CLA-2-56:OT:RR:NC:N3:350
Mr. Gilberto Arias
Arias International, Inc.
543 S. Americas Avenue, Suite A1
El Paso, TX 79907
RE: The tariff classification and country of origin of a two-layer laminated fabric from Mexico; 19 CFR 102.21(c)(3)
Dear Mr. Arias:
In your letter dated February 6, 2019, on behalf of FXI, Inc., Media, Pennsylvania, you requested a ruling on the classification and country of origin of a laminated imitation suede fabric for use in automotive upholstery in the United States.
FACTS:
Part #RA190050CR Laminated Suede is a two-layer bonded fabric consisting of a nonwoven imitation suede fabric (TOR SUEDE HL1) laminated to a polyurethane (cellular) foam backing. Customs and Border Protection (CBP) Laboratory analysis found that the sample, a composite fabric weighing 332.7 g/m2, is constructed of a mechanically and chemically bonded nonwoven face fabric of polyester staple fibers laminated to a cellular polyurethane-type backing.
According to the information provided with this request, and in previous and subsequent contact, the manufacturing process is as follows:
TOR nonwoven suede HL1 is manufactured in Japan, then imported into the United States under subheading 5603.94.9010, Harmonized Tariff Schedule of the United States (HTSUS).
Cellular polyurethane foam is manufactured in the United States, and exported under subheading 3921.13, HTSUS.
Both products are exported to Mexico to your sister plant, FXI Juarez, SA de CV, where the nonwoven suede layer and the cellular foam layer are bonded together. The result is a single flexible laminated nonwoven fabric.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for Part #RA190050CR Laminated Suede will be 5603.94.3000, HTSUS, which provides for Nonwovens, whether or not impregnated, coated, covered or laminated: Other: Weighing more than 150 g/m 2: Other: Laminated fabrics. The duty rate will be Free.
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:
Section 334 of the Uruguay Round Agreements Act (“URAA”, codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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) states, in pertinent part:
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:
…(2) If the country of origin cannot be determined under paragraph (1)
above, a change to heading 5602 through 5603 from any heading
outside that group, provided that the change is the result of a
fabric-making process.
Section 102.21(b)(2) of the Customs Regulations defines the meaning of "fabric-making" process for the purposes of the determination of the country of origin of imported textile and apparel products for purposes of Customs laws and the administration of quantitative restrictions. This section states:
(2) Fabric-making process. A fabric-making process is any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric.
In the case before us for consideration, the processes done in Mexico are not fabric-making processes according to the definition above. Therefore, we continue down the hierarchy to paragraph (c)(3).
Paragraph (c)(3)(i) pertains to knit to shape articles, and is therefore inapplicable.
Paragraph (c)(3)(ii) states:
Except for fabrics of chapter 59 and 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 a 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.
Section 102.21(b)(6) of the Customs Regulations defines the meaning of "wholly assembled" for the purposes of the determination of the country of origin of imported textile and apparel products. This section states in part:
The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. […]
Since this laminated product does not fall under any of the exceptions in Paragraph (c)(3)(i) above, and was wholly assembled in a single country, Mexico, Section 102.21(c)(3)(ii) applies. The country of origin of this laminated fabric is Mexico.
HOLDING:
The applicable subheading for Part #RA190050CR Laminated Suede will be 5603.94.3000, HTSUS, which provides for Nonwovens, whether or not impregnated, coated, covered or laminated: Other: Weighing more than 150 g/m2: Other: Laminated fabrics. The duty rate will be Free.
The country of origin is Mexico.
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 Maribeth Dunajski at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division