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NY R02995




January 13, 2006

CLA2-RR:NC:TA:349 R02995

CATEGORY: CLASSIFICATION

Mr. Richard Miller
Springs Window Fashions
7549 Graber Road
Middleton, WI 53562-1096

RE: Classification and country of origin determination for window shades; 19 CFR 102.21(c)(2); tariff shift; Interim country of origin of textile and apparel regulations; removal of 19 CFR 12.130

Dear Mr. Miller:

This is in reply to your letter dated December 16, 2005, requesting a classification and country of origin determination for window shades which will be imported into the United States.

FACTS:

The subject merchandise consists of window blinds or shades. The shades will be imported with their mounting brackets and hardware. A sample was submitted with New York ruling (NY) I86813 dated October 10, 2002. You have requested this ruling due to changes in the manufacturing processes noted in the previous ruling and the recently published Interim Regulations (Federal Register, October 5, 2005) which updated and consolidated the Customs Regulations relating to the country of origin of textile and apparel products. The “Cellular Shade” is made from a polyester nonwoven fabric referred to as point bonded. The fabric is formed into a series of one-inch single cells. The window shades will be made in various lengths and widths. The manufacturing operations for the shades are as follows:

UNITED STATES:
-polyester nonwoven fabric is formed and trimmed to a width of 97.5 inches. -fabric is pleated (pleats are approximately 1.5 inches wide). -fabric is glued to form a series of one-inch single cells. -fabric is cut to length at the 84th pleat. -edges of the fabric will be sanded so that alternate cells of the fabric open. -fabric is boxed and shipped to China.

CHINA:
-brackets, slats, rails and hardware are made and prepared for assembly. -cell fabric is cut to width and route holes for the draw cords are drilled. -cell fabric, slats, rails, cords, etc. are assembled to form the shades. -cellular shades are packed and shipped.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the cellular window shades will be 6303.92.2030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for curtains (including drapes) and interior blinds; curtains or bed valances: other: of synthetic fibers: other window shades and window blinds. The duty rate will be 11.3 percent ad valorem.

The above manufacturing scenario was the subject of Headquarters Ruling Letter (HQ) 562941 dated March 24, 2004. That letter concerned the applicability of subheading 9802.00.80, HTSUS, to the U.S. origin fabric. This manufacturing process was referred to as scenario 2 in HQ 562941. In conclusion, the letter stated that “On the basis of the information and sample provided, and assuming that the documentation requirements of 19 C.F.R. § 10.24 are met, the shades may be entered under subheading 9802.00.80, HTSUS, with allowances in duty for the cost or value of the U.S.-origin fabric when such fabric is cut to length in the United States and cut to width in China.”

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

The window shades fall within textile category designation 666. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at otexa.ita.doc.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.

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 window shade is not 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 window shade was formed in a single country, that is, the United States, as per the terms of the tariff shift requirement, country of origin is conferred in the United States.

In NY I86813 we determined that the country of origin of the window shades made by a similar manufacturing process (differing in the location of the gluing and cutting of the fabric) was the United States. The ruling noted that Section 12.130(c), Customs Regulations, provided that any product of the United States that is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article. We discussed T.D. 90-17, T.D. 00-44 and finally concluded that the country of origin of the window shades for marking purposes was the United States and that for duty and quota purposes (quantitative restrictions) the shades are considered a product of China.

The Interim Regulations published in the Federal Register on October 5, 2005 (70 FR 58009) consolidated the regulations relating to the country of origin of textile and apparel products. One part of that consolidation was the removal of Sections 12.130, 12.131 and 12.132 of the Customs Regulations. Section 102.21, Customs Regulations (19 C.F.R. 102.21), states that “except as otherwise provided for by statute, the provisions of this section shall control the determination of the country of origin of imported textile and apparel products for the purposes of the Customs laws and the administration of quantitative restrictions.” With the removal of Section 12.130, the administration of quantitative restrictions will be based on the origin determinations made under Section 102.21.

Although Section 12.130 was removed, Subchapter II, Note 2(a) to Chapter 98, HTSUS, is still in effect. That Note states in part that “any product of the United States which is returned after having been advanced in value or improved in condition abroad by any process of manufacture or other means, or any imported article which has been assembled abroad in whole or in part of products of the United States, shall be treated for the purposes of this Act as a foreign article, and, if subject to a duty which is wholly or partly ad valorem, shall be dutiable, except as otherwise prescribed in this part, on its full value determined in accordance with section 402 of the Tariff Act of 1930, as amended.” Therefore, in accordance with Subchapter II, Note 2(a) to Chapter 98, HTSUS, and Section 102.21(c)(2), the country of origin of the window shades for marking and the purposes of quantitative restrictions is the United States. For duty purposes the window shades are subject to the general rate of duty noted previously.

As the origin of the shades for the purposes of marking has been determined to be the United States, the shades are not required to be marked as a foreign article for purposes of 19 U.S.C. 1304. However, separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. For more information on the applicability of the requirements under the Textile Fiber Products Identification Act (TFPIA), you should contact the Federal Trade Commission, Textile Program, Division of Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580.

HOLDING:

The country of origin of the “Cellular” window shades for quantitative restrictions and marking purposes is the United States. The window shades are subject to the general rate of duty noted previously.

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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