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NY N011550





June 8, 2007

MAR-2 RR:NC:N3:351

CATEGORY: MARKING

Debbie Moore
Global Transportation Services Inc.
1930 6th Avenue South #401
Seattle, WA 98134

RE: CLASSIFICATION AND COUNTRY OF ORIGIN MARKING OF IMPORTED COVERS FOR AROMATHERAPY PACKETS, FROM CHINA

Dear Ms. Moore:

This is in response to your letter dated May 15, 2007, in which you requested a tariff classification ruling for imported decorative covers. You also requested a ruling on whether the proposed marking, “Made in China of Fabric made in Korea,” is an acceptable country of origin marking if another marking, “Filled and Assembled in USA of Imported Components,” appears on the article. The request was submitted on behalf of your client, Miller Bag, of Minneapolis.

This classification ruling covers the decorative covers imported with the unfinished and unfilled aromatherapy packets. You state that the samples we received are not exactly what will be imported, but that different fabric may be used. Please be advised that this ruling covers the samples we received and any changes may affect the classification of the actual imported items.

FACTS:

You submitted eight samples with your letter for review. You call four of them “decorative covers,” each of which will contain an aromatherapy/spa insert packet. These covers are made of polyester knit pile fabric, commonly referred to as fleece. The other four samples are unfinished packet shells made of woven textile fabric. After importation, the packets will be filled with a flax seed/lavender mixture, sewn closed, and sold at retail with the decorative covers.

Each of the four decorative covers is a different shape. One sample is a body wrap/stole cover, measuring approximately 8” x 31”. The next is an eye pillow cover, 4½” x 9”. The next sample is a pillow cover, 9” x 13”. The final item is a slipper sock cover, 7½” high with a 10” outer sole that is separately applied. Each decorative cover has a pocket into which the filled aromatherapy/spa packet will be inserted. Each of the packet shells is shaped and sized to fit into the pocket on the corresponding decorative cover.

The fabric for the decorative covers was knit in Korea and cut and sewn in China. The unfinished aromatherapy packets were produced in China from fabric woven in China. For purposes of this ruling, we will assume that for the woven packets, all materials including fibers and yarns were produced in China from Chinese raw materials.

CLASSIFICATION:

The applicable subheading for the body wrap/stole cover, the eye pillow cover, and all four of the unfinished packet shells will be 6307.90.9889, Harmonized Tariff Schedule of the United States (Harmonized Tariff Schedule of the United States (HTSUS), which provides for other made up textile articles, other. The rate of duty will be 7% ad valorem.

The applicable subheading for the pillow cover will be 6304.91.0040, HTSUS, which provides for other furnishing articles, excluding those of heading 9404: other: knitted or crocheted, of man-made fibers. The rate of duty will be 5.8% ad valorem.

In your letter you suggest that the pillow cover is classifiable in subheading 6307.90.9889, but it is more specifically classifiable in heading 6304.

The applicable subheading for the “slipper sock cover” will be 6405.20.9060, HTSUS, which provides for other footwear, with outer soles and uppers of textile material, other. The rate of duty will be 12.5% ad valorem.

In your letter you suggest that the slipper sock cover is classifiable in subheading 6115.96.9020, HTSUS, which provides, in part, for panty hose, tights, stockings, socks and other hosiery. However, the item has a separately applied outer sole and is properly classified as footwear in heading 6405, HTSUS.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

In order to determine how the items may be marked to indicate country of origin, we must first determine what the correct country of origin is for each item, as imported in the unfilled state.

The country of origin for footwear is determined by Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), which provides that “country of origin” means 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 for marking purposes. In the case of the footwear, the country where a substantial transformation takes place is China, where the Korean fabric is manufactured into footwear.

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provides rules of origin for textiles and apparel (such as the body wrap/stole cover, the eye pillow cover, the pillow cover, and the unfinished aromatherapy packet, but not footwear). Section 102.21, Customs Regulations (19 C.F.R. 102.21), implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 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 fabric that comprises the unfinished aromatherapy packets was wholly produced in China, country of origin of the aromatherapy packets is conferred in China.

As none of the other subject merchandise is wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

For heading 6307, 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, for subheading 6307.90,

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

6307.90 The country of origin of a good classifiable under 6307.90 is the country, territory or insular possession in which the fabric comprising the good was formed by a fabric-making process.

As the fabric that comprises the finished body wrap/stole cover and the eye pillow cover was produced in a single country, that is, Korea, as per the terms of the tariff shift requirement, country of origin of the body wrap/stole cover and the eye pillow cover is conferred in Korea.

For heading 6304 (the pillow cover), paragraph (c)(2)(e) in pertinent part states,

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 6304.91 is not included in the paragraph (e)(2) exception to the above tariff shift rules. Since the fabric is formed in Korea, country of origin of the pillow cover is conferred in Korea.

COUNTRY OF ORIGIN MARKING

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.

In the instant case of the covers imported prior to final processing, Miller Bag is considered to be the ultimate purchaser and under 19 CFR 134.35 only the containers which reach the ultimate purchaser (Miller Bag) are required to be marked with the country of origin, “Korea” for the body wrap/stole cover, the eye pillow cover, the pillow cover, and the unfinished aromatherapy packets, “China” for the footwear.

Regarding the marking of the finished goods, that is, after final processing and packaging in the U.S., we must first classify each item in order to determine the correct country of origin for marking purposes. In order to do this, we need a sample of the finished items, packaged for sale if possible, along with an exact list of ingredients of the aromatherapy pack and a description of all processes performed in this country.

When this information is available, you may wish to consider resubmission of your request. We are returning your samples. If you decide to resubmit your request, please include all of the material that we have returned to you in addition to the other information and samples we have requested.

HOLDING:

The country of origin of the finished body wrap/stole cover, the eye pillow cover, and the pillow cover is Korea. The country of origin of the unfinished aromatherapy packets and the footwear is China.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Mitchel Bayer at 646-733-3102.

Sincerely,

Robert B. Swierupski
Director,

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