N350930

N350930 July 30, 2025 OT:RR:NC:N2:349 CATEGORY: Origin Mr. Randy Smith Peking Handicraft Inc. 1388 San Mateo South San Francisco, CA 94080 RE: Country of origin determination for a three-piece quilt and sham set; 19 CFR 102.21(c)(5); last country where an important assembly or manufacturing process occurred Dear Mr. Smith: This is in reply to your letter dated July 3, 2025, requesting a country of origin determination for a three-piece patchwork quilt and sham set, which will be imported into the United States. Photographs were provided in lieu of a sample. FACTS: The subject merchandise, Article# PHC04820, described as “BHG Starburst Quilt and Sham,” is a three-piece set consisting of a patchwork quilt and two pillow shams. The patchwork quilt’s face panel is made from three or four layers, depending on the fill material. The top layer is of 100 percent cotton, dyed white, woven fabric and five 100 percent cotton, printed, woven fabrics of various printed patterns. The white fabric serves as the background while the printed fabrics are assembled in a starburst design pattern. The middle layer is of either 100 percent polyester batting fabric or 100 percent cotton fibers needle punched together with polypropylene scrim fabric to prevent migration or moving of the fill material. The backing fabric is of polyester brushed, dyed or printed, woven fabric. Quilt stitching extends through all layers. The matching quilted shams feature the same construction on the face as the quilt; however, the back of the face panel is made of a light weight, dyed white, 100 percent polyester fabric. The back of the sham is made of two panels of polyester brushed, dyed or printed, woven fabric to match the back of the quilt. The back panels have a four-inch overlap in the center of the sham. The edges of the quilt and sham are finished with a narrow, woven binding. The quilt and shams do not contain any embroidery, lace, braid, edging, trimming, piping or applique work. The quilt is available in two sizes: Queen (90” x 92”), and King (104” x 94”). The quilted shams are available in two sizes: Standard (20" x 26"), and King (20" x 36"). The quilt and sham are imported for retail sale, packaged under a crisscrossed ribbon and cardboard head card on the front and back, and marketed under Better Home and Garden® brand. The manufacturing operations for the quilt and sham set are as follows: China Cotton face fabrics are woven. Face fabrics are bleached, softened, and pre-shrunk. Face fabrics are either dyed white or printed. Fabrics are cut and sewn to create the face panels with a starburst pattern design. Binding fabric is formed. The patchwork face panels, and binding are shipped to Cambodia. Cambodia Polyester back fabric is woven. Polyester lining fabric (back of face fabric) for sham is woven. Back fabrics are bleached, softened, heat-set and brushed. Back fabrics are dyed or printed. Polyester fiber fill is produced. Fabric for binding is cut into binding width strips. Quilted fabric is cut to size and the face fabric, polyester fiber fill, and back fabric are quilted. Back panels for sham are cut and sewn to back of quilted face. Binding fabric is sewn along all edges of the quilt and shams. Finished quilt and shams are washed, inspected and packaged for export to United States. ISSUE: What is the country of origin of the subject merchandise? 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 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 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:” We note that the subject quilts are classified in subheading 9404.40.10, Harmonized Tariff Schedule of the United States (HTSUS), and the subject sham is classified in subheading 9404.90.81, HTSUS. Prior to 2022, the corresponding HTSUS classification for subheadings 9404.40.10, HTSUS, and 9404.90.81, HTSUS, was subheading 9404.90.80, HTSUS. The tariff shift rules have not yet been updated to the current subheadings; therefore, we will follow the rule corresponding to the prior subheading, in the analysis below. 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 9404.90 Except for goods of subheading 9404.90 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under subheading 9404.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process. The “fabric-making process” is defined in 19 CFR 102.21(b)(2) as “any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric.” Subheading 9404.90.80, HTSUS, is not among those subheadings listed in the paragraph (e)(2) exception; therefore, we apply the above rule. However, as the quilt and shams are not comprised of fabrics formed in a single country, territory or insular possession, paragraph (c)(2) of Section 102.21 is inapplicable. Paragraph (c)(3) states, 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 fabrics of chapter 59 and goods of headings 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6307.10, 6307.90, 9404.90, and 9619.00.31-33 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 quilt and shams are not knit to shape and are excluded from paragraph (c)(3)(ii), paragraph (c)(3) of Section 102.21 is inapplicable. Paragraph (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. The fabrics for both the qui

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 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 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:” We note that the subject quilts are classified in subheading 9404.40.10, Harmonized Tariff Schedule of the United States (HTSUS), and the subject sham is classified in subheading 9404.90.81, HTSUS. Prior to 2022, the corresponding HTSUS classification for subheadings 9404.40.10, HTSUS, and 9404.90.81, HTSUS, was subheading 9404.90.80, HTSUS. The tariff shift rules have not