N325986

N325986 October 13, 2022 CLA-2-58:OT:RR:NC:N3:350 CATEGORY: Classification; Country of Origin; Trade Agreement TARIFF NO.: 5811.00.3000; 9903.88.03 Matthew Bock Bock Trade Law 53 State Street, Suite 500 Boston, MA 02109 RE: The tariff classification, country of origin and eligibility under United States-Mexico-Canada Agreement of a quilted fabric from Canada; 19 CFR 102(c)(2); 19 CFR 134 Dear Mr. Bock: In your letter dated May 09, 2022, you requested a tariff classification and country of origin ruling on behalf of your client, Cooley Group Holdings, Inc. You also requested that the ruling address eligibility of the goods under the United States-Mexico-Canada Agreement (“USMCA”) for preferential treatment. Samples of the fabric were provided and sent to the Customs and Border Protection (“CBP”) Laboratory for analysis. The samples will be retained for reference purposes. FACTS: The samples you have submitted of the subject fabric will be referred to as the “quilted fabric.” The CBP Laboratory determined the fabric to be composed of four layers. The first is a green warp knit face-fabric, which is quilted to the second layer, a white nonwoven fabric which has been laminated to the third layer, a plastic lamination layer which is laminated to the fourth layer, a blue warp knit backing fabric. The completed, quilted fabric weighs 482.9 g/m2. According to the information you provided, in Canada, the backing fabric (produced in China) will be laminated to the polymeric film (produced in the US) using an adhesive (produced in Canada) to produce a launderable, impervious barrier. The launderable, impervious barrier (backing fabric) will then be laminated to the quilted face fabric to create a “4-ply composite” construction fabric providing incontinence protection. In Canada, after each state of lamination the product is conditioned to perform adhesive curing and the finished product will then be prepared to ship in rolls, which entails trimming to width, packaging, and quality assurance. ISSUES: What is the classification, country of origin, and the eligibility of the quilted fabric under the USMCA? ANALYSIS: Your analysis concludes that the classification of the quilted fabric when imported into the United States from Canada is to be placed under subheading 5903.20.2500, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for, in pertinent part, “Textile fabric impregnated, coated, covered or laminated with plastics, other than those of heading 5902.” It is our opinion that the quilted fabric is not classifiable in heading 5903.20.2500, HTSUS, as a laminated fabric for the reasons set forth. While it may be apparent that the quilted face fabric and knit backing fabric are laminated, per the terms of Note 3 to Chapter 59, which states: For the purposes of heading 5903, “textile fabrics laminated with plastics” means products made by the assembly of one or more layers of fabrics with one or more sheets or film of plastics which are combined by any process that bonds the layers together, whether or not the sheets or film of plastics are visible to the naked eye in the cross-section. Opposingly, Note 1 to Chapter 59 states that: Except where the context otherwise requires, for the purposes of this chapter the expression "textile fabrics" applies only to the woven fabrics of chapters 50 to 55 and headings 5803 and 5806, the braids and ornamental trimmings in the piece of heading 5808 and the knitted or crocheted fabrics of headings 6002 to 6006. The Explanatory Notes (“ENs”) titled “Heading 5811” detail exactly what type of material construction is classifiable as a quilted textile product in the piece. In pertinent part it states: This heading covers textile products in the piece consisting of: (1) a layer of fabric, normally knitted or woven or of nonwovens, and a layer of padding material (of textile fibres frequently in the form of a web, of felt, of cellulose wadding, of foam plastics or of foam rubber, for example), or (2) two layers of fabric, normally knitted or woven or of nonwovens, or of combinations thereof, separated by a layer of padding. [emphasis added] These layers are usually held together by needling or stitching (including stitchbonding) either with straight rows of stitches or by stitching in a decorative pattern, provided the stitches are used principally to quilt [emphasis added] and do not constitute designs giving the product the character of embroidery. They may also be held together by knotted ties, or by adhesive, by heat bonding or other means, provided the product also has a quilted effect [emphasis added], that is, has a raised or puffed effect similar to quilting by stitching, needling or stitchbonding. Heading 5811 provides for quilted textile products in the piece, composed of one or more layers of textile materials assembled with padding by stitching or otherwise. Based upon the relevant ENs and provisions provided for in heading 5811, it is our opinion that the quilted fabric, or “4-ply composite” as you refer to it, is a quilted textile fabric for the purposes of the HTSUS. The quilted face fabric is combined to a knit backing fabric and maintains a quilted effect. Therefore, a fabric classifiable in Chapter 58, will not be considered to be a “textile fabric” for the purposes of Chapter 59, and therefor Chapter 59 Note 3, does not apply. For the purposes of the HTSUS, this fabric cannot be considered “textile fabrics laminated with plastics” of heading 5903. Further because it is our opinion that the quilted fabric is classifiable in Chapter 58, Note 1 to that chapter, which states the following, applies: This chapter does not apply to textile fabrics referred to in note 1 to chapter 59, impregnated, coated, covered or laminated, or to other goods of chapter 59. CLASSIFICATION: The applicable subheading for the quilted fabric will be 5811.00.3000, (HTSUS), which provides for “Quilted textile products in the piece, composed of one or more layers of textile materials assembled with padding by stitching or otherwise, other than embroidery of heading 5810: Of man-made fibers.” The applicable rate of duty will be 8% 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 the World Wide Web at https://hts.usitc.gov/current. COUNTRY OF ORIGIN: It is initially noted that your analysis indicates that substantial transformation is to be used to determine the applicability of any Section 301 tariffs, per HQ H313369 dated September 11, 2020. However, the ruling, which refers to H312426 dated August 7, 2020, whereby the facts are the same, does not concern textile goods, but merchandise described as “high tech goods” including automatic data processing machines, digital processing units, input/output units, and storage units. 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

Your analysis concludes that the classification of the quilted fabric when imported into the United States from Canada is to be placed under subheading 5903.20.2500, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for, in pertinent part, “Textile fabric impregnated, coated, covered or laminated with plastics, other than those of heading 5902.”It is our opinion that the quilted fabric is not classifiable in heading 5903.20.2500, HTSUS, as a laminated fabric for the reasons set forth.While it may be apparent that the quilted face fabric and knit backing fabric are laminated, per the terms of Note 3 to Chapter 59, which states:For the purposes of heading 5903, “textile fabrics laminated with plastics” means products made by the assembly of one or more layers of fabrics with one or more sheets or film of plastics which are combined by any process that bonds the layers together, whether or not the sheets or film of plastics are visible to the naked eye in the cross-section.Opposingly, Note 1 to Chapter 59 states that:Except where the context otherwise requires, for the purposes of this chapter the expression "textile fabrics" applies only to the woven fabrics of chapters 50 to 55 and headings 5803 and 5806, the braids and ornamental trimmings in the piece of heading 5808 and the knitted or crocheted fabrics of headings 6002 to 6006.The Explanatory Notes (“ENs”) titled “Heading 5811” detail exactly what type of material construction is classifiable as a quilted textile product in the piece. In pertinent part it states:This heading covers textile products in the piece consisting of:(1)   a layer of fabric, normally knitted or woven or of nonwovens, and a layer of padding material (of textile fibres frequently in the form of a web, of felt, of cellulose wadding, of foam plastics or of foam rubber, for example), or(2)   two layers of fabric, normally knitted or woven or of nonwovens, or of combinations thereof, separated by a layer of padding. [emph