CLA-2-63:OT:RR:NC:N3:349
Ms. Leila Behan
Stilo LB
4540 Louisville Drive
Plano, TX 75093
RE: The tariff classification, country of origin and marking of sheet sets; 19 CFR 102.21 (c)(2); tariff shift
Dear Ms. Behan:
In your letter dated May 22, 2017, you requested a tariff classification, country of origin and marking ruling for four sheet sets. Swatches of fabric were provided; however, complete samples were not submitted.
The subject sheet sets are packaged as sets for retail sale in both Queen and King sizes and will contain a flat sheet, fitted sheet and two pillowcases. Each sheet set is further described below.
LAYLA
Style Layla is made from 100 percent cotton sateen fabric and has a 500 thread count. The fabric is neither napped nor printed. Style Layla includes a non-functional double hem stitch on the cuffs of the flat sheet and pillowcases. The fitted sheet is not ornamented.
The manufacturing operations for the set is as follows:
India:
cotton fabric is woven.
fabric is exported to Italy.
Italy:
fabric is bleached and dyed;
fabric is cut to shape and size;
fabric is sewn and hemmed to create the pillowcases and sheets; and
pillowcases and sheets are packed in sets and shipped.
ELIJAH
Style Elijah is made from 100 percent cotton sateen fabric and has a 300 thread count. The fabric is printed but not napped. You state the flat sheet and pillowcases will include a non-functional satin stitch on the cuffs. The fitted sheet is not ornamented.
The manufacturing operations for the set is as follows:
China:
fabric is woven.
fabric is exported to Portugal.
Portugal
fabric is bleached, dyed and printed;
fabric is cut to shape and size;
fabric is sewn and hemmed to create the pillowcases and sheets; and
pillowcases and sheets are packed in sets and shipped.
ALIYAH
Style Aliyah is made of 100 percent cotton sateen fabric. The fabric is printed but not napped. You state the flat sheet and pillowcases will include a non-functional satin stitch on the cuffs. The fitted sheet is not ornamented.
The manufacturing operations for the set is as follows:
Pakistan
fabric is woven.
fabric is exported to Portugal.
Portugal
fabric is bleached, dyed and printed;
fabric is cut to shape and size;
fabric is sewn and hemmed to create the pillowcases and sheets; and
pillowcases and sheets are packed in sets and shipped.
MARIAH
Style Mariah is made of 100 percent cotton sateen fabric. The fabric is printed but not napped. You state the flat sheet and pillowcases will include a non-functional satin stitch on the cuffs. The fitted sheet is not ornamented.
The manufacturing operations for the set is as follows:
China
fabric is woven
fabric is exported to the United States.
United States
fabric is bleached, dyed and printed;
fabric is cut to shape and size;
fabric is sewn and hemmed to create the pillowcases and sheets; and
pillowcases and sheets are packed in sets.
LAW AND ANALYSIS:
Classification:
The bed sheet sets meet the qualifications of “goods put up in sets for retail sale.” The components of each set consist of at least two different articles which are, prima facie, classifiable in different headings (decorated pillowcases, decorated flat sheet and a plain fitted sheet). They are put up together to meet a particular need or carry out a specific activity, and they are packed for sale directly to users without repacking. The decorated components impart the essential character of the sets.
The applicable subheading for style Layla will be 6302.31.5020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen: Of cotton: Containing any embroidery, lace, braid, edging, trimming, piping or applique work: Not napped: Sheets.” The rate of duty will be 20.9 percent ad valorem.
The applicable subheading for styles Elijah, Aliyah and Mariah will be 6302.21.5020, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen, printed: Of cotton: Containing any embroidery, lace, braid, edging, trimming, piping or applique work: Not napped: Sheets.” The rate of duty will be 20.9 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 the World Wide Web at https://hts.usitc.gov/current.
Country of origin:
On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Section 334 has since been amended by the issuance of Section 405 within Title IV of the Trade and Development Act of 2000 (68 FR 37) and the implementing regulations, 19 CFR 102.21, have been amended accordingly (See 68 FR 8711).
Additionally, Section 102.21(d) addresses the treatment of sets for country of origin purposes. Section 102.21(d) provides the following:
Where a good classifiable in the HTSUS as a set includes one or more components that are textile or apparel products and a single country of origin for all of the components of the set cannot be determined under paragraph (c) of this section, the country of origin of each component of the set that is a textile or apparel product shall be determined separately under paragraph (c) of this section.
Thus, per the terms of Section 102.21(d), the country of origin of each item in the set must be determined separately if there is not a single country of origin for the entire set.
Paragraph (c)(1) states that "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 (bed sheet set) 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 that "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)(1), in pertinent part, states that "The following rules will 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.
The subject bed sheet sets and each of the components therein are classified under subheadings 6302.21 and 6302.31, HTSUS. Subheadings 6302.21 and 6302.31 are not included in the paragraph (e)(2) exception to the above tariff shift rule. As the fabric comprising each bed sheet set is formed, in a single country, as per the terms of the tariff shift requirement, the country of origin for sheet set Layla is conferred in India. The country of origin for sheet set Aliyah is conferred in Pakistan and the country of origin of sheet sets Elijah and Mariah is China.
Marking
You have also requested a ruling on whether the proposed markings are acceptable country of origin markings for the sheet sets. You have proposed three different markings for three separate locations; the product label, the packaging label and the carton label. However, samples of the markings were not provided.
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, at the time of importation into the Customs territory of the United States.
Further, Sections 134.23 and 134.24, Customs Regulations (19 CFR 134.23 through 134.24), provide the marking requirements for the containers and holders. You have not provided information concerning the type of packaging for the sheet sets. For purposes of this analysis, we will assume the sheet sets are imported in a disposable container or package. Section 134.24(d)(2) and 134.24(d)(3) indicate, that if the container or holder is either sold without normally being opened by the ultimate purchaser or if the article is marked so that it is not visible without the packaging being removed, the container shall be marked to indicate the country of origin of the contents.
Your proposed marking is as follows:
Layla
Product and Packaging Label: “100% Cotton, Woven in India, Sewn in Italy”
Carton Label: “Made in India”
Elijah
Product and Packaging Label: “100% Cotton, Made in Portugal with fabric from Asia”
Carton Label: “Made in Portugal”
Aliyah
Product Label: “100% Cotton, Made in Portugal from Imported Fabric”
Packaging and Carton Label: “Made in Portugal”
Mariah
Product Label: “100% Cotton, Made in USA with imported fabric”
Packaging and Carton Label: “Made in USA”
The origin rules indicate that the country of origin of the finished sheet sets is the country where the fabric was formed by a fabric-making process. As the fabric comprising each sheet set is formed in a single country, that is, for style Layla the fabric is woven in India; for styles Elijah and Mariah, the fabric is woven in China; and for style Aliyah, the fabric is woven in Pakistan, as per the terms of the tariff shift requirement, the country of origin is conferred in India, China and Pakistan, respectively.
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.
The proposed marking for style Layla, "Woven in India, Sewn in Italy" creates confusion as to the origin of the article and is unacceptable for purposes of 19 U.S.C. 1304. However, should you wish to disclose the Italian processing, we find the phrase “Made in India, Finished in Italy” to be acceptable for purposes of 19 U.S.C. 1304 and 19 CFR 134.46. The proposed marking, “Made in India,” is also acceptable under 19 U.S.C. 1304.
The proposed markings for style Elijah, “100% Cotton, Made in Portugal with fabric from Asia” and “Made in Portugal”; for style Aliyah, “100% Cotton, Made in Portugal from Imported Fabric” and “Made in Portugal”; and for style Mariah, “100% Cotton Made in USA with imported fabric” and “Made in USA,” are not acceptable country of origin markings for the bed sheet sets. The origin rules indicate the country of origin of the finished sets for styles Elijah and Mariah is China and the country of origin for the finished set style Aliyah is Pakistan, where the fabric is formed. Since the proposed markings are in direct conflict with the origin determinations made pursuant to Section 102.21, they do not satisfy the marking requirements of 19 U.S.C. 1304 and, thus, are not acceptable country of origin markings for the sheet sets. Marking the Elijah sheet sets with such phrases as “Made in China” or “Made in China, Finished in Portugal”; marking the Aliyah sheet sets with “Made in Pakistan” or “Made in Pakistan, Finished in Portugal”; and marking the Mariah sets as “Made in China” or “Made in China, Finished in the United States” 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.
Further, approval of markings of "Made in USA" is within the jurisdiction of the Federal Trade Commission (FTC) and not Customs and Border Protection. The Federal Trade Commission also has separate marking requirements regarding country of origin, fiber content, and other information that must appear on many textile items. For more information on the applicability of the requirements under the Textile Fiber Products Identification Act (TFPIA) and the “Made in USA” marking, you should contact the Federal Trade Commission, Textile Program, Division of Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division