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June 9, 1999

CLA-2-RR:NC:TA:349 E82442

CATEGORY: CLASSIFICATION

Mr. Louis Piropato
Daniel F. Young, Inc.
176-20 147th Avenue
Jamaica, NY 11431-5404

RE: Classification and country of origin determination for patchwork quilts; 19 CFR 102.21(c)(4); most important assembly or manufacturing process; 19 CFR 12.130(c)

Dear Mr. Piropato:

This is in reply to your letter dated May 19, 1999, on behalf of Pem-America, Inc., requesting a classification and country of origin determination for quilts which will be imported into the United States.

FACTS:

The subject merchandise consists of patchwork quilts. You submitted a representative sample and have indicated that the imported quilts will be similar except for size. The quilts are made from various 100 percent cotton woven fabrics and they are filled with a layer of polyester batting. The top layer of the submitted sample features a pieced patchwork design while the bottom layer is plain. The quilts will be imported in a 68 x 86 inch twin size, an 86 x 86 inch full/queen size and a 100 x 90 inch king size. The sample is quilted through all three layers and does not contain any embroidery, lace, braid, edging, trimming, piping or applique work.

The manufacturing operations for the quilts are as follows:

Scenario 1
Korea:
-polyester batting fabric is made.
-batting is shipped to Cambodia.
Pakistan:
-cotton fabrics are woven and finished.
-fabrics are shipped to Cambodia.

Cambodia:
-shell fabrics are cut and sewn creating a patchwork layer and a plain backing. -batting fabric is cut to size.
-the three layers are joined and quilted. -quilts are packed for shipment.

Scenario 2
Korea:
-polyester batting fabric is made.
-batting is shipped to Cambodia.

China:
-cotton fabrics are woven and finished.
-fabrics are shipped to Cambodia.

Cambodia:
-shell fabrics are cut and sewn creating a patchwork layer and a plain backing. -batting fabric is cut to size.
-the three layers are joined and quilted. -quilts are packed for shipment.

Scenario 3
Korea:
-polyester batting fabric is made.
-batting is shipped to Cambodia.

United States:
-cotton fabrics are woven and finished.
-fabrics are shipped to Cambodia.

Cambodia:
-shell fabrics are cut and sewn creating a patchwork layer and a plain backing. -batting fabric is cut to size.
-the three layers are joined and quilted. -quilts are packed for shipment.

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

CLASSIFICATION:

The applicable subheading for the patchwork quilts will be 9404.90.8020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for 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: of cotton, not containing any embroidery, lace, braid, edging, trimming, piping exceeding 6.35 mm or applique work... quilts, eiderdowns, comforters and similar articles. The rate of duty will be 4.7 percent ad valorem.

The patchwork quilts fall within textile category designation 362. 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.

You have indicated that the cotton fabric in Scenario 3 is made in the United States and have inquired as to a possible partial duty exemption under subheading 9802.00.80, HTSUSA. As the fabrics are not exported in a condition ready for assembly and are advanced in value or improved in condition abroad, the quilts are not eligible for a partial duty exemption.

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.

The subject patchwork quilts are made from shell fabrics and a batting fabric. Accordingly, as the fabrics comprising the quilts 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 subject patchwork quilts are not knit and heading 9404.90, 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 quilts, the fabric making process of the quilt=s outer shell constitutes the most important manufacturing process. It is the outer shell which actually forms the merchandise. Moreover, 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). Accordingly, the fabric making process in Pakistan for Scenario 1, China for Scenario 2 and the United States for Scenario 3, where the fabric for the quilt=s outer shell is formed, constitutes the most important manufacturing process. Therefore, the country of origin of the subject patchwork quilts is Pakistan for Scenario 1, China for Scenario 2 and the United States for Scenario 3.

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 patchwork quilts made from U. S. cotton fabrics in Scenario 3 is Cambodia, for quota, marking, and duty purposes.

HOLDING:

The subject patchwork quilts are classified in subheading 9404.90.8020, HTSUSA, which provides for other quilts, eiderdowns, comforters and similar articles, of cotton.

The country of origin of the patchwork quilts is Pakistan for Scenario 1, China for Scenario 2 and Cambodia for Scenario 3. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa. Products of Cambodia are subject to the requirement of a visa. Products of Pakistan falling within textile category designation 362 do not require 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 CFR 177.9(b)(1). This sections 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 212-637-7078.

Sincerely,

Robert B. Swierupski
Director,

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