HQ 959706 - Country of origin determination for a double swag shower curtain with PVC liner; 19 CFR ?102.21(d); treatment of sets; United States v. Gibson-Thomsen Co., 27 CCPA 267 (1940); substantial transformation; 19 CFR ?102.21(c)(2); tariff shift - United States International Trade Commision Rulings

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HQ 959706

October 8, 1996
CLA-2 RR:TC:TE 959706 jb

CATEGORY: CLASSIFICATION

Mark Ho
Wondertex Industrial Co., Ltd.
Room 1005 , No. 205, Section 1
Tung HWA S. Road
Taipei, Taiwan

RE: Country of origin determination for a double swag shower curtain with PVC liner; 19 CFR ?102.21(d); treatment of sets; United States v. Gibson-Thomsen Co., 27 CCPA 267 (1940); substantial transformation; 19 CFR ?102.21(c)(2); tariff shift

Dear Mr. Ho:

This is in reply to your letter dated August 29, 1996, requesting a country of origin determination for a double swag shower curtain with PVC liner which will be imported into the United States. A sample was submitted to this office for examination.

FACTS:

The merchandise at issue, referenced style WOV-06-S.C., consists of a double swag shower curtain made of either 100 percent polyester fabric, 100 percent cotton fabric or a polyester/cotton fabric blend, and a PVC liner. The manufacturing operations are as follows:

Country A

- fabric for the shower curtain is formed; - PVC liner is formed;
- miscellaneous raw materials are sourced (including tie back hooks and bag for packing).

Country B

- cutting fabric for the curtain;
- cutting PVC liner, attaching header and creating buttonholes;
- sewing;
- packing.

* We assume for the purposes of this ruling that the cutting process includes cutting to length and width. We also assume any reference to countries A and B does not include Israel or parties to the North American Free Trade Agreement.

ISSUE:

What is the country of origin of the submitted merchandise?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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.

Section 102.21(d) addresses the treatment of sets for country of origin purposes. Section 102.21(d) provides the following:

Treatment of sets. Where a good classifiable in the HTSUS as a set includes one or more components that are textile or apparel products and a single country of origin for all of the components of the set cannot be determined under paragraph (c) of this section, the country of origin of each component of the set that is a textile or apparel product shall be determined separately under paragraph (c) of this section.

A single country of origin cannot be determined for both the shower curtain and the PVC liner. Pursuant to Section 102.21(d), the country of origin of both the shower curtain and the PVC liner must be determined separately.

The subject PVC liner is made out of plastic and as such, it is outside the scope of the terms of Section 102.21. Part 134, Customs Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. ?1304. Section 134.1(b), Customs Regulations (19 C.F.R. ?134.1(b)), defines "country of origin" as the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of the marking laws and regulations.

For country of origin marking purposes, a substantial transformation of an imported article occurs when it is used in a manufacture which results in an article having a name, character, or use differing from that of the article. United States v. Gibson-Thomsen Co., 27 CCPA 267 (1940). In the case of the subject PVC liner, the PVC material is manufactured in Country A and then produced in Country B by cutting the PVC material to length and width, attaching the PVC header, and creating the button holes. We find that the processing performed in Country B constitutes a substantial transformation as it changes the PVC material, which has a number of potential uses, into a product with a single use- a shower curtain liner. Accordingly, the country of origin of the subject PVC liner is Country B.

As we have determined the country of origin of the PVC liner, we proceed to the fabric shower curtain. 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 material is not wholly obtained or produced in a single country, paragraph (c)(1) is not applicable.

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 double swag shower curtain is classifiable in heading 6303, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). As the fabric comprising the shower curtain is formed in one country, that is, Country A, the country of origin of the shower curtain is conferred in Country A.

HOLDING:

The country of origin of the subject double swag shower curtain is Country A.

The country of origin of the PVC liner is Country B.

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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