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NY H86087


December 17, 2001

CLA-2-63:RR:NC:N3:351 H86087

CATEGORY: 19 CFR 102.21(C)(5) ARTICLE 509 CLASSIFICATION COUNTRY OF ORIGIN NAFTA STATUS

TARIFF NO.: 6307.90.9989

Wendy L. Burns
Northern Customs Services
6391 Walmore Road
Niagara Falls, NY 14304

RE: The tariff classification, status under the North American Free Trade Agreement (NAFTA), and country of origin of Pet Pillow KP401 from Canada; Article 509

Dear Ms. Burns:

In your letter dated December 5, 2001, you requested a ruling on the classification, country of origin, and the status of a pet bed from Canada under the NAFTA.

FACTS:

The subject merchandise is a pet bed, 46cm x 56cm x 18cm (18” x 22” x 7”), essentially a rectangle with rounded corners, large enough for a pet up to 40 lbs. It is composed of an external cover of a Berber material in the center, where the animal would lay, with the outside portion a fabric of 65% polyester and 35% cotton. You state the Berber to be a 100% Modacrylic loop pile, made in England, and classified in subheading 6001.20.20 of the Harmonized Tariff Schedule (HTS) when imported into Canada. You also state that the poly/cotton fabric is produced in Pakistan and is imported into Canada under subheading 5211.49.00, HTS. We have determined this fabric to be classifiable in subheading 5513, HTS. There is also an inner foam pillow of 100% polyurethane which is made in Canada. Your sample will be returned as requested.

The manufacturing operations for the pet bed are as follows: the materials are cut, sewn, and assembled in Canada.

ISSUES:

What are the classification and country of origin for the pet bed? Is the pet bed eligible for duty-free treatment under NAFTA?

CLASSIFICATION:

The applicable tariff provision for the pet bed will be 6307.90.9989, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other made-up textile articles. The general rate of duty in 2001 and 2002 will be seven percent ad valorem.

NAFTA ELIGIBILITY

As the subject pet beds are not wholly obtained or produced in a NAFTA country, General Note 12(b)(ii)(A), requires that we determine whether or not the goods have been transformed in Canada by undergoing a change in tariff classification. These rules are set forth in General Note 12(t), which provide in pertinent part:

Chapter 63
Chapter rule 1: For purposes of determining the origin of a good of this chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. 4. A change to headings 6304 through 6310 from any other chapter, except from headings . . . 5204 through 5212, . . . chapters 54 through 55, or headings . . . 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA.

The cushioned pet bed is a composite of different materials, i.e., knit pile (Berber) fabric of subheading 6001, HTS; poly/cotton fabric of subheading 5513 (or 5211), HTS; and foam padding. Customs believes it is the fabrics which impart the essential character to the article (see General Rule of Interpretation 3(b), HTSUSA) and thus it is classifiable as a textile article. Since the fabrics determine the classification of the good and are both non-originating materials, they must meet the required tariff change cited above.

As a change from either subheading 5513 (or 5211) or 6001 to subheading 6307 is excepted from the applicable tariff shift rule in General Note 12(t), neither fabric meets the required tariff change and the cushioned pet bed does not qualify for NAFTA preferential treatment.

COUNTRY OF ORIGIN
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 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”.

Paragraph (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:

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

The subject merchandise is classifiable in subheading 6307.90, HTS. As the fabrics comprising this merchandise are not formed in a single country, the terms of section 102.21(c)(2) are not met.

Paragraph (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 (emphasis added), 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 subheading 6307.90, HTS, is excepted from provision (ii), paragraph (c)(3) is inapplicable.

Paragraph (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 assembly or manufacturing process is the fabric formation; however, as the fabric formation occurs in more than one country, 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 pet bed, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Canada, where all of the components are assembled into the finished item.

HOLDING

Pet Pillow KP401 is classified in subheading 6307.90.9989. It is not eligible for duty-free treatment under NAFTA. The country of origin is Canada.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

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 Mitchel Bayer at 646-733-3102.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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