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HQ 960058




October 27, 1997
CLA-2 RR:TC:TE 960058 jb

CATEGORY: CLASSIFICATION

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

RE: Country of origin determination for quilted piece goods; 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 December 12, 1996, and subsequent submission of May 7, 1997, requesting a country of origin determination for quilted piece goods which will be imported into the United States. We regret the delay in our response. Samples were submitted to this office for examination.

FACTS:

The subject merchandise consists of quilted piece goods comprised of woven outer shells of either 100 percent polyester or 100 percent nylon material attached to 100 percent polyester batting or wadding fabric. The wadding or batting is formed in Canada from fibers sourced in the United States and/or Canada. Also in Canada, the fabric is quilted and rolled for exportation to the United States. In approximately 25 percent of the shipments, either a non-woven polyester or nylon or polypropylene spun-bonded backing fabric is attached to the outer shell fabric prior to quilting in Canada. The spun-bonded fabric is formed in the United States from fibers sourced in the United States.

You state that on an annual basis, in the production of these articles, approximately 25 percent of the outer shell fabrics are woven in the United States from yarn sourced in the United States. The outer shell fabrics are exported to Canada in the greige where they are dyed and finished. Approximately 25 percent of the time, the outer shell greige fabrics are imported from Belgium and dyed and finished in Canada. In the remaining 50 percent of the time the outer shells are comprised of greige fabrics that are sourced in Malaysia or Thailand and dyed and finished in Canada.

Specifically, the submitted samples consist of:

TNSO 64"

Belgium greige nylon outer shell is sourced

Canada nylon outer shell is dyed and finished quilting to Canadian manufactured wadding assembly (by quilting) to a United States formed polypropylene spun-bonded backing

TNUS 62"

United States nylon outer shell is sourced

Canada nylon outer shell is dyed and finished quilting to Canadian manufactured wadding

TNH 60"

Malaysia nylon outer shell is sourced

Canada nylon outer shell is dyed and finished quilting to Canadian manufactured wadding assembly (by quilting) to a United States woven greige fabric which is dyed and finished in Canada

ISSUE:

What is the country of origin of the subject 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 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:"

5811 The country of origin of a good classifiable under heading 5811 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

Heading 5811, Harmonized Tariff Schedule of the United States (HTSUS), is the provision for quilted textile products in the piece, composed of one or more layers of textile materials assembled with padding by stitching or otherwise, other than embroidery of heading 5810, HTSUS. The subject quilted piece goods are properly classified in heading 5811, HTSUS. As the fabric comprising the subject merchandise is formed in more than one country 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 heading 5811, 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 quilted piece goods is sourced from more than one country. In the opinion of this office all of the fabrics comprising the piece goods are of equal importance. 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, and HQ 959742, dated October 28, 1996, discussing an ironing board pad and cover, and furniture moving pads, respectively, which determined that the country of origin of the merchandise was the last country in which an important assembly and manufacturing process occurred.

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.

HOLDING:

The country of origin of the subject quilted piece goods is Canada.

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
Commercial Rulings Division

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