OT:RR:NC:N3:351

Ms. Yunxia Shao
Hongkong GMS International Co.,ltd
No.168, Shengli Road
Nantong City 226014
China

RE: Classification and country of origin determination for a quilted outdoor blanket; 19 CFR 102.21(c)(4)

Dear Ms. Shao:

In your letter dated March 26, 2025, you requested a country of origin ruling. In lieu of a sample, photographs of the outdoor blanket were provided with your request.

Model #24BV0507, described as an “Outdoor Blanket,” is designed and intended to be used outdoors to sit or lay on while camping, picnicking, or attending outdoor activities. The blanket consists of three layers quilted together: a 100 percent polyester woven printed face fabric; a 100 percent polyester nonwoven batting middle layer; and a 100 percent polyester woven dyed backing fabric coated on one side with thermoplastic polyurethane (TPU) which you state renders the fabric water resistant. The square shaped blanket measures 80 inches by 80 inches and is bound along the edges with a 100 percent polyester woven fabric. The blanket is designed to be rolled up for transport and storage with a hook-and-loop closure. It features a 100 percent polypropylene webbed strap, a zippered pocket, a polyvinyl chloride (PVC) “Member’s Mark” logo, and four webbed loops at each of the corners intended to be used to secure to the ground, if desired. The blanket is not sold with metal stakes. The blanket is washable.

You state the manufacturing operations for the quilted outdoor blanket are as follows:

China: · Face side: polyester fabric is woven, printed, and shipped in rolls to Cambodia. · Back side: polyester fabric is woven, dyed, coated, and shipped in rolls to Cambodia. · Webbed strap, binding fabric, and webbed loops are woven, dyed, and shipped in rolls to Cambodia. · Velcro and zipper are formed and shipped to Cambodia.

Cambodia: · 100 percent polyester nonwoven batting is produced. · Polyester sewing thread is produced. · Face side fabric, nonwoven batting, and back side fabric are quilted together. · Cut the quilted fabric and sew the binding to form the body of the blanket. · Cut the fabric and sew the pocket to the blanket. · Cutting and sewing of the Velcro, webbed strap, and webbed loops. · Completed outdoor blanket is packaged in a plastic bag with a paper band, packaged in a carton, and shipped to the United States.

ISSUE:

What are the classification and country of origin of the outdoor blanket?

CLASSIFICATION:

The applicable subheading for the outdoor blanket 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 on 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 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 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

As the fabrics comprising the outdoor blanket are formed in more than one country (the face and back fabric is produced in China and the non-woven batting is form in Cambodia), Section 102.21(c)(2) 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 subject merchandise is neither knit to shape and subheading 6307.90 is excepted from provision (ii), Section 102.21 (c)(3) is inapplicable.

Paragraph (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 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)(2). The quilted outdoor blanket consists of two outer shell fabrics (woven in China) and a batting fabric (formed in Cambodia). While all of the fabrics are important to the construction of the outdoor blanket, 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 outdoor blanket is China. (See NY N025870, dated April 23, 2008, and N337009, dated January 8, 2024.)

HOLDING:

The applicable subheading for the quilted outdoor blanket will be 6307.90.9891, HTSUS, and the country of origin is China.

Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 6307.90.9891, HTSUS, listed above.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.63, in addition to subheading 6307.90.9891, HTSUS, listed above. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China 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, including information on exclusions and their effective dates, 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.

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/.

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