The tariff classification and country of origin of a log rack cover from Cambodia

N322690 November 24, 2021 CLA-2-63:OT:RR:NC:N3:351 CATEGORY: Classification TARIFF NO.: 6307.90.9891; 9903.88.15 Mr. Stephen Fodor Customs Services & Solutions, Inc. 6576 Church Street Douglasville, GA 30134 RE: The tariff classification and country of origin of a log rack cover from Cambodia Dear Mr. Fodor: In your original letter dated February 15, 2021, and your follow up letter, dated November 9, 2021, you requested a ruling on behalf of your client, Progressive Home Hardware Inc., on the tariff classification and country of origin for a log cover. A sample of the product and fabric swatches were provided to this office. The sample will be destroyed. Item 3730327, described as an “8-foot Log Rack Cover,” Model 53444, is a textile cover with shaped corners to protect firewood from the elements. The log cover is composed of a 100 percent polyester woven fabric, dyed black and impregnated with polyvinyl butyral (PVB) on the interior side. The completed six-panel log cover with open bottom, measures 98 inches in length by 26 inches in width by 44 inches in height and is hemmed. The log cover features two front panels, a panel on each end, a back panel, and a top panel. The front panels are sewn to the top panel and meet at the front center. The sides and bottom of these panels are hemmed and are secured to the adjacent panels with hook and loop tabs. The cover can be tightened at the bottom using three one-inch-wide 100 percent polyester woven webbed straps with plastic buckle clips on each end. The side and back panels are secured in place by cinching an elastic braided polypropylene cord sewn around the bottom edge by connecting two plastic hooks located at each of the corners together. The manufacturing steps are as follows: China Polyester woven fabric is formed, dyed, and shipped to Cambodia. (Heading 5407) PVB pellets are shipped to Cambodia. (Heading 3920) Thread is formed and shipped to Cambodia. (Heading 5401) Plastic hook is formed and shipped to Cambodia (Heading 3926) Plastic buckles are formed and shipped to Cambodia. (Heading 3926) Hook-and-loop closures are formed and shipped to Cambodia. (Heading 5806) Elastic braided polypropylene cord is formed and shipped to Cambodia (Heading 5609) Narrow woven fabric strap is formed and shipped to Cambodia (Heading 6307) Cambodia Polyester woven fabric is impregnated with PVB on one side. (Chapter 59) The impregnated fabric is cut and sewn into a log cover. (Heading 6307). Thread, plastic buckles, narrow woven fabric straps, hook-and-loop fasteners, and elastic braided polypropylene cord used in the construction of the log cover. The log cover is shipped to the United States. ISSUES: What is the tariff classification and country of origin of the subject merchandise?CLASSIFICATION: You have suggested that the log cover should be classifiable under subheading 6307.90.9891, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other made up textile articles, including dress patterns: Other: Other: Other: Other: Other.”  We agree. 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: HTSUS Tariff shift and/or other requirements 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. Section 102.21(b)(2) of the Customs Regulations defines the meaning of "fabric-making" process for the purposes of the determination of the country of origin of imported textile and apparel products for purposes of Customs laws and the administration of quantitative restrictions. This section states: (2) Fabric-making process. A fabric-making process is any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric. In the case before us for consideration, the polyester fabric is impregnated with PVB in Cambodia, which is not regarded as a fabric-making processes according to the definition above. Therefore, the country of origin is the country in which the fabric is woven, that is, China. HOLDING:The country of origin of the log rack cover is China. The applicable subheading for the log cover is 6307.90.9891, HTSUS, dutiable at 7 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.90.9891, HTSUS, unless specifically excluded, are subject to an additional 7.5 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 6307.90.9891, 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, including information on exclusions and their effective dates, 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. 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 Kristine Dodge via email at kristine.dodge@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division