Classification and country of origin determination for a hooded blanket from China; 19 CFR 102.21(c)(2); tariff shift

N343157 November 1, 2024 OT:RR:NC:N3:351 CATEGORY: Classification, Origin TARIFF NO.: 6307.90.9891; 9903.88.15 Ms. Jacko Wang Goodway Import & Export Co., Ltd Building 12 Hengji Xuhui North District Lane 1188, Shenhong Road Minhang District Shanghai, Shanghai Municipality 201107China RE:  Classification and country of origin determination for a hooded blanket from China; 19 CFR 102.21(c)(2); tariff shift Dear Ms. Wang: In your letter dated October 9, 2024, you requested a country of origin determination ruling on behalf of your client, Target Corporation.  A sample of the product was provided to this office and will be retained for training purposes. The sample is a bear-shaped hooded blanket designed to provide warmth to a child.  The blanket is comprised of two layers of 100 percent polyester knit fabric sewn along the edges.  The outer layer of fabric is a long, faux fur knit plush pile while the reverse is a shorter velvet-like knit pile.  When fully opened, the flat rectangular blanket measures 40 inches in length by 54 inches in width.  A three-dimensional bear’s head, composed of faux fur fabric, forms the hood and is sewn to the center top edge. The hood measures 10 inches in length by 14 inches in width and is stuffed with 100 percent polyurethane sponge.  A bear’s face is embroidered on the front of the hood and features a snout, eyes and two stuffed ears.  In addition, the blanket also features two stuffed mitts sewn to the upper corners for inserting one’s hands and a stuffed tail sewn along the center of the bottom edge on the outer layer of fabric.   You state the manufacturing operations for the hooded blanket are as follows: SCENARIO 1 China • Polyester greige fabric for both layers are formed. • Sewing thread is produced. • Polyester fabric is cut and sewn to form the blanket. • Polyester fabric is cut and sewn to form the hood, mitts, and tail leaving a gap to fill with stuffing. • Stuffing is procured and shipped in bales. • Hood for bear face is embroidered. • The blanket, unstuffed hood, mitts, tail, and stuffing are shipped to Vietnam. Vietnam • Sewing thread is produced. • Hood, mitts, and tail are filled with stuffing, sewn closed, and sewn to the blanket. • The finished hooded blanket is packaged and shipped to the United States. SCENARIO 2 China • Polyester greige fabric for both layers are formed. • Stuffing is procured. • Polyester fabric is shipped in rolls to Vietnam. • The stuffing is shipped in bales to Vietnam. Vietnam • Sewing thread is produced. • Polyester fabric is cut and sewn to form the blanket, hood, mitts, and tail. • The hood, tail, and mitts are stuffed and sewn closed. • The hood for the bear face is embroidered. • The hood, mitts, and tail are sewn to the blanket. • The finished hooded blanket is packaged and shipped to the United States. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the “Hooded Blanket” will be 6307.90.9891, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.”  The rate of duty will be 7 percent ad valorem. COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (“URAA”) (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 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.   The hooded blanket is comprised of multiple layers of fabric formed in a single country, that is China; therefore, under both scenarios, the country of origin of the “Hooded Blanket” is conferred in China. HOLDING: The applicable subheading for the “Hooded Blanket,” will be 6307.90.9891, HTSUS, and the country of origin is China under both proposed manufacturing scenarios.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 HTSUSA 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.   Duty rates are provided for your convenience and are subject to change.  The text of the most recent HTSUSA and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request.  This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1).  This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect.  In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.  Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Kristine Dodge at kristine.dodge@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division