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 > 2002 NY Rulings > NY I80673 - NY I80747 > NY I80694

Previous Ruling Next Ruling
NY I80694




May 3, 2002

CLA-2-RR:NC:TA:349 I80694

CATEGORY: CLASSIFICATION

Mrs. Alice Wagner
Tower Group International, Inc.
128 Dearborn Street
Buffalo, NY 14207

RE: Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for a comforter, a comforter ensemble and a bed in a bag set; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(4); most important assembly or manufacturing process; 19 CFR 102.21(d); sets; Article 509

Dear Mrs. Wagner:

This is in reply to your letter dated April 4, 2002 requesting a classification, status under the NAFTA and country of origin determination for a comforter, a comforter ensemble and a bed in a bag set which will be imported into the United States. This request is being made on behalf of Marina Textiles Inc.

FACTS:

The subject merchandise consists of a comforter, a comforter ensemble and a bed in a bag set. Samples were not submitted. The comforter ensemble contains a comforter, a bed skirt or dust ruffle and two pillow shams. The bed in a bag set consists of a comforter, bed skirt, pillow shams, pillowcases, flat sheets and fitted sheets. The comforters are filled with a polyester batting fabric and quilted through all three layers. The sheets, shams, pillowcases, skirt portion of the bed skirt and the outer shells of the comforters will be made from either a 70 percent polyester and 35 percent cotton woven fabric or a 50 percent polyester and 50 percent cotton woven fabric. You have indicated that these fabrics will be dyed and printed. The platform section of the bed skirt will be made from a plain bleached fabric. The comforter ensemble and bed in a bag set will be packed for retail sale in a vinyl bag. The manufacturing operations for these items are as follows:

COMFORTER:
PAKISTAN:
-polyester and cotton (70/30 or 50/50) fabric is woven. -fabric is dyed and printed.
-rolls of fabric are shipped to Canada.

CANADA:
-polyester batting fabric is made (this item may also be made in the United States). -fabrics are cut to size.
-components are sewn together creating the comforter. -comforter is quilted.
-comforter is packed and shipped.

COMFORTER ENSEMBLE:
PAKISTAN:
-polyester and cotton (70/30 or 50/50) fabric is woven. -fabric is dyed and printed.
-fabric for platform section of bed skirt is woven and bleached. -rolls of fabric are shipped to Canada.

CANADA:
-polyester batting fabric is made (this item may also be made in the United States). -fabrics are cut, sewn, stuffed, quilted, etc., forming the various set components. -comforter, bed skirt and pillow shams are packed for retail sale and shipped.

BED IN A BAG SET:
PAKISTAN:
-polyester and cotton (70/30 or 50/50) fabric is woven. -fabric is dyed and printed.
-fabric for platform section of bed skirt is woven and bleached. -rolls of fabric are shipped to Canada.

CANADA:
-polyester batting fabric is made (this item may also be made in the United States). -the fabrics are cut, sewn, stuffed, quilted, etc., forming the various set components. -comforter, bed skirt, pillow shams, pillowcases and sheets are packed for retail sale and shipped.

ISSUE:

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

CLASSIFICATION:

The comforter ensemble and the bed in a bag set meet the qualifications of “goods put up in sets for retail sale”. The components of these sets consist of different articles which are, prima facie, classifiable in different headings. They are put up together to carry out the specific activity of furnishing a bed and they are packaged for sale directly to users without repacking. It is our opinion that the comforter is the component that gives each of these sets their essential character.

Due to the fact that the shells of all three comforters may be constructed from a 50/50 blend of fibers, they are classified using HTSUSA Section XI Note 2(A) and Subheading Note 2(A). Additional U.S. Rule of Interpretation 1(d) states that the principles of Section XI regarding mixtures of two or more textile materials shall apply to the classification of goods in any provision in which a textile material is named. The 50/50 blend comforters will be classified as if they consisted wholly of that one textile material which is covered by the heading which occurs last in numerical order among those which equally merit consideration. Even a slight change in the fiber content may result in a change of classification, as well as visa and quota requirements. The comforters may be subject to U.S. Customs laboratory analysis at the time of importation, and if the fabric is other than a 50/50 blend they may be reclassified by Customs at that time.

