N313390

N313390 August 21, 2020 CLA-2-63:OT:RR:NC:N3:349 CATEGORY: Classification TARIFF NO.: 6302.21.90; 6302.31.90; 6304.92.0000 Ms. Shirly Strezhevsky Goldfarb Seligman & Co. 98 Yigal Alon Street Tel Aviv, 6789141 Israel RE: The country of origin of bed linen; 19 C.F.R. 102.22; substantial transformation; 19 C.F.R. 102.21(c)(2); tariff shift Dear Ms. Strezhevsky: In your letter dated July 22, 2020, you requested a ruling on behalf of your client, EC LINEN Ltd., on the country of origin of bed linen and pillow shams which will be imported into the United States. Samples were not provided. A brief description of the processing steps along with some photographs of factory personnel working in the factory were provided. The subject merchandise is bed linen consisting of duvet covers, pillowcases, fitted sheets and flat sheets and pillow shams of 100 percent cotton woven (percale or satin weave) fabric. You state the fabric is not napped and that the finished items do not contain any embroidery, lace, braid, edging, trimming, piping or applique work. The items will be offered both separately and as a set. The manufacturing steps of the bed linen is 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 sewn on three sides. Inner ties are added on all four corners to secure the comforter and eight buttons and buttonholes are added. 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. ISSUE: What is the country of origin of the subject merchandise? CLASSIFICATION: Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Heading 6302, HTSUS, provides for among other things, bed linen. The Explanatory Notes to heading 6302, HTSUS, include sheets, pillowcases, bolster cases, eiderdown cases and mattress covers as examples of bed linen. Accordingly, when entered separately, the subject merchandise is properly classified in heading 6302, HTSUS, specifically subheadings 6302.21.90, HTSUS, when printed and 6302.31.90, HTSUS when not printed. Customs has previously ruled that pillow shams are used to create decorative pillows placed on beds and furniture, and not of the kind used as bed linen. Therefore, when entered separately, the pillow shams are classified as other furnishing articles of heading 6304, HTSUS, specifically 6304.92.0000, HTSUS, which provides for “Other furnishing articles, excluding those of heading 9404: Other: Not knitted or crocheted, of cotton.” See HQ 088340, dated January 4, 1990. In your letter you indicate that the pillow sham, duvet cover, sheets and pillowcases may be imported as a set. The Explanatory Notes, which constitute the official interpretation of the Harmonized Tariff Schedule of the United States at the international level, state in Note (X) to Rule 3 (b) that the term "goods put up in sets for retail sale" means goods which: (a) consist of at least two different articles which are prima facie, classifiable in different headings; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; (c) are put up in a manner suitable for sale directly to users with repacking The components of the set consist of at least two different articles which are, prima facie, classifiable in different headings and they are put up together to meet a particular need or carry out a specific activity. You have not provided samples or photographs of the set. Assuming the pillow sham, duvet cover, flat sheet, fitted sheet and pillowcase(s) are packed for sale directly to users without repacking, they will meet the qualifications of "goods put up in sets for retail sale" with the duvet cover imparting the essential character of the set. 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. EXCEPTION FOR UNITED STATES ISRAEL FREE TRADE AGREEMENT Section 102.21(a) specifically states that the rules in Section 102.21 shall not apply “for purposes of determining whether goods originate in Israel or are the growth, product, or manufacture of Israel.” The basis for the Israeli exception is Section 334(b)(5) of the Uruguay Round Agreements Act, which states that: “This section shall not affect, for purposes of the customs laws and administration of quantitative restrictions, the status of goods that, under rulings and administrative practices in effect immediately before the enactment of this Act, would have originated in, or been the growth, product or manufacture of, a country that is a party to an agreement with the United States establishing a free trade area, which entered into force before January 1, 1987. For such purposes, such rulings and administrative practices that were applied, immediately before the enactment of this Act, to determine the origin of textile and apparel products covered by such agreement shall continue to apply after the enactment of this Act, and on and after the effective date described in subsection (c), unless such rulings and practices are modified by the mutual consent of the parties to the agreement.” Israel is the only country that qualifies under the terms of Section 334(b)(5). As the Section 334 rules of origin for textiles and apparel products do not apply to Israel, we refer to the 19 C.F.R. 102.22 rules of origin, which reflect the rules of origin applicable to textiles and textile products before the enactment of Section 334. Section 334(b)(5) makes clear that if, by application of 19 C.F.R. 102.22, Israel was determined to be the country of origin of a product prior to enactment of Section 334, the same treatment will be accorded after enactment of Section 334. This interpretation of Section 334(b)(5) was confirmed in a general statement of policy, Treasury Decision 96-58, appearing in the Federal Register, Vol. 61, No. 148, dated July 31, 1996. In your ruling request, you cite Section 12.130 of the Customs Regulations (19 C.F.R. 12.130) as the basis of your analysis and arguments. Section 12.130 was redesignated under Sectio

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.EXCEPTION FOR UNITED STATES ISRAEL FREE TRADE AGREEMENTSection 102.21(a) specifically states that the rules in Section 102.21 shall not apply “for purposes of determining whether goods originate in Israel or are the growth, product, or manufacture of Israel.” The basis for the Israeli exception is Section 334(b)(5) of the Uruguay Round Agreements Act, which states that:“This section shall not affect, for purposes of the customs laws and administration of quantitative restrictions, the status of goods that, under rulings and administrative practices in effect immediately before the enactment of this Act, would have originated in, or been the growth, product or manufacture of, a country that is a party to an agreement with the United States establishing a free trade area, which entered into force before January 1, 1987. For such purposes, such rulings and administrative practices that were applied, immediately before the enactment of this Act, to determine the origin of textile and apparel products covered by such agreement shall continue to apply after the enactment of this Act, and on and after the effective date described in subsection (c), unless such rulings and practices are modified by the mutual consent of the par