The tariff classification and status under the North American Free Trade Agreement (NAFTA), of quilts and duvets from Canada; Article 509

NY G89300 April 19, 2001 CLA-2-94:RR:NC:TA:349 G89300 CATEGORY: Classification TARIFF NO.: 9404.90.8020 Mr. Les Suzuki Livingston International Consulting Group 1140 West Pender Street, Suite 720 Vancouver, BC, Canada V6E 4H5 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of quilts and duvets from Canada; Article 509 Dear Mr. Suzuki: In your letter dated March 21, 2001, on behalf of Daniadown Quilts, you requested a ruling on the status of quilts and duvets from Canada under the NAFTA. You submitted a sample of a comforter shell and a finished quilt. The shell is made from 100 percent cotton woven fabric and it contains internal baffles to prevent the fill from shifting. The edges are finished with a 3-millimeter wide strip of piping. The shell will stuffed with a loose fill, sewn closed and imported into the United States as a completed comforter or duvet. The quilt is made from two layers of a quilted fabric sewn together along their edges. The quilted fabric consists of a 100 percent cotton woven fabric layer, a polyester batting fabric and a nonwoven fabric layer. The three layers are quilted together lengthwise every six inches. The two layers are joined with the cotton fabrics forming the outside of the quilt. You have described three manufacturing scenarios. For all three scenarios you have indicated that the fabrics and stuffings (down, feathers or synthetic materials) will be made in various non-NAFTA countries. In the first scenario, Daniadown or other Canadian firms import the components into Canada. The fabrics are cut and sewn forming a baffled shell that is then stuffed and finished. In the second scenario, the baffled cotton shell is made in a non-NAFTA country. The shell is imported into Canada where it is stuffed and sewn closed. In the third scenario, Daniadown or other Canadian firms import the components into Canada. Three fabric layers are joined creating the quilted fabric. The fabric is cut and sewn together to form the quilt. The applicable subheading for the finished quilts and duvets will be 9404.90.8020, , Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: other: other: of cotton, not containing any embroidery, lace, braid, edging, trimming, piping exceeding 6.35 millimeters or applique work… quilts eiderdowns, comforters and similar articles. The general rate of duty will be 4.6 percent ad valorem. In scenario two, each of the non-originating materials used to make the duvet or comforter has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/94.7. The scenario two comforter or duvet will be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. The quilts and duvets in scenarios one and three do not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/94.7, HTSUSA. The intermediary step of creating a comforter shell or quilted fabric in Canada does not create an originating good. The quilts and duvets fall within textile category designation 362. Based upon international textile trade agreements products of certain non-NAFTA countries are subject to quota and the requirement of a visa. 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, 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. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). 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. 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. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division