Country of origin of textiles; 19 CFR 102.21

HQ 561362 July 19, 1999 MAR-2 RR:TC:SM 561362 KSG CATEGORY: Marking Kathie Dillon American Shipping Company Inc. 140 Sylvan Avenue Englewood Cliffs, New Jersey 07632 RE: Country of origin of textiles; 19 CFR 102.21 Dear Ms. Dillon: This is in response to a fax that Customs received on April 28, 1999, from Joe Christie of Vanguard Textiles Limited, and an additional fax that you sent dated July 14, 1999, asking what the country of origin is for imported bedding. FACTS: Vanguard Textiles Limited is exporting bedding to the U.S. The fabric is made in Taiwan and classified at subheading 5407, of the Harmonized Tariff Schedule of the United States (“HTSUS”) and subheading 5512, HTSUS. The fabric is exported in its “grey” state to the United Kingdom. In the U.K., the fabric is bleached, scoured, dyed, made into sheets, pillow cases and other bedding, and packed. The finished bedding is classified at subheading 6302, HTSUS. The bedding is then sent to the U.S. ISSUE: What is the country of origin of the imported bedding? LAW AND ANALYSIS: Section 304 of the 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. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 334 of the Uruguay Round Agreements Act (“Section 334")provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 CFR 102.21) implements section 334. Pursuant to 19 CFR 102.21, 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 (c)(5) (copy attached). 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 appears not to be wholly obtained or produced in a single country, territory, or insular possession, 19 CFR 102.21(c)(1) 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 foreign material 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.” The bed sheets, pillow cases and other bedding are classified in heading 6302, HTSUS. Section 102.21(e) states that for goods classified in headings 6301-6306, HTSUS, 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. Therefore, since the fabric was formed in Taiwan, the country of origin of all the above products would be Taiwan. Pursuant to 19 U.S.C. 1304, all the goods would have to be marked to indicate that the country of origin is Taiwan. You also asked about the Column 2 rate of duty in the HTSUS. General Note 3(b), HTSUS, states that the Column 2 rate is only applicable to goods that are a product of Afghanistan, Cuba, Laos, North Korea and Vietnam. Since Taiwan is not listed, Column 2 is inapplicable to the goods in this case. HOLDING: Pursuant to 19 CFR 102.21, the country of origin of the bedding is Taiwan. A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, John Durant, Director Commercial Rulings Division