United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1998 HQ Rulings > HQ 961087 - HQ 961242 > HQ 961166

Previous Ruling Next Ruling
HQ 961166




February 18, 1998
CLA-2 RR:TC:TE 961166 jb

CATEGORY: CLASSIFICATION

Christopher L. Thayer, Esq.
Hallmark Cards, Inc.
Kansas City, Missouri 64141

RE: Classification and country of origin determination for textile pumpkins; section 102.21(c)(4); single country in which the most important assembly or manufacturing process occurs; section 102.13; De Minimis

Dear Mr. Thayer:

This is in reply to your letter dated September 26, 1997, requesting a country of origin determination for certain textile pumpkins imported into the United States. Samples were submitted to this office for examination and will be returned under separate cover.

FACTS:

The submitted merchandise consists of two decorative textile pumpkins made of various fabrics and stuffed with polyester fiber. The first sample, style HHD3623 (labeled "1"), weighs approximately 342 grams, measures approximately 9 inches in diameter, and is composed of an outer covering of 100 percent polyester knit pile fabric which has been heat embossed with a floral design; this fabric weighs 44 grams and represents 12.8 percent of the total weight of this article. A 100 percent cotton twill woven fabric lines the pumpkin's outer covering and lies between the outer knit velour fabric and the polyester stuffing; the cotton twill lining weighs 34 grams and represents approximately 10 percent of the total weight of the article. A 100 percent polyester tricot knit fabric is used to form the stem of the pumpkin; this tricot knit fabric weighs 3 grams and represents approximately 1 percent of the total weight of the article. A narrow woven fabric made of metallized yarn is formed into a bow which is attached to the stem of the pumpkin; this narrow woven fabric weighs 7 grams and represents approximately 2 percent of the total weight of the article. An elastic cord is wrapped around the article in such a way as to divide the pumpkin into different sections.

The manufacturing operations for this merchandise are:

Taiwan
100 percent polyester knit pile fabric is formed stuffing is manufactured

China
100 percent cotton twill fabric is formed 100 percent polyester tricot knit fabric is formed metallized ribbon is formed elastic cord is manufactured cutting, sewing, stuffing and packaging

The second sample, style HHD3623 (labeled "2"), weighs approximately 316 grams, measures approximately 9 inches in diameter, and is composed of an outer covering of 100 percent polyester knit pile fabric which has been heat embossed with a floral design; this fabric weighs 44 grams and represents 13.9 percent of the total weight of this article. A 100 percent polyester needle punch felt or nonwoven fabric lines the pumpkin's outer covering and lies between the outer knit velour fabric and the polyester stuffing (we presume that this layer is what you refer to as "spray padding"); this nonwoven fabric lining weighs 22 grams and represents approximately 6.9 percent of the total weight of the article. A 100 percent polyester tricot knit fabric is used to form the stem of the pumpkin; this tricot knit fabric weighs 3 grams and represents approximately 1 percent of the total weight of the article. A narrow woven fabric made of metallized yarn is formed into a bow which is attached to the stem of the pumpkin; this narrow woven fabric weighs 7 grams and represents approximately 2 percent of the total weight of the article. An elastic cord is wrapped around the article in such a way as to divide the pumpkin into different sections.

The manufacturing operations for this merchandise are:

Taiwan
100 percent polyester knit pile fabric is formed stuffing is manufactured

China
100 percent polyester needle punch felt is formed 100 percent polyester tricot knit fabric is formed metallized ribbon is formed elastic cord is manufactured cutting, sewing, stuffing and packaging

ISSUE:

1. What is the country of origin of the submitted merchandise?

2. Is the lining present in the second style, "2", considered fabric?

3. How is the De Minimis rule applied?

4. Which components are considered minor attachments and minor embellishments?

5. What is the appropriate marking for 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 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, territory or insular possession, 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".

Paragraph (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:"

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.

General rule (c) of Part 102.21 states that "Subject to paragraph (d) of this section, the country of origin of a textile or apparel product shall be determined by sequential application of paragraphs (c)(1) through (c)(5) of this section and, in each case where appropriate to the specific context, by application of the additional requirements or conditions of ??102.12 through 102.19 of this part." Section 102.13, which sets out the De Minimis rule states, in relevant part:

(c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in ?102.21 or satisfy the other applicable requirements of that section when incorporated into a textile or apparel product covered by that
section shall be disregarded in determining the country of origin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good.

