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HQ 957314

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March 27, 1995

CLA-2 CO:R:C:T 957314 CAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 6302.51.2000; 6302.53.0020; 6304.92.0000: 6207.91.3010 6304.93.0000

Sheri Batter-Hughes
The Hipage Company, Inc.
P.O. Box 2941103
Charleston, SC 29411-2903

RE: Classification of table rounds and sheet sets; Heading 6302; Heading 6304; Section 12.130, Customs Regulations

Dear Ms. Batter-Hughes:

This is in response to your inquiry of November 7, 1994, on behalf of Whiting Manufacturing, Inc., requesting the tariff classification of table and bed linen under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). You also request a country of origin determination for the bed linen. No samples were submitted for examination. Customs will issue a ruling based on the submitted information.

FACTS:

You describe the merchandise at issue as:

Table rounds from Pakistan consisting of a round table cloth with bias binding sewn around the edge. The fiber content will be 55% cotton/45% polyester for some shipments, and 45% cotton/55% polyester on others. * * * [The] sheet sets consist of a flat sheet, fitted sheet, and pillowcase(s). * * * The fiber content will be either, 55% cotton/45% polyester, or 45% cotton/55% polyester.

You present two different scenarios for the manufacturing of the sheet sets. The first scenario is as follows: Fabric will be woven and printed in Indonesia; The fabric will be shipped to either Singapore or Malaysia in the bale form to be cut and sewn into the pillowcase(s) and fitted sheet. Elastic will also be added to the fitted sheet in Singapore or Malaysia. The fitted sheet and the pillowcase(s) will then be returned to Indonesia. The flat sheet will be fully manufactured in Indonesia. In Indonesia, both the flat and the fitted sheet and the pillowcase(s) will be packaged together as sheet sets.

The second manufacturing scenario is as follows: Fabric will be woven, printed, and precut in Indonesia. The precut fabric will then be shipped to Singapore or Malaysia to be sewn into the fitted sheet and pillowcase(s). Elastic will be attached to the fitted sheet in Singapore or Malaysia. The fitted sheet and pillowcase(s) will then be exported to Indonesia. The flat sheet will be wholly manufactured in Indonesia. In Indonesia, the fitted and flat sheet as well as the pillowcase(s) will be packaged together as sheet sets.

ISSUES:

I. What is the tariff classification of the merchandise at issue?

II. What is the country of origin of the subject sheet sets?

LAW AND ANALYSIS:

TARIFF CLASSIFICATION

Classification of goods under the 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. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order.

Heading 6302, HTSUSA, provides for bed linen, table linen, toilet linen, and kitchen linen. Table linen is defined by The Random House Dictionary of the English Language (1983), as "tablecloths, napkins, etc., used in setting a table." Webster's Third New International Dictionary (1986) defines table linen as "linen (as tablecloths and napkins) for use at the table."

The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN), although not legally binding, are the official interpretation of the tariff at the international level. The EN to Heading 6302, HTSUSA, state, in pertinent part:

These articles are usually made of cotton or flax, but sometimes also of hemp, ramie or man-made fibers, etc.; they are normally of a kind suitable for laundering: They include:

(2) Table linen, e.g., table cloths, table mats and runners, tray cloths, table centres, serviettes, tea napkins, sachets for serviettes, doilies, and drip mats.

Heading 6304, HTSUSA, provides for other furnishing articles, excluding those of heading 9404. The EN to Heading 6304, HTSUSA, states that this heading covers furnishing articles of textile materials, other than those of the preceding headings or of Heading 9404, for use in the home, and includes cushion covers, loose covers for furniture, antimacassars, table covers, and mantlepiece runners.

In this case, there were no measurements presented for the described table rounds at issue. Therefore, Customs will provide you with a tariff classification based on various dimensions. For tariff classification purposes, table rounds are usually considered either table toppers or table cloths depending upon the diameter. A sixty inch diameter cloth is usually the smallest size table cloth. If these table rounds are sixty inches or larger, they would be classified as table linen under Heading 6302, HTSUSA. If the subject table rounds are smaller than sixty inches in diameter, they would be considered table toppers which are classified as other furnishings under Heading 6304, HTSUSA.

The classification of the sheet sets depends upon the fiber content; whether printed or not; whether napped or not; whether any component contains embroidery, trimming, lace, etc., and whether the sheet set constitutes a "retail" set or not. As a result of the lack of submitted information concerning these sheet sets and the multitude of potential tariff classification categories, Customs is unable to provide you with a definitive tariff classification concerning the bed sheets and pillowcases.

COUNTRY OF ORIGIN

Country of origin determinations for textile products are subject to Section 12.130, 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), Customs Regulations, sets forth criteria for determining whether a substantial transformation of a textile product has taken place. This regulation states these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered.

Section 12.130(d)(1), Customs Regulations, states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:

(i) Commercial designation or identity, (ii) Fundamental character or (iii) Commercial use.

Section 12.130(d)(2), Customs Regulations, states that for determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article;

(ii) The time involved in the manufacturing or processing operation;

(iii) The complexity of the manufacturing or processing operations;

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations; and

(v) The value added to the article or material.

Section 12.130(1)(e)(iv), Customs Regulations, states that a textile article will usually be a product of a particular country if the cutting of the fabric into parts and the assembly of those parts into the completed article has occurred in that country. However, 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 fabrics which are readily identifiable as being intended for a particular commercial use.

When making a determination as to whether fabric used to make the sheets has been substantially transformed, the minimum processing required is cutting the fabric to length and width (four sides). After the fabric has been cut on four sides, Customs assesses the additional processing and makes a determination as to whether the additional processing coupled with cutting amounts to a substantial manufacturing operation.