The applicable subheading for the comforter, comforter ensemble and the bed in a bag set will be 9404.90.8522, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: other: other: quilts, eiderdowns, comforters and similar articles with outer shell of man-made fibers. The general rate of duty will be 13.1 percent ad valorem.

The comforters, pillow shams, bed skirts, pillowcases and sheets fall within textile category designation 666. 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 comforter, comforter ensemble and the bed in a bag set undergo processing operations in Canada and possibly the United States which are countries provided for under the North American Free Trade Agreement. The comforter, comforter ensemble and the bed in a bag set at issue will be eligible for the NAFTA preference if they qualify to be marked as a good of Canada and if they are transformed in Canada so that the non-originating material undergoes a change in tariff classification described in subdivision (t) to General Note 12, HTSUSA. For heading 9404, HTSUSA, subdivision (t), Chapter 94, rule 7, states that:

A change to subheading 9404.90 from any other chapter, except from headings 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408 or 5512 through 5516.

When the 70/30 or 50/50 polyester and cotton woven fabrics for the comforter shells leave Pakistan, they are classified in heading 5513 or 5514, HTSUSA, depending on the weight. As fabrics of headings 5513 and 5514, HTSUSA, are excepted from meeting the tariff change to subheading 9404.90, HTSUSA, the non-originating material from Pakistan does not undergo the requisite change in tariff classification. Accordingly, the merchandise is not eligible for the NAFTA preference.

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.

Section 102.21(d) addresses the treatment of sets for country of origin purposes. Section 102.21(d) provides the following:

Where a good classifiable in the HTSUS as a set includes one or more components that are textile or apparel products and a single country of origin for all of the components of the set cannot be determined under paragraph (c) of this section, the country of origin of each component of the set that is a textile or apparel product shall be determined separately under paragraph (c) of this section.

The classification of the subject comforter ensemble and bed in a bag set, as per an essential character determination, is based on the comforter, however, per the terms of Section 102.21(d), one must determine whether or not a single country of origin exists for the entire set.

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.” The comforters, bed skirts, shams, pillowcases and sheets are not wholly obtained or produced in a single country, territory or insular possession, and therefore 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

6301-6306 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.

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.

As the fabrics comprising the comforter are formed in more than one country, Section 102.21(c)(2) is inapplicable for the comforter. The bed skirt, pillow shams, pillowcases and sheets are comprised of fabrics that are formed in a single country. Following the terms of the tariff shift requirement, the country of origin of the bed skirt, pillow shams, pillowcases and sheets is conferred in Pakistan where the fabrics were woven.

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 comforter 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 the case of the subject merchandise, the most important manufacturing process occurs at the time of fabric making. Basing the country of origin determination on the fabric making process as opposed to the assembly process carries out the clear intent of Section 334 as expressed in Section 334(b)(2) and Part 102.21(c)(3)(ii). In the case of the subject comforters, the fabric making process of the outer fabric shell constitutes the most important manufacturing process. Accordingly, the fabric making process in Pakistan, where the fabrics for the outer shell of the comforters are formed, constitutes the most important manufacturing process and the country of origin of the subject comforters is Pakistan. As a single country of origin for all of the components in the comforter ensemble and bed in a bag set has been determined to be Pakistan, the country of origin for the set is Pakistan.

HOLDING:

The country of origin of the comforter, comforter ensemble and bed in a bag set is Pakistan. Based upon international textile trade agreements flat sheets, fitted sheets and pillowcases of Pakistan are subject to quota and visa requirements. The comforter, comforter ensemble and bed in a bag set are not entitled to the NAFTA “CA” special duty.

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 John Hansen at 212-637-7078.

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,

Previous Ruling Next Ruling

See also: