HQ 959414: Country of origin determination for hot pad, coasters,cardholder, wall hanging, and tote bag; 19 CFR102.21(c)(2); tariff shift; 19 CFR 102.21(c)(4); most important assembly

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 959414
                                 
                          August 6, 1996
CLA-2   RR:TC:TE  959414  jb

CATEGORY: Classification

Christopher L. Thayer, Esq.
Hallmark Cards, Incorporated
Kansas City, Missouri 64141

RE:  Country of origin determination for hot pad, coasters,
cardholder, wall hanging, and tote      bag; 19 CFR
102.21(c)(2); tariff shift; 19 CFR 102.21(c)(4); most important
          assembly

Dear Mr. Thayer:

     This is in reply to your letter dated June 26, 1996,
requesting a country of origin determination for certain
"Holiday" items, namely, what you refer to as a Thanksgiving hot
pad, Thanksgiving coasters, Christmas cardholder, Christmas wall
hanging, and Halloween tote bag. Samples were submitted to this
office for examination.

FACTS:

     The submitted merchandise consists of five items.  The first
item, referenced style 595THD1741, is a hot pad in the shape of a
maple leaf, made out of 100 percent cotton fabric and stuffed
with 100 percent polyester wadding.  The base of the maple leaf
features a self-fabric loop, attached by a single button, by
which the hot pad may be hung.  The manufacturing operations are
as follows:

                         Scenario I

     CHINA

     - 100 percent cotton checked and plaid fabric for front and
back panel is woven and dyed;
     - button is sourced.

     PHILIPPINES

     - polyester wadding is formed;
     - cutting of the fabric;
     - threads are sourced;
     - embroidery;
     - sewing;
     - trimming and cleaning.

                         Scenario II

     CHINA

     - 100 percent cotton checked and plaid fabric for front
panel is woven and dyed;
     - button is sourced.

     COUNTRY X

     - 100 percent cotton checked and plaid fabric for back panel
is woven and dyed.

     PHILIPPINES

     - polyester wadding is formed;
     - cutting of the fabric;
     - threads are sourced;
     - embroidery;
     - sewing;
     - trimming and cleaning.

     The second item, referenced style 995THD1764, consists of a
set of four coasters, made out of 100 percent cotton printed
fabric and 55 percent/ 45 percent linen/cotton fabric, each
stuffed with 100 percent polyester wadding.  The face of each
coaster is divided into four squares with each square featuring a
different picture.  The manufacturing operations are as follows:

                         Scenario I

     CHINA

     - 100 percent cotton printed fabric for front and back panel
is woven and dyed;
     - 55 percent/ 45 percent linen/cotton fabric for front panel
is woven.

     PHILIPPINES

     - polyester wadding is formed;
     - cord is sourced;
     - cutting of the fabric;
     - silk-screen printing of 55 percent/45 percent linen/cotton
fabric;

     - threads are formed;
     - sewing;
     - trimming and cleaning.
                         Scenario II

     CHINA

     - 100 percent cotton printed fabric for front panel is woven
and dyed;
     - 55 percent cotton/ 45 percent linen/cotton fabric for
front panel is woven.
     
     COUNTRY X

     - 100 percent cotton printed fabric for back panel is woven
and dyed.

     PHILIPPINES

     - polyester wadding is formed;
     - cord is sourced;
     - threads are formed;
     - silk-screen printing of 55 percent/45 percent linen/cotton
fabric;
     - cutting of the fabric;
     - sewing;
     - trimming and cleaning.

     The third item, referenced style 1495XBH3924, is a
cardholder made out of 100 percent cotton checked and plaid
fabric, 55 percent/ 45 percent linen/cotton fabric, and 100
percent acrylic felt.  This item measures approximately 36 inches
by 8-1/2 inches and features a wooden dowel and ribbon hanger,
the words "warm thoughts happy memories" embroidered at the top,
and three pocket inserts where the cards are to be placed.  The
manufacturing operations are as follows:

                         Scenario I

     CHINA

     - 100 percent cotton checked and plaid fabric for the front
and back panel borders and      pocket cuffs on the front panel
is woven and dyed;
     - 55 percent/ 45 percent linen/cotton fabric for front panel
applique is woven;
     - ribbon is woven and dyed;
     - button is sourced.



     TAIWAN

     - 100 acrylic felt for front and back panel is formed and
dyed;
     - ribbon hanger is woven and dyed.

     PHILIPPINES

     - wooden dowel is sourced;
     - cutting of the fabric;
     - embroidery;
     - threads are formed;
     - sewing;
     - trimming and cleaning.

                         Scenario II

     CHINA

     - 100 percent cotton checked and plaid fabric for the front
and back panel borders and      pocket cuffs on the front panel
is woven and dyed;
     - 55 percent/ 45 percent linen/cotton fabric for front panel
applique is woven;
     - ribbon is woven and dyed;
     - button is sourced;

     TAIWAN

     - 100 percent acrylic for front and back panel is formed and
dyed;
     - ribbon hanger is woven and dyed.

     COUNTRY X

     - 100 percent cotton checked and plaid fabric for felt
backing on back panel is formed.

     PHILIPPINES

     - wooden dowel is sourced;
     - cutting of the fabric;
     - embroidery;
     - threads are formed;
     - sewing;
     - trimming and cleaning.



     *We assume that the total weight of the 100 percent cotton
checked and plaid fabric used for the borders and cuffs, the 55
percent/ 45 percent linen/cotton fabric used for the applique and
the 100 percent cotton ribbon, accounts for more than seven
percent of the total weight of the good.

     The fourth item, referenced style 1295XBH3931, is a wall
hanging made out of 100 percent cotton checked and plaid fabric,
100 percent cotton printed fabric, 55 percent/ 45 percent
linen/cotton fabric, and 100 percent acrylic felt.  This item
measures approximately 12 inches by 10 inches and features a
wooden dowel and ribbon hanger, and the words "Christmas is...
memories... joy... family... love... friends" wrapping around the
face of the item in a picture frame effect.  The manufacturing
operations are as follows:

     CHINA    

     - 100 percent cotton checked and plaid fabric for front and
back panel is woven and    dyed;
     - 100 percent cotton printed fabric for front panel is
woven, dyed and printed;
     - 55 percent/ 45 percent linen/cotton fabric for front panel
is woven;
     - button is sourced.

     TAIWAN

     - 100 percent acrylic felt for front panel is formed and
dyed;
     - ribbon hanger is woven and dyed.

     PHILIPPINES

     - wadding is formed;
     - button is attached;
     - wooden dowel is sourced;
     - wooden star is sourced;
     - cutting of the fabric;
     - threads are formed;
     - embroidery;
     - sewing;
     - trimming and cleaning.

     The final item, referenced style 595HJR1601, is a tote bag
made out of 100 percent cotton fabric.  This item features the
face of a pumpkin on the front panel, a handle made out of nylon
webbing, and a maple leaf and ribbon at the base of one of the
sides of the handles.  The manufacturing operations are as
follows:


     CHINA

     - 100 percent cotton fabric for front and back panel is
woven and dyed.

     HONG KONG

     - 100 percent nylon webbing for handle is woven.

     PHILIPPINES

     - 65 percent/ 35 percent polyester/cotton fabric for leaf
applique is woven and dyed;
     - 100 percent nylon ribbon is woven and dyed;
     - cutting of the fabric;
     - silk-screen printing;
     - threads are formed;
     - sewing;
     - trimming and cleaning.

ISSUE:

     1. What is the country of origin of the subject merchandise?          

     2.  Is the wadding present in some of these items considered
fabric?

     3.  Do the cotton fabric applique and cotton checked plaid
fabric featured on the                       cardholder qualify
as De Minimis?

