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HQ 951903


August 21, 1992

CLA-2 CO:R:C:T 951903 CAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 6304.93.0000

Loretta J. Evans
Fritz Companies, Inc.
P.O. Drawer "G"
Blaine, WA 98230

RE: Country of origin of pillow cover kit; classifiable in Heading 6304; similar to a pillow sham

Dear Ms. Evans:

This letter is in response to your inquiry of April 22, 1992, on behalf of Mariah Laine, requesting a tariff classification and country of origin determination of an unassembled pillow cover.

Your request for marking requirements has been forwarded to our Value and Marking Branch. As such, a separate ruling will be sent to you concerning the marking issue.

FACTS:

Bolts of woven fabric will be imported into Canada from China. The cotton and polyester fabric's chief weight is polyester. The fabric is cut into a 41 by 51 centimeter rectangle, a 9 by 378 centimeter rectangle, and two rectangles measuring 40.5 centimeters by 28 centimeters. These pieces will be added to ribbon measuring 42.5 by 0.7 centimeters from Canada, four strips of eyelet trim measuring 43 by 2.5 centimeters from Indonesia, and a 43 by 2.5 centimeter strip of entredeaux from Indonesia. The items are packed with sewing instructions in a transparent, resealable bag. There is also an "Heirloom Pillow Kit" retail insert in the package. The package is then imported into the United States. The purchaser supplies thread, a pillow form, and assembles the pillow by cutting, trimming and sewing.

ISSUE:

I. What is the applicable tariff classification for the article in question?

II. What is the country of origin for the article in question?

LAW AND ANALYSIS:

I. Tariff Classification

Classification of goods under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes, taken in order.

GRI 2(a) provides the following:

Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.

Customs has consistently ruled that articles, other than pillowcases, which are designed to cover a pillow (i.e. pillow shams) are classifiable in Heading 6304 as other furnishing articles, not bed linen. See Headquarters Ruling Letter (HRL) 087062, dated August 20, 1990. In this instance, the sample article is a pillow kit with pre-cut pieces that consist of woven fabric, trim, ribbon and entredeaux. Given the general appearance of each of the sample pieces, and the fact they are all pre-cut, it is clear that sample article has the essential character of a covering for a pillow. The instant article is decorative, designed to cover a pillow, and very similar to a pillow sham; thus, the article in question is classifiable in Heading 6304.

II. Country of Origin

Country of origin determinations for textile products are subject to Section 12.130 of the Customs Regulations (19 CFR 12.130). Section 12.130 provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

Section 12.130(d) of the Customs Regulations sets forth criteria in determining whether a substantial transformation of a textile product has taken place. Section 12.130(e)(2)(ii) states that a material will usually not be considered to be a product of a particular foreign country by virtue of merely having undergone cutting to length or width and hemming or overlocking fabric which are readily identifiable as being intended for a particular commercial use. T.D. 85-38, published in the Federal Register on March 5, 1985, (50 FR 8714) explains that "where fabric which is readily identifiable as being intended for a particular commercial use (e.g. toweling or bed linen material) is merely cut to length or width, with the edges then being either hemmed or overlocked...the foreign territory or country which produced the fabric is the country of origin and not the country where the fabric was cut." As a result of the foregoing, Customs has consistently ruled that the mere cutting of fabric does not result in a substantial transformation. See (HRL) 733787 of March 14, 1991, which determined that flat sheets cut and sewn in one country from fabric of another country are considered products of the country in which the fabric was woven.

In this case, the fabric will be imported from China and cut into pieces in Canada. The operation performed in Canada simply involves cutting fabric pieces and adding ribbon and lace to the package. This simple process is not enough to substantially transform the fabric into a new and different article of commerce. Thus, when applying the above rationale to this case, the country of origin is determined by the component which imparts the essential character to the kit. In this instance, it is the fabric woven in China that imparts the essential character of the pillow cover kit because it is the component that actually forms the finished article. Consequently, the country of origin of the pillow cover kit is China.

HOLDING:

Based on the foregoing, the pillow cover kit is properly classifiable as a composite article under subheading 6304.93.0000, HTSUSA, which provides for other furnishing articles, excluding those of heading 9404. The rate of duty is 10.6 percent ad valorem, and the textile restraint category is 666. The country of origin of the pillow cover kit for textile restraint purposes 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 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection, with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication is accurate and complete in every material respect. Should it subsequently be 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, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2).

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since 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.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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