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NY K83068




March 5, 2004

CLA-2-RR:NC:TA:349 K83068

CATEGORY: CLASSIFICATION

Ms. Patty Kittel
Target Customs Brokers, Inc.
1000 Nicollet Mall
Minneapolis, MN 55403

RE: Classification and country of origin determination for Bed in a Bag sets; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(4); most important assembly or manufacturing process; 19 CFR 102.21(c)(5); last country where an important assembly or manufacturing process occurred; 19 CFR 102.21(d); sets

Dear Ms. Kittel:

This is in reply to your letter dated February 5, 2004, requesting a classification and country of origin determination for Bed in a Bag comforter sets which will be imported into the United States. This request is made on behalf of Target Stores.

FACTS:

The subject merchandise consists of “bed in a bag” comforter sets. You submitted representative samples and a copy of the package insert. The bedding sets contain a comforter, two pillow shams, bed skirt, flat sheet, fitted sheet and two pillowcases. The outer shell of the comforter is made from a printed 60 percent cotton and 40 percent polyester woven fabric. It is stuffed with a polyester batting. The comforter is quilted through all three layers. The pillow shams are made from a printed 60 percent cotton and 40 percent polyester woven fabric. The back portion of the pillow shams feature an overlapping flap closure and the edges are finished with a flange or picture frame effect. The bed skirt or dust ruffle is designed to hang over the edge of a box spring on three sides. The skirt or ruffle portion has an approximately 15-inch drop and is made from a printed 60 percent cotton and 40 percent polyester woven fabric. The platform section of the bed skirt is made from a nonwoven man-made fiber fabric.

The sheets and pillowcases are made from a printed 60 percent polyester and 40 percent cotton woven fabric. The pillowcases are folded and sewn leaving one end open. The open end is finished with a 2.75-inch wide banded hem. The fitted sheets are elasticized along the sides. The flat sheets are hemmed on all four sides. The comforter and the sheet sets do not contain any embroidery, lace, braid, edging, trimming, piping or applique work. All of the components of the sets are packaged for retail sale at the time of importation. The manufacturing operations are as follows:

TAIWAN:
-cotton and polyester fabric is woven and printed. -fabric is shipped to China.

CHINA:
-polyester batting fabric is formed.
-nonwoven man-made fiber fabric is formed. -fabrics are cut to size and shape.
-cut components are sewn, stuffed and quilted creating the comforters. -cut components are sewn/hemmed/elasticized forming the sheets, pillowcases, shams and bed skirts.
-comforters, shams, sheets, pillowcases, bed skirts and shams are packed for retail sale in a plastic bag and shipped.

ISSUE:

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

CLASSIFICATION:

The "bed in a bag" 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. They are put together to meet a particular need or carry out a specific activity and they are packed for sale directly to users without repacking. The comforters impart the essential character of the sets.

The applicable subheading for the “bed in a bag” sets will be 9404.90.8020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with any material or of cellular rubber or plastics, whether or not covered: other: other: of cotton, not containing any embroidery, lace, braid, edging, trimming, piping exceeding 6.35 mm or applique work quilts, eiderdowns, comforters and similar articles. The rate of duty will be 4.4 percent ad valorem.

Although imported as a set the individual components are subject to textile category numbers as if they were classified separately. The comforters fall within textile category designation 362, the pillowcases fall within textile category designation 360 and the sheets fall within textile category designation 361. The shams and bed skirts fall within textile category designation 369. 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.

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 subject “bed in a bag” sets, as per an essential character determination, is based on the comforter, 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 6302.21 (sheets and pillowcases), 6303.91 (bed skirts), 6304.92 (shams) and 9404.90.80 (comforters) are not included in the paragraph (e)(2) exception to the above tariff shift rules. The sheets, pillowcases and shams are made from a fabric that was formed in a single country. As the fabric comprising the sheets, pillowcases and shams is formed in a single country, that is, Taiwan, as per the terms of the tariff shift requirement, country of origin is conferred in Taiwan. The comforters and bed skirts are made from two fabrics. As the fabrics comprising the comforters and bed skirts 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 comforters and bed skirts are not knit and heading 6303 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). For the subject comforters, the fabric making process of the outer shell constitutes the most important manufacturing process. Accordingly, the fabric making process in Taiwan, where the fabric for the outer shell is formed, constitutes the most important manufacturing process and the country of origin for the comforters is Taiwan.

The fabrics that make up the bed skirts are formed 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 bed skirts, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, China.

HOLDING:

The country of origin of the comforters, sheets, pillowcases and shams is Taiwan. The country of origin of the bed skirt is China. Based upon international textile trade agreements products of Taiwan falling within textile category designations 360, 361 and 362 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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