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HQ 959538




November 7, 1996

CLA-2 RR:TC:TE 959538 CAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 6307.90.9989

Christopher L. Thayer, Esq.
Hallmark Cards, Inc.
Kansas City, MO 64141

RE: Country of origin and Classification of a flag, windsock, pillow, and gift pouch; Section 102.21(c)(2); Section

Dear Mr. Thayer:

This is in response to your inquiry of July 24, 1996, requesting a country of origin determination and verification of the tariff classification of various textile articles under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Samples were submitted for examination and will be returned to you under separate cover.

FACTS:

There are four textile articles at issue. Style 595VB01695 is referred to as a gift pouch/bottle bag. The pouch measures approximately 6« inches by 5« inches, contains cord trimming and a paper heart applique. You state that the pouch is designed to hold wine bottles. Style XPF3451 is a Christmas pillow. The pillow measures 9« inches by 5« inches, contains a Christmas motif, and is comprised of a solid-color woven fabric on one side and a plaid woven fabric on the other side. Style 1995ZXS7001 is referred to as a "Maxine Christmas Flag". The flag is comprised of green background fabric and various other multi-colored fabrics sewn onto the background fabric, is rectangular in shape, measures 39 inches by 49 inches, and depicts a snowman. Style 119F0R2006 is a windsock which depicts the Philadelphia Eagles football motif. A string is attached to the windsock for hanging purposes.

The fabric for the gift pouch is woven in Japan. All other materials including the thread, cording, and paper heart are manufactured in China. The fabric and all the materials are wholly assembled into a finished gift pouch in China.

Both textile fabrics for the Christmas pillow are woven, cut, sewn, and embroidered in China. The stuffing which is comprised of polyester fibers (not fabric) is manufactured in Taiwan. All the other materials used to construct the pillow including thread and cording are sourced in China. The fabric and all other materials are fully assembled into the finished pillow in China.

You pose the question of whether the country of origin would be affected if the plaid fabric was woven in a third country instead of China. You also question whether the country of origin would be affected if the cutting, sewing, and packing for the Christmas pillow was completed in the Philippines.

The fabric for the Christmas flag is woven in Taiwan. The fabric is then transported to China where it is cut, sewn, and embroidered. The thread used for the Christmas flag is manufactured in China. The fabric and all other materials are fully assembled into the finished flag in China.

You question if the country of origin would be affected if the background fabric for the Christmas flag was sourced from a different unidentified country and the other fabrics remained from Taiwan.

The fabric for the windsock is woven in Taiwan. The thread, cord, and plastic ring are manufactured in China. The windsock is cut, sewn, and fully assembled in China.

You also request that we advise you as to which components/materials would be considered de minimis in accordance with Section 102.13 and which components/materials would be considered minor attachments and/or minor embellishments.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Pursuant to Section 334 of the Uruguay Round Agreements Act (codified at 19 USC Section 3592), new rules of origin were 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 to determine country of origin. Thus, the country of origin of a textile product is 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 when the good was wholly obtained or produced in a single country, territory, or insular possession. As the subject merchandise has not been wholly obtained or produced in a single country, territory, or insular possession, this section is inapplicable.

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, in pertinent part:

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.

Section 102.21(e) states "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:"

6307.90 The 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.

Heading 6307, HTSUSA, provides for, among other things, other made up articles. This heading is a basket provision for a variety of goods not more specifically provided for in the tariff. In this case, the windsock, Christmas pillow, gift pouch, and Christmas flag are made up textile articles not specifically provided for elsewhere in the tariff. Thus, they are all properly classifiable under Heading 6307, HTSUSA. Further, they are all specifically classifiable in subheading 6307.90, HTSUSA.

Section 102.21(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.

Section 102.21(c)(4) provides the first multi-country rule. Section 102.21(c)(4), states the following:

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.

Section 102.21(c)(5) provides the second multi-country rule. Section 102.21(c)(5), states the following:

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.

Section 102.21(c), "General Rules", inter alia, state the 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).

As stated above, you ask which components/materials would be considered de minimis in accordance with Section 102.13 and which components/materials would be considered minor attachments and/or minor embellishments.

Section 102.13 "De Minimis" 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.

It is important to note that the terms "minor attachments and minor embellishments" are used when determining whether a good is "wholly assembled". Section 102.21(b)(6), states the following, in pertinent part:

Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as "wholly assembled" in a single country, territory, or insular possession.

Therefore, in this case, the issue of whether certain materials constitute minor attachments or embellishments will only be addressed in the context of ascertaining whether a particular good is wholly assembled in accordance with paragraph (e) of Section 102.21.

In the case of the gift pouch, it is comprised of fabric, thread, cording, and a paper heart applique. If you separately evaluate the heart applique, thread, and cording, all of which are materials that make up the finished pouch, it is clear that the total weight of these materials is not more than 7 percent of the total weight of the good and therefore, they meet the de minimis rule stipulated in Section 102.13. Consequently, they are to be disregarded when determining the country of origin of the finished pouch. Thus, in accordance with Sections 102.21(c)(2) and 102.21(e), the country of origin of the subject pouch is the country where the fabric was formed by a fabric-making process, Japan.

The Christmas pillow is made up of two types of textile fabric woven in China, stuffing (polyester fibers) from Taiwan, in addition to thread and cording manufactured in China. Pursuant to Section 102.13, the thread and cording will be disregarded as de minimis when making the country of origin determination. As the stuffing is composed of polyester fibers and not fabric, in accordance with the applicable paragraph of Section 102.21(e), it does not affect the origin determination. Finally, since both textile fabrics comprising the pillow are woven in China, pursuant to Sections 102.21(c)(2) and 102.21(e), the country of origin of the pillow is China, as this is the country where the fabric was formed by a fabric-making process.

You inquire about the impact on the country of origin determination for the pillow if all the cutting, sewing, and packing is performed in the Philippines. Applying the tariff shift rule in accordance with Section 102.21(c)(2) and 102.21(e), the country of origin determination is based on where the fabric is formed by a fabric-making process. The fact that the cutting, sewing, and packing is completed in the Philippines will have no effect on the country of origin determination. The country of origin remains China, where the fabric was formed.

If one of the textile fabrics for the pillow (plaid fabric) is sourced from a third country, you ask what impact this would have on the aforementioned country of origin. In this scenario, a pillow is composed of a solid-color fabric on one side, a plaid fabric on the other side, and the fabrics are woven in different countries. The fabrics and the other materials are assembled into the finished pillow in China. If the fabrics used to make the pillow are produced in different countries, a country of origin determination cannot be based on Section 102.21(c)(2) as the tariff shift rule is not met in a single country. As the subject pillow is not knit to shape and subheading 6307.90, HTSUSA, is excepted from Section 102.21(c)(3)(ii), Section 102.21(c)(3) is inapplicable. Since the manufacturing of the fabrics is the most important process in the production of the pillow, and the fabrics are from different countries and no one fabric is more important than the other in the production of this good, a single country of origin determination cannot be based on Section 102.21(c)(4). Consequently, Section 102.21(c)(5) must be consulted to make the country of origin determination in this scenario. In accordance with Section 102.21(c)(5), country of origin is conferred by the last country in which an important assembly or manufacturing process occurred. Therefore, in this scenario, the country of origin of the pillow is China, where it was wholly assembled.

The subject flag is comprised of various pieces of material woven in Taiwan. The fabrics are then transported to China where they are cut, sewn, embroidered, and packed. You also state that the flag is composed of thread manufactured in China. In accordance with Section 102.21(c)(2) and the applicable paragraph of Section 102.21(e), the country of origin of the subject flag is Taiwan, the country where the fabrics are formed by a fabric-making process.

You inquire as to what the country of origin would be if the green background fabric used for the construction of the flag was from one country and all the other fabrics were from Taiwan. If the fabrics used to make the flag are produced in different countries, a country of origin determination cannot be based on Section 102.21(c)(2) as the tariff shift rule is not met in a single country. As the subject flag is not knit to shape and subheading 6307.90, HTSUSA, is excepted from Section 102.21(c)(3)(ii), Section 102.21(c)(3) is inapplicable. Since the manufacturing of the fabrics is the most important process in the production of the flag, and the fabrics are from different countries, and no one fabric is more important than the other in the production of this good, a single country of origin determination cannot be based on Section 102.21(c)(4). Consequently, Section 102.21(c)(5) must be consulted to make the country of origin determination in this scenario. In accordance with Section 102.21(c)(5), country of origin is conferred by the last country in which an important assembly or manufacturing process occurred. Therefore, in this scenario, the country of origin of the flag is China, where it was wholly assembled.

The windsock is comprised of fabric from Taiwan, in addition to cording and a plastic ring from China. The fabric and all of the other materials are transported to China where they are cut, sewn into the finished windsock, and packed. The total weight of the thread and cording makes up less than 7 percent of the total weight of the flag and are each de minimis in accordance with Section 102.13. Since the plastic ring makes up more than 7 percent of the total weight of the windsock, it is not considered de minimis. However, in accordance with Section 102.21(c)(2) and the applicable provision of 102.21(e), the country of origin of the subject windsock is based on where the fabric is made and thus, the origin of the plastic ring does not affect the origin determination of the windsock. Consequently, the country of origin of the windsock is Taiwan, the country where the fabric was made.

HOLDING:

The gift pouch, Christmas pillow, flag, and windsock are classifiable in subheading 6307.90.9989, HTSUSA, which provides for other made up articles, other, other, other. The applicable rate of duty is 7 percent ad valorem.

The country of origin of the gift pouch is Japan. The country of origin of the pillow comprised of fabrics woven in China, is China. The country of origin of the pillow that is cut, sewn, and packed in the Philippines, is China, the country where the fabric was formed. The country of origin of the pillow comprised of textile fabrics from differing countries is China, the country where the last important processing occurs. The country of origin of the flag is Taiwan. The country of origin of the flag comprised of background fabric from an unidentified country with the remainder of fabric from Taiwan, is China, the country where the last important assembly process occurred. The country of origin of the windsock is Taiwan.

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 the 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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