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NY I81962




June 13, 2002

CLA-2-RR:NC:TA:349 I81962

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 bed sheet set; 19 CFR 102.21(c)(2); tariff shift; Article 509

Dear Mrs. Wagner:

This is in reply to your letter dated May 16, 2002 requesting a classification, status under the NAFTA and country of origin determination for a bed sheet 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 bed sheet set. The submitted sample contains a flat sheet, fitted sheet and two pillowcases. The set 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, however the submitted sample is not printed. The pillowcases are folded, sewn and hemmed at the opening. The flat sheet is hemmed on all for sides. The fitted sheet is elasticized at the corners and the edges are finished with an overlock stitch. The sheet set is packed for retail sale in a vinyl bag. The manufacturing operations are as follows:

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

CANADA:
-fabric is cut to size and shape.
-the fabric is sewn/hemmed/elasticized, creating the sheets and pillowcases. -pillowcases and sheets are packed in sets and shipped.

ISSUE:

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

CLASSIFICATION:

Although referred to as a set, the instant merchandise does not meet the qualifications of “goods put up in sets for retail sale” as the components of the set are classifiable within the same subheading. Therefore, each item in the set will be classified separately.

Due to the fact that in one version, the set may be constructed from a 50/50 blend of fibers, the set will be classified using HTSUSA Section XI Note 2(A) and Subheading Note 2(A). The 50/50 blend sheets and pillowcases 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 pillowcases and sheets 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 printed pillowcases will be 6302.22.2010, Harmonized Tariff Schedule of the United States (HTS), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen, printed: of man-made fibers: other pillow cases. The duty rate will be 11.7 percent ad valorem.

The applicable subheading for the printed sheets will be 6302.22.2020, HTS, which provides for bed linen, table linen: other bed linen, printed: of man-made fibers: sheets. The duty rate will be 11.7 percent ad valorem.

The applicable subheading for the dyed pillowcases (not printed) will be 6302.32.2020, HTS, which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of man-made fibers: other pillowcases, other than bolster cases: not napped. The duty rate will be 11.7 percent ad valorem.

The applicable subheading for the dyed sheets (not printed) will be 6302.32.2040, HTS, which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of man-made fibers: other sheets. The duty rate will be 11.7 percent ad valorem.

The 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 sheets and pillowcases undergo processing operations in Canada which is a country provided for under the North American Free Trade Agreement. The sheets and pillowcases 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 6301, 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 70/30 or 50/50 polyester and cotton woven fabrics for the sheets and pillowcases 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 heading 6302, 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.

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 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.

As the fabric comprising the sheets and pillowcases is formed in a single country, that is Pakistan, as per the terms of the tariff shift requirement, country of origin is conferred in Pakistan.

HOLDING:

The country of origin of the sheets and pillowcases is Pakistan. Based upon international textile trade agreements flat sheets, fitted sheets and pillowcases of Pakistan are subject to quota and visa requirements. The sheets and pillowcases 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 646-733-3043.

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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