In the first scenario, the flat sheet is entirely processed in Indonesia, and is therefore, a product of Indonesia. In order for the fitted sheet to be substantially transformed in Malaysia or Singapore, it must be cut to length and width (four sides) and undergo further processing. The cutting of fabric to create the corners of the fitted sheet and the addition of the elastic coupled with cutting the fabric on four sides would amount to a substantial manufacturing operation. Thus, if the subject fitted sheet is cut on four sides, it will undergo a substantial transformation in the country where the cutting, elasticizing, and sewing occurs, Singapore or Malaysia. If the subject fitted sheet is merely cut on two sides, it will not be subject to a
substantial manufacturing operation in Singapore or Malaysia; and the last substantial transformation will have occurred, in Indonesia, where the fabric was woven.

In the second scenario, as stated above, the flat sheet is entirely processed in Indonesia, and is therefore, a product of Indonesia. The fabric for the fitted sheet is precut in Indonesia and is transported to Malaysia or Singapore where elastic is attached and it is sewn into a finished fitted sheet. The fabric used to construct the fitted sheet is woven and precut in Indonesia. The degree of difficulty and skill involved in the processing required to weave and precut the fabric are substantial enough to result in a new and different article of commerce. The processing required to attach the elastic and the subsequent finishing operations are simple and do not amount to a substantial manufacturing operation. Therefore, the country of origin of the fitted sheet is Indonesia.

In the first scenario, the pillowcase is made from Indonesian fabric that has been cut and sewn in Singapore or Malaysia. In the second scenario, the pillowcase is made from Indonesian fabric that has been cut in Indonesia and exported to Singapore or Malaysia to be sewn into the finished product. Usually, when determining the country of origin for pillowcases, Customs refers to Belcrest Linens v. United States, 741 F.2d 1368, (Fed. Cir. 1984). The court held that a bolt of woven fabric that was manufactured, stenciled with embroidery, and imprinted with lines of demarcation in China prior to being sent to Hong Kong where the fabric was cut, sewn into pillowcases, and packaged, was subject to its last substantial transformation in Hong Kong. However, in this instance, the pillowcase does not undergo both cutting and sewing in a single country; rather, the cutting occurs in Indonesia and the sewing takes place in either Singapore or Malaysia. Therefore, in the second scenario, Belcrest Linen is not precedential and no substantial transformation has occurred in Singapore or Malaysia. In the second scenario, the last substantial transformation occurred in the country where the fabric used to construct the pillowcase was woven, Indonesia. In the first scenario, in light of the rationale given in Belcrest Linen, the country of origin of the pillowcase is Singapore or Malaysia, the countries where the fabric is cut and sewn.

HOLDING:

In the first scenario, if the fitted sheet is cut on four sides and finished in Singapore or Malaysia, the country of origin is Singapore or Malaysia. If the fitted sheet is not cut on four sides, the country of origin is Indonesia. The country of origin of the pillowcase is Singapore or Malaysia. The country of origin of the flat sheet is Indonesia. Each article in the set should be marked with the designated country of origin.

In the second scenario, the country of origin of the fitted and flat sheets as well as the pillowcase is Indonesia. Each article in the set should be marked with the designated country of origin.

If the subject table rounds are sixty inches or larger, they would be classified as table linen under Heading 6302, HTSUSA. If they are of a plain woven fabric, the 55% cotton/45% polyester cloths would be classifiable in subheading 6302.51.2000, HTSUSA. The applicable rate of duty is 5.4 percent ad valorem and the textile restraint category is 369. If the table rounds are constructed of 55% polyester/45% cotton cloths, they would be classifiable in subheading 6302.53.0020, HTSUSA. The applicable rate of duty is 12.6 percent ad valorem and the textile restraint category is 666.

If the subject table rounds are smaller than sixty inches in diameter, they would be considered table toppers which are classified as other furnishings under Heading 6304, HTSUSA. If woven and less than sixty inches in diameter, the 55% cotton/45% polyester rounds would be classifiable in subheading 6304.92.0000, HTSUSA. The applicable rate of duty is 7.1 percent ad valorem and the textile restraint category is 369. If the table rounds are constructed of 55% polyester/45% cotton, they would be classifiable in subheading 6304.93.0000. The applicable rate of duty is 10.5 percent ad valorem and the textile restraint category is 666.

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 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 importing the merchandise to determine the current status of any import restraints or requirements.

This ruling is issued pursuant to the provisions of Part 177 Customs Regulations (19 CFR Part 177). The holding in this ruling only applies to the specific factual situation presented and the merchandise identified in the ruling request. If the
information furnished is not accurate or complete, or there is a change in the factual situation, this ruling will no longer be valid. In such an event, a new ruling request should be submitted.

Sincerely,

John Durant, Director
Commercial Rulings Division

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See also:

• Tariff No.: 6207.91.30 - Men's or boys' singlets and other undershirts, not knitted or crocheted, of cotton
• Tariff No.: 6302.51.20 - Plain woven tablecloths and napkins, not knitted or crocheted, of cotton
• Tariff No.: 6302.53.00 - Table linen of man-made fibers, not knitted or crocheted
• Tariff No.: 6304.92.00 - Furnishing articles (excluding those of heading 9404 and other than bedspreads) not knitted or crocheted, of cotton
• Tariff No.: 6304.93.00 - Furnishing articles (excluding those of heading 9404 and other than bedspreads) not knitted or crocheted, of synthetic fibers