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HQ 960985





February 18, 1998

CLA-2 RR:TC:TE 960985 RH

CATEGORY: CLASSIFICATION COUNTRY OF ORIGIN

TARIFF NO.: 6307.90.9989

Arlen T. Epstein, Esq.
Serko & Simon, LLP
One World Trade Center
Suite 3371
New York, NY 10048

RE: Classification and country of origin of a miniature fabric stool; heading 6304; heading 6307; 19 C.F.R. ?102.21(c)(5); last country where an important assembly or manufacturing process occurred

Dear Mr. Epstein:

This is in reply to your letter dated August 28, 1997, on behalf of Russ Berrie and Company, Inc., requesting a ruling on the classification and country of origin of a "Miniature Fabric Stool."

You enclosed a sample of the miniature stool to aid us in our determination. In order to return the sample, as you requested, you will need to contact Rebecca Hollaway of my staff at (202) 927-2379, and provide her with your Federal Express account number, or otherwise arrange for its return.

FACTS:

The National Import Specialist describes the finished article as:

[A] miniature representation of a foot stool or ottoman. It [is] circular in shape and has a diameter of seven inches and a height of five inches. It is constructed with four different fabrics and the upper half of the article has been stuffed with cotton and polyester fiber. The cylindrical base of the article is manufactured using paper board which has been covered with two types of woven fabric. The bottom of the base has been covered with 100% acetate satin woven fabric while the sides of the base are covered with 100% polyester plain woven fabric characterized by a
distinct rib and identified by the inquirer as Ottoman fabric. On top of the base four triangular pieces of fabric have been sewn meeting at the center of the cylinder. The space created by these fabric panels has been stuffed with a batten consisting of 55% cotton and 45% polyester triangular panels attached to the bottom of the miniature stool. This product has been designed as a decorative article and is too small to be considered furniture. This product is designed for use as a household decorative article and is not marketed or advertised as doll or toy furniture.

The manufacture of the miniature stool occurs in three countries. In South Korea, polyester and acetate satin materials are formed. The polyester velvet is made in Taiwan. In China, these fabrics and Chinese-origin cotton/polyester tapestry and cotton/polyester stuffing materials are cut, sewn and used to manufacture the stool. The wooden legs and the trim are also of Chinese origin.

You contend that the correct classification of the miniature stool is in subheading 6307.90.9989 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as an other made up textile article, and that the country of origin is China, where the fabric (tapestry) that "imparts the essential character" of the stool was manufactured.

ISSUE:

What are the classification and country of origin of the miniature stool?

LAW AND ANALYSIS:

Classification

Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI's). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's may then be applied.

We reviewed several tariff provisions to determine the correct classification of the miniature stool. Due to its small size and delicate structure it is not furniture of Chapter 94, HTSUSA. Moreover, because the article is not designed to amuse, i.e., hold one's attention or entertain, but rather is designed as a decoration, it is not a toy under Chapter 95, HTSUSA.

The miniature stool is not described specifically within the terms of any heading and, therefore, it cannot be classified solely on the basis of GRI 1. GRI 2(a) is not applicable in this case as it refers to incomplete or unfinished articles. GRI 2(b) directs that the classification of goods consisting of more than one material (i.e., wood, paper, plastic foam and textiles in this case) shall be according to the principles of rule 3. That rule applies to goods that are prima facie classifiable under two or more headings or subheadings.

GRI 3(a) states that where two or more headings each refer to part only of an article, classification is determined using a GRI 3(b) analysis. In this case, the separate components that make up the stool are classifiable under different headings. Thus, GRI 3(b) is applicable. It states that the material or component which imparts the essential character to an article will determine classification. In this case, the textile components clearly impart the essential character to the stool as they provide the ornamental and decorative effect which are the stool's primary characteristics.

