HQ 959778 - Country of origin of wool quilt; Section 102.21(c)(4), Customs Regulations - United States International Trade Commision Rulings

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HQ 959778

November 29, 1996

CLA-2 RR:TC:TE 959778 CAB

CATEGORY: CLASSIFICATION

Abraham Saw
P.O. Box 611213
San Jose, CA 95161-1213

RE: Country of origin of wool quilt; Section 102.21(c)(4), Customs Regulations

Dear Mr. Saw:

This is in response to your inquiry of September 18, 1996, requesting a country of origin determination for certain wool quilts pursuant to Section 102.21, Customs Regulations. This request is on behalf of AusWool Pty. Ltd. A sample was submitted for examination.

FACTS:

The merchandise at issue is a wool quilt. The manufacturing process is as follows: Raw wool is processed into pure wool nonwoven fabric. This process includes grading, scouring, secondary grading, treating the wool with acid and chemicals to remove non-wool residue and drying (carbonizing), and quality checking. The pure wool then undergoes, carding which involves drawing the wool through multiple barrels, which results in a layer of wool mat as it enters the layering machine. The thin layer of wool mat is further layered until desired wool mat density is achieved. The wool mat goes through a needle-hook punching machine which will weave fiber across the thickness of the wool mat. This ensures continuity between the layers of wool before it is rolled up for final quilting. Finally, the layers of wool undergo another quality check to ensure consistency in thickness and density. The wool mat roll is quilted with a layer of fabric on the top and bottom. This processing results in a wool quilt. The wool quilt is cut to specified sizes. The wool quilt is edged with fabric or a zipper. The wool quilt is checked for overall quality and finishing, which includes ensuring that it is labeled and packaged properly.

All of the manufacturing is completed in Australia. The fabric used for the outer covering of the wool quilts will be sourced from a variety of countries which you have not identified. Although not provided in your request, you stated verbally to Customs that the wool fabric used to make the subject comforter is sourced in Australia.

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 is 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, 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) provides, in pertinent part:

Specific rules by tariff classification. 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:

9404.90 The country of origin of a good classifiable under subheading 9404.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

The subject wool comforter is classifiable in subheading 9404.90 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for among other articles, articles of bedding and similar furnishing (for example, mattresses, quilts, quilts, eiderdowns, cushions, pouffes and pillows). The wool comforter is comprised of two types of fabric. The
wool fabric is formed in Australia. The fabric used to construct the outer shell has not been identified, though you have stated that it will not be Australian. As the fabrics comprising the wool comforter are not formed in a single country, Section 102.21(c)(2) is inapplicable.

Section 102.21(c)(3) provides for goods that have been wholly assembled (with certain enumerated exceptions) in a single country, insular possession, or territory or which are knit to shape. Section 102.21(c)(3) is inapplicable to the subject merchandise since it is not a knit to shape good and as an article classifiable under subheading 9404.90, HTSUSA, it is specifically excepted by provision 102.21(c)(3)(ii).

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.

The relevant analysis is provided by Section 102.21(c)(4), which looks to the country, territory, or insular possession in which the most important assembly or manufacturing process occurred to confer origin. It is Customs belief that the most important manufacturing process occurs at the time of the formation of the outer shell fabric. It is the outer shell fabric which in essence, identifies the merchandise, and thus creates its saleability. See, HQ 959547, dated August 22, 1996. Consequently, pursuant to Section 102.21(c)(4), the country of origin of the subject merchandise is the country where the outer shell fabric is formed. As you do not provide us with a specific country as to where the outer shell fabric is formed, Customs is unable to make a specific country of origin determination.

HOLDING:

The country of origin of the subject wool comforter is the country where the outer shell fabric comprising the comforter is formed in accordance with Section 102.21(c)(4).

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 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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