Classification and country of origin determination for a decorative wall hanging; 19 CFR 102.21(c)(1); wholly obtained or produced in a single country; 19 CFR 102.21(c)(2); tariff shift

NY L81747 January 19, 2005 CLA2-RR:NC:TA:349 L81747 CATEGORY: Classification Ms. Edith Tolchin EGT Global Trading P.O. Box 231 Florida, NY 10921 RE: Classification and country of origin determination for a decorative wall hanging; 19 CFR 102.21(c)(1); wholly obtained or produced in a single country; 19 CFR 102.21(c)(2); tariff shift Dear Ms. Tolchin: This is in reply to your letter dated December 24, 2004, requesting a classification and country of origin determination for a decorative wall hanging which will be imported into the United States. This request is made on behalf of The Stik Company. FACTS: The subject merchandise consists of a decorative wall hanging referred to as “Measured Memories.” The item is a growth chart that has the appearance of a scroll. It is made from either 100 percent cotton or 100 percent synthetic canvas. The fabric measures 6 inches wide and 5 foot 10 inches long. It is printed with inch and foot markings and images of children’s toys. The rest of “Measured Memories” is made from wood, metal, metal chain and a small piece of ribbon. It is designed to be hung on a wall by the metal chain. The canvas may be rolled up and secured with the ribbon tie. You have outlined two different manufacturing scenarios. The manufacturing operations for the wall hanging are as follows: SCENARIO 1: COUNTRY A: -cotton or synthetic fabric is woven and finished. -wood components, labels, metal components, chain and ribbon are formed. -components are shipped to Country B. COUNTRY B: -fabric is cut to size and shape. -components are manufactured and assembled forming the product. -“Measured Memories” are packaged and shipped. SCENARIO 2: COUNTRY A: -cotton or synthetic fabric is woven and finished. -wood components, labels, metal components, chain and ribbon are formed. -fabric is cut to size and shape. -components are manufactured and assembled forming the product. -“Measured Memories” are packaged and shipped. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the wall hanging when made from cotton canvas will be 6304.92.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other furnishing articles, excluding those of heading 9404: other: not knitted or crocheted, of cotton. The general rate of duty will be 6.3 percent ad valorem. The applicable subheading for the wall hanging when made from synthetic canvas will be 6304.93.0000, HTSUSA, which provides for other furnishing articles, excluding those of heading 9404: other: not knitted or crocheted, of synthetic fibers. The general rate of duty will be 9.3 percent ad valorem. 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 that "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 Scenario 2 wall hanging was wholly obtained or produced in a single country, that is, Country A, country of origin is conferred in Country A. Since the wall hanging in Scenario 1 is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable for that scenario. Paragraph (c)(2) states that "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 that "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 6301-6306 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric making process. Subheading 6304.93 (synthetic fabric wall hanging) is included in the paragraph (e)(2) exception to the above tariff shift rule. Paragraph (e)(2)(i) is not applicable as the fabrics comprising the wall hanging are not both dyed and printed. Paragraph (e)(2)(ii) states that “If the country of origin cannot be determined under (i) above, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, the country of origin is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.” As the fabrics comprising the wall hanging (cotton or synthetic) in scenario 1 are formed in a single country, that is, Country A, as per the terms of the tariff shift requirement, country of origin is conferred in Country A. HOLDING: The country of origin of the “Measured Memories” wall hanging is Country A for both manufacturing scenarios. When made from cotton canvas the wall hanging falls within textile category designation 369 and when made from synthetic canvas the wall hanging falls within textile category designation 666. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at otexa.ita.doc.gov. 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 John Hansen at 646-733-3043. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division