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HQ 959200




July 8, 1996
CLA-2 RR:TC:TE 959200 jb

CATEGORY: CLASSIFICATION

Margaret R. Polito, Esq.
Neville, Peterson & Williams
80 Broad Street, 34th Floor
New York, NY 10004

RE: Country of origin determination for duvet covers, pillow shams and pillow cases; 19 CFR ?102.21(c)(2); tariff shift; 19 CFR ?102.21 (c)(5); last country in which an important assembly or manufacturing process occurs

Dear Ms. Polito:

This is in reply to your letter dated May 1, 1996, on behalf of your client, WestPoint Stevens, requesting a country of origin determination for duvet covers, pillow shams and pillow cases which will be imported into the United States sometime on or after July 1, 1996. Samples were submitted to this office for examination.

FACTS:

The subject merchandise consists of certain duvet covers, pillow shams and pillow cases which complement various styles of bedding products. You have submitted information for four manufacturing scenarios. Scenario I involves manufacturing in both the United States and Israel and will be addressed in a subsequent ruling. As such, this ruling will address only scenarios II, III and IV. The manufacturing operations for this merchandise are as follows:

SCENARIO II- Duvet covers and Pillow shams

Country A

- fabric A is woven.

Country B

- fabric B is woven.

United States

- fiberfill interlining is produced;
- the fabrics for the duvet covers and pillow shams are cut to length and width;
- assembly.

SCENARIO III- Pinebluff Pillow case and Flat sheet

United States

- fabric for pillow case body and flat sheet are woven.

India

- plaid cuff fabric is woven.

United States

- the fabrics for the pillow case and flat sheet are cut to length and width;
- the body of both the pillow case and flat sheet are sewn and the plaid cuff is sewn onto the body of the respective pillow case and flat sheet by folding the fabrics over such that the same print appears on the inside and outside of the pillow case and flat sheet.

* You state that the fabric used to produce the cuff for both the pillow case and the flat sheet accounts for less than seven percent of the total fabric weight of the finished pillow case and flat sheet.

SCENARIO IV- Duvet covers

Italy

- fabric is woven and finished.

United States

- cutting;
- sewing.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where 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".

Paragraph (e) states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:"

6301- 6306 The country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession, in which the fabric comprising the good was formed by a fabric- making process.

General Rule (c) of Part 102.21 states that "Subject to paragraph (d) of this section, the country of origin of a textile or apparel product shall be determined by sequential application of paragraphs (c)(1) through (5) of this section and, in each case where appropriate to the specific context, by application of the additional requirements or conditions of ??102.12 through 102.19 of this part". Section 102.13, which sets out the De Minimis rule states, in relevant part:

(c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in product covered by that section shall be disregarded in determining the country of orgin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good.

The subject merchandise is classifiable in various subheadings of heading 6302, HTSUSA, and heading 6304, HTSUSA. In scenario II, as the fabric for the duvet covers and pillow shams is formed in two countries, the tariff shift rule is not applicable. However, in scenario III, the pillow case and flat sheet feature a contrasting cuff which you state accounts for less than seven percent of the total fabric weight of the finished pillow case and flat sheet. As such, the incorporation of the cuff on to the pillow case and flat sheet meets the terms of the De Minimis rule and the cuff is to be disregarded when determining country of origin. Accordingly, the pillow case and flat sheet meet the terms of the tariff shift, that is country of origin is conferred by the single country where fabric-making occurs, that is, the United States. Additionally, in scenario IV, the fabric for the duvet covers is entirely woven and finished in Italy. As the fabric comprising the duvet covers was formed by a fabric making process in a single country, that is, Italy, the country of origin of the duvet covers is Italy.

Paragraph (c)(3) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is not knit, and headings 6302, HTSUSA, and 6304, HTSUSA, are excepted from provision (ii), Section 102.21 (c)(3) is inapplicable.

Section 102.21 (c)(4) states, "Where 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 case of the duvet covers and pillow shams in scenario II, the most important manufacturing process occurs at the time of the fabric making. As the fabric for the merchandise is sourced in more than one country, and no one fabric is more important than the other, country of origin cannot be readily determined based on the fabric making process.

Paragraph (c)(5) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory, or insular possession in which an important assembly or manufacturing process occurred." Accordingly, in the case of the duvet covers and pillow shams, in scenario II, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, the United States.

The proposed markings "Made in the U.S.A of Imported Fabric", or "Made in the U.S.A. of Imported and Domestic Fabric", in regard to the duvet covers and pillow shams in scenarios II and III are consistent with the origin rules set forth in section 334 of the Uruguay Round Agreements Act (URAA). Please be aware that the use of the marking "Made in the U.S.A." is within the jurisdiction of the Federal Trade Commission, Division of Enforcement, located at 6th & Pennsylvania Avenue, N.W., Washington, D.C. 20508.

Additionally, you request that Customs confirm the proposed marking "Made in Italy- Sewn in the U.S.A.", in regard to the duvet covers in scenario IV. This language is also consistent with the origin rules set forth in section 334 of the URAA. Accordingly, the proposed marking would satisfy the country of origin requirements of 19 U.S.C. 1304 and 19 CFR 134.46.

HOLDING:

In scenario II the country of origin of the subject duvet covers and pillow shams is the United States.

In scenario III the country of origin of the subject Pinebluff pillow cases and flat sheets is the United States.

In scenario IV the country of origin of the subject duvet covers is Italy.

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

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