OT:RR:NC:N2:349
Mr. Victor Quintana
Aladdin Manufacturing Corp.
160 South Industrial Blvd Calhoun, GA 30701
RE: Classification and country of origin determination for tufted bathmats; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(4); most important assembly
Dear Mr. Quintana:
This is in reply to your letter dated December 5, 2023, requesting a classification and country of origin determination for a chenille bathmat, which will be imported into the United States. A sample was provided and will be retained by this office.
FACTS:
The subject merchandise identified as a chenille bathmat, style N6476, is a tufted mat. The pile surface is made from twisted, uncut loops of polyester chenille yarns that are tufted into a pre-existing polyester woven base fabric. The tufts are approximately 1/2 inch in length from the surface. A clear thermoplastic elastomer is lightly applied to the back of the mat to create a non-skid surface. The edges of the rug are capped with a narrow strip of knitted fabric. You state that the tufted fabric contributes 92 percent of the total weight of the rug while the thermoplastic coating and binding fabric each contribute 4 percent of the total weight of the rug. The finished rug measures approximately 17 × 24 inches.
The manufacturing operations for the bathmat are as follows:
Scenario 1
China
Chenille yarn and woven base fabric are formed and exported to Vietnam.
Binding fabric is formed.
Tufted fabric is dyed and thermoplastic elastomer is applied to back.
Tufted fabric is cut, sewn, finished and packaged for export to the U.S.
Vietnam
Chenille yarn is tufted into the woven base fabric and returned to China.
Scenario 2
China
Chenille yarn, woven base fabric and binding fabric are formed and then exported to Vietnam.
Tufted fabric is dyed and returned to Vietnam.
Vietnam
Chenille yarn is tufted into woven base fabric and returned to China.
Thermoplastic elastomer is applied to the back.
Tufted fabric is cut, sewn, finished and packaged for export to the U.S.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the chenille bathmat will be 5703.39.2030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Carpets and other textile floor coverings (including turf), tufted,
whether or not made up: Of other man-made textile materials: Other: Other: Measuring not more than 5.25 m2 in area.” The general rate of duty will be 6 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) of Part 102.21 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.
In scenario 1, the foreign materials do not undergo the applicable tariff change in a single country, territory or insular possession. The chenille yarn and woven base fabric make the tariff shift in Vietnam, while the binding fabric and thermoplastic elastomer make the tariff shift in China. As each foreign material does not undergo the tariff shift in a single country, territory, or insular possession, Section 102.21(c)(2) is inapplicable.
In scenario 2, as all of the materials make the tariff shift in a single country, that is, Vietnam, as per the terms of the tariff shift requirement, country of origin is conferred in Vietnam.
For scenario 1, 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 term “wholly assembled” is defined under Section 102.21(b)(6) which states,
(6) Wholly assembled. 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. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as “wholly assembled” in a single country, territory, or insular possession.
As the subject merchandise is neither knit to shape, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable to scenario 1.
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.”
In the case of the subject merchandise, the tufting process constitutes the most important assembly process. Accordingly, under scenario 1, the country of origin of the chenille bathmat is Vietnam.
HOLDING:
The chenille bathmat, style N6476, is classified under subheading 5703.39.2030, HTSUS. The country of origin of the bathmat under both scenarios 1 and 2 is Vietnam.
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, please contact National Import Specialist Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division