NY G84101 - Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for scarves, napkins and tablecloths; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.19(a); NAFTA preference override; Article 509 - United States International Trade Commision Rulings

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NY G84101

December 6, 2000

CLA-2-RR:NC:TA:353 G84101

CATEGORY: CLASSIFICATION

Mr. William Baldwin
Norman G. Jensen, Inc.
P.O. Box 3789
Blaine, WA 98231-3789

RE: Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for scarves, napkins and tablecloths; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.19(a); NAFTA preference override; Article 509

Dear Mr. Baldwin:

This is in reply to your letter dated November 8, 2000, on behalf of Chrzaszcz, Inc. requesting a classification, status under the NAFTA and country of origin determination for scarves, napkins and table cloths which will be imported into the United States. The samples submitted with the ruling request will be returned to you.

FACTS:

The submitted samples consist of scarves, napkins and tablecloths made from 100 percent linen (flax) woven fabrics. Samples of two scarves, two napkins and one tablecloth were submitted. The scarves will be made in a hand-printed version referred to as item number 04.RN.3 or in a hand dyed version referred to as item number 305.SC.1. The printed sample is silk screened with a dragonfly design. The dyed sample features a tie dyed design. You state the scarves are hemmed on two sides, self-fringed on two sides and measure approximately 14 x 84 inches. The napkins will be made in a hand-printed version referred to as item number 04.NA.3 or in a hand dyed version referred to as item number 05.NA.1. The printed sample is silk screened with a dragonfly design. The dyed sample features a tie dyed design. The napkins are hemmed on all four sides and measure approximately 23 inches square. The tablecloths, item number 02.TC.3, are left in the greige state. The sample, which measures approximately 59 x 80 inches, is hemmed on all four sides and features mitered corners.

You indicate in your letter that the hand-printed scarves will feature a self-fringe. However, the submitted sample is hemmed on all four sides.

The manufacturing operations for the scarves, napkins and tablecloth are as follows:

Poland:
linen fabrics are woven greige fabrics is shipped to Canada

Canada:
scarves are cut to size, hemmed on two sides and self-fringed on two sides scarves are printed with a design or scarves are washed, desized, bleached and dyed scarves are packed and shipped to the U.S.
tablecloths and napkins are cut to size and hemmed napkins are printed with a design or napkins are washed, desized, bleached and dyed tablecloths and napkins are packed and shipped to the U.S.

ISSUE:

What are the classification, status under the NAFTA and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the scarves will be 6214.90.0090, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Shawls, scarves, mufflers, mantillas, veils and the like: Of other textile materials, Other.” The general rate of duty will be 11.3 percent ad valorem in 2000 and 2001. The scarves fall within textile category designation 859.

The applicable subheading for the napkins and tablecloths will be 6302.52.1020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides “ bed linen, table linen, toilet linen and kitchen linen: other table linen: of flax: tablecloths and napkinsother.” The general rate of duty will be 7.1 percent ad valorem. The general rate of duty will be 6.6 percent ad valorem in 2001. The napkins and tablecloths napkins fall within textile category designation 899.

The designated textile and apparel categories and 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.GOV. In addition, the designated 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.

NAFTA ELIGIBILITY:

The subject scarves, napkins and table cloth undergo processing operations in Canada, which is a country provided for under the North American Free Trade Agreement (NAFTA). General Note 12, HTSUSA, incorporates Article 401 of the North American Free Trade Agreement (NAFTA) into the HTSUSA. Note 12(a) provides, in pertinent part:

(i) Goods that originate in the territory of a NAFTA party under subdivision (b) of this note and that qualify to be marked as goods of Canada under the terms of the marking rules... and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn followed by the symbol “CA” in parentheses, are eligible for such duty rate....

Accordingly, the scarves, napkins and table cloth at issue will be eligible for the “Special” “CA” rate of duty provided they are a NAFTA “originating” good under General Note 12(b), HTSUSA, and they qualify to be marked as a good of Canada. Note 12(b) provides, in pertinent part:

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if-

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) They have been transformed in the territory of Canada, Mexico and/or the United States so that--
except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or,
the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials;

The subject merchandise qualifies for NAFTA treatment only if the provisions of General Note 12(b)(ii)(A) are met, that is, if the merchandise is transformed in the territory of Canada so that the non-originating material (fabric and base components from Poland) undergoes a change in tariff classification as described in subdivision (t).

The scarves are classified in subheading 6214.90.0090, HTSUSA. For heading 6214, HTSUSA, subdivision (t), Chapter 62, rule 38 states that:

A change to headings 6213 through 6217 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516, 5801 through 5802 or 6001 through 6002, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

The tablecloths and napkins are classified in subheading 6302.52.1020, HTSUSA. For heading 6302, HTSUSA, subdivision (t), Chapter 63, rule 1, states that:

A change to headings 6301 through 6302 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one of more of the NAFTA parties.

When the linen fabric for the scarves, tablecloths and napkins enters Canada it is classified in heading 5309, HTSUSA. As this heading is not excepted by the subdivision (t) rule for heading 6214 or 6302, HTSUSA, the non-originating material from Poland undergoes the requisite change in classification. The tablecloths and napkins are eligible for the NAFTA preference. Assuming the scarves, tablecloths and napkins qualify to be marked as a good of Canada, they are entitled to the special “CA” duty rate of Free, provided that a Certificate of Origin is completed and submitted in accordance with 19 CFR 181.11.

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

6213–6214 The country of origin of a good classifiable under heading 6213 through 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

The country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric making process.

As the fabrics comprising the scarves, tablecloths and napkins are formed in a single country, that is, Poland, as per the terms of the tariff shift requirement, the country of origin of the tablecloths and napkins is conferred in Poland. However, the scarves, tablecloths and napkins qualify as an originating good. As stated in Section 102.19(a):

Except in the case of goods covered by paragraph (b) of this section, if a good which is originating within the meaning of §181.1(q) of this chapter is not determined under §102.11(a) or (b) or §102.21 to be a good of a single NAFTA country, the country of origin of such good is the last NAFTA country in which that good underwent production other than minor processing, provided that a Certificate of Origin (see §181.11 of this chapter) has been completed and signed for the good.

As this merchandise qualifies as a NAFTA originating good, applying the terms of Section 102.19(a), the country of origin of the scarves, tablecloths and napkins is Canada.

You have also inquired as to the labeling requirements for these products. 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. As noted above, the country of origin of the tablecloths and napkins was determined to be Canada.

It should also be noted that textile fiber products imported into the U.S. must be labeled in accordance with the Textile Fiber Products Identification Act (15 U.S.C. 70 through 70k) and the rules promulgated thereunder by the Federal Trade Commission. These rules concern required information such as country of origin, fiber content and the placement of that information. Therefore, we suggest that you contact the Federal Trade Commission, Textile Program, Division of Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to the submitted items.

HOLDING:

The subject scarves are classified in subheading 6214.90.009, HTSUSA, which provides for scarves, of other textile materials. The tablecloths and napkins are classified in subheading 6302.52.1020, HTSUSA, which provides for other table linen, of flax.

The country of origin of the scarves, tablecloths and napkins is Canada. The scarves, tablecloths and napkins are entitled to the NAFTA “CA” duty rate of Free upon compliance with all applicable laws, regulations and agreements.

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 181.100(a)(2). This section 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 181 of the Customs Regulations (19 C.F.R. 181). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 181.100(a)(2), 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.

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 Kenneth Reidlinger at 212-637-7084.

Sincerely,

Robert B. Swierupski
Director,

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