NY E80405 - Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for mattress pads; 19 CFR 102.21(c)(5); Article 509 - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1999 NY Rulings > NY E80391 - NY E80437 > NY E80405

May 14, 1999

CLA?2-RR:NC:TA:349 E80405

CATEGORY: CLASSIFICATION

Mr. Mike Leahy
A.N. Deringer, Inc
173 W. Service Road
Champlain, NY 12919

RE: Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for mattress pads; 19 CFR 102.21(c)(5); Article 509

Dear Mr. Leahy:

This is in reply to your letter dated April 9, 1999, received by this office on April 19, 1999, on behalf of Priva Inc., requesting a classification, status under the NAFTA and country of origin determination for mattress pads which will be imported into the United States.

FACTS:

The subject merchandise consists of mattress pads. You submitted a sample of a crib size mattress pad and indicated that they will also be made in twin, full, queen and king sizes. The pads will be made in three different styles. The quilted pads are designed to cover the entire top of a mattress and are held in place by an elasticized skirt. All styles will contain a inner layer of 100 percent polyester batting and the skirts will be made from a 50 percent polyester and 50 percent cotton woven fabric. Style #1 will have a 100 percent cotton woven fabric top layer and a 50 percent polyester and 50 percent cotton woven fabric bottom layer. Both the top and bottom layers of Style #2 will be made from a 50 percent polyester and 50 percent cotton woven fabric. Style #3 will have a 100 percent cotton woven fabric top surface and a vinyl laminated polyester fabric bottom layer.

The manufacturing operations for the mattress pads are as follows: Pakistan:
-100% cotton fabric for the top surface is woven. -50 % polyester and 50 % cotton fabric for the bottom layer is woven. -50 % polyester and 50 % cotton fabric for the skirt is woven (skirt fabric may be sourced from Pakistan or the United States).
-fabrics are shipped to Canada.

United States
-50 % polyester and 50 % cotton fabric for the skirt is woven (skirt fabric may be sourced from Pakistan or the United States).

Canada:
-100% polyester batting is made.
-vinyl laminated polyester fabric is made. -fabrics are cut to size and shape.
-components are sewn and quilted, creating the mattress pads.

ISSUE:

What are the classification, status under the NAFTA and country of origin for the subject merchandise?

CLASSIFICATION:

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

The mattress pads are classifiable in Heading 9404, HTSUSA. These items are made from a combination of textile materials. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. If the essential character can not be determined under GRI 3(b), then, pursuant to GRI 3(c), the goods are to be classified in the heading which occurs last in numerical order among those which equally merit consideration.

The instant pads are composed of outer shells made from cotton fabrics, blended fabrics and coated or laminated fabrics, a polyester filling and a skirt made from a blended fabric. Additional U.S. Rule of Interpretation 1(d) states that the principles of Section XI regarding mixtures of two or more textile materials shall apply to the classification of goods in any provision in which a textile material is named. Subheading Note 2 to Section XI, HTSUSA, provides, in pertinent part:

(A) Products of chapters 56 to 63 containing two or more textile materials are to be regarded as consisting wholly of that textile material which would be selected under note 2 to this section for the classification of a product of chapters 50 to 55 consisting of the same textile materials. (B) For the application of this rule:
(a) Where appropriate, only the part which determines the classification under general interpretative rule 3 shall be taken into account.

Note 2(A), Section XI, to which Subheading Note 2(A) refers, provides:

Goods classifiable in chapters 50 to 55 or in heading 5809 or 5902 and of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over each other textile material. When no one textile material predominates by weight, the goods are to be classified as if consisting wholly of that one textile material which is covered by the heading which occurs last in numerical order among those which equally merit consideration.

Each of the fabrics in the mattress pad are important to the functioning of the pad and no one fabric provides the essential character of the article. The pads contain different combinations of cotton fabric, blended fabric and laminated man-made fiber fabric. As the blended fabric is stated to be a 50/50 cotton and polyester blend, no one textile material predominates by weight. Applying the above notes, the blended fabric will be classified as it consisted wholly of polyester. Style #2 is therefore wholly of man-made fibers and will be classified as such. Styles #1 and #3 will be classified as of man-made fibers as that is the heading which occurs last in numerical order among those which equally merit consideration. Please note that even a slight change in the fiber content may result in a change of classification, as well as visa and quota status. The mattress pads may be subject to U.S. Customs laboratory analysis at the time of import and if the fabric is other than a 50/50 blend it may be reclassified by Customs at that time. The applicable subheading for the mattress pads will be 9404.90.9555, HTSUSA, which provides for mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: other: other: other... of man-made fibers. The general rate of duty will be 10.9 percent ad valorem. The mattress pads fall within textile category designation 666.

The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.USTREAS.GOV. In addition, 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 and should also be verified at the time of shipment.

NAFTA ELIGIBILITY:

The subject mattress pads undergo processing operations in Canada which is a country provided for under the North American Free Trade Agreement (NAFTA). General Note 12, HTSUSA, incorporates Article 401 of the North American Free Trade Agreement (NAFTA) into the HTSUSA. Note 12(a) provides, in pertinent part:

(i) Goods that originate in the territory of a NAFTA party under subdivision (b) of this note and that qualify to be marked as goods of Canada under the terms of the marking rules... and are entered under a subheading for which a rate of duty appears in the "Special" subcolumn followed by the symbol "CA" in parentheses, are eligible for such duty rate... .

Accordingly, the mattress pads at issue will be eligible for the "Special" "CA" rate of duty provided they are NAFTA "originating" goods under General Note 12(b), HTSUSA, and they qualify to be marked as goods of Canada. Note 12(b) provides in pertinent part:

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if??

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that??

(A) except as provided in subdivision (f) of this note, each of the non?originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or,

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials;

As the cotton and blended fabric portions of the mattress pads are made in Pakistan, they do not meet the eligibility requirements of General Note 12(b)(i) or 12(b)(iii), HTSUSA. Therefore, we must ascertain whether the non-originating fabric qualifies for NAFTA eligibility under General Note 12(b)(ii), HTSUSA. In order to qualify, the Pakistani fabrics must undergo the change in tariff classification required in General Note 12(t), HTSUSA. The applicable subdivision (t) rule for Chapter 94 provides the following:

7. A change to subheading 9404.90 from any other chapter, except from headings 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408 or 5512 through 5516.

The mattress pads do not qualify for preferential treatment under the NAFTA because the non-originating cotton and blended fabrics used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/94.7, HTSUSA.

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

9404.90 The country of origin of a good classifiable under subheading 9404.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

Accordingly, as the fabrics comprising the mattress pads are not formed in a single 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 subject merchandise is not knit and subheading 9404, HTSUSA, 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 mattress pads, the most important manufacturing process occurs at the time of fabric making. However, the fabric for this merchandise is 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 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. Accordingly, in the case of the subject mattress pads, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Canada.

HOLDING:

The subject mattress pads are classified in subheading 9404.90.9555, HTSUSA, which provides for articles of bedding and similar furnishing stuffed or internally fitted with any material, of man-made fibers.

The country of origin for the mattress pads is Canada. They will not be entitled to the NAFTA "CA" special duty rate.

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 181.100(a)(2). 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 181 of the Customs Regulations (19 C.F.R. 181). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 181.100(a)(2), 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.

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 212-637-7078.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: