CLA 2-OT:RR:NC:N3:349
Mr. James Carmical
C.H. Robinson
1075 Inner Loop Road
Atlanta, GA 30337
RE: Classification and country of origin determination for an Axminster carpet; 19 CFR 102.21(c)(2); tariff shift
Dear Mr. Carmical:
This is in reply to your letter dated November 1, 2019, requesting a country of origin determination for Axminster carpets which will be imported into the United States. The request was submitted on behalf of your client, Brintons US Axminster, Inc. Neither a sample nor a photograph were provided.
FACTS:
The subject merchandise consists of hand-carved Axminster carpets produced from 80 percent wool and 20 percent nylon pile yarns. The primary backing is produced from yarns of polypropylene and polyester. A layer of latex is applied to the back of the woven carpet. The carpet is imported in rolls, 12 feet wide by varying lengths measuring up to 120 feet long. The rolls of carpet are designed and produced in conjunction with fitting plans that show where the rolls of carpet go in the space.
The manufacturing operations for the carpets are as follows:
INDIA:
Wool/nylon pile yarn is formed.
Polypropylene and polyester backing yarns are formed.
Carpet is woven.
A layer of latex is applied to the back of the carpet.
Carpet is shipped to China.
CHINA:
Carpet pile is hand carved.
Finished carpet is shipped to the United States.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the carpet will be 5702.31.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including ‘Kelem’, ‘Schumacks’, ‘Karamanie’ and similar handwoven rugs: Other, of pile construction, not made up: Of wool or fine animal hair: Other.” The general rate of duty will be 4 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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
5701 – 5705 A change to heading 5701 through 5705 from any other chapter.
As each foreign material undergoes the applicable change in tariff classification in a single country, that is, India, as per the terms of the tariff shift requirement, the country of origin is conferred in India.
HOLDING:
The country of origin of the Axminster carpet is India.
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 Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division