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NY I86813




October 10, 2002

CLA-2-RR:NC:TA:349 I86813

CATEGORY: CLASSIFICATION

Mr. Pete Mento
Expeditors Tradewin, LLC
1015 Third Avenue, 12th Floor
Seattle, WA 98104

RE: Classification and country of origin determination for window shades; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 12.130(c)

Dear Mr. Mento:

This is in reply to your letter dated September 17, 2002, requesting a classification and country of origin determination for window shades which will be imported into the United States. This request is being made on behalf of Springs Window Fashions LP.

FACTS:

The subject merchandise consists of window blinds or shades. The shades will be imported with their mounting brackets and hardware. The submitted sample is a “Cellular Shade” made from a polyester nonwoven fabric referred to as point bonded. The fabric is formed into a series of one-inch single cells. The window shades will be made in various lengths and widths. The manufacturing operations for the window shades are as follows:

UNITED STATES:
-polyester nonwoven fabric is formed.
-fabric is pleated (pleats are approximately 1.5 inch wide). -fabric is boxed and shipped to China.

CHINA:
-pleated fabric is cut and glued creating the one-inch single cell fabric. -brackets, rails and hardware are made.
-cell fabric is cut to size, holes for cord are drilled. -cellular shades are assembled, packed and shipped.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the cellular window shades will be 6303.92.2020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other curtains (including drapes) and interior blinds; curtains or bed valances: other: of synthetic fibers: other. The duty rate will be 11.6 percent ad valorem.

The window shade falls 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.

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)(1) 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.

Subheading 6303.92 is included in the paragraph (e)(2) exception to the above tariff shift rule. Paragraph (e)(2)(i) is not applicable as the fabric comprising the window shade is not dyed and printed. Paragraph (e)(2)(ii) states that “If the country of origin cannot be determined under (i) above, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, the country of origin 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 window shade was formed in a single country, that is, the United States, as per the terms of the tariff shift requirement, country of origin is conferred in the United States.

However, there is an exception for textile products from the United States that are sent abroad for processing. Section 12.130(c), Customs Regulations, provides that any product of the United States that is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article.

Section 12.130, which remains in effect, was originally intended to be used to determine the country of origin of textiles and textile products for quota/visa requirements. In T.D. 90-17, issued February 23, 1990, Customs announced a change in practice and position. This change resulted in Customs using Section 12.130 for quota, duty, and marking purposes when making country of origin determinations for textile goods. In accordance with T.D. 90-17 and Section 12.130(c), the country of origin of the window shade made from U.S. formed fabric is China, for quota, marking, and duty purposes. However, this position has recently been modified. On July 11, 2000, Customs published T.D. 00-44 in the Federal Register (65 FR 42634), stating that effective October 10, 2000, Customs will no longer apply 19 CFR 12.130(c) for purposes of country of origin marking. Therefore, in accordance with T.D. 00-44, Section 12.130(c) and Section 102.21(c)(2), the country of origin of the window shade will be the United States. Section 12.130(c) remains in effect for duty and quota purposes and the window shade is subject to the general rate of duty noted previously.

HOLDING:

The country of origin of the window shade for marking purposes is the United States. For quota purposes the shade is considered a product of China. Based upon international textile trade agreements products of China falling under subheading 6303.92.2020, HTSUSA, are not subject to quota or visa restrictions.

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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