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NY J81422




March 6, 2003

CLA-2-RR:NC:TA:349 J81422

CATEGORY: CLASSIFICATION

Mr. Jeff Morse
L. Kee and Company (Keeco)
543 Forbes Blvd.
South San Francisco, CA 94118

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

Dear Mr. Morse:

This is in reply to your letter dated February 21, 2003, requesting a classification and country of origin determination for sheet sets which will be imported into the United States.

FACTS:

The subject merchandise consists of two bed sheet sets. A sample was not submitted, however you did supply a photographic representation of the decorated portion of the flat sheets. The sets will contain a flat sheet, fitted sheet and one or two pillowcases. They will be made from 100 percent cotton woven fabric. The fabric will not be printed and will not be napped. The flat sheet and pillowcase in Style H-4009 (referred to as H-4009 and S-4009 respectively) are embellished with a crochet/lace trim. The flat sheet and pillowcase in Style H-353 (H-353 and S-353 respectively) are finished with a crochet/lace trim. The crochet/lace trim is also described as a “Picket Fence Crochet” trim and a “Ribbon Loop” trim in your submission. You have indicated that the fitted sheet in each set (both referred to as H-200) will not contain any embroidery, lace, braid, edging, trimming, piping or applique work. The sets will be imported packed for retail sale in twin, full, queen and king sizes. The manufacturing operations for the sheet sets are as follows:

THAILAND:
-cotton fabric is woven.
-greige fabric is shipped to China.

CHINA:
-cotton fabric is bleached and dyed.
-fabric is cut to size and shape;
-fabric is sewn/hemmed/elasticized/embellished, 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:

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. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order.

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. The heading is divided into subheadings that provide for bed linen that is printed or not printed, napped or not napped and for bed linen with specific decorative features and those that are plain. The decorative features are embroidery, lace, braid, edging, trimming, piping and applique work. The flat sheets and pillowcases in the submitted sets contain crochet lace and trimming. The flat sheets and pillowcases are provided for in subheading 6302.31.50, HTSUSA, while the plain fitted sheets are provided for in subheading 6302.31.90, HTSUSA.

GRI 3(b) provides that goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. According to the Explanatory Notes, the official interpretation of the HTSUSA at the international level, "goods put up in sets for retail sale" refers to goods which:
consist of at least two different articles which are, prima facie, classifiable in different headings; consist of products or articles put up together to meet a particular need or carry out a specific activity; and are put up in a manner suitable for sale directly to users without repacking.

In your letter you suggest that the bed linen sets do not meet the qualifications of “goods put up in sets for retail sale” and that the components should be classified separately under 6302.31.5010, 6302.31.5020 and 6302.31.9020, HTSUSA. You believe that the components are not classifiable in different headings and therefore do not meet the first criterion.

GRI 6 provides that for legal purposes, classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes, and mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. GRI 6 thus incorporates GRIs 1 through 5 in classifying goods at the subheading level. Since GRI 6 uses the phrase "for legal purposes" the preceding GRIs are to be applied at the level necessary for the final legal classification of the goods for tariff purposes. GRI 6 requires the use of GRI 3 at the eight digit level in the HTSUSA, since it is that level at which the classification of the merchandise is ultimately determined. Thus, in order to be classifiable as a "set", the components must be classifiable in at least two different subheadings. With respect to the instant merchandise, at the heading level, we do not have "goods put up in sets for retail sale" within the meaning of GRI 3. However, we do have sets at the subheading level because subheading 6302.31.50 provides for bed linen containing any embroidery, etc. and subheading 6302.31.90 provides for bed linen that does not have any of those decorative features.

The bed sheet sets meet the qualifications of "goods put up in sets for retail sale". The components of the sets consist of at least two different articles which are, prima facie, classifiable in different headings (decorated pillowcases, decorated flat sheet and 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 sets 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 21.2 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, Thailand, as per the terms of the tariff shift requirement, country of origin is conferred in Thailand.

HOLDING:

The country of origin of the bed sheet sets is Thailand. Based upon international textile trade agreements products of Thailand are subject to 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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