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HQ 961161




January 30, 1998

CLA-2 RR:TC:TE 961161 RH

CATEGORY: CLASSIFICATION COUNTRY OF ORIGIN

TARIFF NO.: 6307.90.9989

Arlen T. Epstein, Esq.
Serko & Simon, LLP
One World Trade Center
Suite 3371
New York, NY 10048

RE: Classification and country of origin of miniature pillows; heading 6307;
19 C.F.R. ?102.21(c)(5); last country where an important assembly or manufacturing process occurred

Dear Mr. Epstein:

This is in reply to your letter dated September 18, 1997, on behalf of Russ Berrie and Company, Inc., requesting a ruling on the classification and country of origin of miniature fabric pillows.

You enclosed samples of three miniature pillows for us to examine. In order to return the samples, as you requested, you will need to contact this office and provide us with your Federal Express account number.

FACTS:

The merchandise under consideration consists of three miniature fabric pillows used as a decorative accent in the household. All of the pillows measure less than 8" x 6" and are too small to support the head or neck.

Style number 17090(a) is a circular pillow approximately 7.5 inches in diameter. The back of the pillow is constructed from satin fabric. The front of the pillow is composed of four triangular panels. Two panels are made from jacquard tapestry fabrics. One panel is made from polyester knit pile fabric and the last panel is made from a woven cord fabric. A decorative tassel and cord are sewn onto the center of the pillow. Production of the pillow occurs in three countries:

South Korea
- weave 100 percent acetate satin fabric

Taiwan
- weave jacquard woven tapestry fabrics composed of 65 percent polyester and 35 percent cotton
- knit 100 percent polyester pile fabric
- weave 100 percent polyester cord fabric - form polyester tassel and cord

China
- form batting material
- cut and sew Korean and Taiwanese fabrics to form pillow - attach tassel
- stuff batting material into pillow and finish

Style 17090(b) is a rectangular shaped pillow which measures approximately 7 inches long and 5 inches wide. The back of this pillow is manufactured from polyester woven fabric. The front of the pillow has three rectangular panels. The two outer panels are made from polyester knit pile fabric. The center panel is 100 percent acetate satin fabric. An embroidered sheer plain woven fabric is inserted over the center panel. A polyester trimming tape with fringe is sewn onto two edges of the pillow. Production of the pillow occurs as follows:

South Korea
- weave 100 percent acetate satin fabric

Taiwan
- weave 100 percent polyester fabric
- weave and embroider 100 percent nylon fabric - knit 100 percent pile fabric
- form polyester trimming tape with fringe

China
- form batting material
- cut and sew Korean and Taiwanese fabrics to form pillow - sew trimming tape to edges of pillow
- stuff batting material into pillow and finish

The last style, 17090(c), is a square pillow that measures approximately 6 inches on a side. The back is made of 100 percent polyester pile fabric. The front is composed of two panels made of 100 percent polyester pile fabrics and two panels from 100 percent embossed woven polyester fabric (we note that you incorrectly describe these fabrics as knit). Trimming tape with fringe is sewn along two edges of the pillow. Production of this pillow occurs in the following countries:

South Korea
- weave embossed polyester fabric

Taiwan
- knit 100 percent pile fabric
- form trimming tape with fringe

China
- form batting material
- cut and sew Korean and Taiwanese fabrics to form pillow - sew trimming tape with fringe onto edges of pillow - stuff batting material into pillow and finish

You contend that the correct classification of the miniature pillows is in subheading 6307.90.9989 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as an other made up textile article, and that their country of origin is Taiwan, where the fabric that predominantly comprises the outer covering was formed. You claim that fabric provides the decorative and aesthetic appeal to the pillows.

ISSUE:

What are the classification and country of origin of the miniature pillows?

LAW AND ANALYSIS:

Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI's). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's may then be applied.

The classification of miniature pillows which are not capable of being used to cushion the head or bodies, such as the ones at issue, is well established under heading 6307, as other made up textile articles. See Headquarters Ruling Letter (HQ) 086646, dated June 8, 1990; HQ 087446, dated July 16, 1990; HQ 089911, dated September 4, 1991; HQ 089773, dated August 29, 1991.

As you know, on December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, 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 (5) of Section 102.21.

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 merchandise is not wholly obtained or produced in a single country, paragraph (c)(1) of Section 102.21 is inapplicable.

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." The three miniature pillows at issue would be classified under subheading 6307.90, HTSUSA. The rule for subheading 6307.90, HTSUSA, states:

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.

In another case involving decorative pillows, Customs ruled in HQ 960337, dated April 22, 1997, that paragraph (c)(2) is not applicable where fabric comprising the pillows was formed in both Belgium and the United States. See also, HQ 959742, dated October 28, 1996 (where the furniture moving pad fabric is formed in more than one country paragraph (c)(2) is not applicable). Like those cases, the fabric comprising the miniature pillows was formed in more than one country (South Korea, Taiwan and China) and, therefore, country of origin cannot be determined under

Paragraph (c)(3) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (c)(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 falls within an excepted provision under (c)(3)(ii), the country of origin is not determinable under paragraph (c)(3).

Paragraph (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 process is fabric formation. However, we disagree with you that forming Taiwanese fabric is the most important operation. Since fabric formations occurred in three countries, we resort to the last multi-country rule.

Paragraph (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." It is clear in this case that China is the last country where an important assembly occurred because that is where all of the components were assembled into the miniature pillows. Accordingly, the country of origin is China.

Finally, marking the pillows "Made in China" is consistent with the origin rules set forth in section 102.21, Customs Regulations, and with the country of origin marking requirements in Part 134, Customs Regulations. To obtain more information on marking requirements or to obtain a binding ruling on that subject, you may write to the Chief, Marking and Special Classification Branch, U.S. Customs Service, Office of Regulations and Rulings, 1300 Pennsylvania Avenue, N.W., Washington, D.C. 20229.

HOLDING:

The miniature pillows are classifiable under subheading 6307.90.9989, HTSUSA, as other made up textile articles. They are dutiable at the general column one rate of duty at 7 percent ad valorem.

The country of origin is China.

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, 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. 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.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

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 importing the merchandise to determine the current applicability of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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