CLA-2-RR:NC:TA:349 C89713
Mr. Alastair Moran
Livingston Trade Services
405 The West Mall
Toronto, Ontario
Canada M9C 5K7
RE: Classification, status under the North American Free Trade Agreement
(NAFTA) and country of origin determination for curtains, valances and cushions;
19 C.F.R. §102.21(c)(5); Article 509
Dear Mr. Moran:
This is in reply to your letter dated May 7, 1998, received by this office
on July 6, 1998, on behalf of Sure Fit Home Fashions Ltd., requesting a
classification, status under the NAFTA and country of origin determination for
curtains, valances and cushions which will be imported into the United States.
The question of classification, NAFTA status and country of origin for the
cushion is being referred to the Office of Regulations and Rulings, U.S. Customs
Service Headquarters, 1300 Pennsylvania Avenue, N.W., Washington D.C. 20229. A
ruling will be issued to you from that office.
FACTS:
The subject merchandise consists of curtains and valances which may also be
imported as swag sets or tier sets. A sample was not submitted. These items
will be made from a 50 percent polyester and 50 percent cotton plain woven
printed fabric. The fabric weighs approximately 101 grams per square meter.
The curtains will be lined with a 70 percent polyester and 30 percent cotton
fabric. A nonwoven 100 percent polyester "buckram" will also be used in the
construction of these items. The manufacturing operations for the curtains and
valances are as follows:
Pakistan:
-50 % polyester and 50 % cotton face fabric is woven and printed.
-fabric is shipped to Canada.
Canada:
-lining fabric and buckram are made.
-fabrics are cut, sewn and assembled into curtains and valances.
ISSUE:
What are the classification, status under the NAFTA and country of origin
for the subject merchandise?
CLASSIFICATION:
Classification of merchandise under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) is in accordance with the General Rules of
Interpretation (GRI's), taken in order. GRI 1 provides that classification
shall be determined according to the terms of the headings and any relative
section or chapter notes.
The curtains and valances are classifiable in Heading 6303. These items
are made from a combination of textile materials. Subheading Note 2 to Section
XI, HTSUSA, provides, in pertinent part:
(A) Products of chapters 56 to 63 containing two or more textile materials
are to be regarded as consisting wholly of that textile material which would be
selected under note 2 to this section for the classification of a product of
chapters 50 to 55 consisting of the same textile materials.
(B) For the application of this rule:
(a) Where appropriate, only the part which determines the
classification under general interpretative rule 3 shall be taken into account.
Note 2(A), Section XI, to which Subheading Note 2(A) refers, provides:
Goods classifiable in chapters 50 to 55 or in heading 5809 or 5902 and of a
mixture of two or more textile materials are to be classified as if consisting
wholly of that one textile material which predominates by weight over each other
textile material. When no one textile material predominates by weight, the
goods are to be classified as if consisting wholly of that one textile material
which is covered by the heading which occurs last in numerical order among those
which equally merit consideration.
The printed face fabric is the component that provides the essential
character of the curtains and valances at issue. As this fabric is stated to be
a 50/50 blend, no one textile material predominates by weight. Applying the
above notes, the curtains and valances will be classified as if they consisted
wholly of polyester. Please note that even a slight change in the fiber content
may result in a change of classification, as well as visa and quota status. The
curtains and valances may be subject to U.S. Customs' laboratory analysis at the
time of import and if the fabric is other than a 50/50 blend it may be
reclassified by Customs at that time.
The applicable subheading for curtains and valances will be 6303.92.2000,
HTSUSA, which provides for curtains (including drapes) and interior blinds;
curtain or bed valances: other: of synthetic fibers: other. The general rate of
duty will be 12.2 percent ad valorem.
The curtains and valances fall within textile category designation 666.
The designated textile and apparel categories may be subdivided into parts. If
so, visa and quota requirements applicable to the subject merchandise may be
affected. Part categories are the result of international bilateral agreements
which are subject to frequent renegotiations and changes. To obtain the most
current information available, we suggest that you check, close to the time of
shipment, the Status Report on Current Import Quotas (Restraint Levels), an
internal issuance of the U.S. Customs Service, which is available for inspection
at your local Customs office.
NAFTA ELIGIBILITY:
The subject curtains and valances undergo processing operations in Canada
which is a country provided for under the North American Free Trade Agreement
(NAFTA). General Note 12, HTSUSA, incorporates Article 401 of the North
American Free Trade Agreement (NAFTA) into the HTSUSA. Note 12(a) provides, in
pertinent part:
(i) Goods that originate in the territory of a NAFTA party under
subdivision (b) of this note and that qualify to be marked as goods of Canada
under the terms of the marking rules... and are entered under a subheading for
which a rate of duty appears in the "Special" subcolumn followed by the symbol
"CA" in parentheses, are eligible for such duty rate... .
