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NY E83773




July 23, 1999

CLA-2-RR:NC:TA:349 E83773

CATEGORY: CLASSIFICATION

Ms. Joyce E. Jones
American Pacific Enterprises Inc.
3901 Gantz Road, Suite A
Grove City, OH 43123

RE: Country of origin and marking determination for patchwork quilts; 19 CFR 102.21(c)(5): last country where an important assembly or manufacturing process occurred

Dear Ms. Jones:

This is in reply to your letter dated June 18, 1999, requesting a country of origin and marking determination for patchwork quilts which will be imported into the United States.

FACTS:

The subject merchandise consists of hand-sewn quilts. A sample was not submitted. The quilts are comprised of machine-stitched patchwork top panels, back panels and a filling made from either a 100 percent polyester batting or a 100 percent cotton batting. The back panels will be made from one, two or three pieces of fabric depending on the size of the quilt. The top and back panels are made from either 100 percent cotton or chief weight cotton blended fabrics. The quilts will be imported in twin, queen, king and infant sizes.

You have detailed two manufacturing scenarios. The manufacturing operations for the patchwork quilts are as follows:

Scenario 1
Country "A":
-cotton or cotton blend fabrics for the top panel are woven and dyed or printed. -fabrics are cut and sewn creating the patchwork top panels. -panels are shipped to country "B".

Country "B":
-fabric for the back panel is woven and dyed or printed. -fabric is cut or cut and sewn to make the back panels. -polyester batting is formed.
-top and back panels are joined to form a shell. -batting is cut to size.
-shells are stuffed, sewn closed and hand quilted. -quilts are cleaned, inspected and packed for shipment.

Scenario 2:
Country "A":
-cotton or cotton blend fabrics for the top panel are woven and dyed or printed. -fabrics are cut and sewn creating the patchwork top panels. -cotton batting is formed.
-panels and batting are shipped to country "B".

Country "B":
-fabric for the back panel is woven and dyed or printed. -fabric is cut or cut and sewn to make the back panels. -top and back panels are joined to form a shell. -batting is cut to size.
-shells are stuffed, sewn closed and hand quilted. -quilts are cleaned, inspected and packed for shipment.

ISSUE:

What are the marking and country of origin for the subject merchandise?

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's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Heading 9404, HTSUSA, provides for among other things, articles of bedding and similar furnishing fitted with springs or stuffed or internally fitted with any material. The Explanatory Notes to heading 9404, HTSUSA, include mattresses, quilts and bedspreads as examples of articles of bedding and similar furnishing. Accordingly, the subject merchandise is properly classified in subheading 9404.90, HTSUSA.

The patchwork quilts may be subject to quota and visa restrictions. Their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.USTREAS.GOV. In addition, the textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.

COUNTRY OF ORIGIN - 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 of the foreign materials 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) in pertinent part 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

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.

Accordingly, as the fabrics comprising the patchwork quilts are not formed in a single country, Section 102.21(c)(2) is inapplicable.

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 subheading 9404.90, HTSUSA, is excepted from provision (ii), Section 102.21 (c)(3) is inapplicable.

Section 102.21 (c)(4) states, "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 determining the origin of a similar patchwork quilt, it was stated in Headquarters Ruling Letter (HQ) 959547 dated August 22,1996 that "It is the belief of this office that in the case of the subject merchandise the most important manufacturing process occurs at the time of the formation of the outer shell fabric. It is the outer shell fabric which in essence, identifies the merchandise, and thus creates its saleability." However, in both of the instant scenarios the fabrics for the shell of the quilts are sourced in more than one country. As no one fabric is more important than the other, a single country of origin determination cannot be made based on Section 102.21(c)(4).

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 quilts in both scenarios, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Country "B".

MARKING:

You have also requested a ruling on whether the proposed marking "Made in Country B" is an acceptable country of origin marking for the patchwork quilts. This marking would appear on a sewn on label.

The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

The origin rules indicate that the country of origin of the finished patchwork quilt is Country "B", the last country in which an important assembly or manufacturing process occurred. The proposed marking "Made in Country B" is consistent with the origin rules for quilts under Section 102.21, Customs Regulations. Marking the quilts "Made in Country B" will satisfy the marking requirements of 19 U.S.C. 1304 and would be an acceptable country of origin marking for the finished patchwork quilts.

HOLDING:

The country of origin of the patchwork quilts is Country "B".

Pursuant to the origin rules set forth in Section 102.21 and the country of origin marking requirements of 19 U.S.C. 1304 the proposed country of origin marking "Made in Country B" is an acceptable country of origin marking for the finished quilts.

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 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 John Hansen at 212-637-7078.

Sincerely,

Robert B. Swierupski
Director,

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