Classification and country of origin determination for cleaning cloths; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.13; De Minimis

N306396 October 23, 2019 CLA-2-63:OT:RR:NC:N3:349 CATEGORY: Classification TARIFF NO.: 6307.10.2030; 9903.88.15 Mr. Zuhair Ahmed Trade Expeditors USA, Inc. 242 New Brunswick Rd., Suite 145 Piscataway, NJ 08854 RE: Classification and country of origin determination for cleaning cloths; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.13; De Minimis Dear Mr. Ahmed: In your letters dated September 24, 2019 and October 3, 2019, you requested a tariff classification and origin ruling on behalf of your client, Linen Essentials, Inc. A sample was provided with your request and will be retained by this office. FACTS: The submitted sample is a knit pile microfiber cleaning cloth which you state is made from yarns of 80 percent polyester and 20 percent polyamide. However, you state that subsequent processing of the fabric may alter the fiber content ratio to 90 percent polyester and 10 percent polyamide. The blue cloth features rounded corners and measures approximately 16 x 16 inches. After the cloth is cut to the desired size, a one centimeter wide strip is folded over the edge of the cloth and then sewn over with an overlock stitch. The cleaning cloth will be sold to retailers and detail shops in packages of 12 as auto detailing cloths. The same cloth, measuring approximately 12 x 12, will also be imported in a package of 12 and sold as general cleaning cloths for use in homes, offices, stores, etc. The manufacturing operations for the cleaning cloths are as follows: CHINA: Greige fabric is knitted. The greige fabric is exported to Pakistan. PAKISTAN: Nonwoven fabric is formed. Knit fabric is dyed, dried and heat set. Knit fabric is cut to length and width. A narrow strip of nonwoven fabric is folded over the edges of the cut to size knit fabric and sewn over with an overlock stitch. Cloth is cropped. Finished cloth is folded and retail packed. Boxes are marked, “Made in Pakistan.” ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the microfiber cleaning cloths 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: 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, 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: 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 is formed by a fabric-making process. In this case, the knit fabric is formed in China and the nonwoven fabric is formed in Pakistan. Section 102.21(c), "General Rules", inter alia, state the additional requirements or conditions of Sections 102.12 through 102.19, where appropriate are applicable when determining origin under Section 102.21(c)(1) through (5). Section 102.13 "De Minimis", states the following, in pertinent part: (c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in Section 102.21 or satisfy the other applicable requirements of that section when incorporated into a textile or apparel product covered by that section shall be disregarded in determining the country of origin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good. The total weight of the nonwoven fabric is not more than 7 percent of the total weight of the finished cleaning cloth, and thus, the De Minimis rule stipulated in Section 102.13 is met. As such, the nonwoven fabric is to be disregarded when determining the country of origin of the finished product. This is consistent with past rulings which have held that certain features may be considered trim or minor embellishments and do not affect the country of origin determination. See HQ 959256. Accordingly, as per the terms of the tariff shift rule, the country of origin is conferred by the single country in which the knit fabric comprising the cleaning cloth was formed by the fabric-making process, that is, China. As such, your proposed marking, “Made in Pakistan” is incorrect. The cleaning cloths must be marked to indicate the country of origin as China in accordance with Parts 102 and 134 of the Customs Regulations. SECTION 301 MEASURES: Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.10.2030, HTSUS, unless specifically excluded, are subject to an additional 15 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6307.10.2030, HTSUS, listed above.   The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.  For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. HOLDING: The country of origin of the cleaning cloth is China. 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. Sincerely, Steven A. Mack Director National Commodity Specialist Division