     4. Are the nylon webbing, leaf applique and ribbon featured
on the tote bag, considered       minor attachments and minor
embellishments?

     5. If a visa from China is required for any of these items,
are there any entities within         China or the Philippines to
address for obtaining a Chinese visa for products shipped     
from the Philippines? 

LAW AND ANALYSIS:

     On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act.  Section 334 of that Act (codified
at 19 U.S.C. 3592) provides new rules of origin for textiles and
apparel entered, or withdrawn from warehouse, for consumption, on
and after July 1, 1996.  On September 5, 1995, Customs published
Section 102.21, Customs Regulations, in the 
Federal Register, implementing Section 334 (60 FR 46188).  Thus,
effective July 1, 1996, the country of origin of a textile or
apparel product shall be determined by sequential application of
the general rules set forth in paragraphs (c)(1) through (5) of
Section 102.21.

     Paragraph (c)(1) states that "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 that "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
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".

     Paragraph (e) states that "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:"


     6301-6306           The 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.


     4202.92.15-4202.92.30    A change to subheading 4202.92.15
through 4202.92.30                      from any other heading,
provided that the change is the                        result of
the good being wholly assembled in a single 
                         country, territory, or insular
possession.
     
     Paragraph (b)(6) defines "wholly assembled" as:

     The term "wholly assembled" when used with reference to a
     good means that all components, of which there must be at
     least two, preexisted in essentially the same condition as
     found in the finished good and were combined to form the
     finished good in a single country, territory, or insular
     possession.  Minor attachments and minor embellishments (for
     example, appliques, beads, spangles, embroidery, buttons)
     not appreciably affecting the identity of the good, and
     minor subassemblies (for example, collars, cuffs, plackets,
     pockets), will not affect the status of a good as "wholly
     assembled" in a single country, territory, or insular
     possession.

     General rule (c) of Part 102.21 states that "Subject to
paragraph (d) of this section, the country of origin of a textile
or apparel product shall be determined by sequential application
of paragraphs (c)(1) through (c)(5) of this section and, in each
case where appropriate to the specific context, by application of
the additional requirements or conditions of 102.12 through
102.19 of this part."  Section 102.13, which sets out the De
Minimis rule states, in relevant part:

     (c) Foreign components or materials that do not undergo the
applicable change in tariff        classification set out in
102.21 or satisfy the other applicable requirements of that          section when incorporated into a textile or apparel
product covered by that section         shall be disregarded in
determining the country of origin of the good if the total weight
          of those components or materials is not more than 7
percent of the total weight of the           good.

     As you correctly stated in your letter, all of the subject
merchandise, except for the tote bag, is classifiable as other
furnishing articles in subheading 6304.92.0000, Harmonized Tariff
Schedule of the United States Annotated (HTSUSA), as other
furnishing articles, excluding those of heading 9404: other: not
knitted or crocheted, of cotton.  The tote bag is classifiable in
subheading 4202.92.1500, HTSUSA, which provides for, among other
things, travel, sports and similar bags: with outer surface of
textile materials: of vegetable fibers and not of pile or tufted
construction: of cotton.  

     As the analysis for this merchandise will show, the wadding
present in some of the subject merchandise, i.e., the hot pad,
coasters and wall hanging, is considered fabric.  In the case of
the hot pad in scenario I, fabric is formed both in China (100
percent cotton checked and plaid fabric) and the Philippines
(wadding).  As the fabric comprising the good is formed by a
fabric-making process in more than one country, this merchandise
does not meet the terms of the tariff shift set out in Section
102.21(e).  In scenario II, the fabric is formed in China (100
percent cotton checked and plaid fabric for front panel), Country
X (100 percent cotton checked and plaid fabric for back panel)
and the Philippines (wadding).  Accordingly, this also does not
meet the terms of the tariff shift.

