Source: https://www.customsmobile.com/rulings/docview?doc_id=964960
Timestamp: 2020-02-24 12:03:07
Document Index: 415886264

Matched Legal Cases: ['§ 102', '§ 102', '§ 181', '§ 102', '§ 102', '§ 181', '§ 181']

Customs Ruling HQ 964960 - Classification; comforter set (Bed-in-a-Bag set); GRI 3(b); 9404.90, HTSUS; NAFTA; General Note 12; country of origin for marking purposes; 19 CFR 102.21(d); Sets; 19 CFR 102.21 (c)(1); Wholly Obtained or Produced in a Single Country; 19 CFR 102.19(a); NAFTA Preference Override; CITA Directive Concerning Visa and Quota Reporting for Textiles and Textile Products Entered as Sets (67 FR 12977); Duty-free treatment for articles previously imported; 9801.00.20, HTSUS; CITA Directive Amending Visa and Quota Requirements for Goods Re-Imported Under 9801.00.20 (59 FR 14392 (3/28/94)).
Type : Classification • HTSUS : 9404.90.8020; 9404.90.8522; 9801.00.20
Related: 959813; 956970; 559421; 560081; 560577; 560456; 560992; 561326; 560511; 546561; 222863; 560827
Seventy Five Broad Street
RE:	Classification; comforter set (Bed-in-a-Bag set); GRI 3(b); 9404.90, HTSUS; NAFTA; General Note 12; country of origin for marking purposes; 19 CFR 102.21(d); Sets; 19 CFR 102.21 (c)(1); Wholly Obtained or Produced in a Single Country; 19 CFR 102.19(a); NAFTA Preference Override; CITA Directive Concerning Visa and Quota Reporting for Textiles and Textile Products Entered as Sets (67 FR 12977); Duty-free treatment for articles previously imported; 9801.00.20, HTSUS; CITA Directive Amending Visa and Quota Requirements for Goods Re-Imported Under 9801.00.20 (59 FR 14392 (3/28/94)).
It is noted that the sheets and pillowcases are imported into the United States from Pakistan by Haywin Textile Trading, Inc. (Haywin). The sheets and pillowcases are subsequently exported from the United States to Mexico and then re-imported back into the United States by Haywin. Haywin’s relationship with the Mexican plant where the comforter, dust ruffles and pillow shams are produced, and where these items are packaged together with the sheets and pillowcases to complete the comforter sets, is one of bailor to bailee as it pertains to the delivery and return of the sheets and pillowcases. Haywin maintains ownership of the sheets and pillowcases throughout the entire time they are in Mexico. ISSUES:
What are the country of origin marking requirements for the sheets and pillow cases if entered under subheading 9801.00.20, HTSUS? LAW AND ANALYSIS:
I.	Classification Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI), 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.
II.	NAFTA Eligibility/Originating Status
The comforter, dust ruffle and pillow shams are produced in Mexico. It is also in Mexico that these items are packaged with sheets and pillowcases to form the comforter set. Thus, the subject comforter set undergoes processing operations in Mexico which is a country provided for under the North American Free Trade Agreement (NAFTA). General Note 12, HTSUS, incorporates Article 401 of NAFTA into the HTSUSA. General Note 12(a) provides, in pertinent part:
* * * (ii)	Goods that originate in the territory of a NAFTA party under subdivision (b) of this note and that qualify to be marked as goods of Mexico under the terms of the marking rules set forth in regulations issued by the Secretary of Treasury (whether or not the goods are marked), when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn followed by the symbol “MX” in parentheses, are eligible for such duty rate, in accordance with section 201 of the North American Free Trade Agreement Implementation Act.
* * * As you advise that the comforter, dust ruffle and pillow shams will be produced entirely in Mexico, they are deemed “goods originating” in Mexico as per General Note 12(b)(i).
III.	Country of Origin/NAFTA Marking Rules
Thus, although the classification and NAFTA originating status of the comforter set is based on the comforter, per the terms of § 102.21(d) the country of origin of each item in the set must be determined separately if there is not a single country of origin for all the components in the set as determined under § 102.21(c).
Except in the case of goods covered by paragraph (b) of this section, if a good which is originating within the meaning of § 181.1(q) of this chapter is not determined under § 102.11(a) or (b) or § 102.21 to be a good of a single NAFTA country, the country of origin of such good is the last NAFTA country in which that good underwent production other than minor processing, provided that a Certificate of Origin (see § 181.11 of this chapter) has been completed and signed for the good.
…all applicable visa and quota requirements will apply for textiles and their products which are classified as parts of a set. The rule applies to all items which, if imported separately, would have required a visa and the reporting of quota.
[a]rticles, previously imported, with respect to which the duty was paid upon such previous importation … if (1) reimported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, after having been exported under lease or similar use agreements, and (2) reimported by or for the account of the person who imported it into, and exported it from, the United States.
Where All Items in the Comforter Set Are Entered into the United States under Subheading 9404.90, HTSUS The subject “Bed-in-a-Bag” set is classifiable, based on the comforter, in either subheading 9404.90.8020, HTSUSA, which provides for comforters of cotton, or in subheading 9404.90.8522, HTSUSA, which provides for comforters with an outer shell of man-made fibers.
By virtue of the comforter, dust ruffle and pillow shams being produced entirely in Mexico, and the sheets and pillowcases meeting the applicable tariff shift rule, all the components in the “Bed-in-a-Bag” set will be deemed originating for NAFTA purposes if entered into the United States under either HTSUS subheading 9404.90.8020 or 9404.90.8522. By virtue of the NAFTA override, each bedding item, if entered as a set under either HTSUS subheading 9404.90.8020 or 9404.90.8522, must be marked country of origin Mexico in order to receive preferential treatment under the NAFTA as claimed. If entered as a set under either HTSUS subheading 9404.90.8020 or 9404.90.8522, all of the items are entitled to the NAFTA “MX” special duty rate.
The sheets and pillowcases are eligible for entry as articles previously imported under subheading 9801.00.20, HTSUS, which accords duty-free entry. If entered under subheading 9801.00.20, HTSUS, the sheets and pillowcases must be marked as products of Pakistan and are exempt from quota/visa requirements. The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in § 181.100(a)(2) (19 CFR 181.100(a)(2)). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
Type: Classification • HTSUS: 9404.90.8020; 9404.90.8522; 9801.00.20
Classification; comforter set (Bed-in-a-Bag set); GRI 3(b); 9404.90, HTSUS; NAFTA; General Note 12; country of origin for marking purposes; 19 CFR 102.21(d); Sets; 19 CFR 102.21 (c)(1); Wholly Obtained or Produced in a Single Country; 19 CFR 102.19(a); NAFTA Preference Override; CITA Directive Concerning Visa and Quota Reporting for Textiles and Textile Products Entered as Sets (67 FR 12977); Duty-free treatment for articles previously imported; 9801.00.20, HTSUS; CITA Directive Amending Visa and Quota Requirements for Goods Re-Imported Under 9801.00.20 (59 FR 14392 (3/28/94)).