N322667

N322667 December 6, 2021 CLA2-OT:RR:NC:N3:349 CATEGORY: Classification TARIFF: 6304.91.0040; 9823.53.05 Mr. Brett Ian Harris Roll & Harris LLP 2001 L Street, NW, Suite 500 Washington, D.C. 20036 RE: Classification, country of origin and United States-Mexico-Canada Agreement (USMCA) TPL eligibility for mattress covers; 19 CFR 102.21(c)(5) Dear Mr. Harris: This is in reply to your letter dated November 2, 2021, requesting on behalf of your client, Innofa USA LLC, a classification and country of origin ruling for zippered mattress covers which will be imported into the United States. You also requested the ruling address the eligibility of the mattress covers under the United States-Mexico-Canada Agreement (“USMCA”) Tariff Preference Levels (“TPL”). Two samples were submitted for examination. The samples will be destroyed. FACTS: The samples, “Starspring Mack Basic” and the “Starspring Volvo Basic,” are two styles of zippered mattress covers that encase a foam or foam-and-spring insert. The top and sides of the mattress covers are comprised of 100 percent polyester double knit fabric. The bottom fabric is constructed of 55 percent viscose and 45 percent polyethylene nonwoven fabric. The mattress covers will be imported into the United States and sold to manufacturers of mattresses for trucks. The mattress covers are not intended to be removed from the mattress once the core has been inserted as they provide the outer shell of the completed mattresses. You state the nonwoven fabric is imported into Mexico from the United States; however, you indicate that you are unsure if the importer, Innofa USA LLC, will be able to obtain a Certificate of Origin to support an originating claim under the United States-Mexico-Canada Agreement (“USMCA”); therefore, you request that we consider the fabric as non originating for purposes of the USMCA. The double-knit fabric is knit in Mexico from yarns from the United States, China, India, Mexico and/or Indonesia. The mattress covers are cut and sewn in Mexico. ISSUE: What is the classification and country of origin of the mattress covers? Are the mattress covers eligible for preferential tariff treatment under a USMCA TPL? CLASSIFICATION: You suggest a classification under heading 6302, Harmonized Tariff Schedule of the United States (HTSUS), is appropriate. We disagree. This is not the type of mattress cover classified as bed linen. The instant covers are of a kind sold to mattress manufacturers who, in turn, create a completed mattress by inserting a foam or foam-and-spring core into the cover. These covers serve as the outer shell of a completed mattress. The applicable subheading for the mattress covers will be 6304.91.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other furnishing articles, excluding those of heading 9404: Other: Knitted or crocheted: Of man-made fibers.” The general rate of duty will be 5.8 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 World Wide Web at http://www.usitc.gov/tata/hts/. 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 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 6304.91 is not included in the paragraph (e)(2) exception to the above tariff shift rule; however, since the fabrics forming the cover are formed in more than one country, Section 102.21(c)(2) is inapplicable. Section 102.21(c)(3) states, Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section: (i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or (ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled. As the subject merchandise is not knit to shape as provided for under paragraph (i) and the heading covering the mattress cover, 6304, is an exception under paragraph (ii), Section 102.21 (c)(3) is inapplicable. Section 102.21 (c)(4) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred.” The most important manufacturing process is determined by the fabric making process. See Headquarters Ruling Letter (“HQ”) H304571. As the covers are made from fabric formed in two countries, a single country of origin determination cannot be made based on Section 102.21(c)(4). Paragraph (c)(5) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred.” Accordingly, in the case of the subject mattress covers, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Mexico. TARIFF PREFERENCE LEVELS: Goods entered into the commerce of the United States from Mexico and Canada which are considered “originating” goods from those countries are granted preferential tariff treatment under the USMCA. Additionally, specified textile and apparel goods imported into the U.S. from Canada or Mexico which are not “originating” goods may nevertheless be granted the same preferential duty rate tariff as origina

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 requirements6301 – 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 countr