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HQ 961169




February 18, 1998

CLA-2 RR:TC:TE 961169 jb

CATEGORY: CLASSIFICATION

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 determination for "Fabric Trinket Boxes": 19 CFR ?102.21(c)(5); last country in which an important assembly or manufacturing process occurs

Dear Mr. Epstein:

This is in reply to your letter dated September 15, 1997, requesting classification under the Harmonized Tariff Schedule of the United States (HTSUS), and country of origin determination for certain tariff trinket boxes. Samples were submitted to this office for examination.

FACTS:

The submitted merchandise consists of three styles of fabric trinket boxes:

Style 1080(1) is a fabric covered cylindrical cardboard trinket box measuring approximately 3.5 inches in diameter and 3.5 inches in height. The box features a removable lid with tassel attached at the center of the lid. The exterior of the box is covered with 100 percent polyester ottoman woven fabric. The bottom of the exterior of the box as well the bottom of the interior of the box, and walls, are covered with satin woven fabric of 100 percent acetate. The lid of the box is covered on the exterior with knit pile fabric; the lid's interior is covered with the same satin acetate as the box interior. The top of the lid is padded with a plastic foam material. We note that several inconsistencies exist between the samples submitted to this office and data indicated in your submission. Namely: the ottoman fabric covers the body of the box, and not as you indicate, on the lid; although you state the exterior of the box is composed of polyester velvet, examination reveals that the lid is covered with knit pile fabric, which we assume you refer to as "velvet", although no velvet exists on this sample; the interior of the box is covered by satin woven fabric; the padding on the lid is constructed of cellular plastic padding, and not as you indicate, 45 percent polyester and 55 percent cotton fabric.

The manufacturing process for this sample is as follows:

Korea polyester ottoman woven fabric is formed acetate satin woven fabric is formed

Taiwan polyester knit pile fabric is knit

China cardboard, polyester tassel and polyester trimming are produced all fabric is cut into component pieces assembly by gluing and sewing

Style 1080(2) is a fabric covered cylindrical cardboard trinket box measuring approximately 3.5 inches in diameter and 3.5 inches in height. The box features a removable lid with tassel attached at the center of the lid. The exterior of the box is covered with 100 percent polyester ottoman woven fabric. The bottom of the exterior of the box as well the bottom of the interior of the box, and walls, are covered with satin woven fabric of 100 percent acetate. The lid of the box is covered on the exterior with fabric composed of 55 percent cotton and 45 percent woven tapestry; the lid's interior is covered with the same satin acetate as the box interior. The top of the lid is padded with a plastic foam material. We note that several inconsistencies exist between the samples submitted to this office and data indicated in your submission. Namely: the ottoman fabric covers the body of the box, and not as you indicate, on the lid; although you state the exterior of the box is composed of cotton/polyester woven tapestry fabric, examination reveals that the lid is covered with the woven tapestry fabric; the interior of the box is covered by satin woven fabric; the padding on the lid is constructed of cellular plastic padding, and not as you indicate, 45 percent polyester and 55 percent cotton fabric.

The manufacturing process for this sample is as follows:

Korea polyester ottoman woven fabric is formed acetate satin woven fabric is formed

China cardboard, polyester tassel and polyester trimming are produced cotton/polyester jacquard woven tapestry fabric is woven all fabric is cut into component pieces assembly by gluing and sewing

Style 1080(3) is a fabric covered oval cardboard trinket box measuring approximately 5 inches in diameter and 4 inches in height. The box features a removable lid with a textile cordage bow attached at the center of the lid. The exterior of the box is covered with 100 percent polyester ottoman woven fabric. The bottom of the exterior of the box as well the bottom of the interior of the box, and walls, are covered with satin woven fabric of 100 percent acetate. The lid of the box is covered on the exterior with knit pile fabric; the lid's interior is covered with the same satin acetate as the box interior. The top of the lid is padded with a plastic foam material. We note that several inconsistencies exist between the samples submitted to this office and data indicated in your submission. Namely: the ottoman fabric covers the body of the box as well as a small portion of the lid's side, and not as you indicate, simply on the lid; you state the exterior of the box is composed of polyester velvet, while examination reveals that the lid is covered with knit pile fabric which we assume you refer to as "velvet", although no velvet exists on this sample; the interior of the box is covered by satin woven fabric; the padding on the lid is constructed of cellular plastic padding, and not as you indicate, 45 percent polyester and 55 percent cotton fabric;

