OT:RR:NC:N3:351
Mr. Chris Kwon
Ceva Air and Ocean USA, Inc.
1333 East Roxbury Lane Des Plaines, IL 60018
RE: The tariff classification, country of origin determination, and marking of dog beds from China and Taiwan; 19 CFR 102.21(c)(2); 102.21(c)(5)
Dear Mr. Kwon:
In your letter dated December 6, 2024, you requested a tariff classification, country of origin determination, and a marking ruling on behalf of your client, Atlas International - Consulting, Sourcing, and Brokering LLC. In lieu of a sample, photographs of the dog beds were provided with your request.
Item 1, described as an “Air Bed,” is a dog bed intended to be used as a comfortable place for a dog to sleep. The dog bed consists of a dog bed cover and five removable cushion inserts. The dog bed cover is composed of two layers of 100 percent polyester woven fabric laminated together. Four side cushion inserts are composed of an outer shell of 100 percent polyester woven fabric and stuffed with 100 percent polyester fiberfill. The middle insert is a sheet of 100 percent polyolefin elastomer plastic. The five cushions are inserted into a zippered opening along the four sides. The rectangular dog bed features a leather logo “Home Life” on the front. The completed bed is available in two different sizes and measures: medium (33 ½ inches in length by 23 ¾ inches in width) and large (45 ¼ inches in length by 29 ½ inches in width). The dog bed is also available in three different colors: blue, orange, and grayish green. The dog bed cover is machine washable.
Item 2, described as a “Lazy Bed,” is a dog bed intended to be used as a comfortable place for a dog to sleep. The dog bed consists of a dog bed cover and one removable cushion insert. The bed cover is composed of three textile fabrics: a 100 percent polyester knitted, dyed, top fabric; a 100 percent polyester woven, dyed, vertical side fabric laminated to a 100 percent polyester nonwoven fabric on one side for reinforcement; and a 100 percent polyester woven, dyed, bottom fabric coated with polyvinyl chloride (PVC) dots which impart anti-skid properties. The dog bed is stuffed with a curved sheet of 100 percent polyolefin elastomer plastic and zippered closed. The rectangular shaped bed features 100 percent polyester piping sewn along both top vertical edges and a leather logo “Home Life” on the front. The completed bed is available in two different sizes and measures: medium (31 ½ inches in length by 22 ¾ inches in width) and large (43 ¼ inches in length by 22 ¾ inches in width). The dog bed is also available in two different colors: blue and gray. The dog bed cover is machine washable.
Item 3, described as a “Foldable Bed,” is a dog bed intended to be used as a comfortable place for a dog to sleep. The dog bed consists of a three-panel dog bed cover and two removable cushion inserts. The bed cover is composed of 100 percent polyester, woven, dyed, water-resistant fabric. The dog bed is stuffed with two sheets of 100 percent polyolefin elastomer plastic and zippered closed. The rectangular shaped bed features a leather logo “Home Life” on the bottom and two self-fabric handles. The completed bed is available in two different sizes and measures: medium (31 ½ inches in length by 21 ¾ inches in width) and large (43 ¼ inches in length by 27 ¾ inches in width) when fully opened. The dog bed is also available in two different colors: blue and olive. The dog bed cover is machine washable.
Item 4, described as a “Mini” is a dog bed intended to be used as a comfortable place for a dog to sleep. The dog bed consists of a dog bed cover and two removable cushion inserts. The bed cover is composed of three layers: a 100 percent polyester knit, dyed, top fabric and two layers of 100 percent polyester woven bottom fabric laminated together. Four side cushions composed of an outer shell of 100 percent polyester woven fabric and stuffed with 100 percent polyester fiberfill are sewn together to create one large rectangular shaped cushion insert with an open middle area. The middle insert is a sheet of 100 percent polyolefin elastomer plastic. Both cushions are inserted into a zippered opening at the bottom center of the cover to form the completed bed. The rectangular dog bed features a leather logo “Home Life” on the front. The completed bed is available in two different sizes and measures: x-small (22 ½ inches in length by 16 ½ inches in width) and small (27 ¾ inches in length by 19 ¾ inches in width). The dog bed is also available in two different colors: coral and green. The dog bed cover is machine washable.
The manufacturing operations for the dog beds are as follows:
China:
Air Bed:
• Dog bed cover: 100 percent polyester fabric is woven, dyed and laminated with 100 percent polyester woven fabric on one side.
• Zipper, leather logo, and thread are produced.
• Dog bed cover: fabric is cut to shape and size.
• Dog bed cover: fabric is sewn and hemmed to create dog bed cover.
• Completed dog bed cover is packaged in a plastic bag and shipped to Taiwan in a carton of twenty.
Lazy Bed:
• Dog bed cover:
o Top fabric: 100 percent polyester fabric is knitted and dyed.
o Side fabric: 100 percent polyester fabric is woven, dyed, and laminated with 100 percent polyester nonwoven fabric on one side.
o Bottom fabric: 100 percent polyester fabric is woven, dyed, and coated with PVC dots.
• 100 percent polyester piping is woven and dyed.
• Zipper, leather logo, and thread are produced.
• Dog bed cover: fabric is cut to shape and size.
• Dog bed cover: piping is cut to size.
• Dog bed cover: fabric and piping are sewn and hemmed to create dog bed cover.
• Completed dog bed cover is packaged in a plastic bag and shipped to Taiwan in a carton of fifty.
Foldable Bed:
• Dog bed cover: 100 percent polyester fabric is woven, dyed and coated with a water resistant agent.
• Zipper, leather logo, and thread are produced.
• Dog bed cover: fabric is cut to shape and size.
• Dog bed cover: fabric is sewn and hemmed to create dog bed cover.
• Completed dog bed cover is packaged in a plastic bag and shipped to Taiwan in a carton of twenty.
Mini:
• Dog bed cover:
o Top fabric: 100 percent polyester fabric is knitted and dyed.
o Bottom fabric: 100 percent polyester fabric is woven, dyed and laminated with 100 percent polyester woven fabric.
• Bolster fabric for cushion insert cover: 100 percent polyester fabric is woven.
• 100 percent polyester fiberfill is produced.
• Zipper, leather logo, and thread are produced.
• Dog bed cover: fabric is cut to shape and size.
• Dog bed cover: fabric is sewn and hemmed to create dog bed cover.
• Bolster fabric for cushion insert cover: fabric is cut to shape and size.
• Bolster fabric cushion insert cover: fabric is sewn to create four cushion insert covers.
• Cushion inserts (Bolsters) are stuffed with 100 percent polyester fiberfill and sewn closed.
• The four cushion inserts (Bolsters) are sewn together.
• Cushion inserts (Bolster) are inserted into dog bed cover and zippered closed.
• Completed dog bed cover is shipped to Taiwan.
Taiwan:
Air Bed:
• Bolster fabric for cushion insert covers :100 percent polyester fabric is woven.
• 100 percent polyester fiberfill is produced.
• Bolster fabric for cushion insert covers are cut to shape and size.
• Bolster fabric cushion insert cover: fabric is sewn to create eight cushion insert covers.
• Cushion inserts (Bolsters) are stuffed with 100 percent polyester fiberfill and sewn closed.
• Two cushion inserts (Bolsters) are sewn together to form a total of four cushion inserts (Bolsters).
• 100 percent polyolefin elastomer plastic sheet cushion insert is produced, cut to shape and size.
• Cushion insert (polyolefin elastomer plastic) and four bolsters are inserted into dog bed cover and zippered closed.
• Completed dog bed is packaged in a plastic bag, packaged in a carton, and shipped to the United States.
Lazy Bed:
• 100 percent polyolefin elastomer plastic sheet is produced.
• Polyolefin elastomer plastic cushion insert is cut to size.
• Cushion insert is inserted into dog bed cover and zippered closed.
• Completed dog bed is packaged in a plastic bag, packaged in a carton, and shipped to the United States.
Foldable Bed:
• 100 percent polyolefin elastomer plastic sheet is produced.
• Polyolefin elastomer plastic cushion insert is cut to size.
• Cushion insert is inserted into dog bed cover and zippered closed.
• Completed dog bed is packaged in a plastic bag with a paper band, packaged in a carton, and shipped to the United States.
Mini:
• 100 percent polyolefin elastomer plastic cushion insert is produced.
• Polyolefin elastomer plastic is cut to shape and size.
• Plastic cushion insert is inserted into dog bed cover and zippered closed.
