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NY I87436




October 29, 2002

CLA-2-RR:NC:TA:349 I87436

CATEGORY: CLASSIFICATION

Mr. Chu Lee
Ni Teijin Shoji (U.S.A.) Inc.
42 West 39th Street
New York, NY 10018

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

Dear Mr. Lee:

This is in reply to your letter dated October 10, 2002, requesting a classification and country of origin determination for a sheet set which will be imported into the United States.

FACTS:

The subject merchandise consists of a bed sheet set. You submitted prototype samples of the pillowcase and flat sheet and diagrams of the hand embroidered designs. The set will contain a flat sheet, fitted sheet and one or two pillowcases. The set is made from 100 percent cotton sateen woven fabric. The 300 thread count fabric will be in white or ecru. The top hem of the flat sheet and the hem at the open end of the pillowcases will contain hand embroidered designs and drawn thread work. The fitted sheet will not contain any embroidery. The manufacturing operations for the sheet set are as follows:

INDIA:
-cotton fabric is woven and finished.
-fabric is shipped to Vietnam.

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

ISSUE:

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

CLASSIFICATION:

The bed sheet set meets the qualifications of "goods put up in sets for retail sale". The components of the set consist of at least two different articles which are, prima facie, classifiable in different headings (decorated pillowcases, decorated flat sheet and a plain fitted sheet). They are put up together to meet a particular need or carry out a specific activity, and they are packed for sale directly to users without repacking. The decorated components impart the essential character of the set.

The applicable subheading for the bed sheet set will be 6302.31.5020, Harmonized Tariff Schedule of the United States (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 sheets. The duty rate will be 21.5 percent ad valorem.

Although classified as a set, the pillowcases and sheets are subject to textile category numbers as if they were imported separately. 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.

Subheading 6302.31 is 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, India, as per the terms of the tariff shift requirement, country of origin is conferred in India.

HOLDING:

The country of origin of the bed sheet set is India. Based upon international textile trade agreements products of India 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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