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NY K84887




April 16, 2004

CLA-2-RR:NC:TA:349 K84887

CATEGORY: CLASSIFICATION

Mr. Benjie Manio
Greatex Mills Inc.
1625 Chabanel St., Suite 201
Montreal, Quebec H4N 2S7

RE: Classification and country of origin determination for a duvet cover and pillow sham; 19 CFR 102.21(c)(5)

Dear Mr. Manio:

This is in reply to your letter dated March 24, 2004, requesting a classification and country of origin determination for a duvet cover and pillow sham which will be imported into the United States.

FACTS:

The subject merchandise is a duvet cover and a pillow sham. Samples of these items were previously submitted with New York Ruling Letter K83207 dated March 5, 2004. Both items are comprised of face and back panels. The panels are made from 100 percent polyester woven fabric. The fabric is dyed. The duvet cover measures approximately 89 x 92 inches. It is sewn along three edges and the fourth edge contains a 68-inch zippered opening. The fabric on the face panel is brushed. The duvet cover does not contain any embroidery, lace, braid, edging, trimming, piping or applique work. The pillow sham measures approximately 24 x 31.5 inches. Three sides are sewn and the fourth has a zipper closure. The fabric on the face panel has been brushed. The sham features a flange or picture frame effect.

You have described three manufacturing scenarios. The manufacturing operations for the duvet cover and pillow sham are as follows:

Scenario 1:
TAIWAN:
-polyester fabric (face panel) is woven.
-fabric is shipped to China.

CHINA:
-polyester fabric (back panel) is woven.
-fabrics are cut and sewn forming the duvet cover and pillow sham. -cover and sham are separately packaged and shipped.

Scenario 2:
TAIWAN:
-polyester fabric (face panel) is woven.
-fabric is shipped to Vietnam.

ISRAEL:
-polyester fabric (back panel) is woven.
-fabric is shipped to Vietnam.

VIETNAM:
-fabrics are cut and sewn forming the duvet cover and pillow sham. -cover and sham are separately packaged and shipped.

Scenario 3:
TAIWAN:
-polyester fabric (face panel) is woven.
-fabric is shipped to Mexico.

ISRAEL:
-polyester fabric (back panel) is woven.
-fabric is shipped to Mexico.

MEXICO:
-fabrics are cut and sewn forming the duvet cover and pillow sham. -cover and sham are separately packaged and shipped.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the duvet cover 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 general rate of duty will be 11.4 percent ad valorem.

The applicable subheading for the pillow sham will be 6304.93.0000, HTSUSA, which provides for other furnishing articles, excluding those of heading 9404: other: not knitted or crocheted, of synthetic fibers. The general rate of duty will be 9.3 percent ad valorem.

Both the duvet cover and the pillow sham 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 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.

We note that the polyester fabric used as the back panel of the pillow sham and the duvet cover in scenarios 2 and 3 was made in Israel. Section 102.21(a) specifically states that the rules in Section 102.21 shall not apply "for purposes of determining whether goods originate in Israel or are the growth, product, or manufacture of Israel." The rules of origin in Section 12.130 are to be used to make that determination. The polyester fabric was woven in Israel and shipped to Vietnam or Mexico where it was cut and assembled with other fabrics into the pillow sham and duvet cover. Israel can not be the country of origin of the pillow sham or the duvet cover because the fabric was substantially transformed in Vietnam or Mexico. As Israel does not confer origin pursuant to Section 12.130, we then apply the rules in Section 102.21 to determine the country of origin.

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 6304.93 is included in the paragraph (e)(2) exception to the above tariff shift rule. Paragraph (e)(2)(i) is not applicable as the fabric comprising the pillow sham is not dyed and printed. Paragraph (e)(2)(ii) states that “If the country of origin cannot be determined under (i) above, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.” As the fabrics comprising the pillow sham in all three scenarios are formed in more than one country, Section 102.21(c)(2) is inapplicable.

Subheading 6302.32 is not included in the paragraph (e)(2) exception to the above tariff shift rules. As the fabrics comprising the duvet cover in all three scenarios 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 duvet cover and pillow sham are not knit and 6302 and 6304, HTSUSA, are 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 fabrics that make up the duvet cover and pillow sham in all three scenarios 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 subject duvet cover and pillow sham, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, China in scenario 1, Vietnam in scenario 2 and Mexico in scenario 3. Although the origin of the duvet cover and sham in scenario 3 is Mexico, those products are made from non-originating fabrics that do not undergo the requisite change in tariff classification. The duvet cover and pillow sham are not eligible for preferential treatment under the North American Free Trade Agreement.

HOLDING:

The country of origin of the duvet cover and pillow sham is China in scenario 1, Vietnam in scenario 2 and Mexico in scenario 3. Based upon international textile trade agreements the duvet cover from China is subject to quota and the requirement of a visa. The duvet covers from Vietnam and Mexico and the pillow shams from China, Vietnam and Mexico are not subject to quota or visa restrictions.

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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