H319826

HQ H319826 February 23, 2022 OT:RR:CTF:VS H319826 UBB CATEGORY: Origin Misty Gibbins Pacific Customs Brokers, Inc. 1400 A St. Blaine, WA 98230 RE: Country of origin of cotton wadding; Classification; USMCA; Waste and scrap Dear Ms. Gibbins: This is in response to your ruling request dated June 21, 2021, submitted on behalf of your client, Canadian Mattress Recycling Inc. (“Canadian Mattress”). Your request was forwarded to our office from the National Commodities Specialist Division (NCSD). You request a ruling regarding tariff classification, country of origin and United States Mexico Canada Agreement (“USMCA”) preference eligibility for cotton wadding that Canadian Mattress collects from used furniture and plans to ship to Phoenix Fibers in Arizona, United States, for use in various new products. FACTS: In your ruling request, you state that Canadian Mattress collects used furniture and mattresses at their facility in Delta, British Columbia, Canada, in order to recover raw materials such as metal, wood, polyurethane foam, plastic, coir, cardboard, and cotton wadding. Workers dismantle the furniture and mattresses and remove the salvaged materials, collecting and sorting the materials as they go. The cotton wadding, at issue, is compressed into large bales for shipment to the United States, where it will be used by your buyer, Phoenix Fibers, in new products, such as building insulation or new institutional mattresses. In correspondence with NCSD, you noted that the furniture and mattresses (from which the cotton wadding is obtained) are sourced from retailers, hotels, offices, hospitals, and through city solid waste and recycling contracts which collect the items from people’s homes. Additionally, the furniture and mattresses may originate from anywhere in the world. You also noted to the NCSD that Canadian Mattress does not wash or treat the cotton wadding and that once it is salvaged from the mattresses and furniture, the cotton wadding is baled and stored until it is shipped to the United States. In further correspondence with our office, you stated that prior to having the cotton wadding removed, beds are sorted from other furniture for logistical and efficiency reasons. You also confirmed that all items that are received at the Canadian Mattress facility are treated the same way, i.e. they are deconstructed in order to salvage various materials and that the cotton wadding obtained in this manner is the only material that will be sent to the United States. Moreover, you explained that it is not possible to clean or repair any of the furniture/mattresses in order to return those items to their original use as they are too old, worn out, broken, unwanted, dirty or damaged for such recovery. The items are sent to Canadian Mattress for deconstruction and recycling, in lieu of sending the items to a landfill. You also stated that the wadding that is removed from the used furniture/mattresses would not be usable without cleaning and/or some processing. Finally, you informed us that the U.S. buyers of the cotton wadding (Phoenix Fibers) will clean the cotton through a step cleaner, which beats the cotton to loosen solids and removes waste. The cotton will then be combined with other foundation textiles and then, in the case of making building insulation, added into one of their insulation blends. You note that, the salvaged wadding would not be usable for insulation pads without it first being blended with other textiles and fibers. You state that cotton wadding is provided for under subheading 5601.21.0010, Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”), which provides for wadding of textile fibers, not exceeding 5 mm in length (flock), textile dust and mill neps: Wadding of textile materials and articles thereof, of cotton: wadding in one piece. In correspondence with the NCSD, you confirmed that the furniture and mattresses (from which the cotton wadding is obtained) are goods of Chapter 94, HTSUS. You also claim that pursuant to USMCA Article 4.3, the cotton wadding qualifies as an originating good of Canada as it is waste and scrap derived from used goods collected in Canada. ISSUE: What is the proper tariff classification of the cotton wadding? What is the country of origin of the cotton wadding for marking purposes? Does the cotton wadding qualify for preferential tariff treatment under the USMCA? LAW AND ANALYSIS: Classification Classification of goods under the HTSUS is governed by 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 GRIs 2 through 6 may then be applied in order. The 2022 HTSUS provisions under consideration are as follows: 5601 Wadding of textile materials and articles thereof; textile fibers, not exceeding 5 mm in length (flock), textile dust and mill neps: Wadding of textile materials and articles thereof: 5601.21.00 Of cotton 5601.21.0010 Wadding, in the piece 5601.21.0090 Other * * * In understanding the language of the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). ENs to heading 5601 provide in relevant part as follows: 56.01 Wadding of textile materials and articles thereof; textile fibres, not exceeding 5 mm in length (flock), textile dust and mill neps. Wadding; other articles of wadding: 5601.21 Of cotton . . . (A) WADDING OF TEXTILE MATERIALS AND ARTICLES THEREOF The wadding referred to here is made by superimposing several layers of carded or air laid textile fibres one on the other, and then compressing them in order to increase the cohesion of the fibres. Wadding is sometimes lightly punched in order to increase the cohesion of the fibres and, in some cases, to fix the layer of wadding on a support of woven or other textile fabrics. Wadding takes the form of a flexible, spongy, high bulk sheet, of even thickness, the fibres in which are readily separable. It is generally made of cotton fibres (absorbent or other cotton waddings) or of artificial staple fibres. Low grade wadding, made from waste from carding or garnetting, usually contains a proportion of neps or yarn waste. Wadding is classified here whether or not bleached, dyed or printed. The heading also covers wadding on which a small quantity of agglutinating substance has been dispersed in order to improve the cohesion of the surface fibres; in contrast to nonwovens, the fibres of the inner layers of such wadding are readily separable . . . This heading also covers wadding in the piece or cut to length, and articles of wadding other than those covered more specifically by other headings of the Nomenclature (see exclusions below) . . . You propose that the subject merchandise is a cotton wadding classified under 5601.21.0010, HTSUSA. Based on the descriptions and photographs of the cotton wadding included in your submission, and an examination of the small sample material provided to our offices, we find that the applicable subheading for the subject merchandise is 5601.21.00, HTSUS. Marking Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. § 3592), enacted on December 8, 1994, provides rules of origin for textiles and apparel products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. Section 102.21 of the Code of Federal Regulations (19 C.F.R. § 102.21), implements the URAA. The country of origin of a textile or apparel product

ClassificationClassification of goods under the HTSUS is governed by 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 GRIs 2 through 6 may then be applied in order.The 2022 HTSUS provisions under consideration are as follows:5601 Wadding of textile materials and articles thereof; textile fibers, not exceeding 5 mm in length (flock), textile dust and mill neps: Wadding of textile materials and articles thereof:5601.21.00 Of cotton5601.21.0010 Wadding, in the piece5601.21.0090 Other* * *In understanding the language of the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). ENs to heading 5601 provide in relevant part as follows:56.01 Wadding of textile materials and articles thereof; textile fibres, not exceeding 5 mm in length (flock), textile dust and mill neps. Wadding; other articles of wadding: 5601.21 Of cotton . . . (A) WADDING OF TEXTILE MATERIALS AND ARTICLES THEREOF The wadding referred to here is made by superimposing several layers of carded or air laid textile fibres one on the other, and then compressing them in order to increase the cohesion of the fibres. Wadding is sometimes lightly punched in order to increase the cohesion of the fibres and, in some cases, to fix the layer of wadding on a support of woven or other textile fabrics. Wadding takes the form of a flexible, spongy, high bulk sheet, of even thickne