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NY J82453




April 22, 2003

CLA-2-RR:NC:TA:349 J82453

CATEGORY: CLASSIFICATION

Mr. Ray Fragola
Lady Ester Lingerie Corporation
16 East 34th Street
New York, NY 10016

RE: Classification and country of origin determination for sheet sets ; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(5); last country where an important assembly or manufacturing process occurred; 19 CFR 102.21(d); sets

Dear Mr. Fragola:

This is in reply to your letter dated March 26, 2003, requesting a classification and country of origin determination for two sheet sets which will be imported into the United States.

FACTS:

The subject merchandise consists of two bed sheet sets. You submitted samples of a flat sheet and a pillowcase from each set. Both sets will contain a flat sheet, fitted sheet and two pillowcases. They will be packed for retail sale in a clear vinyl bag at the time of import. The elasticized fitted sheet in both sets will be made from 100 percent polyester woven fabric. The fitted sheet does not contain any embroidery, lace, braid, edging, trimming, piping or applique work. The flat sheet and pillowcases in Set 1 are made from two fabrics. The body of the flat sheet and pillowcases is made from 100 percent polyester woven fabric. The top hem or header is made from a piece of 100 percent rayon woven fabric. The rayon fabric is heavily embroidered. The header on the flat sheet and the pillowcase is approximately 6 inches wide. It is lined or backed with the polyester fabric. A strip of piping cord is inserted in the seam between the header and the body of the sheet and pillowcase. You have indicated that by weight the pillowcases will be 78 percent polyester fabric and 22 percent rayon fabric. The flat sheet will be 91 percent polyester fabric and 9 percent cotton fabric.

The flat sheet and pillowcases in Set 2 are similar to those in Set 1 except that both the body and the top hem or header are made from 100 percent polyester woven fabric. The header is heavily embroidered. The header on the flat sheet and the pillowcase is approximately 4.5 inches wide. It is not lined or backed. A strip of piping cord is inserted in the seam between the header and the body of the sheet and pillowcase. The manufacturing operations for the sheet sets are as follows:

REPUBLIC OF KOREA:
-polyester fabric for both sets is woven and finished. -fabric is shipped to the Philippines.

CHINA:
-rayon fabric for Set 1 is woven and finished. -rayon fabric is embroidered.
-fabric is shipped to the Philippines.

PHILIPPINES:
-polyester fabric is embroidered (for Set 2). -fabrics are cut to size and shape.
-fabrics are 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 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 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 sets.

The applicable subheading for both sheet sets will be 6302.32.1040, , Harmonized Tariff Schedule of the United States Annotated, (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of man-made fibers: containing any embroidery, lace, braid, edging, trimming, piping or applique work sheets: not napped. The rate of duty will be 15.1 percent ad valorem.

Although classified as a set, the pillowcases and sheets are subject to textile category numbers as if they were classified separately. However, the pillowcases and the flat and fitted sheets all fall 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.

Section 102.21(d) addresses the treatment of sets for country of origin purposes. Section 102.21(d) provides the following:

Where a good classifiable in the HTSUS as a set includes one or more components that are textile or apparel products and a single country of origin for all of the components of the set cannot be determined under paragraph (c) of this section, the country of origin of each component of the set that is a textile or apparel product shall be determined separately under paragraph (c) of this section.

The classifications of the subject sheet sets, as per an essential character determination, are based on the decorated sheets, however, per the terms of Section 102.21(d), one must determine whether or not a single country of origin exists for the entire set.

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 6302.32 is not included in the paragraph (e)(2) exception to the above tariff shift rule. As the fabrics comprising the flat sheet and pillowcases in Set 1 are formed in more than one country, Section 102.21(c)(2) is inapplicable for those items. The fitted sheet in both sets and the flat sheet and pillowcases in Set 2 are made from a single fabric. As the fabric comprising the Set 1 fitted sheet and all of the components in Set 2 was formed in a single country, that is, the Republic of Korea, as per the terms of the tariff shift requirement, country of origin of the Set 1 fitted sheet and all of Set 2 is conferred in the Republic of Korea.

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 flat sheet and pillowcases in Set 1 are not knit and heading 6302, HTSUSA, is excepted from provision (ii), Section 102.21 (c)(3) is inapplicable for the Set 1 flat sheet and pillowcases.

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). The fabrics that make up the Set 1 flat sheet and pillowcases are sourced in more than one country. As no one fabric is more important than the other, a single country of origin determination cannot be made based on Section 102.21(c)(4).

Paragraph (c)(5) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred". Accordingly, in the case of the Set 1 flat sheet and pillowcases, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, the Philippines.

HOLDING:

The country of origin of the bed sheet set referred to as Set 2 is the Republic of Korea. The country of origin of the fitted sheet in Set 1 is the Republic of Korea. Based upon international textile trade agreements products of the Republic of Korea are subject to quota and the requirement of a visa. The country of origin of the flat sheet and pillowcases in Set 1 is the Philippines. Based upon international textile trade agreements products of the Philippines 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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