The tariff classification and country of origin of a retail packaging bag for a pillow

N308612 January 23, 2020 CLA-2-63:OT:RR:NC:N3:351 CATEGORY: Classification TARIFF NO.: 6307.90.9889; 9903.88.15 Ms. Dolores Hunt Keeco, LLC 30736 Wiegman Road Hayward, CA 94544 RE: The tariff classification and country of origin of a retail packaging bag for a pillow Dear Ms. Hunt: In your letter dated Dec 27, 2019, you requested a tariff classification and country of origin ruling. A sample was submitted for our review and will be returned, per your request. FACTS: You submitted a sample of a retail packaging bag for a pillow. The front of the bag is made of clear polyethylene vinyl acetate (PEVA) plastic sheeting that measures .15mm in thickness and features a PEVA pocket insert. The back of the bag is made of a polypropylene nonwoven fabric and features a sewn in zipper. The pillow will be visible to the consumer from the front panel and a touch hole in the top right corner of the front of the bag will allow the consumer to feel the pillow when displayed for retail sale. You state the bag will be available in two sizes: 20 inches high x 27.5 inches wide and 20 inches high x 35 inches wide. The manufacturing operations of the bag are as follows: Taiwan: Polyethylene vinyl acetate (PEVA) sheeting formed and shipped to Vietnam in rolls. China: Polypropylene nonwoven fabric formed and shipped to Vietnam in rolls. Zipper made and shipped to Vietnam in rolls. Vietnam: PEVA rolls cut into panels and pockets to make the front of the bag. Pocket heat sealed to main panel. Polypropylene nonwoven fabric cut into panel sizes and trim width for the back of the bag. Zipper tape cut to length and zipper assembled. PEVA panel sewn onto zipper. Polypropylene nonwoven panel w/trim sewn to PEVA panel with pocket. Completed bag packaged in cartons for export to the United States. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: In your letter you suggest classification under subheading 3924.90.5650, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: Other: Other: Other.” The polyethylene vinyl acetate front panel of the pillow packaging bag has a cutout feature that renders it unsuitable for household storage. A hole would make it far less useful for storage; therefore, classification under heading 3924 is inapplicable. Further, in HQ W968181 CBP ruled that bags described as “flat bags”, comprised of two panels and no sides, one panel being plastic and the other of polypropylene nonwoven fabric, have no essential character. They are equally classifiable in chapter 39 and 63, HTSUS. Applying General Rule of Interpretation (GRI) 3(c) to such cases, we classify these bags in heading 6307, HTSUS. The applicable subheading for the bag will be 6307.90.9889, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other made up textile articles, including dress patterns: Other: Other: Other: Other: Other.” The rate of duty will be 7 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: 6307.90 The country of origin of a good classifiable under subheading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process. As the polypropylene 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. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.90.9889, 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 6307.90.9889, 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 pillow retail packaging bag 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. 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 Kim Wachtel via email at kimberly.a.wachtel@cbp.dhs.gov Sincerely, Steven A. Mack Director National Commodity Specialist Division