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 > 2001 NY Rulings > NY G85979 - NY G86028 > NY G86026

Previous Ruling Next Ruling
NY G86026




January 26, 2001

CLA-2-RR:NC:TA:349 G86026

CATEGORY: CLASSIFICATION

Mr. Barry Cheung
Aytex Garment Factory Ltd.
328 West 2nd Avenue
Vancouver, B.C.
V5Y 1C8 CANADA

RE: Classification, marking, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for a fleece blanket; 19 CFR 102.21(c)(2); tariff shift; Article 509

Dear Mr. Cheung:

This is in reply to your letter dated December 6, 2000, received by this office on January 4, 2001, requesting a classification, marking, status under the NAFTA and country of origin determination for a fleece blanket which will be imported into the United States.

FACTS:

The subject merchandise consists of an infant’s blanket made from 100 percent polyester knit fleece fabric. A sample was not submitted. The blanket will measure 29 x 34.5 inches and will have rounded corners. The edges of the blanket will be finished with a whip stitch. It will feature an embroidered design in one corner. The manufacturing operations for the blanket are as follows:

TAIWAN:
-polyester fabric is knit and finished.
-fabric is shipped to Canada.

CANADA:
-knit fabric is cut to size and shape.
-edges are finished.
-blanket is embroidered.
-blanket is packed and shipped.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the blanket, will be 6301.40.0020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for blankets and traveling rugs: blankets (other than electric blankets) and traveling rugs, of synthetic fibers... other. The general rate of duty will be 9.8 percent ad valorem

The blanket falls 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.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 blanket undergoes 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 blanket at issue will be eligible for the “Special” “CA” rate of duty provided it is a NAFTA “originating” good under General Note 12(b), HTSUSA, and it qualifies to be marked as a good 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
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,
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
they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials;

The subject merchandise qualifies for NAFTA treatment only if the provisions of General Note 12(b)(ii)(A) are met, that is, if the merchandise is transformed in the territory of Canada so that the non-originating material undergoes a change in tariff classification as described in subdivision (t).

The blanket is classified in subheading 6301.40.0020, HTSUSA. For heading 6301, HTSUSA, subdivision (t), Chapter 63, rule 1, states that:

A change to headings 6301 through 6302 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one of more of the NAFTA parties.

When the 100 percent polyester knit fabric for the blanket leaves Taiwan, it is classified in heading 6001, HTSUSA. As fabrics of heading 6001, HTSUSA, are excepted from meeting the tariff change to headings 6301 through 6302, HTSUSA, the non-originating material from Taiwan does not undergo the requisite change in tariff classification. Accordingly, the merchandise is not eligible for the NAFTA preference.

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.

As the fabric comprising the blanket is formed in a single country, that is, Taiwan , as per the terms of the tariff shift requirement, the country of origin of the blanket is conferred in Taiwan.

MARKING:

You have also requested a ruling on whether the proposed marking “Assembled in Canada, Fabric from Taiwan” is an acceptable country of origin marking for the blanket. This marking would appear on a sewn on label.

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.

The origin rules indicate that the country of origin of the finished blanket is Taiwan, the country where the fabric was formed by a fabric-making process. The proposed marking “Assembled in Canada, Fabric from Taiwan” is not an acceptable country of origin marking for the finished blanket. The origin rules indicate that the country of origin of the finished blanket is Taiwan, where the fabric for the item was formed. The proposed marking “Assembled in Canada, Fabric from Taiwan” only indicates that the fabric is of Taiwanese origin, not that the blanket is of Taiwanese origin as determined above. Since the proposed marking is in direct conflict with the origin determination made pursuant to Section 102.21, it does not satisfy the marking requirements of 19 U.S.C. 1304 and, thus, is not acceptable country of origin marking for the blanket.

However, a phrase such as “Made in Taiwan, Further Processed in Canada” indicates that the country of origin of the finished blanket is Taiwan which is consistent with the origin rules for toilet and kitchen linen under Section 102.21, Customs Regulations. Marking the blanket “Made in Taiwan, Further Processed in Canada” will satisfy the marking requirements of 19 U.S.C. 1304 and would be an acceptable country of origin marking for the finished blanket.

It should also be noted that textile fiber products imported into the U.S. must be labeled in accordance with the Textile Fiber Products Identification Act (15 U.S.C. 70 through 70k) and the rules promulgated thereunder by the Federal Trade Commission. These rules concern required information such as country of origin, fiber content and the placement of that information. Therefore, we suggest that you contact the Federal Trade Commission, Textile Program, Division of Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to the submitted items. You have also asked about care labeling. Questions concerning care labeling regulations should also be addressed to the Federal Trade Commission.

HOLDING:

The subject fleece blanket is classified in subheading 6301.40.0020, HTSUSA, which provides for knit blankets, of synthetic fibers.

The country of origin of the blanket is Taiwan. Based upon international textile trade agreements products of Taiwan which fall within textile category designation 666 are subject to quota and the requirement of a visa.

Pursuant to the origin rules set forth in Section 102.21 and the country of origin marking requirements of 19 U.S.C. 1304 the proposed country of origin marking “Assembled in Canada, Fabric from Taiwan” is not an acceptable country of origin marking for the blanket. However, marking such as “Made in Taiwan, Further Processed in Canada” will satisfy the marking requirements of 19 U.S.C. 1304 and is an acceptable country of origin marking for the finished blanket.

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.

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.

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,

Previous Ruling Next Ruling

See also: