitted a sample of the napkin ring, a small fabric label and photographs of the retail packaging showing the proposed origin marking for the table cloths and runners. The tablecloths are made from chief weight polyester woven fabric. The small label and the retail packaging show that the tablecloths may be 100 percent polyester or 55 percent polyester and 45 percent cotton. They will be imported in square, rectangular and round shapes and in various sizes.
The table runners are made from 100 percent polyester woven fabric. The fabrics for both the tablecloths and runners are made in China. They are shipped to Canada where they are cut, sewn and finished. The tablecloths will have a permanent label sewn into the hem and will also be marked on the cardboard sleeve of the retail packaging. The runners will not have a sewn in label but will be marked on the cardboard sleeve of the retail packaging. The marking consist of the fiber content, “Myles International, CA 41136” and the phrase “Sewn and assembled in Canada; Fabric Made in China.”
The napkin rings are stated to be made from steel and measure 1.125 inches in height and 1.75 inches in diameter. They are a product of India. A 1.25 x 1.25 inch cardboard hangtag is attached to the sample ring by means of a plastic fastener. The hangtag is printed with the phrases “Made in India,” “Fabrique en Inde” and other product and distributer details. The reverse side of the hangtag is printed with a company name and the words “Montreal Paris New York.” The font size of those locations is much smaller than the font size for the phrase “Made in India.”
ISSUE:
What are the classification, marking and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the chief weight polyester tablecloths if damask will be 6302.53.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for bed linen, table linen, toilet linen and kitchen linen: other table linen: of man-made fibers… tablecloths and napkins: damask. The general rate of duty will be 11.3 percent ad valorem.
The applicable subheading for the chief weight polyester tablecloths if not damask will be 6302.53.0020, HTSUS, which provides for bed linen, table linen, toilet linen and kitchen linen: other table linen: of man-made fibers… tablecloths and napkins: other. The general rate of duty will be 11.3 percent ad valorem.
The applicable subheading for the napkin ring if of stainless steel will be 7323.93.0080, HTSUS, which provides for table, kitchen or other household articles and parts thereof, of iron or steel…other, of stainless steel, other. The general rate of duty will be 2 percent ad valorem. Articles classifiable under subheading 7323.93.0080, HTSUS, which are products of India are currently entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP, however, is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term “GSP”.
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
6301-6306 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 6302.53 is included in paragraph (e)(2) exception to the above tariff shift rule. However, goods classified in that subheading which consist of fiber blends containing 16 percent or more by weight cotton are excepted. Those tablecloths made from the 55 percent polyester and 45 percent cotton fabric follow the above tariff shift rule. As the blended fabric comprising those tablecloths is formed in a single country, that is, China, as per the terms of the tariff shift requirement, country of origin is conferred in China.
The 100 percent polyester tablecloths and table runners are subject to the (e)(2) exception. Paragraph (e)(2)(i) is not applicable as the fabric comprising the table linen is not both dyed and printed. Paragraph (e)(2)(ii) states that "If the country of origin cannot be determined under (i) above, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process." As the fabric comprising the 100 percent polyester tablecloths and table runners is formed in a single country, that is, China, per the terms of the tariff shift requirement, country of origin is conferred in China.
The metal napkin rings are formed in India and therefore the country of origin of the napkin rings is India.
MARKING:
You have also requested a ruling on whether the proposed marking “Sewn & assembled in Canada; Fabric made in China” is an acceptable country of origin marking for the tablecloths and table runners. This marking would appear on a sewn on fabric label and cardboard sleeves as described above.
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.
The proposed marking “Sewn & assembled in Canada; Fabric made in China” is not an acceptable country of origin marking for the finished tablecloths and runners. The origin rules indicate that the country of origin of the finished tablecloths and runners is China, where the fabric for those items is formed. The proposed marking “Sewn & assembled in Canada; Fabric made in China” only indicates that the fabric is of Chinese origin, not that the tablecloths and runners are of Chinese origin as determined above. Since this proposed marking is in direct conflict with the origin determination made pursuant to Section 102.21, it does not satisfy the marking requirements of 19 U.S.C. 1304 and, thus, is not an acceptable country of origin marking for the finished tablecloths and table runners.
However, a phrase such as “Made in China, Further Processed in Canada” or “Made in China, Cut and Sewn in Canada” indicates that the country of origin of the finished tablecloths and runners is China which is consistent with the origin rules for table linen under Section 102.21, Customs Regulations. Marking the tablecloths and runners “Made in China, Further Processed in Canada” or “Made in China, Cut and Sewn in Canada” will satisfy the marking requirements of 19 U.S.C. 1304 and would be an acceptable country of origin marking for the finished tablecloths and runners.
The metal napkin ring has a hang tag that states “Made in India” however the other side of the tag contains the words “Montreal Paris New York.” Section 134.46, Customs Regulations (19 CFR 134.46), deals with cases in which the words “United States,” or “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 other than the country or locality in which the article was manufactured or produced, appears on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin. In such a case, there shall appear, legibly and permanently, in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by “Made in,” “Product of,” or other words of similar meaning.
As noted previously, the font size for the “Made in India” marking is much larger than that of the other locations. The origin marking is legible and in close proximity to the other locations on the 1.25 x 1.25 inch tag. The proposed marking satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the imported napkin rings.
HOLDING:
The country of origin of the tablecloths and table runners is China.
Pursuant to the origin rules set forth in Section 102.21 and the country of origin marking requirements of 19 U.S.C. 1304 the proposed country of origin marking “Sewn & assembled in Canada; Fabric made in China” is not an acceptable country of origin marking for the tablecloths and runners. However, marking such as “Made in China, Further Processed in Canada” or “Made in China, Cut and Sewn in Canada” will satisfy the marking requirements of 19 U.S.C. 1304 and is an acceptable country of origin marking for the finished tablecloths and runners.
The country of origin of the metal napkin rings is India. The proposed country of origin marking “Made in India” will satisfy the marking requirements of 19 U.S.C. 1304 and is an acceptable country of origin marking for the napkin rings.
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 [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division