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NY N009966




May 3, 2007

CLA-2-63:RR:NC:TA:349

CATEGORY: CLASSIFICATION

TARIFF NO.: 6302.32.2060

Mr. Larry Ordet
Sandler, Travis & Rosenberg, P.A.
5200 Blue Lagoon Drive
Miami, FL 33126-2022

RE: The tariff classification, status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) and country of origin determination for mattress covers from El Salvador; 19 CFR 102.21(c)(5)

Dear Mr. Ordet:

In your letter dated April 16, 2007 you requested a ruling, status under the DR-CAFTA and a country of origin determination for a mattress cover from El Salvador. This request was made on behalf of American Textile Company.

The submitted sample is a mattress cover referred to as Style R500584-PK/r500661-CH. The cover is designed to fully encase up to a 15-inch thick mattress. The top panel of the cover is made from a 50 percent cotton and 50 percent polyester woven fabric laminated on the back with a polyurethane film. The sides and bottom are made from a nonwoven fabric. The nonwoven consists of a spun bonded polypropylene laminated to a polyurethane film. One end of the cover has a zippered opening that extends partially down the sides.

The manufacturing operations for the mattress cover are as follows:

Pakistan:
-50/50 cotton/polyester fabric is woven and laminated with plastics. -fabric is shipped to El Salvador.

Taiwan:
-polypropylene nonwoven fabric is formed and laminated with plastics. -fabric is shipped to El Salvador.

El Salvador:
-fabrics are cut to size.
-components are assembled using a thread produced in a CAFTA country. -mattress covers are packed and shipped to the United States.

The applicable tariff provision for the mattress cover will be 6302.32.2060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of man-made fibers: other. other: other. The general rate of duty will be 11.4 percent ad valorem.

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 mattress cover falls within textile category 666. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.

DR-CAFTA ELIGIBILITY:

General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if—

(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;

(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and—

(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or

(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or

(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.

The mattress cover at issue will be eligible for the DR-CAFTA preferential treatment if it is transformed in El Salvador so that the non-originating material undergoes a change in tariff classification described in subdivision (n) to General Note 29, HTSUS. For heading 6302, HTSUS, the appropriate subdivision (n), Chapter 63 rule states that:

A change to headings 6301 through 6302 from any other chapter, except from headings 5111 through 5113, 5204 through 5212, 5310 through 5311, chapter 54, headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or more of the parties to the Agreement.

When the cotton and polyester woven and laminated fabric from Pakistan enters El Salvador it is classifiable under heading 5903, HTSUS, and the nonwoven fabric form Taiwan is classifiable under heading 5603, HTSUS. As these fabrics are not excepted by the above rule and are cut and sewn in El Salvador, they undergo the requisite change in tariff classification. Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 29(b)(ii)(A). The goods will therefore be entitled to a Free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.

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, “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, “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 6302.32 is not included in the paragraph (e)(2) exception to the above tariff shift rule. As the fabrics comprising the mattress cover 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 mattress cover is not knit and heading 6302 is 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). In the case of the subject mattress cover, the fabrics 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, “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 mattress cover, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, El Salvador.

HOLDING:

The country of origin of the mattress cover is El Salvador. The cover is entitled to a Free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.

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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