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HQ 958894



June 14, 1996
CLA-2 RR:TC:TE 958894 SK

CATEGORY: CLASSIFICATION

John M. Peterson
Neville, Peterson & Williams
80 Broad Street
34th Floor
New York, New York 10004

RE: Country of origin determination; pillow shells; Section 102.21(c)(4), Customs Regulations.

Dear Mr. Peterson:

This is in response to your inquiry of January 24, 1996, on behalf of your client, Pac-Fung Feather Company, Ltd. and Natural Feather & Textiles, Inc., requesting a country of origin determination for pillow shells pursuant to Section 334 of the Uruguay Round Agreements Act (19 USC Section 3592) and implementing Customs Regulations (19 CFR Section 102.21). On April 4, 1996, you met with a representative from this office to further discuss the issues raised in your request.

FACTS:

The merchandise at issue consists of 100 percent cotton pillow shells which will be assembled in Hong Kong using fabric which is woven in the People's Republic of China and in one or more additional countries. You have stated that the second country in which fabric will be formed will either be Taiwan, Hong Kong, Japan or another unspecified country. Fabric, having down-proof qualities, will be woven and dyed in China and imported into Hong Kong. Fabric, not possessing down-proof qualities, will be woven and dyed in a second country and imported into Hong Kong. In Hong Kong, the Chinese fabric will be cut to length and width to form equal-sized top and bottom panels of a pillow shell. The fabric formed in a second country will also be cut to length and width in Hong Kong to form a "chamber divider" for the
pillow shell. This "Chamber divider" will have the same dimensions as the top and bottom panels, but consists of only a single piece of fabric. The top, Chamber divider and bottom panel are then sewn together on three sides. The shells will be imported into the United States and sold to pillow manufacturers who will fill them with down, feathers, polyester batting or other materials and sew them closed to be sold as finished pillows.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Pursuant to the Section 334 of the Uruguay Round Agreements Act (19 USC Section 3592) new rules of origin will be effective for textile or apparel products entered, or withdrawn from warehouse for consumption, on or after July 1, 1996.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 or apparel 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 or apparel 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 or apparel 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 manufacturing scenarios set forth above, Section 102.21(c)(1) does not provide the relevant country of origin analysis because the pillow shells are not wholly obtained or produced in a single country.

Section 102.21(c)(2) is also inapplicable. The pillow shells are classifiable under subheading 6307.90.89, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Accordingly, we are directed to paragraph (e) of this section which states, in pertinent part, that origin is conferred in the following situations:

6307.90 [T]he country of origin of a good classifiable under subheading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

The fabric comprising the pillow shells was formed in more than a single country. Accordingly, Section 102.21(c)(2) is inapplicable 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 pillow cases are not knit to shape goods and, as articles classifiable under subheading 6307.90, HTSUSA, they are 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.

In the instant case, the fabric manufactured in China possesses down-proof qualities which are meaningful in terms of their importance to the finished pillow shell. The manufacturing process which transpires in China also serves to create the outer shell of the subject merchandise. Accordingly, the most important manufacturing process takes place in China and this country confers origin to the subject merchandise.

HOLDING:

The country of origin of the subject pillow shells 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 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 the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

Should it be subsequently 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, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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