Customs Rules of Eligibility of Certain Bed Linens for U.S.-Israel Free Trade Agreement

In New York Ruling Letter (“NY”) N313390, dated August 21, 2020, CBP classified a bed linen set containing a pillow sham, duvet cover, flat sheet, fitted sheet, and pillowcases in heading 6302, HTSUS, specifically in subheading 6302.21.90, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen, printed: Of cotton: Other: Not napped” and in subheading 6302.31.90, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen: Of cotton: Other: Not napped.” CBP has reviewed NY N313390 and has determined that it classified the wrong bed linen set composition and failed to address the eligibility of the bed linen products for preferential tariff treatment under the U.S.-Israel FTA. It is now CBP’s position that the bed linen set containing a flat sheet, fitted sheet, and pillowcase does not qualify as a set under the HTSUS and must be entered individually. Additionally, the bed linen set containing a flat sheet, fitted sheet, and pillow sham does qualify as a set under the HTSUS and may be entered under one subheading. Classification remains in 6302.21.90, HTSUS, or 6302.31.90, HTSUS. Furthermore, it is now CBP’s position that the flat sheet, fitted sheet, duvet cover, and the set containing sheets and pillow shams are not eligible for preferential tariff treatment under the U.S.-Israel FTA. The pillowcase and pillow sham, when entered individually, are eligible for preferential tariff treatment under the U.S.-Israel FTA.

Read more in Customs Bulletin Vol. 56, No. 14. beginning on Page 2.

Proposed Modification of One Ruling Letter and Proposed Revocation of Treatment Relating to the Tariff Classification and Eligibility of Certain Bed Linen Products for Preferential Tariff Treatment under the U.S.-Israel Free Trade Agreement

In NY N313390, CBP classified a bed linen set containing a pillow sham, duvet cover, flat sheet, fitted sheet, and pillowcases in heading 6302, HTSUS, speci.fically in subheading 6302.21.90, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen, printed: Of cotton: Other: Not napped” and in subheading 6302.31.90, HTSUS, which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other bed linen: Of cotton: Other: Not napped.” CBP has reviewed NY N313390 and has determined that it classified the wrong bed linen set composition and failed to address the eligibility of the bed linen products for preferential tariff treatment under the U.S.-Israel FTA. It is now CBP’s position that the bed linen set containing a flat sheet, fitted sheet, and pillowcase does not qualify as a set under the HTSUS and must be entered individually. Additionally, the bed linen set containing a flat sheet, fitted sheet, and pillow sham does qualify as a set under the HTSUS and may be entered under one subheading. Classification remains in 6302.21.90, HTSUS, or 6302.31.90, HTSUS. Furthermore, it is now CBP’s position that the flat sheet, fitted sheet, duvet cover, and the set containing sheets and pillow shams are not eligible for preferential tariff treatment under the U.S.- Israel FTA. The pillowcase and pillow sham, when entered individually, are eligible for preferential tariff treatment under the U.S.-Israel FTA.

Comments must be received on or before March 11, 2022.

See February 9, 2022, Customs Bulletin Vol. 56, No. 5.

Country of Origin Marking of Products from the West Bank and Gaza

Today, U.S. Customs and Border Protection published a Federal Register Notice to ensure that country of origin markings for Israeli and Palestinian goods are consistent with the United States’ foreign policy approach. The notice establishes that producers within certain areas designated in the Oslo Accords and the Hebron Protocol must mark their goods as “Israel,” “Product of Israel,” or “Made in Israel” when exporting those goods to the United States. Parties that import these goods into the United States are responsible for ensuring compliance with the marking requirements.

CBP is publishing this Federal Register Notice (85 FR 83984) based upon guidance from the U.S. Department of State that the country of origin marking requirements for goods produced in certain areas of the West Bank be updated to reflect the fact that producers in these areas operate within the economic and administrative framework of Israel. Goods produced in areas of the West Bank where the Palestinian Authority maintains relevant authorities shall be marked as products of  “West Bank” and goods produced in Gaza shall be marked as products of  “Gaza.”  

This document notifies the public that, for country of origin marking purposes, imported goods produced in the West Bank, specifically in Area C under the Israeli-Palestinian Interim Agreement (the Oslo Accords), signed on September 28, 1995, and the area known as ‘‘H2’’ under the Israeli- Palestinian Protocol Concerning Redeployment in Hebron and Related Documents (the Hebron Protocol), signed January 17, 1997, must be marked to indicate their origin as ‘‘Israel,’’ ‘‘Product of Israel,’’ or ‘‘Made in Israel.’’ Goods produced in the West Bank, specifically in Areas A and B under the Oslo Accords and the area known as ‘‘H1’’ under the 1997 Hebron Protocol, must be marked to indicate their origin as ‘‘West Bank,’’ ‘‘Product of West Bank,’’ or ‘‘Made in West Bank.’’ Goods produced in Gaza must be marked to indicate their origin as ‘‘Gaza,’’ ‘‘Product of Gaza,’’ ‘‘Made in Gaza,’’ ‘‘Gaza Strip,’’ ‘‘Product of Gaza Strip,’’ or ‘‘Made in Gaza Strip.’’ Imported goods from any of these territorial areas must not include ‘‘West Bank/Gaza,’’ ‘‘West Bank/Gaza Strip,’’ ‘‘West Bank and Gaza,’’ or words of similar meaning.

Israel FTA Certificate of Origin Requirements

On May 10, 2017, the Governments of Israel and the United States amended the U.S.-Israel Free Trade Agreement (ILFTA) to eliminate the certificate of origin (CO) requirement on exports to Israel in favor of an invoice declaration. This simplification was effective January 10, 2018 and is tied to a June 30, 2018 phase-out date.

Israel Removed from Special 301 Report

Washington, D.C. – United States Trade Representative ("USTR") Michael Froman announced last Friday that Israel is being removed from the Special 301 Report Watch List. Israel will no longer be listed in the Special 301 Report, which identifies trading partners that do not adequately and effectively protect intellectual property rights.

According a USTR blog post, Israel has passed patent legislation that satisfies the remaining commitments Israel made in a Memorandum of Understanding (MOU) both countries signed in 2010. The MOU outlined a series of legal and regulatory measures Israel would take to make Israel’s patent system more transparent, efficient and effective. USTR moved Israel from the Priority Watch List to the Watch List in September 2012, based on progress made under the same MOU.