     In the case of the coasters in scenario I, fabric is formed
in both China (100 percent cotton printed fabric and 55
percent/45 percent cotton/linen fabric) and the Philippines
(wadding).  As the fabric comprising the good is formed by a
fabric-making process in more than one country, this merchandise
does not meet the terms of the tariff shift.  In scenario II, the
fabric is formed in China (100 percent cotton printed fabric for
the front panel and 55 percent/ 45 percent cotton/ linen fabric),
Country X (100 percent cotton printed fabric for the back panel)
and the Philippines (wadding).  Accordingly, this also does not
meet the terms of the tariff shift.

     In the case of the cardholder in scenario I, fabric is
formed in China (100 percent cotton checked and plaid fabric for
front and back panel borders, 55 percent/ 45 percent linen/cotton
fabric for the front panel applique and 100 percent cotton
ribbon) and Taiwan (felt and ribbon hanger).  We assume that the
material formed in China weighs more than seven percent of the
total weight of the good and thus does not qualify as De Minimis. 
As the fabric comprising the good is formed by a fabric-making
process in more than one country, this merchandise does not meet
the terms of the tariff shift.  Similarly, in scenario II, the
fabric is formed in China ( 100 percent cotton checked and plaid
fabric for the front panel border, 55 percent/ 45 percent linen/
cotton fabric for the front panel applique and 100 percent cotton
ribbon), Country X ( 100 percent cotton fabric for the back panel
border) and Taiwan (felt and ribbon hanger).  Accordingly, this
also does not meet the terms of the tariff shift.

     In the case of the wall hanging fabric is formed in China
(100 percent cotton checked and plaid fabric for the front and
back panel, 100 percent cotton printed fabric for the front panel
and 55 percent/ 45 percent linen/cotton fabric for the front
panel), Taiwan (felt and ribbon hanger) and the Philippines
(wadding).  As the fabric comprising the good is formed by a
fabric-making process in more than one country, this merchandise
does not meet the terms of the tariff shift.  

     In the case of the tote bag the nylon webbing, cotton leaf
applique and nylon ribbon are 
considered minor attachments and minor embellishments as per the
terms of the definition of "wholly assembled".  As the tote bag
is "wholly assembled" in a single country, the tote bag meets the
terms of the tariff shift.  Accordingly, the country of origin of
the subject tote bag is the Philippines.

     Thus, having determined the country of origin of the tote
bag, country of origin must still be determined for the remaining
merchandise, that is, the hot pad, coasters, cardholder and wall
hanging.  Paragraph (c)(3) states that "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 goods of heading 5609, 5807, 5811,
6213, 6214, 6301 through 6306, and          6308, and subheadings
6209.20.5040, 6307.10, 6307.90, and 9404.90, 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 subject merchandise is not knit and heading 6304 is
excepted by provision (ii), paragraph (c)(3) is inapplicable.

     Paragraph (c)(4) states that, "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.  It is the opinion of this office that in the
case of the hot pad, coasters, cardholder and wall hanging, the
most important manufacturing process occurs at the time of the
fabric-making.  As the fabric-making process occurs in more than
one country in the case of these items, and, in the case of these
goods, no one fabric is more important than the other, country of
origin cannot be readily determined based on paragraph (c)(4).




     Paragraph (c)(5) states that, "Where 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 case of the subject hot pad, coasters,
cardholder and wall hanging, country of origin is conferred by
the last country in which an important assembly occurred, that
is, the Philippines.

     Although in the case of all of the submitted merchandise
country of origin is not conferred by China, in the case of any
problems incurred when interacting with foreign governments in
terms of visa or otherwise, those problems must be resolved by
the exporter of the goods with the appropriate foreign government
embassy.

HOLDING:

     The country of origin of the subject hot pad, referenced
style 595THD1741, coasters, referenced style 995THD1764,
cardholder, referenced style 1495XBH3924, wall hanging,
referenced style 1295XBH3931, and tote bag, referenced style
595HJR1601 is the Philippines.
     
     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