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NY 805214




January 18, 1995

CLA-2-58:S:N:N6:351 805214

CATEGORY: CLASSIFICATION

TARIFF NO.: 5810.91.0020, 6307.90.9989

Mr. T. Randolph Ferguson
Glad & Ferguson
1 Sutter Street
San Francisco, CA 94104

RE: The tariff classification and country of origin marking requirements of various pieces of embroidered fabric from China

Dear Mr. Ferguson:

In your letter dated December 5, 1994 you requested a ruling on the tariff classification and country of origin marking requirements for four pieces of 100% cotton woven embroidered fabric from China. You have filed this request on behalf of H.K. Enterprises Inc.

FACTS

The four samples, identified as Samples 1A, 1B, 2 and 3, are all made of 100% cotton plain woven fabric which weighs 167.4 grams per square meter. The fabric is bleached and has 60 warp ends and 58 filling picks per square inch. All samples are embroidered with floral and eyelet patterns, and will be imported in the following forms:

Sample 1A, identified as a panel for a pillow sham, has been cut on all sides to form a 21" by 25" rectangular shape with rounded corners.

Sample 1B, identified as a panel for a duvet cover, has been cut on three sides (with one end being the selvage) to a 85" by 68" rectangular shape. Two of the corners are square and two are rounded.

Sample 2, identified as trim, is a continuous roll of material 3«" in width. One edge has been finished with a simple scalloped edge and the other is a roughly cut unfinished edge.

Sample 3, also identified as trim, is a continuous roll of material 13" in width. One edge has been finished with a simple scalloped edge and the other is a roughly cut unfinished edge.

You indicate in your letter that after importation into the United States, H.K. Enterprises will

(1) unroll, unfold and inspect the materials,

(2) repair any defects,

(3) cut and trim the trimming material to the size needed,

(4) trim and prepare the panels for sewing,

(5) cut and trim backing material (of U.S. origin) to the sizes and shapes needed,

(6) assemble (by sewing) duvet covers and pillow shams from the various panels backing pieces and trim pieces,

(7) assemble (by sewing) dust ruffles from panels and trim pieces and

(8) clean, press and package the finished goods for sale.

All of this work will be done in the United States by the importer, H.K. Enterprises Inc.

ISSUES

You ask for a ruling on (1) the tariff classification, (2) the quota category, (3) whether the imported panels and trims qualify for a country of origin marking exemption under 19 U.S.C. 1304(3)(G), and (4) the proper country of origin designation for the finished goods assembled in the United States.

CLASSIFICATION AND TEXTILE QUOTA CATEGORY

The applicable subheading for Samples 1A and 1B will be 6307.90.9989, Harmonized Tariff Schedule of the United States (HTS), which provides for other made up articles. The duty rate will be 7 percent ad valorem.

The applicable subheading for Samples 2 and 3 will be 5810.91.0020, HTS, which provides for embroidery in the piece, of cotton, other. The duty rate will be 8.4 percent ad valorem.

Samples 2 and 3 fall within textile category designation 229. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa.

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. 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.

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 its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 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. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co.. Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.

In this case, the imported panels and trim materials are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer , H.K. Enterprises, is the ultimate purchaser of the imported materials and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin "China".

Regarding the question of the proper country of origin marking for the finished products that are made in the U.S.A., the Federal Trade Commission (FTC) has jurisdiction concerning the marking of such goods; consequently, any inquiries on that subject should be directed to the FTC in the future. The address is: Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire

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