CLA 2-OT:RR:NC:N3:349
Mr. Robert Leo
Meeks, Sheppard, Leo & Pillsbury
570 Lexington Avenue
New York, NY 10022-6805
RE: Marking and country of origin determination for a kitchen towel; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 134.46
Dear Mr. Leo:
This is in reply to your letter dated October 24, 2019, requesting a country of origin and marking determination for a kitchen towel which will be imported into the United States. This request was made on behalf of Loretta Lee, Inc. A photograph was provided in lieu of a sample.
FACTS:
The subject merchandise, item # 0920-1, is described as a kitchen towel which you state is made from 100 percent cotton terry toweling. The towel measures 15 x 25 inches and all four edges are hemmed. The white towel is printed with six decorated cones and various designs depicting decorated fir trees and snowflakes.
The manufacturing operations for the kitchen towel are as follows:
PAKISTAN:
Terry fabric is woven on mechanical looms.
Woven fabric is bleached.
Fabric is cut to size.
Fabric is hemmed and material/care labels are sewn in.
Towels are exported to China.
CHINA:
Towels are printed and oven dried.
Finished towels are folded and packed.
ISSUES:
What is the country of origin of the subject merchandise and is the proposed marking, “Fabric made in Pakistan, Finished in China” acceptable under 19 U.S.C. 1304 and 19 CFR Part 134 for the finished towel?
CLASSIFICATION:
The applicable subheading for the kitchen towel will be 6302.60.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Bed linen, table linen, toilet linen and kitchen linen: Toilet linen and kitchen linen, of terry toweling or similar terry fabrics, of cotton: Towels: Dish.” The general rate of duty will be 9.1 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 https://hts.usitc.gov/current.
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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 the fabric-making process.
Subheading 6302.60 is not provided for in the paragraph (e)(2) exception to the above tariff shift rule. As the fabric comprising the kitchen towel is formed by the fabric-making process in a single country, that is, Pakistan, as per the terms of the tariff shift requirement, country of origin is conferred in Pakistan.
MARKING – LAW & 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.
Pursuant to 19 U.S.C. 1304, the towels must be marked to indicate that the country of origin is Pakistan. You inquire whether the marking "Fabric made in Pakistan, Finished in China" would be acceptable for the towels. Section 134.46, Customs Regulations (19 CFR 134.46), as amended, provides that,
In any case 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 location 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 appear 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 of the article, 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 or origin preceded by "Made in," "Product of," or other words of similar meaning.
We find that the marking "Fabric made in Pakistan, Finished in China" may mislead or deceive the ultimate purchaser as to the actual country of origin of the finished good. The purpose of 19 CFR 134.46 is to prevent the possibility of misleading or deceiving the ultimate purchaser as to the actual origin of the imported article. The proposed marking of “Fabric made in Pakistan, Finished in China” would not be acceptable because it merely indicates that the fabric, as opposed to the finished good, is made in Pakistan. However, if you wish to mark the goods "Made in Pakistan, Finished in China”, the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46 would be satisfied. Headquarters Ruling Letters, HQ 560676 and HQ 559625, noted.
HOLDING:
The country of origin of the kitchen towel is Pakistan. The proposed marking, “Fabric made in Pakistan, Finished in China,” is not acceptable.
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 is issued on the assumption that all information furnished in connection with the ruling request and incorporated within, 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 Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division