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NY J84970




June 6, 2003

CLA-2-RR:NC:TA:349 J84970

CATEGORY: CLASSIFICATION

Ms. Maria E. Celis
Neville Peterson LLP
80 Broad Street, 34th Floor
New York, NY 10004

RE: Classification, status under the North American Free Trade Agreement (NAFTA), and country of origin determination for curtains and valances; 19 CFR 102.21(c)(5); last country where an important assembly or manufacturing process occurred; Article 509

Dear Ms Celis:

This is in reply to your letter dated May 21, 2003, requesting a classification, status under the NAFTA and country of origin determination for curtains and valances which will be imported into the United States. This ruling is requested on behalf of Furnimex, Inc.

FACTS:

The subject merchandise consists of window curtains and window valances. You submitted a sample of a lined window curtain. The face side of the 49 x 87 inch panel is made from a 69 percent polyester and 31 percent rayon jacquard woven fabric. The lining is made from a 70 percent polyester and 30 percent cotton plain woven fabric. The bottoms of the face and lining are hemmed. The face and lining are sewn together along the top and sides. The top of the curtain panel is folded and sewn to create a rod pocket. The valance will be constructed in a similar manner. The manufacturing operations for the curtains and valances are as follows:

CHINA:
-polyester and rayon jacquard fabric is woven and finished. -rolls of fabric are shipped to Mexico.

PAKISTAN:
-polyester and cotton fabric is woven and finished. -rolls of fabric are shipped to Mexico.

MEXICO:
-fabrics are cut to size.
-face and lining are folded/sewn/hemmed forming curtains and valances. -curtains and valances are packed and shipped.

ISSUE:

What are the classification, eligibility under NAFTA and country of origin for the subject merchandise?

CLASSIFICATION:

The applicable subheading for the window curtains and valances will be 6303.92.2010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for curtains (including drapes) and interior blinds; curtain or bed valances: other: of synthetic fibers: other window curtains (including drapes) and window valances. The general rate of duty will be 11.4 percent ad valorem.

The curtains and valances 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 Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.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.

NAFTA ELIGIBILITY:

The curtains and valances undergo processing operations in Mexico which is a country provided for under the North American Free Trade Agreement. These products will be eligible for the NAFTA preference if they qualify to be marked as a good of Mexico and if they are wholly obtained or produced in the NAFTA territories or transformed in Mexico so that the non-originating material undergoes a change in tariff classification described in subdivision (t) to General Note 12, HTSUSA. For heading 6303, HTSUSA, the appropriate subdivision (t) rule states that:

A change to heading 6303 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one of more of the NAFTA parties.

When the 69/31 polyester and rayon jacquard fabric leaves China and the 70/30 polyester and cotton woven fabric leaves Pakistan, they are classified in Chapters 54 or 55, HTSUSA. As fabrics of Chapters 54 and 55, HTSUSA, are excepted from meeting the tariff change to heading 6303, HTSUSA, the non-originating materials from China and Pakistan do not undergo the requisite change in tariff classification. Accordingly, the curtains and valances are not eligible for the NAFTA preference.

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 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 curtains and valances is not dyed and printed. Paragraph (e)(2)(ii) states that “If the country of origin cannot be determined under paragraph (e)(2)(i) of this section, 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.” The curtains and valances are made from two fabrics. As the fabrics comprising the curtains and valances are formed in more than one country, Section 102.21 (c)(2) is inapplicable.

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 merchandise is not knit and heading 6303, 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). The fabrics that make up the curtains and valances 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 subject curtains and valances, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Mexico.

HOLDING:

The country of origin of the curtains and valances is Mexico. The curtains and valances are not eligible for the NAFTA preferential rate. They 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 181.100(a)(2). 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 181 of the Customs Regulations (19 C.F.R. 181). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 181.100(a)(2), 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.

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.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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