N344578

N344578 January 7, 2025 OT:RR:NC:N2:349 CATEGORY: Classification, Origin TARIFF NO.: 5702.92.9000, 9903.88.03 Ms. Penny Zhang Evergrace Home Inc. 5 Floor Sun Shine Mansion, 2000 Pudong Avenue Shanghai 200135 China RE: Classification and country of origin determination for a bath rug; Section XI, Note 7(b); 19 CFR 102.21(c)(2); tariff shift Dear Ms. Zhang: This is in reply to your letter dated December 11, 2024, requesting a classification and country of origin determination for a bath rug which will be imported into the United States. You presented three samples representing various stages of production of the bath rug, Item #EG2412001. The samples will be retained for training purposes. FACTS: Sample 1 is a gray piece of fabric, measuring approximately 42 x 90 inches, of 100 percent polyester waffle weave construction. The piece of fabric has regular breaks in the waffle weave pattern, approximately 1 ½ inches wide, where groups of weft yarns are loosely woven with groups of warp yarns. These breaks occur every 26 ½ inches. This same loosely woven pattern appears on the two selvedges using burgundy colored warp yarns. This piece of fabric, though representative of the fabric forming the completed article, produces a larger sized rug than Samples 2 and 3. The spacing of the breaks in weave pattern occurs at shorter intervals for a 20 × 30 inch rug. Sample 2 is gray rug composed of 100 percent polyester woven waffle fabric. This item, measuring approximately 20 × 30 inches was cut from the fabric represented in Sample 1 along the areas of demarcation where there are breaks in the weave pattern resulting in all four edges having groups of weft yarns loosely woven with groups of warp yarns. The loosely woven warp yarns on the selvedge are green. You state that these yarns mark where the factory should create the fringe. This rug has been heat treated which you state provides texture to the rug. Sample 3, Item #EG2412001, is a finished grey-green rug composed of 100 percent polyester woven waffle fabric. An application of hot melt glue is applied to the back of the rug to create a non-slip surface. The rugs are absent the loosely woven weft yarns from the areas of demarcation and the colored warp yarns found in Samples 1 and 2. All four edges are fringed. The fringe is formed by removing the colored warp yarns and the loosely woven weft yarns that appear on Samples 1 and 2. The rectangular shaped rug measures 20 x 30 inches. The rug is intended to be used on the floor outside the bathtub or shower area while bathing. The samples identified, above, are indicated in parentheses, below, after the production step that results in the sample. The manufacturing operations for the bathmat are as follows: SCENARIO 1 China: The polyester waffle weave fabric is formed. (Sample 1) The formed woven fabric is exported to Vietnam in rolls. Vietnam: The fabric is cut into pieces. The fabric is heat set. (Sample 2) The edges of the mat are unraveled to create the fringe. Hot melt glue is applied to the back. (Sample 3) Finished rug is packaged and exported to the United States. SCENARIO 2 China: The polyester waffle weave fabric is formed. (Sample 1) The fabric is cut into pieces. The cut pieces are heat set. (Sample 2) The heat set cut pieces are exported to Vietnam. Vietnam: The edges of the mat are unraveled to create the fringe. Hot melt glue is applied to the back. (Sample 3) Finished rug is packaged and exported to the United States. ISSUE: What is the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the waffle weave rug, Item #EG2412001, will be 5702.92.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including "Kelem", "Schumacks", "Karamanie" and similar handwoven rugs: Other, not of pile construction, made up: Of man-made textile materials: Other.” The general rate of duty will be 2.7 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 https://hts.usitc.gov/current. COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provides the rules of origin for textiles and apparel products for purposes of the customs laws and the administration of quantitative restrictions, unless otherwise provided by the statute, entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. Section 3592 of title 19 of the U.S.C. has been described as Congress’s expression of substantial transformation as it relates to textile and apparel products. Section 102.21 of the Code of Federal Regulations (19 CFR 102.21), implements 19 U.S.C. 3592 and section 334 of the URAA. 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. See 19 CFR 102.21(c). 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  5701-5705 A change to heading 5701 through 5705 from any other chapter.  In order to identify the country of origin of Item #EG2412001, we must determine at what stage in production the rug makes the change to heading 5702. Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 GRI may then be applied. The Harmonized Commodity Description and Coding System Explanatory Notes (EN), constitute the official interpretation at the international level. While neither legally binding nor dispositive, the EN provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80. 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). Heading 5702, HTSUS, provides for “Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including “Kelem”, “Shumacks”, “Karamanie” and similar hand-woven rugs.” While heading 5702, HTSUS, covers carpets whether or not made up, at GRI 6, classification requires a determination at the international six-digit level whether or not the carpet is “made up.” Section XI, Note 7 of the HTSUSA, defines the term “made up” for the purposes of Section XI, as follows: For the purposes of this section, the expression “made up” means: (a) Cut otherwise than into squares or rectangles; (b) Produced in the finished state, ready for use (or merely needing separation by cutting 

Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provides the rules of origin for textiles and apparel products for purposes of the customs laws and the administration of quantitative restrictions, unless otherwise provided by the statute, entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.  Section 3592 of title 19 of the U.S.C. has been described as Congress’s expression of substantial transformation as it relates to textile and apparel products.  Section 102.21 of the Code of Federal Regulations (19 CFR 102.21), implements 19 U.S.C. 3592 and section 334 of the URAA. 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. See 19 CFR 102.21(c).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 requirements5701-5705      A change to heading 5701 through 5705 from any other cha