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HQ 560797




March 20, 1998

MAR-02 RR:CR:SM 560797 MLR

CATEGORY: MARKING

Mr. Jim Wickstead
PBB Global Logistics
434 Delaware Ave.
Buffalo, NY 14202

RE: Country of Origin Marking; Classification; table linens; NAFTA; Article 509

Dear Mr. Wickstead:

This is in reference to your letter dated December 22, 1997, requesting a ruling on behalf of Easton Court ("Easton"), concerning the country of origin marking requirements and tariff classification for certain table linens. Samples were submitted with your request.

FACTS:

A sample of a tablecloth, table runner, napkin, and a place mat was submitted. The tablecloth is composed of 100 percent cranberry color polyester fabric which has a stripe design. The packaging indicates that the sample tablecloth is oval shaped measuring 60 x 84 inches. (Other sizes on the packaging indicate that the tablecloths may be rectangular in varying sizes or square.) The table runner is composed of 100 percent cotton fabric in a floral design and colors. The napkin is composed of 100 percent hunter green color polyester fabric and measures approximately 16 « x 16 « inches and has the same striped design as the tablecloth. The place mat is composed of 100 percent cranberry color polyester fabric on the front with the same stripe design as the tablecloth and napkin, and 100 percent burgundy color cotton fabric on the back. It is stated that the cotton fabric is of U.S.-origin, but that the chief weight of the place mat is imparted by the polyester fabric.

It is stated that Easton produces these goods in Canada from fabric manufactured in various foreign countries or from fabric of U.S. origin. Easton receives the fabric in Canada and cuts, sews, presses, and finishes the good. Easton also labels, folds and packages them according to customer specifications for retail sale. The port of entry is expected to be Buffalo, New York.

It is your opinion that the tablecloth is classifiable under subheading 6302.53.0020, Harmonized Tariff Schedule of the United States (HTSUS); the table runner under subheading 6302.51.4000, HTSUS; the place mat under subheading 6302.53.0030, HTSUS; and the napkin under subheading 6302.53.0020, HTSUS.

ISSUES:

I. What are the tariff classifications for the goods at issue?

II. Whether the goods may be marked "Made in Canada."

LAW AND ANALYSIS:

I. Classification

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order.

Heading 6302, HTSUS, provides for bed linen, table linen, toilet linen and kitchen linen. The Explanatory Notes, the official interpretation of the HTSUS at the international level, state the following concerning Heading 6302:

These articles are usually made of cotton or flax, but sometimes also of hemp, ramie or man-made fibers, etc.; they are normally of a kind suitable for laundering. They include:

(2) Table linen, e.g., table cloths, table mats and runners, tray cloths, table centers, serviettes, tea napkins, sachets for serviettes, doilies, drip mats.

Accordingly, the goods are classifiable in heading 6302. The applicable subheading for the tablecloth and napkin is subheading 6302.53.0020, HTSUS, which provides for other table linen, of man-made fibers, tablecloths and napkins, other. The applicable subheading for the table runner is subheading 6302.51.4000, which provides for other table linen, of cotton, other.

With regard to the place mat composed of 100 percent polyester fabric on the front and cotton fabric on the back, GRI 6 applies GRI 1 to the subheadings. The instant question is not one of headings but of the proper subheading, as subheading 6302.53 provides for other table linen of man-made fibers and subheading 6302.51 provides for other table linen of cotton. GRI 3 states, in pertinent part:

When by application of Rule 2(b) [goods of more than one material or substance] or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:

(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a) [which requires that goods be classified, if possible, under the more specific of the competing provisions], shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

The factors which determine essential character of an article will vary from case to case. It may be the nature of the materials or the components, its bulk, quantity, weight, value, or the role a material plays in relation to the use of the goods. In general, essential character has been construed to mean the attribute which strongly marks or serves to distinguish what an article is; that which is indispensable to the structure or condition of an article.

The top of the place mat is composed of 100 percent polyester and gives the place mat its design. In fact, the bottom cotton layer is really not necessary in order to form the place mat, but only makes the place mat feel sturdier and thicker. Accordingly, we find that the essential character of the place mat is imparted by the top man-made fiber, and, therefore, the applicable subheading for the place mat is subheading 6302.53.0030, HTSUS, which provides for other table linen, of man-made fibers, other.

II. Country of Origin Marking

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported in the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements country of origin marking requirements and exceptions of 19 U.S.C. 1304.

