CLA 2-OT:RR:NC:N3:349
TARIFF: 6304.91.0040; 9823.53.05
Mr. Brett Ian Harris
Roll & Harris LLP
2001 L Street, NW, Suite 500
Washington, D.C. 20036
RE: Classification, country of origin and United States-Mexico-Canada Agreement (USMCA) TPL eligibility for mattress covers; 19 CFR 102.21(c)(5)
Dear Mr. Harris:
This is in reply to your letter dated November 2, 2021, requesting on behalf of your client, Innofa USA LLC, a classification and country of origin ruling for zippered mattress covers which will be imported into the United States. You also requested the ruling address the eligibility of the mattress covers under the United States-Mexico-Canada Agreement (“USMCA”) Tariff Preference Levels (“TPL”). Two samples were submitted for examination. The samples will be destroyed.
FACTS:
The samples, “Starspring Mack Basic” and the “Starspring Volvo Basic,” are two styles of zippered mattress covers that encase a foam or foam-and-spring insert. The top and sides of the mattress covers are comprised of 100 percent polyester double knit fabric. The bottom fabric is constructed of 55 percent viscose and 45 percent polyethylene nonwoven fabric. The mattress covers will be imported into the United States and sold to manufacturers of mattresses for trucks. The mattress covers are not intended to be removed from the mattress once the core has been inserted as they provide the outer shell of the completed mattresses.
You state the nonwoven fabric is imported into Mexico from the United States; however, you indicate that you are unsure if the importer, Innofa USA LLC, will be able to obtain a Certificate of Origin to support an originating claim under the United States-Mexico-Canada Agreement (“USMCA”); therefore, you request that we consider the fabric as non originating for purposes of the USMCA. The double-knit fabric is knit in Mexico from yarns from the United States, China, India, Mexico and/or Indonesia. The mattress covers are cut and sewn in Mexico.
ISSUE:
What is the classification and country of origin of the mattress covers? Are the mattress covers eligible for preferential tariff treatment under a USMCA TPL?
CLASSIFICATION:
You suggest a classification under heading 6302, Harmonized Tariff Schedule of the United States (HTSUS), is appropriate. We disagree. This is not the type of mattress cover classified as bed linen. The instant covers are of a kind sold to mattress manufacturers who, in turn, create a completed mattress by inserting a foam or foam-and-spring core into the cover. These covers serve as the outer shell of a completed mattress.
The applicable subheading for the mattress covers will be 6304.91.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furnishing articles, excluding those of heading 9404: Other: Knitted or crocheted: Of man-made fibers.” The general rate of duty will be 5.8 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 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 6304.91 is not included in the paragraph (e)(2) exception to the above tariff shift rule; however, since the fabrics forming the cover are formed in more than one country, Section 102.21(c)(2) is inapplicable.
Section 102.21(c)(3) states,
Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section:
(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or
(ii) Except for 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 the 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.
As the subject merchandise is not knit to shape as provided for under paragraph (i) and the heading covering the mattress cover, 6304, is an exception under paragraph (ii), Section 102.21 (c)(3) is inapplicable.
Section 102.21 (c)(4) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred.” The most important manufacturing process is determined by the fabric making process. See Headquarters Ruling Letter (“HQ”) H304571. As the covers are made from fabric formed in two countries, a single country of origin determination cannot be made based on Section 102.21(c)(4).
Paragraph (c)(5) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred.” Accordingly, in the case of the subject mattress covers, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Mexico.
TARIFF PREFERENCE LEVELS:
Goods entered into the commerce of the United States from Mexico and Canada which are considered “originating” goods from those countries are granted preferential tariff treatment under the USMCA. Additionally, specified textile and apparel goods imported into the U.S. from Canada or Mexico which are not “originating” goods may nevertheless be granted the same preferential duty rate tariff as originating goods, up to specific annual quantitative TPLs. Once a TPL applicable to a USMCA country’s exports to another USMCA country has been reached, any further exports of goods of that TPL category to the same USMCA country during that year may not be accorded USMCA preferential tariff treatment, but rather will be subject to duty at the normal trade relations rate.
Chapter 98, Subchapter XXIII, U.S. Note 11(b)(ii)(B) provides,
(b) The rate of duty in the "special" subcolumn of column 1 followed by the symbol "S+" in parentheses in subheadings 9823.53.01 through 9823.53.06 shall apply to goods of Mexico described in a provision of this subdivision and this subchapter and that qualify to be marked as a good of Mexico pursuant to U.S. law, without regard to whether the good is marked.
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(ii) Subheading 9823.53.03 and the rate of duty in the "special" subcolumn of column 1 followed by the symbol "S+" shall apply to cotton or man-made fiber fabric and cotton or man-made fiber made-up textile goods of chapters 52 through 55 (excluding goods containing 36% or more by weight of wool or fine animal hair), 58, 60 and 63 of the tariff schedule up to 22,800,000 SME for the period from July 1, 2020 through December 31, 2020 and in each calendar year thereafter.
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(B) 9823.53.05 and the rates of duty in the "special" subcolumn of column 1 followed by the symbol "S+" shall apply to goods of chapter 60 or of subheadings 6302.10, 6302.40, 8303.12, 6303.19, 6304.11 or 6304.91 of the tariff schedule entered in an aggregate quantity not to exceed 18,000,000 SME for the period from July 1, 2020 through December 31, 2020, inclusive, and in each calendar year thereafter.
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(C) Subheadings 9823.53.03 through 9823.53.05 shall apply to such cotton or man-made fiber fabric and cotton or man-made fiber made-up textile goods provided for in chapters 52 through 55 (excluding goods containing 36% or more by weight of wool or fine animal hair), 58, 60 and 63 are woven or knit in Mexico from yarn produced or obtained outside the territory of one of the USMCA countries or yarn produced in the territory of one of the USMCA countries from fiber produced or obtained outside the territory of one of the USMCA countries, or knit in the territory of Mexico from yarn spun in the territory of one of the USMCA countries from fiber produced or obtained outside the territory of one of the USMCA countries, and to goods of subheading 9404.90 that are finished and cut and sewn or otherwise assembled from fabrics of subheadings 5208.11 through 5208.29, 5209.11 through 5209.29, 5211.11 through 5211.20, 5212.11, 5212.12, 5212.21, 5212.22, 5407.41, 5407.51, 5407.71, 5407.81, 5407.91, 5408.21, 5408.31, 5512.11, 5512.21, 5512.91, 5513.11 through 5513.19, 5514.11 through 5514.19, 5516.11, 5516.21, 5516.31, 5516.41 or 5516.91 produced or obtained outside the territory of one of the USMCA countries and that meet the other applicable conditions for preferential tariff treatment under general note 11 to the tariff schedule.
While subheading 9823.53.05, HTSUS, does apply to goods of subheading 6304.91, HTSUS, in order for the mattress covers to be dutiable at the USMCA tariff rate, based on the TPL, three conditions must be met. The good must first meet the requirements of the TPL found in Chapter 98, Subchapter XXIII, U.S. Note 11, HTSUS, as provided above; second, the good must be accompanied by a Certificate of Eligibility in proper form as provided for under Annex 6-A of the USMCA; and third, the yearly amount allowed under the TPL must not have been filled prior to the presentation of the Certificate of Eligibility. If all three of these conditions are met, then the mattress cover will qualify under the TPL.
HOLDING:
The country of origin of the mattress covers classified under subheading 6304.91.0040, HTSUS, is Mexico. The mattress covers are eligible for a TPL under subheading 9823.53.05, HTSUS, provided all conditions are met.
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