U.S. Customs and Border Protection ◆ 19 CFR PART 177 MODIFICATION OF THREE RULING LETTERS AND REVOCATION OF TREATMENT RELATING TO THE COUNTRY OF ORIGIN OF DECORATIVE PILLOWS, HEATABLE SAKS, AND STUFFED MATTRESS COVERS AGENCY: U.S. Customs and Border Protection, Department of Homeland Security. ACTION: Notice of modification of three ruling letters and of revo­ cation of treatment relating to the country of origin of decorative pillows, heatable saks, and stuffed mattress covers for marking pur­ poses. SUMMARY: Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. § 1625(c)), as amended by section 623 of title VI (Customs Modern­ ization) of the North American Free Trade Agreement Implementa­ tion Act (Pub. L. 103–182, 107 Stat. 2057), this notice advises inter­ ested parties that U.S. Customs and Border Protection (CBP) is modifying three ruling letters concerning the country of origin of decorative pillows, heatable saks, and stuffed mattress covers for marking purposes. Similarly, CBP is revoking any treatment previ­ ously accorded by CBP to substantially identical transactions. Notice of the proposed action was published in the Customs Bulletin, Vol. 12, No. 19, on May 9, 2018. No comments were received in response to that notice. DATE: This action is effective for merchandise entered or withdrawn from warehouse for consumption on or after November 26, 2018. FOR FURTHER INFORMATION CONTACT: Elif Eroglu, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade, at (202) 325–0277. 1 2 CUSTOMS BULLETIN AND DECISIONS, VOL. 52, NO. 39, SEPTEMBER 26, 2018 SUPPLEMENTARY INFORMATION: Background Current customs law includes two key concepts: informed compli­ ance and shared responsibility. Accordingly, the law imposes an obli­ gation on CBP to provide the public with information concerning the trade community’s responsibilities and rights under the customs and related laws. In addition, both the public and CBP share responsibil­ ity in carrying out import requirements. For example, under section 484 of the Tariff Act of 1930, as amended (19 U.S.C. § 1484), the importer of record is responsible for using reasonable care to enter, classify and value imported merchandise, and to provide any other information necessary to enable CBP to properly assess duties, collect accurate statistics, and determine whether any other applicable legal requirement is met. Pursuant to 19 U.S.C. § 1625(c)(1), a notice was published in the Customs Bulletin, Vol. 52, No. 19, on May 9, 2018, proposing to modify three ruling letters concerning the country of origin of decorative pillows, heatable saks, and stuffed mattress covers for marking pur­ poses. Any party who has received an interpretive ruling or decision (i.e., a ruling letter, internal advice memorandum or decision, or protest review decision) on the merchandise subject to this notice should have advised CBP during the comment period. Similarly, pursuant to 19 U.S.C. § 1625(c)(2), CBP is revoking any treatment previously accorded by CBP to substantially identical transactions. Any person involved in substantially identical transac­ tions should have advised CBP during this comment period. An im­ porter’s failure to advise CBP of substantially identical transactions or of a specific ruling not identified in this notice may raise issues of reasonable care on the part of the importer or its agents for impor­ tations of merchandise subsequent to the effective date of this notice. In NY N287930, dated August 3, 2017; HQ H265611, dated October 21, 2015; and HQ 963233, dated December 13, 2000, CBP determined that the merchandise classified under subheading 9404.90.20, HTSUS, was subject to 19 C.F.R. § 102.11 rules of origin. CBP has reviewed NY N287930, HQ H265611, and HQ 963233 and has deter­ mined the ruling letters to be partially in error. It is now CBP’s position that merchandise classified under subheading 9404.90.20, HTSUS, which is a “textile or apparel product” is subject to 19 C.F.R. § 102.21 rules of origin. Pursuant to 19 U.S.C. § 1625(c)(1), CBP is modifying NY N287930, HQ H265611, and HQ 963233 and revoking or modifying any other ruling not specifically identified to reflect the analysis contained in 3 CUSTOMS BULLETIN AND DECISIONS, VOL. 52, NO. 39, SEPTEMBER 26, 2018 HQ H290258, HQ H293880, and HQ H293881, set forth as Attach­ ments A, B, and C to this notice. Additionally, pursuant to 19 U.S.C. § 1625(c)(2), CBP is revoking any treatment previously accorded by CBP to substantially identical transactions. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin. Dated: June 19, 2018 MONIKA R. BRENNER for MYLES B. HARMON, Director Commercial and Trade Facilitation Division Attachments 4 CUSTOMS BULLETIN AND DECISIONS, VOL. 52, NO. 39, SEPTEMBER 26, 2018 ATTACHMENT A HQ H290258 June 19, 2018 OT:RR:CTF:VS H290258 EE CATEGORY: Classification ELISE SHIBLES SANDLER, TRAVIS & ROSENBERG, P.A. 505 SANSOME STREET, SUITE 1475 SAN FRANCISCO, CA 94111 RE: Modification of NY N287930; NAFTA country of origin marking; pillows DEAR MS. SHIBLES: This is in response to your letter dated September 13, 2017, in which you request, on behalf of your client Spencer N Enterprises, Inc. (“Spencer N Enterprises”), reconsideration of New York Ruling Letter (“NY”) N287930, dated August 3, 2017. NY N287930, issued to you by U.S. Customs and Border Protection (“CBP”) concerns the tariff classification of certain decora­ tive pillows and eligibility for preferential tariff treatment under the North American Free Trade Agreement (“NAFTA”). We have reviewed NY N287930 and determined that it is partially incorrect with respect to the country of origin marking. On May 9, 2018, pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1), as amended by section 623 of Title VI, notice of the proposed action was published in the Customs Bulletin Vol. 12, No. 19. No comments were received in response to that notice. FACTS: Spencer N Enterprises is an importer and distributor of soft décor prod­ ucts. The subject merchandise consists of decorative pillows. In NY N287930, the importer presented the following eight scenarios to CBP where pillow components were processed in Mexico and subsequently imported into the United States as finished decorative pillows. Scenario 1 – decorative pillows constructed from polyester shells (containing a zipper closure) of Chinese origin sent to Mexico for stuffing with inserts of feathers of Chinese origin. The only processing in Mexico is the stuffing of the feathers in the polyester shells and closing the zipper. Both the polyester shells (China) and inserts of feathers (China) are sent in-bond into Mexico. Scenario 2 – decorative pillows (no attached closure) constructed from poly­ ester shells of Chinese origin sent to Mexico for stuffing with polyester fiber of Chinese origin. In Mexico, the polyester fiber is blown into the polyester shells and the shells are finished by sewing the opening closed. Both the polyester shells (China) and polyester fiber (China) are sent in-bond into Mexico. Scenario 3 – decorative pillows constructed from polyester shells (containing a zipper closure) of Chinese origin sent to Mexico for stuffing with inserts of feathers of Chinese origin. The only processing in Mexico is the stuffing of the feathers in the polyester shells and closing the zipper. We note that the only difference between Scenario 1 and Scenario 3 is that the polyester shells (China) in Scenario 3 entered the United States before being sent to Mexico, 5 CUSTOMS BULLETIN AND DECISIONS, VOL. 52, NO. 39, SEPTEMBER 26, 2018 versus in Scenario 1 both the polyester shells (China) and inserts of feathers (China) were sent together in-bond into Mexico. Scenario 4 – decorative pillows (no attached closure) constructed from a polyester shells of Chinese origin sent to Mexico for stuffing with polyester fiber of Chinese origin. In Mexico, the polyester fiber is blown into the polyester shells and the shells are finished by sewing the opening closed. We note that the only difference between Scenario 2 and Scenario 4 is that the polyester shells (China) in Scenario 4 entered the United States before being sent to Mexico, versus in Scenario 2 both the polyester shells (China) and polyester fiber (China) were sent together in-bond into Mexico. Scenario 5 – decorative pillows constructed from cotton shells (containing a zipper closure) from India are sent to Mexico for stuffing with inserts of feathers of Chinese origin. The only processing in Mexico is the stuffing of the feathers in the cotton shells and closing the zipper. Both the cotton shells (India) and feathers (China) are sent in-bond to Mexico. Scenario 6 – decorative pillows (no attached closure) constructed from cotton shells of Indian origin sent to Mexico for stuffing with polyester fiber of Chinese origin. In Mexico, the polyester fiber is blown into the cotton shells and the shells are finished by sewing the opening closed. Both the cotton shells (India) and polyester fiber (China) are sent in-bond to Mexico. Scenario 7 – decorative pillows constructed from cotton shells (containing a zipper closure) from India are sent to Mexico for stuffing with inserts of feathers of Chinese origin. The only processing in Mexico is the stuffing of the feathers in the cotton shells and closing the zipper. We note that the only difference between Scenario 5 and Scenario 7 is that the cotton shells (India) in Scenario 7 entered the United States before being sent to Mexico, versus in Scenario 5 both the cotton shells (India) and feathers (China) were sent together in-bond into Mexico. Scenario 8 – decorative pillows constructed from cotton shells (no attached closure) from India are sent to Mexico for stuffing with polyester fiber of Chinese origin.