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HQ 085022


February 7, 1990

CLA-2 CO:R:C:G 085022 CC

CATEGORY: CLASSIFICATION

TARIFF NO.: 6303.91.0000

Mr. F. Gordon Lee
O'Connor & Hannan
1919 Pennsylvania Avenue, N.W.
Suite 800
Washington, D.C. 20006-3483

RE: Classification and country of origin for curtain valances and a window shade

Dear Mr. Lee:

This letter is in response to your inquiries, on behalf of Max Kahn Curtain Corporation, concerning country of origin and tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of curtain valances and a window shade. Samples were submitted for examination.

FACTS:

The submitted sample, designated as Style No. 175, is a roller window shade packaged with two matching valances. The window shade, which measures approximately 37 inches by 64 inches, is made of a blend of 70 percent cotton and 30 percent polyester woven fabric. This fabric has an application of a vinyl substance on one side. At the top of the shade is an attached roller, which is made from cellulose and has metal caps with hooks on each end. A plastic rod is inserted near the bottom of the shade.

According to your submissions, the fabric to be used for the window shades is made in Poland or some other country. The unmarked and uncut fabric is sent to the United States on bolts in continuous lengths. In the United States these bolts are unrolled and a vinyl substance is dispersed onto one side of the fabric by machine. This substance is smoothed over the entire surface of one side of the fabric with blades. Then the fabric is cured in an oven prior to being rolled back onto the bolts.

The fabric is sent to Haiti where it is cut to length and may or may not be slit to width, according to your submissions. The body of the shade is hemmed near the bottom and a pocket is formed, where the plastic rod is inserted. The body of the shade is affixed to the roller by masking tape or glue.

The two matching swag-type curtain valances are made of the same type of fabric of the window shade. The triangular-shaped valances have a ruffle, with an attached edging. You state that unmarked and uncut fabric is exported from Poland or some other country to Haiti on bolts. Also, polyester raschel knit trim from Poland, Colombia, or the United States is shipped to Haiti on bolts or spools in the width that appears on the edge of the ruffled valance. In Haiti the fabric is cut to length and slit to width to form the body of the valances and the ruffle. The ruffle is sewn to the body of the valance, and the edging is attached to the ruffle. The valances are hemmed at the top to form rod pockets and are hemmed at the side.

You contend that the shade is coated with plastics material, and, therefore, is classifiable in Chapter 39. In addition, you believe that the shade and valances are classified as a set; since the shade imparts the essential character to this set, it is classified in Chapter 39.

ISSUE:

Whether the submitted shade is classifiable in Chapter 39, HTSUSA?

Whether the processing done in Haiti is sufficient to effect a substantial transformation for country of origin purposes for the submitted valances and shade?

LAW AND ANALYSIS:

Classification

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Heading 5903, HTSUSA, provides for textile fabrics impregnated, coated, covered, or laminated with plastics. Note 2 to Chapter 59, HTSUSA, provides, in pertinent part, that Heading 5903 applies to the following:

(a) Textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square meter and whatever the nature of the plastic material (compact or cellular), other than:

(3) Products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of color (chapter 39)

The plastics material is applied only to one side of the fabric of the curtain shade. Since it is not completely embedded in plastics or entirely coated or covered on both sides with such material, the submitted shade is not classifiable in Chapter 39.

Heading 6303, HTSUSA, provides for curtains (including drapes), interior blinds, and curtain or bed valances. According to the Explanatory Notes, the official interpretation of the HTSUSA at the international level, Heading 6303 includes the following:

(1) Curtains (including drapes), which are used, for example, inside windows or to close recesses, theatre stages, etc. The expression "curtains" covers lightweight and transparent or semi-transparent articles and articles made of thick fabrics.

(2) Interior blinds, which are usually opaque and of the roller variety (e.g., those for railway carriages).

(3) Curtain valances (or pelmets), which consist of strips of fabric designed to be fitted above windows to hide the tops of curtains, ....

Webster's Third New International Dictionary, Unabridged (1986) defines a blind as "1 : something to hinder sight or keep out light: as a : (2) : a roller window shade." Thus, the submitted window shade can be considered a blind, and, according to the Explanatory Notes, is classifiable in Heading 6303.

The submitted valances are also classifiable in Heading 6303. Since the submitted valances and shade are made of the same type of fabric, they are each classifiable under the same subheading in accordance with GRI 1.

Country of Origin

Section 12.130(b) of the Customs Regulations provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

Section 12.130(d) of the Customs Regulations sets forth criteria in determining whether a substantial transformation of a textile product has taken place. This regulation states that these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered.

Section 12.130(d)(1) states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:

(i) Commercial designation or identity,
(ii) Fundamental character or
(iii) Commercial use.

12.130(d)(2) states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

In addition to the above regulations, Section 12.130(e)(1) of the Customs Regulations describes manufacturing or processing operations from which an article will usually be considered a product of the country in which the processes occurred. Section 12.130(e)(2) of the Customs Regulations describes manufacturing or processing operations from which an article will usually not be considered a product of the country in which the processes occurred.

The processing operations done in Haiti to create the shade consist basically of cutting fabric to length, affixing the body of the shade to the roller with tape or glue, hemming the bottom, and inserting the plastic rod. You state that the shades may or may not be slit to width in Haiti. In applying the criteria for determining country of origin under 19 CFR 12.130, we do not believe that the processing operations performed in Haiti are substantial for the shades that are not slit to width. For these shades, the last substantial transformation occurs where the fabric is made. For the shades that are made by slitting to width, in addition to cutting to length, we believe that substantial manufacturing processes have been performed in Haiti. Therefore, a substantial transformation has occurred in Haiti for those shades.

Processing of the valances in Haiti consists basically of the following operations: cutting fabric to length and width to form the body and ruffle, cutting the edging, sewing the ruffle to the body, attaching the edging to the ruffle, and hemming the top and side. In applying the criteria for determining country of origin under 19 CFR 12.130, we believe that the processing operations performed in Haiti on the valances are substantial. Therefore, the last substantial transformation for the valances occurs in Haiti.

HOLDING:

The submitted curtain valances and shade are each classified under subheading 6303.91.0000, HTSUSA, which provides for curtains (including drapes) and interior blinds, curtain or bed valances, other, of cotton. The rate of duty is 11.7 percent and the textile category is 369.

If the shade is made by cutting to width, in addition to length, it is substantially transformed in Haiti, and the country of origin is Haiti. If the shade is not cut to width, in addition to length, it is not substantially transformed in Haiti, and the country of origin is the country in which the fabric is produced.

The country of origin of the submitted valances is Haiti.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

Sincerely,

John Durant, Director

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