Section 334 of the Uruguay Round Agreements Act, codified at 19 U.S.C. 3592, provides rules of origin "for purposes of the customs laws and the administration of quantitative restrictions" for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 CFR 102.21) implements section 334. Pursuant to 19 CFR 102.21, the country of origin of a textile or apparel product shall be determined by hierarchical application of the general rules set forth in paragraphs (c)(1) through (c)(5). A "textile or apparel product" for purposes of these rules of origin is defined in 19 CFR 102.21(b)(5) as any good classifiable in Chapters 50 through 63, HTSUS. Therefore, the 19 CFR 102.21 rules of origin are applicable to the imported goods at issue here.

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 goods are not wholly obtained or produced in a single country, territory, or insular possession, 19 CFR 102.21(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."

All of the goods are classified in heading 6302, HTSUS. The applicable rule in 19 CFR 102.21(e) is as follows:

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.

It is indicated for all goods (except for the place mats), that they will be made from fabric either of U.S. origin or some other non-originating country. For those goods (other than the place mats) made from fabric from non-originating fabric, they may not be marked "Made in Canada" but rather shall be marked "Made in (country of origin of non-originating fabric)".

For the goods (other than the place mats) made from U.S.-origin fabric, the country of origin under section 102.21(c)(2) and (e) is the U.S. as the fabric-making process occurred in the U.S. However, Section 12.130(c), Customs Regulations, which incorporates, in pertinent part, Note 2, Subchapter II, Chapter 98, HTSUS, provides that any product of the U.S. which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article. In T.D. 90-17, issued February 23, 1990, Customs announced that section 12.130 would be used to determine country of origin of textiles for quota, duty and marking purposes. The goods at issue are advanced in value and improved in condition in Canada by the cutting and sewing processes. Therefore, in accordance with T.D. 90-17 and section 12.130(c), the country of origin of the goods
made from U.S.-origin fabric will be Canada for all purposes. Accordingly, for these goods, they shall be marked "Made in Canada."

For the place mats made from both non-originating and U.S.-origin fabric, the requisite rule of 19 CFR 102.21(e) is not met because the fabric-making process occurs in more than a single country. Accordingly, resort must be made to section 102.21(c). Section 102.21(c)(3) governs instances where country of origin of a textile or apparel product cannot be determined pursuant to paragraphs (c)(1) or (c)(2) and provides:

(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)(3) is not applicable because the place mats are not knit to shape and they are classified in heading 6302 which is mentioned in section 102.21(c)(3)(ii). Therefore, section 102.21(c)(4) must be applied.

Section 102.21(c)(4) provides "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."

We find that the most important manufacturing process occurs when the fabric is made which imparts the design of the place mat (i.e., the top layer of the place mat). Therefore, the country of origin of the place mat will be the country of origin of that particular fabric. If it is non-originating, then as stated above the place mat shall be marked "Made in (country of origin of non-originating fabric). If the top layer is of U.S. origin, then in accordance with T.D. 90-17 and section 12.130(c), the country of origin will be Canada for all purposes and the place mat shall be marked "Made in Canada".

HOLDING:

Based upon the information and samples submitted, the tablecloth and napkin are classified under subheading 6302.53.0020, HTSUS, which provides for bed linen, table linen, toilet linen and kitchen linen, other table linen, of man-made fibers, tablecloths and napkins, other, textile category 666, and dutiable at the rate of 12.2 percent ad valorem.

The table runner is classified under subheading 6302.51.4000, HTSUS, which provides for bed linen, table linen, toilet linen and kitchen linen, other table linen, of cotton, other, textile category 369, and dutiable at the rate of 6.8 percent ad valorem.

The place mat is classified under subheading 6302.53.0030, HTSUS, which provides for bed linen, table linen, toilet linen and kitchen linen, other table linen, of man-made fibers, other, textile category 666, and dutiable at the rate of 12.2 percent ad valorem.

Pursuant to 19 CFR 102.21(c)(2) and 19 CFR 102.21(e), the country of origin of the tablecloth, napkin, and table runner made from non-originating fabric will be the country of origin of the fabric, and these goods shall be marked "Made in (country of origin of non-originating fabric)" and are subject to the visa/quota of that particular country. Pursuant to 19 CFR 102.21(c)(2), 19 CFR 102.21(e), and 19 CFR 12.130(c), the country of origin of the tablecloth, napkin, and table runner made from U.S.-origin fabric will be Canada, and these goods shall be marked "Made in Canada". Pursuant to 19 CFR 102.21(c)(4), the country of origin of the place mat made with non-originating and U.S.-origin fabric will be the country of origin of the top layer of the place mat (i.e., the layer that imparts its design), and it shall be marked either "Made in (country of origin of non-originating fabric)" or "Made in Canada" and is subject to the visa/quota of the country of the particular non-originating fabric.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John Durant, Director
Commercial Rulings Division

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