There are two textile provisions which merit consideration in this case. First, Heading 6304, HTSUSA, encompasses other furnishing articles, excluding those of heading 9404. The Explanatory Notes (EN's) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance. The EN to section 6304 provide:

This heading covers furnishing articles of textile materials, other than those of the preceding headings or of heading 94.04, for use in the home, public buildings, theatres, churches, etc., and similar articles used in ships, railway carriages, aircraft, trailer caravans, motor-cars, etc.

These articles include wall hangings and textile ceremonies (e.g., weddings or funerals); mosquito nets; bedspreads (but not including bed coverings of heading 94.04); cushion covers; loose covers for furniture, antimacassars; table covers (other than those having the characteristics of floor coverings - see note 1 to Chapter 57); mantlepiece runners; curtain loops; valances (other than those of heading 63.03).

The miniature stool does not resemble any of the articles listed in the EN to heading 6304 as furnishings.

Next, heading 6307, HTSUSA, covers other made up textile articles. The EN to heading 6307 state that it is a residual provision that covers made up articles of any textile material which are not included more specifically in other headings of Section XI or elsewhere in the Nomenclature. In Headquarters Ruling Letter (HQ) 952389, dated November 5, 1992, Customs held that a textile goat figurine was not a toy because the decorative and ornamental aspect of the figurine outweighed any "play" value, and the article was classified in heading 6307.

In HQ 959551, dated January 16, 1997, Customs held that a "Bunny Angel" was designed primarily for use as a decoration, not a toy, and classified it in heading 6307. Like the goat in HQ 952389 and the Bunny Angel in HQ 959551, the stool is a decorative item but is not the type of merchandise covered under heading 6304 as a home furnishing. Therefore, it is classifiable under heading 6307, HTSUSA.

Country of Origin

We agree with you that China is the country of origin of the miniature stool, although we arrived at that conclusion differently. As you know, on December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by 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, 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 foreign material 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." Each of the components comprising the miniature stool which merit consideration would be classified under subheading 6307.90, HTSUSA. The rule for subheading 6307.90, HTSUSA, states:

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

Customs ruled in HQ 960337, dated April 22, 1997, that paragraph (c)(2) is not applicable where fabric comprising the good was formed in both Belgium and the United States. See also, HQ 959742, dated October 28, 1996 (where the fabric is formed in more than one country paragraph (c)(2) is not applicable). Like those cases, the fabric comprising the miniature stool was formed in more than one country (South Korea, Taiwan and China) and, therefore, country of origin cannot be determined under

Paragraph (c)(3) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (c)(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 subject merchandise is not knit to shape and falls within an excepted provision under (c)(3)(ii), the country of origin is not determinable under paragraph (c)(3).

Paragraph (c)(4) states that "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 this case, the most important process is fabric formation. However, since fabric formations occurred in three countries and all of the fabrics are equally important, we resort to the last multi-country rule.

Paragraph (c)(5) states that "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." It is clear in this case that China is the last country where an important assembly occurred because that is where all of the components where assembled into the miniature stool. Accordingly, the country of origin is China.

Finally, your proposed country of origin marking "Made in China of Chinese, Taiwanese and South Korean Fabric" is consistent with the origin rules set forth in section 102.21, Customs Regulations, and with the country of origin marking requirements in Part 134, Customs Regulations. However, the other proposed marking "Cut and Sewn in China from Chinese, Taiwanese and South Korean fabric" is insufficient to identify the country of origin. To obtain more information on marking requirements or to obtain a binding ruling on that subject, you may write to the Chief, Marking and Special Classification Branch, U.S. Customs Service, Office of Regulations and Rulings, 1300 Pennsylvania Avenue, Washington, D.C., NW 20229.

HOLDING:

The miniature stool is classifiable under subheading 6307.90.90.9989, HTSUSA, as an other made up textile article. It is dutiable at the general column rate of duty at 7 percent ad valorem.
The country of origin is China.

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 C.F.R. ?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.

Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R. 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 C.F.R. ?177.2.

Sincerely,

John Durant, Director
Commercial Rulings Division

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