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NY F86474




June 6, 2000

CLA-2-RR:NC:TA:350 F86474

CATEGORY: CLASSIFICATION

Michael G. Teeter
The Industry Government Relations Group
350 Sparks Street, Suite 1110
Ottawa, Ontario
Canada K1R 7S8

RE: Country of origin determination for quilted piece goods; Section 102.21(c)(5); last country in which an important assembly or manufacturing process occurs

Dear Mr. Teeter:

This is in reply to your letter dated April 25, 2000, requesting a country of origin determination for quilted piece goods which will be imported into the United States. Two representative samples were submitted to this office for examination under separate cover.

FACTS:

The subject merchandise consists of quilted piece goods comprised of woven outer shells of what you indicate will be fabrics of cotton and/or cotton/polyester man-made fiber blends. Your letter states that these fabrics will be obtained from China and/or Indonesia and/or Thailand, and, in some instances, these fabrics will be formed and dyed in the same country. The woven shell materials are such that either fabric could serve as the upper or under surface of the quilted material. These outer shell fabrics will sandwich a layer of high loft nonwoven batting. The batting is of a typical man-made fiber high loft nonwoven. According to your correspondence, this wadding or batting will be formed in Canada from fibers sourced in the United States and/or Canada. Finally, you state that in Canada, the fabric will be quilted and rolled for exportation to the United States. All three fabric layers are considered of equal importance to the construction of this material.

ISSUE:

What is the country of origin of 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Section 334 of that Act (codified at 19 U.S.C. §3592) provides new rules of origin for textiles and apparel entered, or withdrawn for consumption, on and after July 1, 1996.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 (c)(5) of Section 102.21.

Section 102.21(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, Section 102.21(c)(1) 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:”

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 inapplicable.

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. Although, in one situation, you indicate that both the top and bottom fabrics would be formed and dyed in the same country, the textile batting, considered a substantial fabric on its own, is from a second country. The fabric supplied for the production of the subject quilted piece goods is sourced from more than one country. It is the opinion of this office all of the fabrics comprising the quilted fabric 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 quilting of the three fabric layers to make one new material.

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.

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 C.F.R. §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 C.F.R. §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 C.F.R. §177.2.

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

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,
National Commodity

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