Clarification of HRL 959039, dated April 9, 1996

HQ 959199 May 15, 1996 CLA-2 RR:TC:TE 959199 CAB CATEGORY: Classification Mr. Josefa M. Dizon Embassy of the Philippines Office of the Commercial Counselor 1600 Massachusetts Avenue, N.W. Washington, D.C. 20036 RE: Clarification of HRL 959039, dated April 9, 1996 Dear Mr. Dizon: This is regarding Headquarters Ruling Letter (HRL) 959039, issued to you from this office on April 9, 1996. In HRL 959039 Customs determined the country of origin of a dust ruffle pursuant to Section 102.21, Customs Regulations (19 CFR 102.21). Upon further review, Customs has determined that the rationale stated in HRL 959039 should be clarified. The top portion of the dust ruffle was made of fabric woven in Indonesia. Lace sourced in Singapore was attached to the bottom portion of the finished dust ruffle and ribbon from the United States was inserted through the lace. All of the processing required to finish the dust ruffle was completed in the Philippines. HRL 959039 correctly determined that in accordance with Sections 102.21(c)(2) and 102.21(e), that the country of origin for the subject merchandise was Indonesia, the country where the fabric used to construct the major components of the dust ruffle was formed by a fabric-making process. The ribbon and lace were considered minor embellishments that would not confer country of origin. HRL 959039, failed however, to cite Section 102.13, which sets out the De Minimis rule and is applicable to the ribbon and lace components of the dust ruffle. Section 102.21(c), "General Rules", inter alia, state the requirements or conditions of Sections 102.12 through 102.19, where appropriate, that are applicable when determining origin under Section 102.21(c)(1) through (5). Section 102.13 "De Minimus", 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 102.20 or satisfy the other applicable requirements of that section when incorporated into a good classified in Chapter 50 through 63 of the Harmonized System 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 weight of the ribbon and lace is not more than 7 percent of the total weight of the finished dust ruffle, and thus, meets the De Minimis rule stipulated in Section 102.13. As such the lace and the ribbon are to be disregarded when determining the country of origin of the finished product. Therefore, the country of origin of the dust ruffle at issue in HRL 959039 remains Indonesia, the country where the fabric-making process occurs. Sincerely, John Durant, Director Tariff Classification Appeals Division