The manufacturing process for this sample is as follows:

Korea polyester ottoman woven fabric is formed acetate satin woven fabric is formed

Taiwan polyester knit pile fabric is knit

China cardboard, polyester tassel and polyester trimming are produced cotton/polyester jacquard woven tapestry fabric is woven all fabric is cut into component pieces assembly by gluing and sewing

ISSUE:

What is the country of origin of the submitted merchandise?

LAW AND ANALYSIS:

Classification

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of Interpretation. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. Where goods cannot be classified solely on the basis of GRI 1, the remaining GRI will be applied, in the order of their appearance.

We would first like to acknowledge that heading 4202, HTSUS, which provides for among other things, jewelry boxes, is not a heading under consideration in the classification of this merchandise. It is Customs position that a box be specially designed with features for holding or displaying jewelry in order for the merchandise to be classified as such. See e.g., HQ 952566, dated December 29, 1992; HQ 088571, dated May 31, 1991; HQ 087367, dated September 5, 1990. As the subject merchandise is not fitted to hold jewelry or other items, and may be used to hold a number of articles, it is not classifiable in heading 4202, HTSUS.

The subject merchandise is composed of both cardboard and textile materials. General Rule of Interpretation 3 states:

(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) 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 Explanatory Notes to the Harmonized Commodity Description and Coding System (EN) for GRI 3(b) state that some of the factors that may be considered in determining which material provides the essential character to a composite good include bulk, quantity, weight, and the role of the material in relation to the use of the product. In this case the principle materials are cardboard and textile fabric. As such, the competing provisions for this merchandise are heading 4823, HTSUS, which provides for other articles of paperboard, and heading 6307, HTSUS, which provides for other made up textile articles (a basket provision for articles which are not described more specifically elsewhere in the tariff)

As was stated in HQ 953393, dated April 16, 1993, classifying similar merchandise:

In this case, the textile fabrics enhance the marketability of the box and distinguish it from ordinary, unadorned boxes. On the other hand, the cardboard components lend the article its structure and form. In HRL 952566 and HRL 087367, we issued rulings with respect to similar textile covered cardboard boxes. In those instances, we concluded that the
cardboard and textile materials each contributed substantially to the final product. Hence, we were unable to determine which material imparted the essential character to the completed boxes. We see no reason to deviate from this precedent in this case.

Similarly, in the case of the subject merchandise, as we cannot accurately determine a classification based on GRI 3(b), we proceed to GRI 3(c) which states:

When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

Accordingly, as between headings 4823 and 6307, HTSUS, the latter is the applicable heading occurring last in numerical order. See also HQ 085148, dated November 9, 1989 and HQ 086109, dated April 11, 1990, wherein similar merchandise was classified in heading 6307, HTSUS.

Country of origin

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.

The subject merchandise is classifiable in subheading 6307.90, HTSUS. As the fabric comprising this merchandise for all styles, is not formed in a single country, the terms of section 102.21(c)(2) 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 to shape and subheading 6307.90, HTSUS, is excepted from 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. In the case of the subject merchandise, the most important manufacturing operation occurs at the time of the fabric formation. As the fabric formation for this merchandise occurs in more than one country, and no one fabric can be considered more important in this case, country of origin cannot be readily determined based on the fabric making process. As such, paragraph (c)(4) is not applicable.

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. Accordingly, in the case of the subject merchandise, the last country in which an important assembly operation occurs is China.

HOLDING:

The subject merchandise, referenced styles 10810(1), 10810(2), and 10810(3) are classified in subheading 6307.90.9989, which provides for other made up articles, including dress patterns: other: other: other: other: other: other. The applicable rate of duty is 7 percent ad valorem.

The country of origin of the subject fabric covered trinket boxes is China.

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

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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