NY R00316 - Classification and country of origin determination for silk bedding; 19 CFR 102.21(c)(2); tariff shift; eligibility under the Caribbean Basin Economic Recovery Act (CBERA) and the United States-Caribbean Basin Trade Partnership Act (CBTPA) - United States International Trade Commision Rulings

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NY R00316

May 19, 2004

CLA-2-RR:NC:TA:349 R00316

CATEGORY: CLASSIFICATION

Mr. Tony Cooper
Regulatory Services
FedEx Trade Networks
128 Dearborn Street
Buffalo, NY 14207

RE: Classification and country of origin determination for silk bedding; 19 CFR 102.21(c)(2); tariff shift; eligibility under the Caribbean Basin Economic Recovery Act (CBERA) and the United States-Caribbean Basin Trade Partnership Act (CBTPA)

Dear Mr. Cooper:

This is in reply to your letter dated April 26, 2004, requesting a classification, eligibility under CBERA or CBTPA and country of origin determination for silk bedding which will be imported into the United States.

FACTS:

The subject merchandise consists of various bedding products including sheets, duvet covers, shams, bedspreads and quilted bed coverings. These items will be made from 100 percent silk woven fabric. You have not indicated whether the fabric will be printed or dyed, the sizes of the bed covers/bedspreads or what type of stuffing will be used in the quilted items. For the purpose of this ruling it is assumed that either the quilted items will be stuffed with a loose filling material or if a batting fabric will be used that fabric will be sourced from the same country as the silk fabric and that the silk fabric will be printed or dyed and not both printed and dyed. The manufacturing operations for the bedding products are as follows:

CHINA OR INDIA:
-silk fabric is woven.
-fabric is shipped to Barbados.

BARBADOS:
-fabric is cut to size and shape.
-components are sewn, hemmed and/or stuffed creating the bedding. -bedding products are packaged and shipped.

ISSUE:

What are the classification, eligibility under CBERA or CBTPA 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.

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. Duvet covers are similar to eiderdown cases and have been consistently classified as bed linen. Accordingly, if the silk bed sheets and duvet covers are printed they are classified in subheading 6302.29, HTSUSA, and if they are not printed the bed linens are classified in subheading 6302.39, HTSUSA.

Heading 6304, HTSUSA provides for other furnishing articles. Bedspreads are specifically provided for under this heading and pillow shams have been consistently classified as other furnishings. The woven silk shams and bedspreads are therefore classified in heading 6304, HTSUSA. Heading 9404, HTSUSA, provides for articles of bedding and similar furnishing that are fitted with springs or stuffed or internally fitted with any material. The heading lists mattresses, quilts, eiderdowns, pillows and cushions as examples. The quilted silk bed coverings are classified in subheading 9404.90, HTSUSA.

These silk articles fall within classifications that are not assigned a textile category designation and are therefore not subject to quota or visa restrictions. 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 the Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.gov.

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.

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 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.

The subheadings for printed silk bed linen, silk bedspreads, silk shams and quilted silk bed coverings are included in the paragraph (e)(2) exception to the above tariff shift rule. Paragraph (e)(2)(i) is not applicable as the fabric comprising these items was assumed to be printed or dyed and not both dyed and printed. Paragraph (e)(2)(ii) states that “If the country of origin cannot be determined under (i) above, 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.” As the fabric comprising the printed silk bed linen, silk bedspreads, silk shams and quilted silk bed coverings is formed in a single country, that is, China when the silk fabric is woven in China and India when the silk fabric is woven in India, as per the terms of the tariff shift requirement, country of origin is conferred in China when the silk fabric is woven in China and India when the silk fabric is woven in India.

Subheading 6302.39 is not included in the paragraph (e)(2) exception to the above tariff shift rules. As the fabric comprising the dyed silk bed linen is formed in a single country, that is, China when the silk fabric is woven in China and India when the silk fabric is woven in India, as per the terms of the tariff shift requirement, country of origin is conferred in China when the silk fabric is woven in China and India when the silk fabric is woven in India.

You have also inquired as to the eligibility of these items under the Caribbean Basin Economic Recovery Act (CBERA) and the United States-Caribbean Basin Trade Partnership Act (CBTPA). The CBERA provides for the duty free treatment of articles, under certain restrictions and other than specified products, which are the growth, product or manufacture of a beneficiary country. Barbados is a beneficiary country for CBERA purposes. However, as determined above, the country of origin is China or India and the silk bedding is therefore not eligible for duty free treatment under the CBERA. The CBTPA provides for duty and quota-free treatment for certain apparel articles and certified handloomed and folklore textiles from designated beneficiary countries in the Caribbean Basin. Barbados is a beneficiary country for CBTPA purposes. The provisions of the CBTPA do not include machine woven silk bedding products and those items are not eligible for preferential treatment under the CBTPA.

HOLDING:

The country of origin of the silk bedding products is China when the silk fabric is woven in China and India when the silk fabric is woven in India. Based upon international textile trade agreements silk products of China and India 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 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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