Accordingly, the curtains and valances at issue will be eligible for the
"Special" "CA" rate of duty provided they are NAFTA "originating" goods under
General Note 12(b), HTSUSA, and they qualify to be marked as goods of Canada.
Note 12(b) provides in pertinent part:
For the purposes of this note, goods imported into the customs territory of
the United States are eligible for the tariff treatment and quantitative
limitations set forth in the tariff schedule as "goods originating in the
territory of a NAFTA party" only if--
(i) they are goods wholly obtained or produced entirely in the
territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico
and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each
of the non-originating materials used in the production of such goods
undergoes a change in tariff classification described in subdivisions (r), (s)
and (t) of this note or the rules set forth therein, or,
(B) the goods otherwise satisfy the applicable requirements of
subdivisions (r), (s) and (t) where no change in tariff classification is
required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada,
Mexico and/or the United States exclusively from originating materials;
As the printed fabric portion of the curtains and valances is made in
Pakistan, it does not meet the eligibility requirements of General Note 12(b)(i)
or 12(b)(iii), HTSUSA. Therefore, we must ascertain whether the non-originating
fabric qualifies for NAFTA eligibility under General Note 12(b)(ii), HTSUSA. In
order to qualify, the Pakistani fabric must undergo the change in tariff
classification required in General Note 12(t), HTSUSA. The applicable
subdivision (t) rule for Chapter 63 provides the following:
3. A change to heading 6303 from any other chapter, except from headings
5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311,
chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6002,
provided that the good is both cut (or knit to shape) and sewn or otherwise
assembled in the territory of one or more of the NAFTA parties.
The curtains and valances do not qualify for preferential treatment under
the NAFTA because the non-originating printed fabric used in the production of
the goods will not undergo the change in tariff classification required by
General Note 12(t)/63.3, HTSUSA.
You have also inquired as to the eligibility of these items under a TPL.
You have correctly noted that the curtains and valances are not eligible for a
reduced rate of duty based upon the Tariff Preference Levels (TPL) established
in Section XI, Additional U.S. Note 4(a), HTSUSA. In order to be subject to the
TPL, the woven products of Chapter 63 must be woven in the territory of a NAFTA
party from yarn produced or obtained outside the territory of one of the NAFTA
parties.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the Uruguay Round
Agreements Act. Section 334 of that Act (codified at 19 U.S.C. §3592) provides
new rules of origin for textiles and apparel entered, or withdrawn from
warehouse, for consumption, on and after July 1, 1996. On September 5, 1995,
Customs published Section 102.21, Customs Regulations, in the Federal Register,
implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the
country of origin of a textile or apparel product shall be determined by
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 that "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
6301-6306 The country of origin of a good classifiable under
heading 6301 through 6306 is the country, territory, or insular possession in
which the fabric compromising the good was formed by a fabric-making process.
Accordingly, as the fabrics comprising the curtains and valances are not
formed in a single country, Section 102.21(c)(2) is inapplicable.
Section 102.21(c)(3) states that, "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 and heading 6303, HTSUSA, 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". In the case of the subject curtains and valances, the most important
manufacturing process occurs at the time of fabric making. However, the fabric
for this merchandise is sourced in more than one country. As no one fabric is
more important than the other, a single country of origin determination cannot
be made based on Section 102.21(c)(4).
Paragraph (c)(5) states that "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, in the case of the subject curtains and valances,
country of origin is conferred by the last country in which an important
assembly or manufacturing process occurred, that is, Canada.
HOLDING:
The subject curtains and valances are classified in subheading
6303.92.2000, HTSUSA, which provides for woven curtains and valances of
synthetic fibers.
The country of origin of the curtains and valances is Canada. They will
not be entitled to the NAFTA "CA" special duty rate nor are they eligible for a
reduced rate based upon the TPL.
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 C.F.R. §181.100(a)(2). 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 181 of the Customs
Regulations (19 C.F.R. 181). Should it be subsequently determined that the
information furnished is not complete and does not comply with 19 C.F.R.
§181.100(a)(2), 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.
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 John Hansen at 212-466-5854.
Should you wish to request an administrative review of this ruling, submit
a copy of this ruling and all relevant facts and arguments within 30 days of the
date of this letter, to the Director, Commercial Rulings Division, Headquarters,
U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division