The tariff classification and country of origin determination for a coated upholstery fabric; 19 CFR 102.21(c)(4)
Active· CBP ruling HQ N346383· Issued 2025-03-26
Ruling text
N346383 March 26, 2025 OT:RR:NC:N2:350 CATEGORY: Origin TARIFF NO.: 5903.20.2500 Ameet Shah Culp Inc. 1823 Eastchester Dr. Highpoint, NC 27265 RE: The tariff classification and country of origin determination for a coated upholstery fabric; 19 CFR 102.21(c)(4) Dear Mr. Shah: This is in reply to your letter dated February 28, 2025, requesting a tariff classification and country of origin determination for coated upholstery fabric, which will be imported into the United States from China. We previously classified this merchandise in N331104 dated March 17, 2023. FACTS: The subject merchandise, style “Dillon T/R,” is a twill weave fabric with a plastic coating. The coated fabric is composed of 61.3 percent polyurethane coating, 34.3 percent polyester staple fibers and 4.4 percent rayon staple fibers, by weight. The polyurethane coating consists of one inner cellular layer and an outer layer which is compact. The combined material weighs 440 g/m2. The fabric is being imported in widths of 55 inches and used for upholstery. Based upon our observation, the plastic coating is visible to the naked eye. The manufacturing operations for the coated upholstery fabric are as follows: Vietnam The fabric is woven. The twill weave fabric is shipped to China. China The fabric is dyed and napped. The fabric is coated with the first layer of polyurethane cellular plastic. An outer layer of “dry” polyurethane (compact plastic) is applied over the cellular coating. The finished fabric is shipped from China to the United States. ISSUE: What is the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for style “Dillon T/R” will be 5903.20.2500, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902: With polyurethane: Of man-made fibers: Other: Other.” The rate of duty will be 7.5 percent ad valorem. COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 United States Code 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. Title 19, 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:” 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 5901-5903 (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5901 through 5903 to finished fabric of heading 5901 through 5903 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or, (2) If the country of origin cannot be determined under (1) above, a change to heading 5901 through 5903 from any other heading, including a heading within that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5803, 5806, 5808, and 6002 through 6006, and provided that the change is the result of a fabric-making process. In this case, (1) above is inapplicable to style “Dillon T/R,” as it does not go through a process of both dyeing and printing while being accompanied by two or more of the other allowable finishing operations and there is no change to heading 5903 from headings 5901 through 5903. Further, (2) above is inapplicable to style “Dillon T/R,” because it is exported from Vietnam as a woven fabric of heading 5512 through 5516. Heading 5512 through 5516 is excepted from this category. In China, further operations transforms the fabric into one of heading 5903; however, that change is not the result of a fabric-making process. Therefore, for style “Dillon T/R,” paragraph (c)(2) to 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.” In this case, (i) above is inapplicable to “Dillon T/R” in all scenarios as the goods are not knit to shape. Further, (ii) above is inapplicable to “Dillon T/R” in all scenarios as the goods are not wholly assembled in a single country, territory, or insular possession. Chapter 59 fabric is also excepted from this category. Therefore, for “Dillon T/R,” paragraph (c)(3) to 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.” Subject to paragraph (c)(4) above, Customs and Border Protection has generally held that the most important assembly or manufacturing process, as it pertains to textiles, is the fabric-making process. Section 102.21(b)(2) defines the “fabric-making process” 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. Subject to paragraph (c)(4) above, the fabric-making process occurs in Vietnam for style “Dillon T/R.” HOLDING: The applicable subheading for style “Dillon T/R” will be 5903.20.2500, HTSUS, and the country of origin will be Vietnam. Duty rates are provided for your convenience and are subject to change. ?The text of the most recent HTSUSA and the accompanying duty rates are provided at https://hts.usitc.gov/. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. ?This position is clearly set forth in Title 19, Code of Federal Regulations (? CFR?), Section 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, whether directly, by reference, or by implication, is accurate and complete in every material respect. ?In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (?CBP?) and submit a request for a new ruling in accordance with 19 CFR 177.2. ? Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 CFR 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. ?If you have any questions regarding the ruling, please contact National Import Specialist Michael Capanna at michael.s.capanna@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division
Source: rulings.cbp.gov — ruling N346383, retrieved 2026-10-12T06:04:40Z, republished verbatim. This digest is informational; only CBP issues binding rulings.