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NY K81704




January 14, 2004

CLA-2-RR:NC:TA:349 K81704

CATEGORY: CLASSIFICATION

Mr. Wallace Hui
China Home Fashions USA
P.O. Box 32-H
Scarsdale, NY 10583

RE: Classification and country of origin determination for duvet covers; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c)(5); last country where an important assembly or manufacturing process occurred

Dear Mr. Hui:

This is in reply to your letter dated December 19, 2003, received by this office on January 12, 2004, requesting a classification and country of origin determination for duvet covers which will be imported into the United States.

FACTS:

The subject merchandise consists of duvet or comforter covers. The submitted sample is made from two fabric panels that are sewn together on three sides. The fourth side is partially sewn and has an opening to allow the insertion and removal of a comforter or duvet. The opening has an 8-snap closure. One side of the cover is made from four rectangular pieces of a napped 100 percent polyester “faux suede” woven fabric. The other side is made from a 100 percent cotton denim fabric. The “faux suede” fabric is also used as a binding along all four sides. The duvet cover does not contain any embroidery, lace, braid, edging, trimming, piping or applique work. You have proposed two manufacturing scenarios. The manufacturing operations for the duvet covers are as follows:

Scenario 1:
TAIWAN:
-polyester “faux suede” fabric is woven and finished. -fabric is shipped to China.

CHINA:
-cotton denim fabric is woven and finished. -fabrics are cut to size and shape.
-fabric pieces are sewn creating the duvet covers. -covers are packed and shipped.

Scenario 2:
TAIWAN:
-polyester “faux suede” fabric is woven and finished. -cotton denim fabric is woven and finished. -fabrics are shipped to China.

CHINA:
-fabrics are cut to size and shape.
-fabric pieces are sewn creating the duvet covers. -covers are packed and shipped.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the duvet covers will be 6302.32.2060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of man-made fibers: other other: other. The duty rate will be 11.4 percent ad valorem.

The cover 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 Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.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.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the 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 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, 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.

Subheading 6302.32 is not included in the paragraph (e)(2) exception to the above tariff shift rule. As the fabrics comprising the duvet covers in scenario 2 are formed in a single country, that is, Taiwan, as per the terms of the tariff shift requirement, country of origin for the scenario 2 duvet covers is conferred in Taiwan. The fabrics comprising the duvet covers in scenario 1 are formed in more than one country, and Section 102.21 (c)(2) therefore inapplicable for those covers.

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 scenario 1 duvet covers are not knit and heading 6302, 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 merchandise, the most important manufacturing process occurs at the time of fabric making. 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). The fabric making process of the duvet covers constitutes the most important manufacturing process. However, the fabrics for the duvet covers in scenario 1 are 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 scenario 1 duvet covers , country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, China.

HOLDING:

The country of origin of the duvet covers in scenario 1 is China and the country or origin of the scenario 2 duvet covers is Taiwan. Based upon international textile trade agreements products of China and Taiwan 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 CFR 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 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 646-733-3043.

Sincerely,

Robert B. Swierupski
Director,

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