OT:RR:NC:N4:463
Mr. Raffaele Natale
American Shipping Co. Inc.
250 Moonachie Road, Suite 500 Moonachie, NJ 07074
RE: Country of origin of a quilted pillow sham
Dear Mr. Natale:
This is in reply to your letter dated December 11, 2023, requesting a country-of-origin determination on behalf of your client, Welspun USA Inc., for a pillow sham, which will be imported into the United States.
FACTS:
The subject merchandise, described as a “Microfiber Quilt Sham STD Navy Cherries,” item 060/15/9279, barcode 085239612323, is a quilted pillow sham constructed from 100 percent polyester woven fabric. The top panel is printed with a cherry design on a navy background and no additional fabric finishing operations are performed. The top panel is followed by a layer of nonwoven batting material and a layer of white woven polyester fabric backing. The three layers are quilted every two inches in a straight line across the width of the pillow sham. The back panel is neither dyed nor printed and is comprised of a cream-colored woven polyester fabric. The pillow sham has an envelope-style opening at one end. The edges of the sham are capped with a narrow-woven fabric dyed in a contrasting green color.
The manufacturing operations for the sham are as follows:
CHINA
- All woven fabric is formed and exported to India.
INDIA
- Nonwoven batting material is formed.
- Fabric is quilted.
- Fabric is cut and sewn into a pillow sham, finished and exported to the United States.
While classification was not requested, the classification of the sham must be determined in order to apply the tariff-shift rule. Based on the information you have provided, the applicable subheading of the “Microfiber Quilt Sham STD Navy Cherries,” item 060/15/9279, barcode 085239612323, will be 9404.90.9622, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: Other: Other: Other: With outer shell of man-made fibers.” The general rate of duty will be 7.3 percent ad valorem.
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(codified at 19 U.S.C. 3592), enacted on December 8, 1994, provides rules of origin for textiles and apparel entered or withdrawn from warehouse for consumption on and after July 1, 1996.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 that “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 that “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:
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
9404.90
Except for goods of subheading 9404.90 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under subheading 9404.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
Subheading 9404.90.96 (formerly 9404.90.95), HTSUS, is included in the paragraph (e)(2) exception to the above tariff-shift rule.
Paragraph (e)(2), in pertinent part, states that, for goods of subheading 9404.90.96, except for goods classified under the subheading as of cotton or of wool or consisting of fiber blends containing 16 percent or more by weight of cotton:
(i) The country of origin of the good is the country, territory, or insular possession in which the fabric comprising the good was both dyed and printed when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent embossing, or moireing.
The fabric forming the top panel of the pillow sham is subject to printing and the binding fabric is subject to dyeing. However, no other finishing processes are performed on either fabric. Therefore, paragraph (e)(2)(i) is inapplicable. Paragraph (e)(2)(ii), states the following:
(ii) If the country of origin cannot be determined under paragraph (e)(2)(i) of this section, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
As the pillow sham is comprised of fabric formed in more than one country, that is China and India, paragraph (e)(2)(ii) is inapplicable.
Paragraph (e)(2)(iii) applies to goods of subheading 6117.10, HTSUS, and is also inapplicable.
Paragraph (c)(3) states the following:
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, and subheading 9404.90 is excepted from provision (ii), Section 102.21 (c)(3) is inapplicable.
Paragraph (c)(4) states that “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 most important manufacturing process occurs at the time of fabric making. Basing the country-of-origin determination on the fabric making process, and not the assembly process, carries out the clear intent of Section 334 as expressed in Section 334 (b)(2) and Part 102.21(c)(3)(ii). The quilted shams consist of two outer shell fabrics (woven in China), the backing fabric to the front panel (woven in China) and a batting fabric (formed in India). While all of the fabrics are important to the construction of the shams, in this case, it is the outer shell fabrics that are most important as they provide the aesthetic appeal to the item. Accordingly, the fabric-making process in China, where the outer shell fabrics are formed, constitutes the most important manufacturing process and the country of origin of the quilted shams is China. (See NY N025870, dated April 23, 2008.)
HOLDING:
The country of origin of the pillow sham is China.
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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division