H315294

 HQ H315294 March 24, 2022 OT:RR:CTF:FTM H315294 TJS CATEGORY: Classification TARIFF NOs.: 6302.21.90; 6302.31.90; 6304.92.00 Ms. Shirly Strezhevsky Goldfarb Seligman & Co. 98 Yigal Alon Street Tel Aviv, 6789141 Israel RE: Modification of NY N313390; Bed Linen; U.S.-Israel Free Trade Agreement Dear Ms. Strezhevsky: This is in reference to your correspondence, dated October 20, 2020, requesting reconsideration of New York Ruling Letter (“NY”) N313390, dated August 21, 2020, concerning U.S. Customs and Border Protection’s (“CBP”) tariff classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) and the country of origin marking of certain bed linen products imported from Israel. Upon review, we have determined that NY N313390 classified the incorrect bed linen set composition and failed to address whether the goods qualify for preferential tariff treatment under the United States-Israel Free Trade Agreement (“U.S.-Israel FTA”), as requested in your initial ruling request. We have determined NY N313390 to be correct with respect to the classification and the country of origin of the individual items. Thus, the pillowcase, fitted sheet, flat sheet, and duvet cover, when entered separately, remains classified in either subheading 6302.21.90 or 6302.31.90, HTSUS, and the pillow sham remains classified in subheading 6304.92.00, HTSUS. Furthermore, the country of origin of the flat sheet remains India and the country of origin of the pillowcase, fitted sheet, duvet cover, and pillow sham is Israel. Our decision takes into consideration supplemental submissions, dated November 16, 2020, and December 16, 2021. For the reasons set forth below, we hereby modify NY N313390. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), notice of the proposed action was published in the Customs Bulletin, Vol. 56, No. 5, on February 9, 2022. Two comments were received in response to the notice. FACTS: The subject merchandise is bed linen consisting of pillowcases, fitted sheets, flat sheets, duvet covers, and pillow shams of 100% cotton woven (percale or satin weave) fabric. The fabric is not napped, and the finished items do not contain any embroidery, lace, braid, edging, trimming, piping or applique work. The items will be imported in sets or in individual packages. A set will include a fitted sheet, flat sheet, and either pillowcases or pillow shams, packaged together for retail sale. NY N313390 stated that the set would include the duvet cover, however, you clarify that the duvet cover will be packed separately. NY N313390 described the manufacturing process as follows: India: fabric is woven. fabric is bleached, dyed and/or printed. rolls of fabric are shipped to Israel. Israel: fabrics are cut to size and shape of the various components. Specifically, duvet covers are cut to the needed size. (For purposes of this ruling we assume they will always be cut on all four sides.) pillowcases are made from one piece of fabric cut on all four sides. pillow shams are made from three pieces of fabric cut on all four sides. fitted sheets are cut to needed size on all four sides. flat sheets are cut to needed size on all four sides. components are sewn/hemmed/elasticized, creating duvet covers, pillowcases, pillow shams, and sheets. Specifically, duvet covers are [folded over and] sewn [together] on three sides [leaving a partial opening on one side that is hemmed 5 centimeters]. Inner ties are added on all four corners to secure the comforter and eight buttons and buttonholes are added [at the opening]. pillowcases are sewn to form a standard pillowcase with inner flap. pillow shams are sewn to form a standard sham with an overlapping opening on the back. fitted sheets are sewn around the edges incorporating an elastic string. flat sheets are sewn on all four sides with a 10 centimeter top hem and a 1.5 centimeter hem on the other edges. sheets and pillowcase are packaged together or separately, depending on the customer’s order, and shipped directly to the United States. NY N313390 classified the pillowcases, fitted sheets, flat sheets, and duvet covers under heading 6302, HTSUS, when entered separately. Specifically, when printed, these items are classified in subheading 6302.21.90, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen, printed: Of cotton: Other: Not napped.” When not printed, these items are classified in subheading 6302.31.90, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen: Of cotton: Other: Not napped.” NY N313390 classified the pillow shams in subheading 6304.92.00, HTSUS, which provides for “Other furnishing articles, excluding those of heading 9404: Other: Not knitted or crocheted, of cotton.” Furthermore, CBP applied the rules of origin set forth in section 102.22, CBP Regulations (19 C.F.R. § 102.22), and determined that the pillowcase, fitted sheet, duvet cover, and pillow sham were substantially transformed in Israel, thereby becoming products of Israel. However, the Israeli processing did not substantially transform the flat sheet and consequently the country of origin of the flat sheet was India, where the fabric was woven. In your November 16, 2020, submission you provided a costs breakdown of the manufacturing processes in Israel as follows: Processing cost in Israel FOB price of the product Israeli added content without the fabric cost (in percentage)  Duvet $7.845 $26.68 29%  Pillowcase $2.054 $5.47 38%  Pillow sham $2.054 $5.47 38%  Fitted sheet $4.087 $13.20 31%  Flat sheet $4.008 $12.33 33%   ISSUES: What is the tariff classification under the HTSUS of the bed linen when imported as a set containing a fitted sheet, a flat sheet, and either pillowcases or pillow shams? Whether the bed linen imported into the United States from Israel is eligible for preferential tariff treatment under the U.S.-Israel FTA. LAW AND ANALYSIS: Tariff Classification Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI 2 through 6 may then be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level. The relevant 2022 HTSUS provisions are as follows: 6302: Bed linen, table linen, toilet linen and kitchen linen: Other bed linen, printed: 6302.21: Of cotton: Other: 6302.21.90: Not napped… Other bed linen: 6302.31: Of cotton: Other: 6302.31.90: Not napped… 6304: Other furnishing articles, excluding those of heading 9404 Other: 6304.92.00: Not knitted or crocheted, of cotton… GRI 3(a) and (b) provide as follows: When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retai

Tariff ClassificationClassification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI).  GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes.  In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI 2 through 6 may then be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level. The relevant 2022 HTSUS provisions are as follows:6302: Bed linen, table linen, toilet linen and kitchen linen: Other bed linen, printed:6302.21: Of cotton: Other:6302.21.90: Not napped… Other bed linen:6302.31: Of cotton:Other:6302.31.90: Not napped…6304: Other furnishing articles, excluding those of heading 9404 Other:6304.92.00: Not knitted or crocheted, of cotton…GRI 3(a) and (b) provide as follows:When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as th