N327668

N327668 September 2, 2022 CLA-2-63:OT:RR:NC:N3:349 CATEGORY: Classification TARIFF NO.: 6303.92.2010 Mr. Flavio Pessoa Glen Raven Custom Fabrics 142 Glen Raven Road Burlington, NC 27217 RE: The tariff classification, country of origin and status under the Dominican Republic- Central America-United States Free Trade Agreement (DR-CAFTA) of curtain panels Dear Mr. Pessoa: In your letter dated August 16, 2022, you requested a ruling on the classification, country of origin and status under the DR-CAFTA of curtain panels. A sample was submitted. The sample will be returned to you, as requested. The sample provided, Style SCP-1, is a curtain panel. The curtain is made from a 100 percent acrylic woven fabric. All four sides are hemmed. Eight metal grommets from which the curtain will be hung are added along the top hem and metal weights for curtain stability are sewn into the bottom hem edges. A nonwoven fabric is inserted into the top hem for grommet stability. The applicable tariff provision for the curtain panel will be 6303.92.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Curtains (including drapes) and interior blinds; curtain or bed valances: Other: Of synthetic fibers: Other: Window curtains (including drapes) and window valances.” The general rate of duty will be 11.3 percent ad valorem. With respect to the origin and the eligibility of the curtain panel under DR-CAFTA, you have described the manufacturing process as follows: Non-DR-CAFTA Country A: Solution dyed acrylic fiber is extruded, cut and staple fibers are shipped to the United States. Non-DR-CAFTA Country B: Metal grommets and metal weights are manufactured. United States: Acrylic staple fibers are spun into a yarn. Acrylic yarns are woven into a fabric. 100 percent acrylic woven fabric is shipped to Guatemala. Guatemala or another DR-CAFTA country (besides the United States): Polypropylene filament for the buckram is extruded. Buckram nonwoven fabric is formed. Polyester filament for the sewing thread is extruded. Sewing thread of polyester filament is formed. Guatemala: Fabrics are cut to size and shape. Fabrics are sewn, other components added and attached (i.e., weights, grommets). Finished curtain panel is packaged and shipped to the United States directly from Guatemala 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 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 6303.92 is included in the paragraph (e)(2) exception to the above tariff shift rule; therefore, Section 102.21(e)(2) must be considered. Section 102.21(e)(2) states: (i) The country of origin of the good is the country, territory, or insular possession in which the fabric comprising the good was both dyed and printed when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; (ii) If the country of origin cannot be determined under paragraph (e)(2)(i) of this section...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 curtain panel are not printed, Section 102.21(e)(2)(i) is inapplicable. As the fabrics comprising the curtain panel are not formed in a single country, Section 102.21(e)(2)(ii) is also inapplicable. Therefore, we turn to 19 CFR 102.21(c)(3). Section 102.21(c)(3) states that, 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 curtain panel is not knit to shape and heading 6303 is excepted from 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.” In the case of the subject merchandise, the most important manufacturing process occurs at the time of fabric making. Basing the country of origin determination on the fabric making process as opposed to the assembly process carries out the clear intent of Section 334 as expressed in Section 334 (b)(2) and Part 102.21(c)(3)(ii). There are two fabrics incorporated into the finished curtain; the main curtain fabric used for the panel formed in the United States and the buckram nonwoven fabric used as a stabilizer for the grommets formed in Guatemala. We find that the most important manufacturing process is the weaving of the acrylic fabric which forms the curtain panel and provides light filtering and privacy when drawn closed. Accordingly, the country of origin of the curtain panel is United States. DR-CAFTA ELIGIBILITY General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that, For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i) the good is a good wholly obtained or p