HQ 958798 - Country of origin determination for a quilt; Section 102.21, Customs Regulations. - United States International Trade Commision Rulings

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HQ 958798

April 29, 1996
CLA-2 RR:TC:TE 958798 SK

CATEGORY: CLASSIFICATION

Steven S. Weiser
Amy J. Johannesen
Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway, 43rd Floor
New York, N.Y. 10036-8901

RE: Country of origin determination for a quilt; Section 102.21, Customs Regulations.

Dear Messrs.:

This is in response to your inquiry of December 28, 1995, requesting a country of origin determination for a patchwork quilt on behalf of your client, American Pacific Enterprises, Inc., pursuant to Section 102.21, Customs Regulations. A sample of the finished quilt, along with samples of its constituent parts, was submitted to this office accompanied by your cover letter dated February 2, 1996.

FACTS:

The merchandise at issue consists of hand-sewn quilts which are comprised of machine-stitched patchwork top panels ("top"), bottom panels ("back") and batting made of 100 percent polyester nonwoven fiberfill. The top and bottom panels are made of either 100 percent cotton or a cotton blend woven fabric. The quilts are manufactured in sizes twin, queen and king, as well as in sizes for babies. Depending on the quilt size, the back will consist of one to three pieces.

In Country "A," the fabrics used to produce the top and back panels are woven and printed or dyed. The fabric for the tops is cut into smaller pieces which are then
stitched together by means of machine sewing to form individual top panels of patchwork. The fabric for the backs is placed on rolls and is not cut in Country "A."

In Country "B," the nonwoven fiberfill batting is wholly manufactured. It is also in Country "B" that the back panels are cut to length and, in the case of back panels to be used in the larger size quilts, two or three pieces of fabric are placed side by side and attached by a single, straight machine stitch. The quilts are then assembled to completion by hand. Three sides of the quilts are machine stitched closed. The batting is cut to fit the quilt and the top and back panels are then turned inside out, encompassing the batting, and the open fourth seam is hand stitched closed. A template is used to trace the quilt design onto the top of the quilt body by means of a stylus. The quilt is then hand-sewn along the traced quilting pattern demarcation. This forms the raised design and the compartments of batting. The quilts are then cleaned, inspected and packaged for shipping.

The total number of man-hours attributable to the Country "A" operations equal approximately 250 minutes. The total number of man-hours attributable to the Country "B" operations equal approximately 820 minutes.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Pursuant to the Uruguay Round Agreements Act, new rules of origin will be effective for textile products entered, or withdrawn from warehouse for consumption, on or after July 1, 1996. These rules were published in the Federal Register, 60 Fed. Reg. 46188 (September 5, 1995). Section 102.21, Customs Regulations (19 CFR Section 102.21), sets forth the general rules which determine country of origin. The country of origin of a textile product will be determined by a hierarchy of rules set forth in paragraphs (c)(1) through (c)(5) of Section 102.21.

Section 102.21(c)(1) sets forth the general rule for determining the country of origin of a textile product in which the good is wholly obtained or produced in a single country, territory, or insular possession.

Section 102.21(c)(2) provides for instances where the country of origin of a textile product cannot be determined under Section 102.21(c)(1). Section 102.21 (c)(2) provides:

"[W]here 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 foreign material 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."

Section 102.21(c)(3) governs instances where country of origin of a textile or apparel product cannot be determined pursuant to paragraphs (c)(1) or (c)(2) and where the subject merchandise consists of either a good that was knit to shape in a single country or, except for goods of certain specifically enumerated headings, if the good was not knit to shape and was wholly assembled in a single country.

Section 102.21(c)(4) provides:

"[W]here 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 instant case, Section 102.21(c)(1) does not provide the relevant country of origin analysis because the subject merchandise is not wholly obtained or produced in a single country.

Section 102.21(c)(2) is also inapplicable. The subject merchandise is a quilt, classifiable under subheading 9404.90, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Accordingly, we are directed to paragraph (e) of this section which states:

"[T]he country of origin of a good classifiable under subheading
9404.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process."

The subject quilt is comprised of two types of fabric formed in two countries: the woven fabric components formed in Country "A," and the nonwoven batting fabric wholly produced in Country "B." As such, there is no single country in which the
fabric was formed for the subject merchandise and our hierarchical application of Section 102.21(c) continues.

Section 102.21(c)(3) does not provide the relevant country of origin analysis inasmuch as the subject quilt is not a knit to shape good and, as an article classifiable under subheading 9404.90, HTSUSA, it is specifically exempted from paragraph (c)(3)(ii)'s application.

The relevant analysis in the instant case is provided by Section 102.21(c)(4), cited supra, which looks to the country, territory, or insular possession in which the most important assembly or manufacturing process occurred as conferring origin. This office is in receipt of a "king size" sample quilt. The quilt's patchwork panel, earlier referred to as the "top" panel, consists of a myriad of 924 patch pieces which were manufactured in Country "A." The sheer volume of component pieces from fabric manufactured in Country "A," along with the visual impact created by these patch pieces and the motivating impetus to purchase that they create, indicates that the most important manufacturing process occurs in Country "A."

HOLDING:

The country of origin of the patchwork quilt is Country "A."

This ruling is issued pursuant to the provisions of Part 177 Customs Regulations (19 CFR Part 177). If the specific factual situation is not as described above, this ruling may not be valid. In such an event, it is recommended that a new ruling request be submitted setting forth the accurate facts.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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