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NY R03490




April 3, 2006

CLA-2-94:RR:NC:SP:233 R03490

CATEGORY: CLASSIFICATION

TARIFF NO.: 9401.90.5020

Ms. Pamela Escarre
Marisol International, LLC
1255-A Lynnfield Rd., Ste. 257
Memphis, TN 38119

RE: The tariff classification, country of origin and status under the Central American United States Free Trade Agreement (CAFTA), of cut and sewn upholstery covers from Nicaragua, and under the North American Free Trade Agreement (NAFTA), of cut and sewn upholstery covers from Mexico

Dear Ms. Escarre:

In your letter dated March 17, on behalf of Albany Industries, you requested a tariff classification ruling. You also inquire as to the country of origin of the imported product, as well the applicability of CAFTA/NAFTA.

The merchandise under consideration consists of cut and sewn upholstery covers which Albany is considering importing in the following two scenarios:

In the first scenario, fabric for the upholstery covers is originally made in China. The fabric, imported in rolls with the trade name is “Easy Rider”, is a bonded fabric consisting of a dyed 100% polyester looped pile knit backing. The fabric in rolls would be shipped to Nicaragua. There, the fabric will be cut and sewn into specific fits and sizes for sofa, chair, and,/or ottoman frames, also known as “cut and sewn upholstery kits.” These kits are cut to size to fit the frames of the furniture, and make up the entire covering for the seat. They are installed over the springs and battings to finish the furniture piece. The cut and sewn kits will then be shipped to the U.S.

In the second scenario the details are exactly the same, except the “Easy Rider” fabric in rolls from China would be shipped to Mexico, to be cut and sewn into specific fits and sizes for sofa, chair, and/or ottoman frames.

The applicable tariff provision for the cut and sewn upholstery covers in both scenarios will be 9401.90.5020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Seats, whether or not convertible into beds, and parts thereof: Parts: Other: Other, Of textile material, cut to shape.” The rate of duty will be Free.

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/.

With regard to the country of origin of the cut and sewn upholstery covers, the “country of origin” is defined in 19 CFR 134.1(b) as "the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the ‘country of origin’ within the meaning of this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin."

In each scenario, the cutting and sewing processes in Nicaragua/Mexico result in a substantial transformation. Accordingly, the country of origin of the cut and sewn upholstery covers in the first scenario is Nicaragua; the country of origin of the cut and sewn upholstery covers in the second scenario is Mexico.

With regard to CAFTA/NAFTA eligibility it should be noted that since the merchandise is already unconditionally free of duty, the CAFTA/NAFTA confers no special duty rate benefit.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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 Lawrence Mushinske at 646-733-3036.

Sincerely,

Robert B. Swierupski
Director,

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