United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1996 HQ Rulings > HQ 959031 - HQ 959256 > HQ 959256

Previous Ruling Next Ruling
HQ 959256




June 20, 1996
CLA-2 RR:TC:TE 959256 jb

CATEGORY: CLASSIFICATION

Robert T. Stack, Esq.
Tompkins & Davidson
One Astor Plaza
1515 Broadway, 43rd Floor
New York, NY 10036-8901

RE: Country of origin determination for cushion covers; 19 CFR 19 CFR ?102.21(c)(5); last country in which an important assembly or manufacturing process occurs

Dear Mr. Stack:

This is in reply to your letter dated May 16, 1996, on behalf of your client, Laura Ashley, Inc., requesting a country of origin determination for cushion covers 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 cushion covers featuring a top and bottom fabric, fabric covered piping, a zipper, and in certain instances, a ruffle. Two sample cushions were submitted to this office. On Cushion cover 1, the two face fabrics are of different color and design and feature contrasting piping with no ruffle. On Cushion cover 2, the two face fabrics, the fabric covered piping, and the ruffle are of the same fabric. The manufacturing operations are as follows:

CUSHION COVER I:

Group A Countries (comprising of four different countries)

- greige top fabric formed in one country; - greige bottom fabric formed in a second country.

* Some cushions may feature a ruffle which may be of a different origin than the face fabrics.
Country B

- piping cord and zipper, which contains fabric and plastic parts, are made;
- greige fabrics are dyed and/or printed; - fabric is finished;
- fabric is cut to shape;
- piping cord is covered with fabric;
- fabrics are joined together and to the zipper tape and fabric covered piping.

CUSHION COVER II

Group A Countries (comprising of four different countries)

- greige top and bottom fabric are formed in one country.

Group B

- piping cord and zipper, which contains fabric and plastic parts, are made;
- greige fabrics are dyed and/or printed; - fabric is finished;
- fabric is cut to the shape of the two faces of the cover, the ruffle and the piping cover;
- piping cord covered with fabric;
- fabrics are joined together and to the zipper tape and fabric covered piping.

*Some cushions may not feature a ruffle and will feature simply piping.

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.

The subject merchandise is classifiable as cushion covers in heading 6304, Harmonized Tariff Schedule of the United States (HTSUS). In the case of cushion cover I, the fabric for the face covers, the piping, and possibly the ruffle, will be formed in different countries. As the fabric making process does not occur in one country, the tariff shift rule is not applicable. In the case of cushion II however, the two face fabrics are formed in a single Group A country, and the zipper tape is formed in Country B. Section 102.21(c), "General Rules", inter alia, state the additional requirements or conditions of Sections 102.12 through 102.19, where appropriate are applicable when determining origin under Section 102.21(c)(1) through (5).

Section 102.13 "De Minimus", states the following, in pertinent part:

(c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in Section 102.21 or satisfy the other applicable requirements of that section when incorporated into a textile or apparel product covered by that section shall be disregarded in determining the country of origin 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 total weight of the zipper tape fabric is not more than 7 percent of the total weight of the finished cushion cover, and thus, meets the De Minimus rule stipulated in Section 102.13. As such, the zipper tape is to be disregarded when determining the country of origin of the finished product. This is consistent with past rulings which have held that certain features may be
considered trim or minor embellishments and do not affect the country of origin determination. See, HQ 959039, dated April 9, 1996, and HQ 959199 (a clarification letter of HQ 959039), dated May 15, 1996, which held that ribbon and lace on a dust ruffle were trim and did not affect the country of origin determination. Accordingly, in scenario II, as per the terms of the tariff shift rule, country of origin is conferred by the single country in which the fabric comprising the good was formed by a fabric-making process, that is, Group A countries.

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 heading 6304, HTSUSA, is excepted under 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". It is the opinion of this office, that in scenario I, the most important manufacturing process occurs at the time of the fabric making. As the fabric for the cushion covers in scenario I 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 cushion covers in scenario I, country of origin is conferred by the last country in which an important assembly occurred, that is, Country B.

HOLDING:

In the case of cushion cover I, the country of origin is Country B.

In the case of cushion cover II, the country of origin is the Group A countries.

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

Previous Ruling Next Ruling

See also: