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NY C88555


July 1, 1998

CLA-2-RR:NC:TA:349 C88555

CATEGORY: CLASSIFICATION

Mr. Marc D. Begun

Fan-Tachables

A Div. of David Carey Inc.

425 Queens Lane

San Jose, CA 95112

RE: Classification and country of origin determination for ceiling fan blade covers; 19 C.F.R. §102.21(c)(2); tariff shift; De Minimus; 19 C.F.R. §12.130(c)

Dear Mr. Begun:

This is in reply to your letter dated June 1, 1998, requesting a classification and country of origin determination for ceiling fan blade covers which will be imported into the United States.

FACTS:

The subject merchandise consists of decorative textile covers for the blades of ceiling fans. The covers are made from a woven cotton fabric and measure approximately 7.5 x 23 inches. They are hemmed on all sides. The printed cover slips on a fan blade and is secured to the blade by a nylon cord and a narrow strip of man-made fiber fabric. The ends of this strip of fabric are sewn to the side hems of the covers. In the future, this strip of fabric may be replaced with a strip of elastic. The nylon cord is partially encased in the side hems and a plastic rope lock is used to adjust and secure the cord. The covers will be packed with five blade covers per package.

The manufacturing operations for the ceiling fan blade covers are as follows:

United States, Korea or China

-cotton sheeting fabric is woven.

China

-man-made fiber fabric is woven. You have indicated that the weight of this fabric is less than seven percent of the total weight of the blade cover.

Hong Kong

-the fabrics are cut, sewn and assembled with the other components (string, metal grommets and plastic rope lock) to form the blade covers.

-the blade covers are packed.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the ceiling fan blade covers will be 6304.92.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other furnishing articles, excluding those of 9404: other: not knitted or crocheted, of cotton. The rate of duty will be 6.8 percent ad valorem.

The blade covers fall within textile category designation 369. The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. §3592) 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, 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 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.

General Rule (c) of Part 102.21 states that "Subject to paragraph (d) of this section, the country of origin of a textile or apparel product shall be determined by sequential application of paragraphs (c)(1) through (5) of this section and, in each case where appropriate to the specific context, by application of the additional requirements or conditions of §§102.12 through 102.19 of this part." Section 102.13, which sets out the De Minimis rule states, in relevant part:

(c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in §102.21 or satisfy the other applicable requirements of that section when incorporated into a textile or apparel product covered by that section shall be disregarded in determining the country of origin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good.

The subject blade covers are classified in heading 6304, HTSUSA. As you have stated that the weight of the strip of man-
made fiber fabric is not more than 7 percent of the total weight of the finished blade cover, the strip of fabric is disregarded when determining country of origin. Accordingly, the merchandise complies with the tariff shift requirement for heading 6304, HTSUSA. The country of origin of the subject merchandise is thus, the single country where the fabric comprising the good was formed by a fabric-making process, that is, the United States when the fabric is woven in the United States, Korea when the fabric is woven in Korea or China when the fabric is woven in China .

However, there is an exception to products from the United States that are sent abroad for processing. Section 12.130(c), Customs Regulations, provides that any product of the United States which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article.

Section 12.130 which remains in effect was originally intended to be used to determine the country of origin of textiles and textile products for quota/visa requirements. In T.D. 90-17, issued February 23, 1990, Customs announced a change in practice and position. This change resulted in Customs using Section 12.130 for quota, duty, and marking purposes when making country of origin determinations for textile goods. Therefore, in accordance with T.D. 90-17 and Section 12.130(c), the country of origin of the blade covers made from U. S. cotton fabric is Hong Kong, for quota, marking, and duty purposes.

The submitted samples are not marked with their country of origin. Section 134.11 of the Customs Regulations provides in part:

Unless excepted by law...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 container) will permit, in such a manner as to indicate to an ultimate purchaser in the U.S. the English name of the country of origin of the article, at the time of importation into the Customs territory of the U.S.

Additionally, please note that separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. You should contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to this item.

HOLDING:

The subject ceiling fan blade covers are classified in subheading 6304.92.0000, HTSUSA, which provides for other woven cotton furnishings.

The country of origin of the ceiling fan blade covers depends upon the country where the cotton sheeting fabric was woven. When made from fabric that was woven in Korea, the country of origin is Korea and when made with Chinese woven fabric the country of origin is China. In those situations where the covers are made with fabric that was woven in the United States, the country of origin is Hong Kong. Based upon international textile trade agreements products of China, Hong Kong and Korea are subject to quota and the requirement of a visa.

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.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R. §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 C.F.R. §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 212-466-5854.

Sincerely,


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