Classification and country of origin determination for a bar mop and general purpose cleaning towel; 19 CFR 102.21(c)(2); tariff shift; 19 U.S.C. 1304

N308376 January 14, 2020 CLA2-OT:RR:NC:N3:349 CATEGORY: Classification TARIFF NO.: 6307.10.2030; 9903.88.15 Mr. Bobby Jackson Venus Group 5918 Lancaster Highway Fort Lawn, SC 29714 RE: Classification and country of origin determination for a bar mop and general purpose cleaning towel; 19 CFR 102.21(c)(2); tariff shift; 19 U.S.C. 1304 Dear Mr. Jackson: This is in reply to your letter dated December 16, 2019, requesting a classification and country of origin determination for a bar mop and general purpose cleaning towel which will be imported into the United States. Samples of both items were provided. The samples will be retained by this office for training purposes. FACTS: The bar mop, item MF 1418BLSTR, is of ribbed knit pile construction composed of 80 percent polyester and 20 percent polyamide microfiber. The white towel measures 14 x 18 inches and features a gold stripe knit into the fabric down the center. The edges are finished with overlock stitching. Item MF 1616YL is an 80 percent polyester and 20 percent polyamide microfiber general purpose cleaning towel of knit pile construction. The yellow towel measures 16 x 16 inches and features overlock stitching around the edges. The towels are bulk packed at time of importation and sold to institution and hospitality customers such as restaurants and hotels. The manufacturing operations for both towels are as follows: China - Fabric is knit. Fabric is exported to Canada. Canada - Fabric is cut and sewn. Finished towel is exported to the United States. ISSUE: What are the classification and country of origin of the subject merchandise? May the finished towels be labeled as a product of the USA? CLASSIFICATION: The applicable subheading for both towels 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 general 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 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 heading 6307.10 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric making process. As the fabric is formed in a single country, that is, China, as per the terms of the tariff shift requirement, country of origin is conferred in China. While it is noted that processing does occur in Canada, neither towel is originating within the meaning of 19 U.S.C. 181.1(q). MARKING You have also requested whether or not the towels may be marked as a product of the United States. The origin rules indicate the country of origin of both towels is China, the country where the fabric was formed by a fabric-making process. Since the proposed marking to indicate US origin is in direct conflict with the origin determination made pursuant to Section 102.21, it does not satisfy the marking requirements of 19 U.S.C. 1304 and, thus, is not an acceptable country of origin marking for the towels. Both samples provided are marked, “Made in China.” Given the findings, above, the marking requirements of 19 U.S.C. 1304 are met, with the marked samples. Further, approval of markings of "Made in USA" is within the jurisdiction of the Federal Trade Commission (FTC) and not Customs and Border Protection. The Federal Trade Commission also has separate marking requirements regarding country of origin, fiber content, and other information that must appear on many textile items. For more information on the applicability of the requirements under the Textile Fiber Products Identification Act (TFPIA) and the “Made in USA” marking, you should contact the Federal Trade Commission, Textile Program, Division of Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580. SECTION 301 REMEDIES: 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 bar mop, MF 1418BLSTR, and general purpose cleaning towel, MF 1616YL, 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