OT:RR:NC:N4:463
Stacy Swenson
Peking Handicraft Inc.
10590 Wayzata Blvd.
Minnetonka, MN 55305
RE: The country of origin and marking of two quilts and a quilted pillow sham
Dear Ms. Swenson:
This ruling is being issued in response to your letter dated October 16, 2024, requesting a country-of-origin and marking determination on behalf of your client, Target, for two quilts and a quilted pillow sham. In lieu of samples, pictures and product descriptions were provided.
The Target Pillowfort quilts will be available in a twin size, item no. 097-02-1084, and in a full/queen size, item no. 097-02-6235. The shell (face, back, and binding) is made of 100% polyester microfiber woven fabric (85 gsm), and the non-woven fiberfill batting is 70% polyester and 30% rayon (5 oz/sq yd). The quilting stitches run lengthwise and widthwise to form squares. The quilts will be available in a variety of colors.
The Target Pillowfort sham, item no. 097-02-8048, is manufactured with the same quilted fabric as the quilts. The front of the sham (face, back, and binding) is polyester microfiber woven fabric (85 gsm), and the non-woven fiberfill batting is 70% polyester and 30% rayon (5 oz/sq yd). The quilting stitches run lengthwise and widthwise to form squares. The back of the sham has an envelope-style closure in the middle with a 4-inch overlap. The envelope fabric on the back of the sham is the same as the face fabric, but without quilting. The sham will be available in a variety of colors.
See images of the quilts and sham below:
Target Pillowfort Quilts Target Pillowfort Sham
/ / /
The manufacturing operations are as follows:
CHINA
The polyester microfiber face and back fabrics are woven, dyed and brushed. (They do not undergo bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing.)
The polyester binding fabric is woven and dyed.
The non-woven fiberfill batting is formed.
The face fabric, back fabric, binding fabric, and fiberfill batting are exported to Vietnam.
VIETNAM
The face fabric, back fabric, and fiberfill batting are placed on a multi-needle quilting machine to produce the quilted fabric.
The fabrics are cut.
Sewing and binding operations are performed to produce the quilts and sham.
The quilts and sham are washed, inspected, and packaged.
COUNTRY OF ORIGIN
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 textiles and apparel products entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21 of the Code of Federal Regulations (19 C.F.R. § 102.21) implements the URAA. 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. See 19 C.F.R. § 102.21(c).
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.” Since 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)(1) provides the rules that apply to determine the country of origin of a textile or apparel product under paragraph (c)(2) of this section. The applicable rule corresponding to heading 9404.90, Harmonized Tariff Schedule of the United States (HTSUS), states:
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.
We note that the classification of the quilts is not among those subheadings listed in the paragraph (e)(2) exception to the above tariff shift rule.
The “fabric-making process” is defined in 19 CFR 102.21(b)(2) as “any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric.” The quilts are made of fabric that was formed by a fabric-making process in China. As such, pursuant to 19 CFR 102.21(e)(1), the origin of the quilts is China.
We note that the classification of the sham is among those subheadings listed in the paragraph (e)(2) exception to the above tariff shift rule. Therefore, we will apply 19 CFR 102.21(e)(2)(i) exception, which states:
(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 stiffening, weighting, permanent embossing, or moireing:
Since the fabric used to produce the sham was not dyed and printed and did not undergo two or more of the requisite finishing operations, the country of origin cannot be determined based on (e)(2)(i), above.
We therefore proceed to 19 CFR 102.21(e)(2)(ii), which states:
(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;
The “fabric-marking process” is defined in 19 CFR 102.21(b)(2) as “any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric.” The sham is made of fabric that was formed by a fabric-making process in China. As such, pursuant to 19 CFR 102.21(e)(2)(ii), the origin of the sham is China.
Based upon the foregoing analysis, the country of origin of the Target Pillowfort twin quilt, item no. 097-02-1084, the Target Pillowfort full/queen quilt, item no. 097-02-6235, and the Target Pillowfort sham, item no. 097-02-8048, is China.
MARKING You inquired whether the country of origin marking "Fabric Made in China, Cut and Sewn in Vietnam" or "Cut and Sewn in Vietnam from Chinese Fabric" is acceptable.
The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. The proposed marking "Fabric Made in China, Cut and Sewn in Vietnam" or "Cut and Sewn in Vietnam from Chinese Fabric" is not an acceptable country of origin marking for the finished articles. Per the origin rules, the country of origin of the finished articles is China, where the fabric for the items was formed. The proposed marking "Fabric Made in China, Cut and Sewn in Vietnam" or "Cut and Sewn in Vietnam from Chinese Fabric" only indicates that the fabric is of Chinese origin, not that the quilts and sham are of Chinese origin, as determined above. Since this proposed marking conflicts with the origin determination for the articles made pursuant to Section 102.21, it does not satisfy the marking requirements of 19 U.S.C. 1304, and thus is unacceptable.
However, a phrase such as "Made in China, Further Processed in Vietnam" indicates that the country of origin of the finished quilts and sham is China, which is consistent with the origin rules under Section 102.21, Customs Regulations. Marking the articles "Made in China, Further Processed in Vietnam" would satisfy the marking requirements of 19 U.S.C. 1304 and would be an acceptable country of origin marking for the articles.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. If the facts are modified in any way, or if the goods do not conform to these facts at the time of importation, you should bring this to the attention of CBP and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 177).
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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division