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 > 2001 HQ Rulings > HQ 561687 - HQ 562036 > HQ 561736

Previous Ruling Next Ruling
HQ 561736




June 22, 2001

MAR-05 RR:CR:SM 561736 BLS

CATEGORY: MARKING

Ms. Theresa A. Gleason
Baker & McKenzie
815 Connecticut Avenue, N.W.
Washington, D.C. 20006-4078

RE: Country of origin marking of Arthritis Relief Mitt and Neck and Shoulder Stress Relief Pad

Dear Ms. Gleason:

This is in reference to your letter dated May 3, 2000, on behalf of R.G. Barry Corporation, requesting a ruling concerning the classification and country of origin marking of an Arthritis Relief Mitt and Neck and Shoulder Stress Relief Pad imported from Mexico. In a letter dated March 7, 2001 (Headquarters Ruling Letter (HRL) 964061, copy enclosed), Customs issued a ruling on the classification of the imported products. We regret the delay in responding.

FACTS:

Arthritis Relief Mitt

The Arthritis Relief Mitt is intended to be worn on the hand to soothe the effects of arthritis. It is comprised of (1) a textile cover, (2) two water-based energy packs and (3) a magnet. The textile cover is assembled in Mexico or China from either (a) Chinese formed and cut fabric or (b) U.S. formed and cut fabric. The two water based energy packs are made under patent in the U.S. from U.S.-origin materials. The magnet is assembled in Mexico from either (a) a precut Chinese origin magnet strip and Chinese origin fabric trimming or (b) a precut U.S. origin magnet strip and U.S. origin fabric trimming.

The textile cover includes three separate pouches; one for each of the two water- based energy packs and one for the magnet. The two water-based energy packs and the fabric-trimmed magnet are inserted into the textile cover in Mexico prior to importation of the completed Mitt into the U.S.

2

Neck & Shoulder Stress Relief Pad

The Neck & Shoulder Stress Relief Pad is intended to be used to soothe stress and tension in the neck and shoulder area. Similar to the Arthritis Relief Mitt, this product is also comprised of (1) a textile cover, (2) two water-based energy packs and (3) a magnet.

The textile cover is assembled in Mexico or China from either (a) Chinese formed and cut fabric or (b) U.S. formed and cut fabric. The two water-based energy packs are made under patent in the U.S. from U.S. origin materials. The magnet is assembled in Mexico from either (a) a precut Chinese origin magnet strip and Chinese origin fabric trimming or (b) a precut U.S. origin magnet strip and U.S. origin fabric trimming.

The textile cover includes three separate pouches, one for each of the two water-based energy packs and one for the magnet. The two water-based energy packs and the fabric-trimmed magnet are inserted into the fabric cover in Mexico prior to importation of the completed Pad into the U.S..

ISSUE:

What are the marking requirements for the imported products?

LAW AND ANALYSIS:

The marking statute, section 304 of the 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 United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304.

The country of origin marking requirements for a “good of a NAFTA country” are also determined in accordance with Annex 311 of the NAFTA, as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057) (December 8, 1993) and the regulations set forth in 19 CFR Parts 102, 134.

3

Section 134.1(b) (19 CFR §134.1(b)) of the regulations defines “country of origin” as:

The country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin”; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.

Section 134.1(j) provides that the “NAFTA Marking Rules” are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules.

Part 102 of the regulations (19 CFR Part 102), sets forth the “NAFTA Marking Rules” for purposes of determining whether a good is a good of a NAFTA country. Section 102.11 of the regulations (19 CFR §102.11) sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.11(a) provides that “[t]he country of origin of a good is the country in which:

(1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other requirements of these rules are satisfied.”

“Foreign Material” is defined in section 102.1(e) of the regulations as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.”

Origin of Materials

Since neither the Arthritis Relief Mitt nor the Neck and Shoulder Stress Relief Pad is wholly obtained or produced, nor produced exclusively from domestic (Mexican)

4
materials, section 102.11(a)(3) is the applicable rule which must first be applied. In order to determine whether Mexico is the country of origin under this rule, we must look at those materials whose country of origin is other than Mexico, which includes material of U.S-origin (“Foreign Material” under 19 CFR §102.11(e)). However, we must first determine the origin of these materials, which comprise the two imported products.

Textile Cover

For the textile cover, the rules of origin for textile and apparel products are applicable.

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 or after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations (19 CFR §102.21), 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.

Section 102.21(c)(1) (19 CFR §102.21(c)(1)) provides 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.” For purposes of this ruling, we will assume that none of the textile covers are “wholly obtained or produced.” (See 19 CFR 102.1(g) for definition.)

Section 102.21(c)(2) (19 CFR §102.21(c)(2)) provides 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 the good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section.”

