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HQ 960388




April 11, 1997

CLA-2 RR:TC:TE 960388 RH

CATEGORY: CLASSIFICATION

Angel L. Cooper
A.N. Deringer, Inc.
173 W. Service Road
Champlain, NY 12919

ATTN: Gloria Columbe

RE: Country of origin determination for pillows; 19 C.F.R. 102.21(c)(4); most important manufacturing process

Dear Ms. Cooper:

On January 27, 1997, Customs issued Headquarters Ruling Letter (HQ) 959620 regarding the country of origin of pillows. Pursuant to 19 C.F.R. 102.21(c)(4), we held that the most important manufacturing process occurred in Belgium where the outer shell of the pillow fabric was made. Thus, Belgium was the country of origin.

In issuing that ruling, we assumed that the fabric forming the outer shell of the pillows was cotton, although that fact was not stated in the "FACTS" portion of the ruling. We subsequently asked you to notify our office if the fabric was other than of cotton, and we have not received information to the contrary. Accordingly, this ruling is issued to clarify the facts described in HQ 959620 so that your company, as well as third parties, will be fully aware of the facts upon which we based that decision.

FACTS:

The pillows described in your letter will be made of cotton fabric which is woven in Belgium. Cotton batting is formed in continuous lengths in rolls in Canada. The Belgian cotton fabric is cut and sewn into pillow shells and stuffed with the batting in Canada.

You specifically ask whether the cotton batting is a fabric. If so, you want to know if the multi-processing rules are applicable and what will be the country of origin of the pillows.

ISSUE:

What is the country of origin of the subject merchandise? - 2 -

LAW AND ANALYSIS:

On September 5, 1995, Customs published in the Federal Register (60 FR 46188)
T.D. 95-69 which set forth final amendments to the Customs Regulations to implement the provisions of section 334 (b) of the Uruguay Round Agreements Act ("the Act"), Public Law 103-465, 108 Stat. 4809, codified at 19 U.S.C. ?3592, regarding the country of origin of textile and apparel products. These final regulations apply to goods entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. The regulatory provisions in T.D. 95-69 that implement the basic origin principles of section 334(b) of the Act are contained in a new ?102.21 of the Customs Regulations (19 C.F.R. 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 neither wholly obtained nor 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":

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.

In this case, the cotton fabric used to make the pillow shells is formed (woven) in Belgium. Moreover, in response to your question, the batting used to stuff the pillows is considered a Canadian fabric as it is formed in continuous lengths in rolls in that country. Since fabric is formed in two countries, the terms of section 102.21(e) are not applicable.

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 and provision (ii) excepts heading 9404.90, HTSUS, section 102.21(c)(3) is also not applicable.

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 this case, the most important manufacturing process occurs in Belgium at the time of the fabric making process of the outer shell of the pillows, which actually forms the merchandise. Moreover, basing the country of origin determination on the fabric making process carriers out the clear intent of Section 334 as expressed in Section 334(b)(2). Accordingly, the country of origin for the pillows is Belgium.

HOLDING:

The country of origin of the subject pillows is Belgium.

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 C.F.R. 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 C.F.R. 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 C.F.R. 177.2.

Finally, we note that although the cotton batting is from Canada and some of the processing of the merchandise occurs in that country, you did not ask us to determine whether your merchandise is eligible for preferential treatment under the North American Free Trade Agreement (NAFTA). If you would like us to address any issues under the NAFTA, you will need to submit another ruling request. Please note, however, that the country of origin of your merchandise may change under the NAFTA.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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