• Completed dog bed is packaged in a plastic bag, packaged in a carton, and shipped to the United States.
ISSUE:
What is the classification, country of origin, and marking for the dog beds?
CLASSIFICATION:
The applicable subheading for the dog beds will be 6307.90.9891, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.” 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 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 textiles and apparel products for purposes of the customs laws and the administration of quantitative restrictions, unless otherwise provided by the statute, entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. Section 3592 has been described as Congress’s expression of substantial transformation as it relates to textile and apparel products. Section 102.21 of the Code of Federal Regulations (19 CFR 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 CFR 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.” 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
6307.90
The country of origin of a good classifiable under subheading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
With respect to the “Lazy Bed” and “Foldable Bed,” the dog beds are comprised of multiple layers of fabric formed in a single country, that is China; therefore, the country of origin of the “Lazy Bed” and “Foldable Bed” dog bed is conferred in China, including for purposes of determining the application of Section 301 duties.
With respect to the “Mini,” the dog bed is comprised of multiple layers of fabric for the dog bed cover and cushion inserts, which are formed in a single country, that is China; therefore, under the country of origin of the “Mini” dog bed is conferred in China, including for purposes of determining the application of Section 301 duties.
With respect to the “Air Bed,” the fabrics for the dog bed are manufactured in China and Taiwan. The outer cover of the dog bed is woven in China. The cushion insert fabric is woven in Taiwan. As you have stated that the weight of the cushion insert fabric is more than 7 percent of the total weight of the finished dog bed, the cushion insert fabric cannot be disregarded when determining the country of origin under the De Minimis rule per 19 CFR 102.13 (c). Hence, the “Air Bed” does not meet the terms of the tariff shift and paragraph (c)(2) of Section 102.21 is inapplicable.
Paragraph (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: 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 except for fabrics of chapter 59 and goods of headings 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6307.10, 6307.90, 9404.90, and 9619.00.31-33 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 “Air Bed” dog bed is not knit to shape and subheading 6307.90 is excepted from provision (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 occurs at the time of the fabric making. Since the fabric for the “Air Bed” dog bed is formed in two different countries, and no one fabric is more important than the other, the country of origin cannot be made based on the fabric making process. As such, Section 102.21(c)(4) is inapplicable. 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, with respect to the “Air Bed” dog bed, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Taiwan.
COUNTRY OF ORIGIN MARKING: 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 container) will permit in such manner as to indicate to an ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304.
Section 134.41(b) (19 C.F.R. § 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the dog bed is the consumer who purchases the product at retail.
You have proposed to mark the “Air Bed,” “Lazy Bed,” “Foldable Bed,” and “Mini” dog bed, “Made in Taiwan.”
As the country of origin for the “Lazy Bed,” “Foldable Bed,” and “Mini” dog bed was determined to be China, the proposed marking “Made in Taiwan,” does not set forth the correct country of origin. Thus, the proposed marking is unacceptable for the three items, as the requirements of 19 U.S.C. 1304 and 19 CFR Part 134 have not been met.
With respect to the “Air Bed” dog bed, as the country of origin was determined to be Taiwan and as the sticker on the carton is legibly, indelibly, and permanently marked “Made in Taiwan,” the proposed marking satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134.
HOLDING:
The country of origin of the “Lazy Bed,” “Foldable Bed,” and “Mini” dog bed is China, including for purposes of determining the applicable Section 301 duties. Based on the provided information, we find that the country of origin marking, “Made in Taiwan” for the “Lazy Bed,” “Foldable Bed,” and “Mini” dog bed does not satisfy the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46. The correct country of origin marking is “Made in China.”
The country of origin of the “Air Bed” dog bed is Taiwan. Based on the provided information, we find that the country of origin marking, “Made in Taiwan” for the “Air Bed” dog bed satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46.
The applicable subheading for the “Air Bed,” “Lazy Bed,” “Foldable Bed,” and “Mini” dog bed will be 6307.90.9891, HTSUSA, with a duty rate of 7 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China which are the “Lazy Bed,” “Foldable Bed,” and “Mini” dog bed, classified under subheading 6307.90.9891, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6307.90.9891, HTSUS, listed above.
The HTSUSA is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly 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. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (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 the Customs and Border Protection Regulations (19 C.F.R. 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, please contact National Import Specialist Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division