NY I82757 - Classification and country of origin determination for bed sheet sets; 19 CFR 102.21(c)(2); tariff shift - United States International Trade Commision Rulings

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NY I82757

June 25, 2002

CLA-2-RR:NC:TA:349 I82757

CATEGORY: CLASSIFICATION

Mr. Frank Spadaro
Spadaro International Services
156-15 146th Ave.
Jamaica, NY 11434-4620

RE: Classification and country of origin determination for bed sheet sets; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Spadaro:

This is in reply to your letter dated May 29, 2002, requesting a classification and country of origin determination for bed sets which will be imported into the United States.

FACTS:

The subject merchandise consists of bed sets. Samples were not submitted. You have indicated that the sets will contain sheets and pillowcases. They will be made from 100 percent cotton woven fabric. The manufacturing operations for the bed sheet sets are as follows:

PAKISTAN:
-cotton sheeting fabric is woven.
-fabric is shipped to the Dominican Republic.

DOMINICAN REPUBLIC:
-fabric is cut to size and shape.
-fabrics are sewn, hemmed and elasticized creating the sheets and pillowcases. -sheets and pillowcases are packed and shipped.

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Heading 6302, HTSUSA, provides for among other things, bed linen. The Explanatory Notes to heading 6302, HTSUSA, include sheets, pillowcases, bolster cases, eiderdown cases and mattress covers as examples of bed linen. Accordingly, if the sheets and pillowcases are printed they are classified in subheading 6302.21, HTSUSA, and if they are not printed the sheets and pillowcases are classified in subheading 6302.31, HTSUSA.

The pillowcases fall within textile category designation 360 and the flat and fitted sheets fall within textile category designation 361. 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.

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

6301-6306 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, 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.

Subheadings 6302.21 and 6302.31 are not included in the paragraph (e)(2) exception to the above tariff shift rule. 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.

You have also inquired as to the value of the bed sets. The primary basis of Customs valuation for imported merchandise is transaction value. The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States plus amounts for packing costs, selling commissions, assists, royalties or license fees and the proceeds of any subsequent resale that accrue to the seller. The price is exclusive of international freight, insurance and other costs relating to the international shipment of the bed sets from the country of exportation to the place of importation in the U.S. If the Pakistani fabric is provided free or at a reduced cost to the manufacturer in the Dominican Republic, the fabric constitutes an assist as defined in Section 152 of the Customs Regulations (19 CFR 152.102). To the extent that the value of the assist is not included in the price paid or payable for the merchandise, the value of the assist must be added to the price paid or payable for the merchandise in determining the transaction value of the bed sets (19 CFR 152.102 and 103).

HOLDING:

The country of origin of the bed set is Pakistan. Based upon international textile trade agreements products of Pakistan are subject to quota and the requirement of a visa.

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 177.9(b)(1). 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 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), 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 in accordance with 19 CFR 177.2.

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.

Sincerely,

Robert B. Swierupski
Director,

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