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HQ 959742




October 28, 1996
CLA-2 RR:TC:TE 959742 jb

CATEGORY: CLASSIFICATION

Michael G. Teeter
The Industry Government Relations Group
350 Rue Sparks Street, Suite 1110
Ottawa, Ontario
Canada K1R 7S8

RE: Country of origin determination for furniture moving pads; Section 102.21(c)(5); last country in which an important assembly or manufacturing process occurs

Dear Mr. Teeter:

This is in reply to your letter dated July 18, 1996, requesting a country of origin determination for furniture moving pads which will be imported into the United States.

FACTS:

The subject merchandise consists of furniture moving pads composed of a top and bottom fabric made of either 100 percent cotton woven fabric or 50/50 percent polyester/cotton woven fabric. In both cases a non-woven 65/35 percent or 50/50 percent polyester synthetic/cotton batting fabric is sandwiched in between the woven fabrics. The three fabrics are quilted and machine stitched together to create the moving pads. You state than on an annual basis, in the production of these articles, the woven fabrics are commingled such that the following manufacturing scenarios occur:

Scenario I- approximately 30 percent of the moving pads consist of:

UNITED STATES

- top and bottom woven fabrics are woven.

CANADA

- top and bottom fabrics are dyed and finished; - non-woven polyester/cotton batting is formed from mixed Canadian and foreign fibres;
- all the fabrics are quilted and machine stitched together; - cutting;
- sewing.

Scenario II- approximately 30 percent of the moving pads consist of:

PAKISTAN

- top fabric is woven and dyed.

UNITED STATES

- bottom fabric is woven.

CANADA

- bottom fabric is dyed;
- top and bottom fabrics are finished;
- non-woven polyester/cotton batting is formed from mixed Canadian and foreign fibres;
- all the fabrics are quilted and machine stitched together; - cutting;
- sewing.

Scenario III- approximately 40 percent of the moving pads consist of:

PAKISTAN

- top and bottom fabrics are woven and dyed.

CANADA

- top and bottom fabrics are finished;
- non-woven polyester/cotton batting is formed from mixed Canadian and foreign fibres;
- all the fabrics are quilted and machine stitched together; - cutting;
- sewing.

Additionally, you state in your letter that the furniture moving pads are shrink-wrapped in bundles of 12 pads in Canada and shipped to furniture moving supply companies in the U.S. You ask for guidance in determining the appropriate marking for this merchandise and whether it is appropriate to mark the origin of this merchandise on the shrink wrap container instead of individually labeling the furniture moving pads.

ISSUE:

1. What is the country of origin of the subject merchandise?

2. What is the proper marking of the subject merchandise?

3. Is it proper to mark the packaging of this merchandise instead of individually marking each moving pad?

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 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 (c)(5) of Section 102.21.

Section 102.21(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, Section 102.21(c)(1) is not applicable.

Section 102.21(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."

Section 102.21(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":

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.

As the fabric comprising the subject furniture moving pads is formed in more than one country (the woven top and bottom fabrics are formed in either the United States or Pakistan, or a combination thereof, and the non-woven batting is formed in Canada) in each of the three scenarios, the merchandise does not meet the terms of the tariff shift.

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.

As the subject merchandise is not knit to shape and subheading 6307.90, HTSUS, is excepted by provision (ii), Section 102.21(c)(3) is inapplicable.

Section 102.21(c)(4) states that, "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 subject merchandise, the most important manufacturing process occurs at the time of the fabric-making. The fabric for the subject furniture moving pads is sourced from more than one country. In the opinion of this office both the woven fabrics for the top and bottom panels and the non-woven batting are of equal importance. Given the particular identity of this commodity, the furniture moving pads could not perform their designated use without either the top or bottom fabrics, or the padding which acts as a cushion of protection for furniture that has to be moved from one location to another As no one fabric is more important than the other, Section 102.21(c)(4) cannot readily be used to make a determination.

Section 102.21(c)(5) states that, "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 subject merchandise Canada is the last country in which an important assembly and manufacturing process occurs. See also HQ 959557, dated September 9, 1996, discussing an ironing board pad and cover which determined that the country of origin of the merchandise was the last country in which an important assembly and manufacturing process occurred due to the importance of the batting to that particular article.

The marking statute (19 U.S.C. 1304) requires articles of foreign origin imported into the United States to be marked to indicate the name of the country of origin of the article. In the case of the subject merchandise, "Made in Canada", "Product of Canada", or "Canada" would be appropriate markings. 19 CFR 134.32 sets out the general exceptions to the marking requirements. Included within those exceptions from the marking requirements is:

(d) Articles for which the marking of the containers will reasonably indicate the origin of these articles.

As regards the subject merchandise so long as the merchandise reaches the ultimate purchaser in the packaged containers you have stipulated, it is our opinion that placing the origin marking on the packaged containers reasonably indicates the origin of the merchandise.

HOLDING:

The country of origin of the subject furniture moving pads is Canada.

Placing the origin marking, that is "Made in Canada", "Product of Canada" or "Canada", on the packaged containers, as you have stipulated, reasonably indicates the origin of the subject merchandise.

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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