HQ 958849: Country of origin determination; duvet covers; Section102.21(c)(5), Customs Regulations.

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 958849
                          June 14, 1996
CLA-2 RR:TC:TE 958849 SK

CATEGORY: Classification

John M. Peterson
Neville, Peterson & Williams
2300 N Street, N.W.
Suite 600
Washington, D.C. 20037

RE:  Country of origin determination; duvet covers; Section
102.21(c)(5),       Customs Regulations.

Dear Mr. Peterson:

     This is in response to your inquiry of January 20, 1996, on
behalf of your client, Pac-Fung Feather Company Ltd. and Natural
Feather & Textiles, Inc., requesting a country of origin
determination for duvet covers pursuant to Section 334 of the
Uruguay Round Agreements Act (19 USC Section 3592) and
implementing Customs Regulations (19 CFR Section 102.21).   On
April 4, 1996, you met with a representative from this office to
further discuss the issues raised in your request.  Further to
that meeting, also on April 4, 1996, you submitted a second
written submission in which you provide this office with specific
manufacturing information.  

     A sample duvet was submitted to this office for examination.

FACTS:

     The merchandise at issue consists of 100 percent cotton
duvet covers which will be manufactured in Hong Kong using fabric
which is woven in the People's Republic of China and in one or
more additional countries.  You have stated that the second
country in which fabric will be formed will either be Taiwan,
Hong Kong, Japan or another unspecified country.  Fabric will be
woven and dyed in both China and a second country and imported
into Hong Kong.  In Hong Kong, the fabric will 

                              - 2 -

be cut into six duvet cover panels.   Some of the panels will
measure approximately 84 inches in length by 17 inches in width. 
Center panels will have the same length, but will be 34 inches in
width.  In Hong Kong, two end panels will be sewn longitudinally
on either side of a center panel to form the top half of the
duvet cover using an overlock stitching machine.  This operation
will be repeated with two side panels and a center panel to
create the bottom half of the duvet cover.  The top and bottom
panels will each measure approximately 84 inches in length by 68
inches in width.    The top and bottom panels will then be sewn
together on three sides.  The top of the cover will remain open. 
One side of the top end of the duvet cover will be folded over
and hemmed, creating plackets for buttons and buttonholes. 
Approximately two and one-half inches of fabric will be folded
over, then refolded over and stitched to itself once again.  This
will create a flap measuring approximately one and one-half
inches wide which is suitable for the attachment of buttons.  On
the other side of the top end, fabric will be folded over and
sewn to itself, creating a flap approximately one inch wide,
suitable for the placement of buttonholes.  The side portions of
the top end of the duvet cover will be sewn closed.  This will
leave closed portions measuring approximately fourteen inches on
each side of the top end, as well as an opening in the center of
the top end measuring approximately 56 inches in diameter.  Three
buttonholes will then be slit and sewn into one of the flaps at
the top of the cover and three buttons attached.  The finished
duvet is then inspected, folded and packaged for export to the
United States.

     In your April 4, 1996, submission to this office, you state
that your client anticipates that between one and three duvet
panels will be made from Taiwanese woven fabric.  The remaining
panels will be made from fabric woven in the People's Republic of
China.  You request a country of origin ruling for duvet covers
which feature between one and three panels made from Taiwanese
fabric, as follows:

No. of Taiwanese Fabric Panels               Taiwanese Panels as
% of Total Fabric
                                   In Duvet
1                                  12.5%
1,2                                37.5%
1,2,3                                   50.0%

ISSUE:

      What is the country of origin of the subject merchandise
under the manufacturing scenarios set forth supra?




                              - 3 -
LAW AND ANALYSIS:

     Pursuant to the Section 334 of the Uruguay Round Agreements
Act (19 USC Section 3592) new rules of origin will be effective
for textile or apparel products entered, or withdrawn from
warehouse for consumption, on or after July 1, 1996.  These rules
were published in the Federal Register, 60 Fed. Reg. 46188
(September 5, 1995).  Section 102.21, Customs Regulations (19 CFR
Section 102.21), sets forth the general rules which determine
country of origin.  The country of origin of a textile or apparel
product will be determined by a hierarchy of rules set forth in
paragraphs (c)(1) through (c)(5) of Section 102.21.  