In determining "De Minimis" for any one good, the aggregate weight, i.e., total weight, of all of the foreign components is taken into consideration. Accordingly, for style "1", the weight of the outer polyester knit pile fabric is formed in Taiwan and weighs approximately 12.8 percent of the total weight of the good; the other three fabrics (twill fabric, tricot knit fabric and metallized woven ribbon) are formed in China and represent approximately 13 percent of the total weight of the good. For style "2", the weight of the outer polyester knit pile fabric is formed in Taiwan and weighs approximately 13.9 percent of the total weight of the good; the other three fabrics (polyester needle punch felt fabric, tricot knit fabric and metallized woven ribbon) are formed in China and represent approximately 9.9 percent of the total weight of the good. As such, in both the case of styles "1" and "2", as the total weight, each, of the fabrics produced in Taiwan and China exceeds 7 percent of the total weight of the good, as per the terms of the DeMinimis rule, the fabrics formed both in Taiwan and China must be taken into consideration in determining the appropriate origin for the subject merchandise.

As you correctly state in your submission, the subject merchandise is classifiable in subheading 6307.90.9989, HTSUSA, a basket provision for articles not elsewhere more specifically provided for in the tariff. When determining the appropriate country of origin for this merchandise, we do not take the stuffing into consideration. The stuffing present in the subject merchandise is in the form of loose fibers and therefore not considered a fabric. However, in answer to your question with respect to the lining in the pumpkin labeled as "2", the needle punch felt is considered a fabric and therefore taken into consideration in determining the origin of this merchandise. As the fabric for this merchandise is formed in more than one country (namely, for style "1", the polyester knit pile fabric formed in Taiwan, and the cotton twill fabric, polyester tricot knit fabric, and metallized woven ribbon formed in China; and for style "2", the polyester knit pile fabric formed in Taiwan, and the polyester needle punch felt fabric, polyester tricot knit fabric, and metallized woven ribbon formed in China) , the terms of the tariff shift are not met.

Paragraph (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 heading 6307.90 is excepted by provision (ii), paragraph (c)(3) is inapplicable.

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. It is the opinion of this office that in the case of the subject merchandise the most important manufacturing process occurs at the time of the fabric-making. Although the fabric-making process for the subject textile pumpkins occurs in both Taiwan and China, it is the position of this office that the knit pile fabric formed in Taiwan is more important than the fabrics formed in China, both in the way of the weight of the knit pile fabric in relation to the other fabrics, as well as in providing the aesthetic appeal and saleability of the article. As such the most important manufacturing process occurs in Taiwan, the country where the knit pile fabric is formed.

While not in issue in the case of the subject merchandise, you inquire which components would be considered minor attachments or embellishments. Paragraph (b)(6) defines "wholly assembled" as:

The term "wholly assembled" when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as "wholly assembled" in a single country, territory, or insular possession.
Emphasis added
.
In the case of the subject merchandise, the operations of sewing the elasticized cord onto the pumpkin under the base of the pumpkin's stem, and sewing the metallized ribbon onto the pumpkin at the place where the ribbon forms a knot, at the center of the pumpkin's stem, are considered minor attachments and minor embellishments.

You ask in your letter whether the following proposed markings are 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: "Fabric Made in Taiwan, Product Sewn in China", "Fabric Made in Taiwan, Assembled in China", "Fabric Made in Taiwan, Finished in China", "Made in Taiwan, Assembled in China". The above proposed markings are not consistent with the origin rules set forth in section 102.21, Customs Regulations, nor with the country of origin marking requirements in Part 134, Customs Regulations. An acceptable marking for these products is "Made in Taiwan", "Taiwan", "Product of Taiwan", "Made in Taiwan, Product Sewn in China", "Made in Taiwan, Finished in China", and "Made in Taiwan, Sewn in China".

HOLDING:

The country of origin of the subject merchandise, referenced styles HHD3623 "1" and "2", is Taiwan.

An acceptable marking for these products is "Made in Taiwan", "Taiwan", "Product of Taiwan", "Made in Taiwan, Product Sewn in China", "Made in Taiwan, Finished in China", and "Made in Taiwan, Sewn in 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 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

Previous Ruling Next Ruling

See also: