Classification and country of origin determination for polyester spunbond pleat packs; 19 CFR 102.21(c)(4)

N253094 June 19, 2014 CLA2-OT:RR:NC:N3:350 CATEGORY: Classification Kimberly Whitworth Maddocks Industrial Filter Division 663 Woodward Ave. Hamilton, Ontario Canada L8H 6P3 RE: Classification and country of origin determination for polyester spunbond pleat packs; 19 CFR 102.21(c)(4) Dear Ms. Whitworth: This is in reply to your letter received in this office on May 6, 2014, requesting a classification and country of origin determination for polyester spunbond pleat packs which will be imported into the United States. FACTS: The subject merchandise consists of a polyester spunbond fabric that has been laminated with a polytetrafluoroethylene (PTFE) membrane. This fabric is then cut and folded into a pleated filter media which will be placed into a cartridge for use in industrial air filtration. For purposes of this letter we will assume the nonwoven fabric is constructed of polyester filament fibers. The weight provided by the filer is more than 150 g/m². The manufacturing operations for the pleat packs are as follows: A spunbond (nonwoven) fabric of 100% polyester is manufactured in Japan. This spunbond (nonwoven) fabric is thermally bonded to a PTFE (plastic) membrane in the United States. The spunbond laminated fabric is cut and folded/pleated in Canada for its eventual incorporation into a cartridge used in industrial air filtration. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the pleat packs will be 5603.14.3000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Nonwovens, whether or not impregnated, coated, covered or laminated: Of man-made filaments: Weighing more than 150 g/m²: Laminated fabrics. The general rate of duty will be Free. 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/. 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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. Paragraph (c)(1) states, “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, “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, 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 5603 (1) Except for fabric of wool or fine animal hair, a change from greige fabric of heading 5602 through 5603 to finished fabric of heading 5602 through 5603 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing or moireing; or (2) If the country of origin cannot be determined under (1) above, a change to heading 5602 through 5603 from any heading outside that group, provided that the change is the result of a fabric-making process. Subsection (1) of this rule does not apply because although greige fabric of 5603 is exported to the US from Japan, it neither changes from a greige fabric to a finished fabric of 5603 by both dyeing and printing, nor undergoes two or more of the finishing operations listed under (1) above. Subsection (2) of this rule does not apply since the pleat pack does not change headings from the spunbond fabric made in Japan or the spunbond laminated fabric produced in the United States, therefore, Section 102.21(c)(2) is inapplicable. Section 102.21(c)(3) states, 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 merchandise is neither knit to shape, nor wholly assembled in a single country, 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 fabric making process done in Japan constitutes the most important manufacturing process. Accordingly, the country of origin of the pleat packs is Japan. HOLDING: The country of origin of the pleat packs is Japan. MARKING: In your letter you inquire whether the proposed method of marking the container in which the pleat packs are imported with the country of origin in lieu of marking the article itself is an acceptable country of origin marking for the imported pleat packs.  A marked sample container was not submitted with your letter for review. The marking statute, section 304, 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 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain.  Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported.  If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser.  According to your letter, in this case the ultimate purchaser of the pleat pack is the manufacturer of the finished air filter cartridge. An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article.  Accordingly, if Customs is satisfied that the article will remain in its container until it reaches the ultimate purchaser, in this case the manufacturer of the filter cartridges, and if the ultimate purchaser can tell the country of origin of the pleat packs by viewing the container in which it is packaged, the individual pleat packs would be excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d).  Accordingly, marking the container in which the pleat packs are imported and sold to the ultimate purchaser in lieu of marking the article itself is an acceptable country of origin marking for the imported pleat packs provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser. Your letter indicates the pleat packs, when put into the cartridge, will obliterate, destroy or permanently conceal any marking on the filter media. You propose to mark the outside corrugated carton with the statement; Made in Japan – Pleated in Canada. This would be an acceptable marking for these pleat packs which will ultimately be incorporated into finished air filtration cartridges. 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 Deborah Walsh at (646) 733-3044. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division