Classification and country of origin determination for placemats, napkins, potholders and oven mitts; 19 CFR 102.21(c)(2); 19 CFR 102.21(c)(4)

NY G87889 March 22, 2001 CLA-2-RR:NC:63:349 G87889 CATEGORY: Classification Mr. Rodney Ralston Trans-Border Customs Services, Inc. P.O. Box 800 Champlain, NY 12919 RE: Classification and country of origin determination for placemats, napkins, potholders and oven mitts; 19 CFR 102.21(c)(2); 19 CFR 102.21(c)(4) Dear Mr. Ralston: This is in reply to your letter dated February 21, 2001, on behalf of Trendex Inc., requesting a classification and country of origin determination placemats, napkins, potholders and oven mitts which will be imported into the United States. FACTS: The subject merchandise consists of placemats, napkins, potholders and oven mitts. A sample of each item was submitted. The placemats, referred to as “Nile Shadow”, are made from two layers of 65 percent polyester and 35 percent cotton woven fabric that are sewn together along the edges. The fabric was bonded to a nonwoven man-made fiber backing fabric. The polyester and cotton fabric forms the outer surfaces of the placemats. The face side of the 13 x 18 inch placemat is printed with an abstract design. The napkins, style “Dried Flower”, are made from a 65 percent polyester and 35 percent cotton woven fabric. The 18-inch square napkins are hemmed on all sides and are printed with a flower and leaf design. The oven mitts and potholders are both referred to as style “Nile Shadow”. The outer shell of the mitts and potholders are made from a printed 100 percent cotton woven fabric. They are filled with a cotton wadding. The ovenmitts have an inner man-made fiber nonwoven lining. The potholders are 8 inches square and the oven mitts measure 6.5 x 13 inches. Both items are quilted. The open end of the mitts and the edges of the potholders are finished with a strip of self-fabric which also forms a hang loop. The manufacturing operations for the placemats, napkins, potholders and oven mitts are as follows: TAIWAN: -65% polyester and 35% cotton fabric is woven. -100% cotton fabric is woven. -fabrics are shipped to China. CHINA: -man-made fiber nonwoven fabrics are created. -cotton wadding is formed. -65/35 fabric for the placemats is bonded to the nonwoven fabric. -fabrics for the potholders and oven mitts are quilted. -fabrics are cut to size and shape. -components are sewn creating the placemats, napkins, potholders and oven mitts. -placemats, napkins, potholders and oven mitts are packed and shipped. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the placemats will be 6302.53.0030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: other table linen: of man-made fibers… other. The rate of duty will be 11.8 percent ad valorem. The applicable subheading for the napkins will be 6302.53.0020, HTSUSA, which provides for bed linen, table linen, toilet linen and kitchen linen: other table linen: of man-made fibers… tablecloths and napkins: other. The rate of duty will be 11.8 percent ad valorem. The applicable subheading for the potholders and oven mitts 6304.92.0000, HTSUSA, which provides for other furnishing articles, excluding those of heading 9404: other: not knitted or crocheted, of cotton. The rate of duty will be 6.6 percent ad valorem. Placemats and napkins fall within textile category designation 666 and the potholders and oven mitts fall within textile category designation 369. 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. 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. The napkins and potholders are each made from a single fabric and that fabric is formed in a single country. As the fabric comprising the potholders and napkins is formed in a single country, that is, Taiwan, as per the terms of the tariff shift requirement, the country of origin of the potholders and napkins is conferred in Taiwan. The placemats and oven mitts are each made from fabrics that were formed in different countries. Accordingly, as the fabrics comprising the oven mitts and placemats 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 placemats and oven mitts are not knit and headings 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 placemats and oven mitts, 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). In the case of the subject placemats and oven mitts, the fabric making process of the outer shell fabrics constitute the most important manufacturing process. The outer shell of the oven mitts and the outer layers of the placemats are each formed by a single fabric and that fabric is formed in a single country. Accordingly, the country of origin of the oven mitts and placemats is Taiwan. HOLDING: The country of origin of the placemats, napkins, potholders and oven mitts is Taiwan. Based upon international textile trade agreements products of 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 212-637-7078. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division