The tariff classification and status under the United States-Bahrain Free Trade Agreement (UBFTA), of sheet sets from Bahrain.

N101036 April 26, 2010 CLA-2-63:OT:RR:NC:TA:349 CATEGORY: Classification TARIFF NO.: 6302.31.5020; 6302.31.9010; 6302.31.9020 Ms. Margaret R. Polito Neville Peterson LLP 17 State Street, 19th Floor New York, NY 10004 RE: The tariff classification and status under the United States-Bahrain Free Trade Agreement (UBFTA), of sheet sets from Bahrain. Dear Ms. Polito: In your letter dated April 8, 2010, amended on April 20, 2010, you requested a ruling on the status of sheet sets from Bahrain under the UBFTA. This request is made on behalf of WestPoint Home Inc. The merchandise consists of sheet sets. A photograph was provided. The sets are made from a 100 percent cotton woven fabric that is not printed and not napped. They contain a flat sheet, fitted sheet and one or two pillowcases. The sheets will be imported in two versions. One version will have an embroidered flat sheet and pillowcases with a non-embroidered fitted sheet while the other will not contain any embroidery. The sets are packaged for retail sale in a self fabric bag. The bag is sized to fit the sets and features a flap closure secured with two buttons. The bag allows the consumer to see and feel the fabric of the sheets without opening the package. The embroidered set will be packaged in an embroidered bag and the plain set will be in a plain bag. A hangtag will be affixed to the bag to provide the consumer with the country of origin and other information required under the Textile Fiber Identification Act. The yarns used in the production of the cotton fabric are spun in Bahrain, and the resulting yarns are then dyed and woven into a cloth in Bahrain. The fabric is then cut and sewn into the finished flat sheet, fitted sheet and pillowcases. The sheet set that contains embroidery is embroidered in Bahrain. The yarn used to embroider the flat sheet and pillowcases is sourced from Sri Lanka. You indicate that this yarn accounts for less than 7 percent of the weight of those items. The textile bag used for packaging is cut and sewn in China from the fabric that was produced in Bahrain. If the bag is intended to contain the embroidered sheet set, the front panel of the bag will be embroidered in China. The bags are returned to Bahrain and the finished sheet sets are packaged into them. The sets are shipped to the United States. The Explanatory Notes, which constitute the official interpretation of the Harmonized Tariff Schedule of the United States at the international level, state in Note (X) to Rule 3 (b) that the term "goods put up in sets for retail sale" means goods which: (a) consist of at least two different articles which are prima facie, classifiable in different headings; b) consist of products or articles put up together to meet a particular need or carry out a specific activity; (c) are put up in a manner suitable for sale directly to users without repacking In the case of the set that contains embroidery the flat sheet, fitted sheet and pillowcases meet the qualifications of "goods put up in sets for retail sale." The components of the set consist of at least two different articles which are, prima facie, classifiable in different headings (pillowcases containing embroidery, flat sheet containing embroidery and a plain fitted sheet). They are put up together to meet a particular need or carry out a specific activity, and they are packed for sale directly to users without repacking. The decorative components (pillowcase and flat sheet) impart the essential character of the set. The components of the non-embroidered sheet set are within the same subheading and do not qualify as "goods put up in sets for retail sale." They will be classified separately. In both cases the fabric bag used to hold the sets is considered packing. The applicable tariff provision for the embroidered sheet set will be 6302.31.5020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of cotton: containing any embroidery, lace, braid, edging, trimming, piping or appliqué work: not napped… sheets. The general rate of duty will be 20.9 percent ad valorem. The applicable tariff provision for the pillowcases in the non-embroidered set will be 6302.31.9010, HTSUS, which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of cotton: other: not napped… pillowcases, other than bolster cases. The general rate of duty will be 6.7 percent ad valorem. The applicable tariff provision for the flat and fitted sheets in the non-embroidered set will be 6302.31.9020, HTSUS, which provides for bed linen, table linen, toilet linen and kitchen linen: other bed linen: of cotton: other: not napped… sheets. The general rate of duty will be 6.7 percent ad valorem. General Note 30, HTSUS, sets forth the criteria for determining whether a good is originating under the UBFTA. General Note 30(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (e), (g) and (h) thereof, a good imported into the United States is eligible for treatment as an originating good of a UBFTA country under the terms of this note only if – (i) the good is a good wholly the growth, product or manufacture of Bahrain or of the United States, or both; (ii) for goods not covered by subdivision (b)(iii) below, the good is a new or different article of commerce that has been grown, produced or manufactured in the territory of Bahrain or of the United States, or both, and the sum of— (A) the value of each material produced in the territory of Bahrain or of the United States, or both, and (B) the direct costs of processing operations performed in the territory of Bahrain or of the United States, or both, is not less than 35 percent of the appraised value of the good at the time the good is entered into the territory of the United States; or (iii) the good falls in a heading or subheading covered by a provision set forth subdivision (h) of this note and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in such subdivision (h) as a result of production occurring entirely in the territory of Bahrain or of the United States, or both; or (B) the good otherwise satisfies the requirements specified in such subdivision (h); and is imported directly into the territory of the United States from the territory of Bahrain and meets all other applicable requirements of this note. For purposes of this note, the term “good” means any merchandise, product, article or material. The sheet sets at issue will be eligible for the UBFTA preferential treatment if they are transformed in Bahrain so that the non-originating material undergoes a change in tariff classification described in subdivision (h) to General Note 30, HTSUS. For heading 6302, HTSUS, subdivision (h), Chapter 63, rule 1, states that: A change to headings 6301 through 6302 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54 or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Bahrain or of the United States, or both. Additionally, General Note 30(e), HTSUS, sets out specific rules for textile and apparel articles. General Note 30(e)(i) states in pertinent part that: Except as provided in subdivision (ii) below, a textile or apparel good that is not an originating good under the terms of this note, because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in subdivision (h) of this note, shall be considered to be an originating good if the total weight of all such fibers or yarns in that component is no more than seven percent of the total weight of that component. General Note 30(d)(iii) concerns packaging and packing materials and containers for retail sale and for shipment. The Note states: Packaging and packing materials and containers for retail sale and shipment shall be disregarded in determining whether a good qualifies as an originating good, except that the value of such packaging and packing materials and containers has been included in meeting the requirements set forth in subdivision (b)(ii) of this note. Based on the facts provided, the goods described above qualify for UBFTA preferential treatment, because they will meet the requirements of HTSUS General Note 30(b)(iii). The goods will therefore be entitled to a Free rate of duty under the UBFTA upon compliance with all applicable laws, regulations, and agreements. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 National Commodity Specialist Division