It appears that the textile cover is classifiable in subheading 6307.90, HTSUS, “Other made up articles, including dress patterns:...Other.” (See HRL 957182 dated March 6, 1995, textile jackets for body pad/back warmer and pocket warmer). Section 102.21(e) (19 CFR §102.21(e)) provides 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:”

The country of origin of a good classifiable under subheading 5

6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

Accordingly, the country of origin of the textile covers will be either the U.S. or China, depending upon where the fabric for a particular cover is formed.

Magnets

In determining the origin of the magnets, we must refer to the NAFTA Marking Rules. Section 102.11(a)(3) of the rules must first be applied. The assembled magnet with textile trim is properly classifiable in subheading 8505.19, HTSUS, which provides for “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization.” (See HRL 962612 dated May 4, 1999). Therefore, the change in tariff classification must be made in accordance with the applicable rule set forth in section 102.20(o), Customs Regulations (19 CFR §102.20(o)), Section XVI: Chapters 84 through 85. This rule provides as follows:

A change to subheading 8505.11 through 8505.30 from any other subheading, including another subheading within that group.

As noted above, the magnet is assembled in Mexico from a precut Chinese or U.S. origin magnet strip that is trimmed in Mexico with Chinese or U.S. origin fabric. It is our opinion that the magnet strip imported into Mexico is also classifiable in subheading 8505.19, HTSUS. See HRL 964061. It appears from your telephonic description (May 15, 2001) that the fabric strip is classifiable in heading 5806.

As the Chinese or U.S. origin magnet strip does not undergo the applicable change in tariff classification set out in section 102.20(o), section 102.11(b) of the hierarchal rules must be applied next to determine the country of origin of the assembled magnet.

Section 102.11(b) of the regulations provides, in pertinent part, that where the country of origin cannot be determined under paragraph (a), the country of origin of the good is the country or countries of origin of the single material that imparts the essential character of the good. Section 102.18(b)(1) provides the following:

For purposes of identifying the material that imparts the essential character to a good under § 102.11, the only materials that shall be taken into consideration are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed

6
under the § 102.20 specific rule or other requirements applicable to the good. For purposes of this paragraph (b)(1):

(iii) If there is only one material that is classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good, then that material will represent the single material that imparts the essential character to the good under § 102.11.

In this case, the one material that does not undergo the applicable tariff shift is the magnet strip. Therefore, as the magnet strip is the material that imparts the essential character to the good, the country of origin of the assembled magnet will be China or the U.S., -- the country of origin of the magnet strip.

As noted above, the country of origin of the energy packs is the U.S.

Origin of Arthritis Relief Mitt and Neck & Shoulder Stress Relief Pad

We must now apply the NAFTA Marking Rules to determine the country of origin of the imported products, i.e., the Arthritis Relief Mitt and the Neck and Shoulder Stress Relief Pad. Section 102.11(a)(3) is the applicable rule which must first be applied. It is Customs opinion that the Arthritis Relief Mitt and the Neck and Shoulder Stress Relief Pad are properly classifiable in subheading 8505.19, HTSUS. See HRL 964061. Therefore, the change in tariff classification must be made in accordance with the applicable rule set forth in section 102.20(o), Customs Regulations (19 CFR §102.20(o)), Section XVI: Chapters 84 through 85. As noted above, this rule provides as follows:

A change to subheading 8505.11 through 8505.30 from any other subheading, including another subheading within that group.

It is Customs opinion that the energy packs are classifiable in subheading 3924.90.55, HTSUS. See HRL 964054 dated March 7, 2001.

As the assembled magnet (classifiable in subheading 8505.19) does not undergo the applicable change in tariff classification set out in section 102.20(o), section 102.11(b) of the hierarchal rules must also be applied under this scenario to determine the country of origin of this material.

7

Under section 102.11(b) of the regulations (see above), the country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good. Pursuant to section 102.18(b)(1), above, the only materials that shall be taken into consideration in determining essential character are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed. In this case, as there is only one material that is classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 rule, then that material will represent the single material that imparts the essential character to the good under § 102.11. (See 19 CFR 102.18(b)(1)(iii).)

In this case, the only material that does not undergo the applicable tariff shift is the magnet. Therefore, as the U.S. or Chinese origin magnet is the material that imparts the essential character to the good, the country of origin of the imported products is China or the U.S., -- the country of origin of the magnet.

HOLDING:

Based on the information provided, and pursuant to 19 CFR 102.11(b), the U.S. or Chinese origin magnet is the material that imparts the essential character to the good. See 19 CFR 102.18(b)(1). Therefore, the country of origin of the Arthritis Relief Mitt and the Neck and Shoulder Stress Relief Pad is either China or the U.S., the country of origin of the magnet.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John Durant, Director
Commercial Rulings Division


Previous Ruling Next Ruling

See also: