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NY K82728




March 3, 2004

CLA-2-RR:NC:TA:349 K82728

CATEGORY: CLASSIFICATION

Mr. Rodney Ralston
UPS Supply Chain Solutions
One Trans-Border Drive
Champlain, NY 12919

RE: Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for blankets, bed sheet sets and nap mats; 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; 19.CFR 102.13(c); de minimis; Article 509

Dear Mr. Ralston:

This is in reply to your letter dated January 28, 2003, requesting a classification, status under the NAFTA and country of origin determination for blankets, bed sheet sets and nap mats which will be imported into the United States. This request is being made on behalf of Draps Sante Inc.

FACTS:

The subject merchandise consists of blankets, bed sheet sets and nap mats. Samples were submitted. The blankets, referred to as “Throw Blankets,” measure approximately 57 x 49 inches. They are made from two fabrics that have been bonded together. One side of the blanket is made from a printed 50 percent polyester and 50 percent cotton woven fabric while the other side is made from a brushed 100 percent polyester knit pile fabric. The corners are rounded and the edges of the blanket are finished with an overlock stitch. The sheet sets, referred to as the “Health Sheet Set,” will contain a flat sheet, fitted sheet and one or two pillowcases. The pillowcases are made from a printed 50 percent polyester and 50 percent cotton woven fabric. The flat and fitted sheets are made from a brushed 60 percent acrylic and 40 percent polyester knit pile fabric. The top edge of the flat sheet is finished with a strip of the polyester and cotton fabric forming a two-inch wide bound edge. The woven fabric is less than 5 percent of the weight of the knit sheet. The fitted sheets are fully elasticized. The sheet sets are packed for retail sale at time of importation.

The “Take a Nap - Naptime Sleeping Bag” is a nap mat with an attached blanket and a small pillow. The mat and pillow are made from a bonded fabric consisting of two outer layers made from a printed or dyed 50 percent polyester and 50 percent cotton woven fabric bonded to an inner layer of polyester batting. The mat measures approximately 22 x 50 inches and the pillow is approximately 10 x 17 inches. The blanket, which measures approximately 31 x 35 inches, is sewn to one side of the mat. It is made from a 60 acrylic and 40 percent polyester knit pile fabric. A 12-inch wide pocket is sewn at one end of the mat. The mat, pillow and blanket may be folded and stuffed into this pocket for transport or storage. The mat, pillow and blanket do not contain any quilting, embroidery, lace, edging or trimming. The edges are finished with a strip of fabric binding. The binding and a carry strap are made from the 50/50 fabric. The manufacturing operations for the blankets, sheet sets and nap mats are as follows:

PAKISTAN:
-50/50 cotton and polyester fabric is woven. -fabric is dyed or printed and shipped to Canada.

UNSPECIFIED ASIAN COUNTRY:
-polyester yarns are formed.
-60 acrylic and 40 polyester yarns are formed. -yarns are shipped to Canada.

CANADA:
-polyester batting fabric is formed.
-polyester yarns are knit into a pile fabric and brushed (for blanket). -acrylic/polyester yarns are knit into a pile fabric and brushed (sheets and blanket portion of nap mat).
-50/50 fabric and polyester knit fabric are bonded together (blanket). -50/50 fabrics and polyester batting are bonded (mat and pillow). -bonded fabric (50/50 and polyester knit) is cut to size, shape and the edges are finished, forming the blanket.
-bonded fabric (50/50 and batting) and 50/50 fabric are cut to size and shape (nap mat, pillow, pillowcases, sheet trim and binding). -acrylic/polyester fabric is cut to size and shape for nap mat blanket and sheets.
-components are sewn together and their edges are bound, forming the nap mat.
-components are sewn/elasticized/hemmed/trimmed forming the sheets and pillowcases.
-blanket is packed and shipped.
-nap mat is packed and shipped.
-sheets and pillowcases are packed as sets and shipped.

ISSUE:

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

CLASSIFICATION:

The “Health 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 (woven pillowcases and knit flat and fitted sheets). 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 knit sheets impart the essential character of the sets. The “Take a Nap - Naptime Sleeping Bag” is a composite article (pillow/cushion and blanket) and will be classified under the cushion provision, the component that provides the essential character.

The applicable subheading for the “Health Sheet Sets” will be 6302.10.0020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: bed linen, knitted or crocheted other. The general rate of duty will be 6 percent ad valorem.

The applicable subheading for the “Throw Blankets” will be 6301.40.0020, HTSUSA, which provides for blankets and traveling rugs: blankets (other than electric blankets) and traveling rugs, of synthetic fibers other. The general rate of duty will be 8.5 percent ad valorem.

The applicable subheading for the “Take a Nap - Naptime Sleeping Bag” will be 9404.90.2000, HTSUSA, which provides for mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: other: pillows, cushions and similar furnishings: other. The general rate of duty will be 6 percent ad valorem.

The blankets, sheets and pillowcases fall within textile category designation 666. The nap mats fall within a subheading that is not assigned a textile category designation. 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 blankets, sheet sets and nap mats undergo processing operations in Canada which is a country provided for under the North American Free Trade Agreement. The blankets, sheet sets and nap mats at issue will be eligible for the NAFTA preference if they qualify to be marked as a good of Canada and if they are transformed in Canada so that the non-originating material undergoes a change in tariff classification described in subdivision (t) to General Note 12, HTSUSA. For headings 6301, 6302 and 9404, HTSUSA, the appropriate subdivision (t) rule states that:

A change to headings 6301 through 6302 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 6002, 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.

A change to subheading 9404.90 from any other chapter, except from headings 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408 or 5512 through 5516.

The 50/50 polyester and cotton woven fabric from Pakistan is excepted from meeting the tariff change for both rules and the yarns from the unspecified Asian country are excepted from meeting the tariff change to headings 6301and 6302, HTSUSA. Accordingly, as the non-originating materials do not undergo the requisite change in tariff classification, the blankets, sheet sets and nap mats are not eligible for the NAFTA preference.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the 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 classification of the “Health Sheet Sets”, as per an essential character determination, is based on the 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.

9404.90 Except for goods of subheading 9404.90 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under subheading 9404.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

Subheadings 6302.10 and 9404.90.20 are not included in the paragraph (e)(2) exception to the above tariff shift rule. As the fabrics comprising the “Throw Blanket” and nap mat are formed in more than one country, Section 102.21(c)(2) is inapplicable for those items. The “Health Sheet Sets” are made up from fabrics that were formed in more than one country. However, the pillowcases are made from a single fabric that was formed in Pakistan and the fitted sheets are made from a single fabric that was formed in Canada. The flat sheets are made from the Canadian fabric and Pakistani fabric. As noted previously, the woven Pakistani fabric weighs less than 5 percent of the weight of the flat sheets. According to Section 102.13, which sets out the De Minimis rule, foreign components that do not undergo the tariff shift specified in Section 102.21 are to be disregarded in determining the country of origin of the good if the total weight of those components is not more than 7 percent of the total weight of the good. As the fabric comprising the sheets and pillowcases is formed in a single country, that is, Pakistan for the pillowcases and Canada for both the flat and fitted sheets, as per the terms of the tariff shift requirement, country of origin is conferred in Pakistan for the pillowcases and Canada for the flat and fitted sheets.

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 “Throw Blanket” and the “Take a Nap” nap mat are not knit to shape and heading 6301 and subheading 9404.90, HTSUSA, are 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 “Throw Blanket” and the “Take a Nap” nap mat 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 “Throw Blanket” and the “Take a Nap - Naptime Sleeping Bag,” country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Canada.

HOLDING:

The country of origin of the pillowcases is Pakistan and the country of origin of the flat sheets, fitted sheets, “Throw Blanket” and “Take a Nap - Naptime Sleeping Bag” is Canada. Based upon international textile trade agreements products of Pakistan are subject to visa requirements. The sheets, blankets and nap mats are not eligible for the NAFTA preference.

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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