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February 17, 1999

CLA?2-RR:NC:TA:350:D87079

CATEGORY: CLASSIFICATION

Mr. Jason M. Waite
Grunfeld, Desiderio, Lebowitz & Silverman LLP 303 Peachtree Street, N.E., Suite 2980
Atlanta, Georgia 30308

RE: Classification and country of origin determination for quilted textile piece goods from Canada; 19 CFR 102.21(c)(5).

Dear Mr. Waite:

This is in reply to your letter dated January 25, 1999, on behalf of American Recreation Products, Inc., requesting a classification and country of origin determination for quilted textile fabric which will be imported into the United States. Your reference 99-8003-1(27).

FACTS:

The subject merchandise is quilted textile piece goods consisting of a polyester batting fill layer sandwiched between two outer layers of other material with stitching through all three layers. Specifically, your letter mentions two possible scenarios as follows:

Scenario One

First layer: woven polyester fabric of Indonesian origin.

Second layer: batting or wadding fabric produced in Canada, i.e., made in Canada from Korean fibers.

Third layer: nonwoven 100% polypropylene man-made fiber spun bonded fabric from either the United States or Turkey.

Scenario Two
First layer: the same woven polyester fabric of Indonesian origin.

Second layer: the same batting or wadding fabric produced in Canada of Canadian origin, i.e., made in Canada from Korean fibers.

Third layer: the Indonesian woven polyester fabric.

In both scenarios, the quilting of the fabric occurs in Canada.

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

This material, by its construction, i.e., composed of one or more layers of textile materials assembled with padding by stitching or otherwise, is classifiable in subheading 5811.00.3000, Harmonized Tariff Schedules of the United States, HTSUSA, which provides for quilted textile products in the piece, ... of man-made fibers. The duty rate is 12 percent ad valorem.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

The analysis that follows below is applicable both to Scenario One and Scenario Two.

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 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:”

HTSUS Tariff shift and/or other requirements

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 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 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, i.e., the joining together of all three layers to form the completed material, which is the quilted textile product.

You are correct in that the Headquarters letter you cite, HQ 960058, closely parallels your situation, with the same conclusion arrived at herein.

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 sections states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

This position is clearly set forth in section 19 CFR 177.9(b)(1). This sections states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

MARKING

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.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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.

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist George Barth at 212-637-7085.

Sincerely,

Robert B. Swierupski
Director,

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