     Section 102.21(c)(1) sets forth the general rule for
determining the country of 
origin of a textile or apparel product in which the good is
wholly obtained or produced in a single country, territory, or
insular possession.  

     Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under Section 102.21(c)(1).  Section 102.21 (c)(2)
provides:

          "[W]here 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 foreign material
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."

     Section 102.21(c)(3) governs instances where country of
origin of a textile or apparel product cannot be determined
pursuant to paragraphs (c)(1) or (c)(2) and where the subject
merchandise consists of either a good that was knit to shape in a
single country or, except for goods of certain specifically
enumerated headings, if the good was not knit to shape and was
wholly assembled in a single country.

     Section 102.21(c)(4) provides:

          "[W]here 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."


                              - 4 -

     Section 102.21(c)(5) provides:

          "[W]here the country of origin of a textile or apparel
product
          cannot be determined under paragraph (c)(1), (2), (3)
or (4)  
          of this section, the country of origin of the good is
the last
          country, territory, or insular possession in which an
important 
          assembly or manufacturing process occurred."

     In the manufacturing scenarios set forth above, Section
102.21(c)(1) does not provide the relevant country of origin
analysis because the duvets are not wholly obtained or produced
in a single country.

     The duvet covers are classifiable under subheading
6302.31.90, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA).  Accordingly, Section 102.21(c)(2) directs us
to paragraph (e) of this section which states, in pertinent part,
that origin is conferred in the following situations:

     6301-6306 "[T]he country of origin of a good classifiable
under heading  6301 through 6306 is the country, territory, or
insular possession in which the    fabric comprising the good was
formed by a fabric-making process."

     In all three manufacturing scenarios presented supra, the
fabric comprising the subject merchandise is formed in more than
a single country.  Accordingly, Section 102.21(c)(2) is
inapplicable and our hierarchical application of Section
102.21(c) continues.

     Section 102.21(c)(3) does not provide the relevant country
of origin analysis inasmuch as the subject duvets are not knit to
shape goods and, as articles classifiable under subheading
6302.31.90, HTSUSA, they are specifically exempted from paragraph
(c)(3)(ii)'s application.

     Section 102.21(c)(4), which looks to the country, territory,
or insular possession in which the most important assembly or
manufacturing process occurred as conferring origin, similarly
fails to provide the appropriate analysis in this situation.  In
the first manufacturing scenario, you submit that 12.5 percent of
the fabric is formed in Taiwan, with the remaining 87.5 percent
formed in China.  In the second scenario, you submit that 37.5
percent of the fabric is formed in Taiwan, with the remaining
62.5 percent formed in China.  In the third scenario, you submit
that 


                              - 5 -

50 percent of the duvet's fabric is manufactured in China and the
other 50 percent in Taiwan.  In all three scenarios, it is
impossible to determine which manufacturing 
process is the most important inasmuch as the top and bottom
fabrics are identical and equally meaningful in terms of their
importance to the finished duvet covers.  Accordingly, we turn to
Section 102.21(c)(5) which requires that in instances where the
country of origin of a textile or apparel product cannot be
determined under paragraph (c)(1), (2), (3) or (4), origin will
be conferred in the country in which an important assembly or
manufacturing process last occurred.  In the three scenarios
presented to this office, the country in which an important
assembly process last occurred is Hong Kong.

HOLDING:

     In all three manufacturing scenarios, the country of origin
for the subject duvet covers is Hong Kong.

     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 section 19 CFR
177.9(b)(1).  This section states that a ruling letter is issued
on the assumption that all of the information furnished in the
ruling letter, either directly, by reference, or by implication,
is accurate and complete in every material respect.

     Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 CFR
177.9(b)(1), the ruling will be subject to modification or
revocation.  In the event there is a change in the facts
previously furnished, this may affect the determination of
country of origin.  Accordingly, if there is any change in the
facts submitted to Customs, it is recommended that a new ruling
request be submitted in accordance with 19 CFR 177.2.


                                   Sincerely,



                                   John Durant, Director
                                   Tariff Classification Appeals
Division