The tariff classification, country of origin and marking of laptop cleaning cloths; 19 CFR 102.21(c)(2); General Note 12; tariff shift; NAFTA Preference Override; Article 509

N285751 May 16, 2017 CLA-2-63:OT:RR:NC:N3:349 CATEGORY: Classification; Country of Origin; Marking TARIFF NO.: 6307.10.2030 Ms. Kim M. Caywood-Pierce Deringer Logistics Consulting Group 173 West Service Road Champlain, NY 12919 RE: The tariff classification, country of origin and marking of laptop cleaning cloths; 19 CFR 102.21(c)(2); General Note 12; tariff shift; NAFTA Preference Override; Article 509 Dear Ms. Caywood-Pierce: In your letter dated April 26, 2017, you requested a tariff classification, country of origin and marking ruling for a laptop screen cleaning cloth. This request was made on behalf of your client, Micro Clair International, Inc. Photographs were submitted in lieu of a sample; however, a sample was submitted upon request. FACTS: The subject merchandise, a Laptop Cleaner, is described as a screen cleaning cloth. The Laptop Cleaner is a double layered cleaning cloth comprised of two different materials. Although you state the face is made from an 80 percent polyester and 20 percent nylon non-woven fabric that will be printed with various designs, upon examination of the sample, this office has identified the face fabric to be a knit fabric. The reverse side is made from an 80 percent polyester and 20 percent nylon knit looped pile fabric. The two fabrics are sewn together with an overlock stich around the edges. The cleaning cloth measures approximately 5 X 7 inches. The manufacturing operations for the laptop cleaning cloths are as follows: SOUTH KOREA: Both fabrics are formed. All fabric is shipped to Canada in rolls. CANADA: All fabric is cut to size, 5 X 7 inches. Sublimation papers (designs) are created in Canada using a digital printing machine. The images are heat transferred onto the knit face fabric. The fabrics are joined together at the edges with an overlock stitch. The cleaning cloth is individually packaged for sale. The photos and sample submitted show the Laptop Cleaner is marked “Textile Made in South Korea” by printing directly onto the face fabric. ISSUE: What is the classification, country of origin and marking of the subject merchandise? CLASSIFICATION: The Laptop Cleaner is a composite good composed of different materials. Composite goods consisting of different materials are classifiable according to the material which imparts the essential character of the product. The essential character of the Laptop Cleaner is the knit looped pile fabric which will be used to clean the surface of the laptop. The applicable subheading for the screen cleaning cloth will be 6307.10.2030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other made up articles, including dress patterns: Floorcloths, dishcloths, dusters and similar cleaning cloths: Other: Other.” The rate of duty will be 5.3 percent ad valorem. 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 the World Wide Web at https://hts.usitc.gov/current. 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 6307.10 The country of origin of a good classifiable under subheading 6307.10 is the country, territory, or insular possession in which the fabric comprising the good was formed by the fabric-making process. While you suggest it is necessary to move down the hierarchy to paragraph (c)(5) of this section, it would initially appear that the country of origin of the cleaning cloth is Korea, the country in which the fabric was formed, under paragraph (c)(2). However, since the cleaning cloth undergoes processing operations in Canada, a country provided for under the North American Free Trade Agreement (NAFTA), it is necessary to determine the status of the cleaning cloth under the NAFTA. As stated in Section 102.19(a): Except in the case of goods covered by paragraph (b) of this section, if a good which is originating within the meaning of §181.1(q) of this chapter is not determined under §102.11(a) or (b) or §102.21 to be a good of a single NAFTA country, the country of origin of such good is the last NAFTA country in which that good underwent production other than minor processing, provided that a Certificate of Origin (see §181.11 of this chapter) has been completed and signed for the good. General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if-- (i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or (ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that-- (A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or (B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or (iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; The Laptop Cleaner will be eligible for the NAFTA preference if it qualifies to be marked as a good of Canada and if it is either wholly obtained or produced in the NAFTA territories or transformed in Canada so that the non-originating material undergoes a change in tariff classification described in subdivision (t) to General Note 12, HTSUS. The appropriate subdivision (t) rules state that: Chapter rule 1: For purposes of determining the origin of a good of this chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. …. A change to subheading 6304 through 6310 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties. The component that determines the tariff classification of the Laptop Cleaner is the knit pile fabric which enters Canada on rolls under subheading 6001.22, HTSUS. Fabrics under heading 6001 are excepted from meeting the tariff change to heading 6307, HTSUS; therefore the knit pile fabric from Korea does not undergo the requisite change in tariff classification to render the item as originating under the NAFTA. The country of origin of the Laptop Cleaner is South Korea. MARKING: You have also requested a ruling on whether “Assembled in Canada” or “Made in Canada” is an acceptable country of origin marking for the Laptop Cleaner. 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. The proposed marking is not an acceptable country of origin marking as a result of the origin findings outlined above. The origin rules indicate the country of origin of the finished cleaning cloth is South Korea. The photos and sample submitted show the Laptop Cleaner is marked “Textile Made in South Korea.” This marking satisfies the marking requirements of 19 U.S.C. 1304 and is an acceptable country of origin marking for the finished cleaning cloths. Marking the Laptop Cleaner with a phrase such as “Made in South Korea, Further Processed in Canada” will also satisfy the marking requirements of 19 U.S.C. 1304 and is an acceptable country of origin marking for the Laptop Cleaner. HOLDING: The cleaning cloth is classified under suheading 6307.10.2030, HTSUS, and the country of origin is South Korea. Pursuant to the origin rules set forth in Section 102.21 and the country of origin marking requirements of 19 U.S.C. 1304 the proposed country of origin marking “Assembled in Canada” or “Made in Canada” is not an acceptable country of origin marking for the Laptop Cleaner. A marking such as “Made in South Korea” or “Made in South Korea, Further Processed in Canada” will satisfy the marking requirements of 19 U.S.C. 1304 and is an acceptable country of origin marking for the finished cleaning cloths. 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 Kim Wachtel at kimberly.a.wachtel@cbp.dhs.gov. 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 and Border Protection, Regulations & Rulings, 90 K Street N.E. – 10th floor, Washington, DC 20229-1177. Sincerely, Steven A. Mack Director National Commodity Specialist Division