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NY I85991




September 26, 2002

CLA-2-RR:NC:TA:349 I85991

CATEGORY: CLASSIFICATION

Mr. David G. Porter
Springs Industries, Inc.
205 N. White Street
Fort Mills, SC 29715-1654

RE: Classification and country of origin determination for quilts and duvet covers; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(4); most important assembly or manufacturing process

Dear Mr. Porter:

This is in reply to your letter dated August 22, 2002, requesting a classification and country of origin determination for quilts and duvet covers which will be imported into the United States.

FACTS:

The subject merchandise consists of quilts and duvet covers. Samples were not submitted. The duvet covers and the outer shell of the quilts are made from 100 percent cotton woven fabrics. The fabrics may be dyed, printed or dyed and printed. The quilts are filled with a polyester batting fabric and quilted. You have indicated that the quilts and duvet covers will contain embroidery, lace, braid, edging, trimming, piping or applique work. The duvet covers have a zipper or button closure. The manufacturing operations for the quilts and duvet covers are as follows:

QUILTS:
BAHRAIN, PAKISTAN, SOUTH KOREA OR THAILAND: -cotton fabric is woven.
-greige fabric is shipped to China.

CHINA:
-greige fabric is bleached, dyed, printed or dyed and printed. -polyester batting fabric is formed.
-fabrics are cut, sewn, stuffed, quilted and embellished creating the quilt. -quilt is finished and packed for shipment.

DUVET COVERS:
BAHRAIN, PAKISTAN, SOUTH KOREA OR THAILAND: -cotton fabric is woven.
-greige fabric is shipped to China.

CHINA:
-greige fabric is bleached, dyed, printed or dyed and printed. -fabric is cut, sewn and embellished forming the duvet cover. -cover is finished and packed for shipment.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the quilts will be 9404.90.8505, 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 cotton. The duty rate will be 13.1 percent ad valorem.

The applicable subheading for the printed duvet covers will be 6302.21.5050, HTSUSA, which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen, printed: of cotton: containing any embroidery, lace, braid, edging, trimming, piping or applique work: not napped other. The duty rate will be 21.5 percent ad valorem.

The applicable subheading for the dyed duvet covers will be 6302.31.5050, HTSUSA, which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of cotton: containing any embroidery, lace, braid, edging, trimming, piping or applique work: not napped other. The duty rate will be 21.5 percent ad valorem.

The duvet covers and quilts fall within textile category designation 362. 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.

9404.90 Except for goods of subheading 9404.90 provided for in paragraph (e)(2) of this section, 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.

Subheadings 6302.21 and 6302.31 are not included in the paragraph (e)(2) exception to the above tariff shift rule. Subheading 9404.90 goods that are classified as of cotton are excepted from paragraph (e)(2). As the fabric comprising the duvet covers is formed in a single country, that is, Bahrain when the fabric is woven in Bahrain, Pakistan when the fabric is woven in Pakistan, South Korea when the fabric is woven in South Korea and Thailand when the fabric is woven in Thailand, as per the terms of the tariff shift requirement, country of origin is conferred in Bahrain when the fabric is woven in Bahrain, Pakistan when the fabric is woven in Pakistan, South Korea when the fabric is woven in South Korea and Thailand when the fabric is woven in Thailand. The fabrics comprising the quilt are formed in more than one country and therefore, Section 102.21(c)(2) is inapplicable for the quilts

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 quilts are 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 quilts, the fabric making process of the outer fabric shell constitutes the most important manufacturing process. Accordingly, the fabric making process in Bahrain, Pakistan, South Korea or Thailand where the fabrics for the outer shell of the quilts are formed, constitutes the most important manufacturing process for both scenarios and the country of origin of the quilts is Bahrain when the fabric is woven in Bahrain, Pakistan when the fabric is woven in Pakistan, South Korea when the fabric is woven in South Korea and Thailand when the fabric is woven in Thailand.

HOLDING:

The country of origin of the duvet covers and the quilts is Bahrain when the fabric is woven in Bahrain, Pakistan when the fabric is woven in Pakistan, South Korea when the fabric is woven in South Korea and Thailand when the fabric is woven in Thailand. Based upon international textile trade agreements products of Bahrain and Thailand are subject to visa requirements, while products of South Korea are subject to quota and visa restrictions. Products of Pakistan falling in textile category designation 362 are not subject to quota or visa requirements.

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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