CLA-2-OT:RR:NC:N3:350
Ms. Laurel T. Scapicchio
BJ’s Wholesale Club, Inc. 25 Research Drive Westborough, MA 01581
RE: The classification and country of origin for a prepared painting canvas
Dear Ms. Scapicchio:
In your letter dated May 2, 2022, you requested a country of origin determination. Samples were submitted to this office and sent to the Customs and Border Protection (“CBP”) Laboratory for analysis.
FACTS:
BJ’s SKU #231475 is claimed to be a poly-cotton canvas. The CBP Laboratory determined the canvas is composed of a textile fabric coated, covered, or impregnated with a plastic and an inorganic material (calcium carbonate). The textile component is of plain weave construction and composed of 71.8 percent polyester and 28.2 percent cotton staple fibers. The plastic material is composed of acrylic and vinyl acetate and is cellular in nature. You state the canvas, which is stretched and attached to a wood frame, will be packed for distribution in four-packs, 11” x 14” in size.
You claim the manufacturing process for the canvas is as follows:
The canvas is manufactured in India and shipped to China in rolls.
In China, the rolls of canvas are stretched and cut in order to fit over a wooden frame.
The cut canvases are now stretched over a wooden frame and secured.
The finished product is now shipped from China to the United States.
ISSUES: What is the classification and country of origin of the subject merchandise?
CLASSIFICATION: The applicable subheading for the canvas will be 5901.90.2000, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “[…] prepared painting canvases, […] of man-made fibers.” The rate of duty will be 7 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 - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. § 3592), enacted on December 8, 1994, provides the rules of origin for textile and apparel products entered, or withdrawn from warehouse for consumption on and after July 1, 1996. Section 334 of the URAA was amended by section 405 of title IV of the Trade and Development Act of 2000, Public Law 106-200, 114 Stat. 251. Section 102.21 of Title 19 of the Code of Federal Regulations (19 C.F.R. § 102.21), implements the URAA. Thus, the country of origin of a textile or apparel product will 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 5901-5903 (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5901 through 5903 to finished fabric of heading 5901 through 5903 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping decating, permanent stiffening, weighting, permanent embossing, or moiering: or,
(2) If the country of origin cannot be determined under (1) above, a change to heading 5901 through 5903 from any other heading, including a heading within that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407, 5512 through 5516, 5803, 5806, 5808, and 6002 through 6006, and provided that the change is the result of a fabric making process. Subsection (1) of this rule does not apply because greige fabric is not said to be exported to China from India.
Subsection (2) is inapplicable because no tariff shift occurs.
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.” The subject merchandise is not knit to shape, therefore subsection (i) is not applicable. Next, we consider subsection (ii). Subsection (ii) identifies the country of origin for goods which are "wholly assembled" in a single country. The term "wholly assembled" is defined in §102.21(a)(6), which provides, in pertinent 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.
With regards to "wholly assembled," CBP looks to the condition of the component pieces immediately prior to completion. Stated differently, the test requires that if the completed merchandise were disassembled, the disassembled components would exist in the same condition as they did immediately prior to assembly. See HQ H007440.
Applying this test, we find that the component pieces - the canvas and the wooden frame - preexisted in essentially the same condition as found in the finished good. Prior to assembly, the primed canvas was cut and stretched, and then the wooden frame is applied. If disassembled, the component pieces would consist of a primed, cut and stretched piece of canvas, and a fully formed wooden frame. As a result, the subject article meets the definition of "wholly assembled," and the country of origin may be determined according to paragraph (c)(3).
HOLDING:
The applicable subheading for the canvas will be 5901.90.2000, HTSUS, which provides for
“[…] prepared painting canvases, […] of man-made fibers.” The rate of duty will be 7 percent ad valorem.
The manufacturing process described above, which is performed in China, satisfies the definition of "wholly assembled." By application of §102.21 (c)(3), the country of origin for the prepared artist's canvas is China. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 5901.90.2000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 5901.90.2000, HTSUS, listed above.
The merchandise in question may be subject to antidumping duties and countervailing duties (“AD/CVD”) for artists canvas from China. Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection. You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. 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, please contact National Import Specialist Michael Capanna at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division