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HQ 085078


April 25, 1990

CLA-2 CO:R:C:G 085078 CC

CATEGORY: CLASSIFICATION

TARIFF NO.: 6303.12.0000

Mr. Steven L. Markowitz
President
Max Kahn Curtain Corporation
261 Fifth Avenue
New York, N.Y. 10016

RE: Classification and country of origin for curtains and tiebacks

Dear Mr. Markowitz:

This ruling letter is in response to your inquiry of July 11, 1989, requesting country of origin and tariff classification determinations for curtains under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A sample was submitted for examination.

FACTS:

The sample at issue, style number PS-7668, is assembled in Haiti. It includes a ruffled rod pocket priscilla, which consists of two curtains attached at the header, and two matching tiebacks. The bodies of the curtains are made of 100 percent polyester knit fabric; the ruffles are made of 100 percent polyester woven fabric.

According to your submissions, unmarked, uncut fabric of 100 percent woven polyester and 100 percent knit polyester is imported into Haiti on separate bolts. The knit fabric is cut to length and width to create the curtain, header, and tieback components; the woven fabric is cut to length and width to create the ruffles. The header is folded and a pocket through which a curtain rod may be inserted is created by sewing across it. The header is sewn at the top of the curtains, and a ruffle is sewn to the seams which join the curtain body and header, creating a valance. Ruffles are also sewn to the tiebacks, and along one side edge and the bottom of each curtain body. The outer side edge of each curtain body is hemmed. Plastic rings are attached to the tiebacks. The articles are then packaged together.

ISSUE:

Whether the submitted merchandise is classifiable in Heading 6303, HTSUSA?

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

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 6303, HTSUSA, provides for curtains (including drapes) and interior blinds, curtain or bed valances. Therefore, the curtains are classifiable in Heading 6303.

Heading 6304, HTSUSA, provides for other furnishing articles. The Explanatory Notes, the official interpretation of the HTSUSA at the international level, state that this heading covers furnishing articles of textile materials and includes curtain loops. Thus, according to the Explanatory Notes, the submitted curtain tiebacks are the kind of article provided for in Heading 6304, and they are classifiable in this heading.

Although the curtains and tiebacks are classifiable in different headings, they are imported in a common packing and, therefore, are subject to classification in accordance with the principles of GRI 3. GRI 3 provides for classification of goods that are, prima facie, classifiable under two or more headings. According to GRI 3(b), composite goods made up of different components shall be classified as if they consisted of the material or component which gives them their essential character. The Explanatory Notes to GRI 3(b) provide the following interpretation of the term composite goods:

For the purposes of this Rule [GRI 3(b)], composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.... As a general rule, the components of these composite goods are put up in a common packing.

The tiebacks match the curtains, and are made of the same fabric as the curtains. In addition, the curtains and tiebacks are packaged together. We believe that they are mutually complementary and would not normally be sold separately. Therefore, the submitted curtains and tiebacks are considered composite goods.

Because they are composite goods, the curtains and tiebacks are classified together for both duty and quota purposes. Since the curtains impart the essential character to this merchandise, it is classified in Heading 6303, HTSUSA.

Since the merchandise at issue is composed of both knit and woven fabric, the question that remains is whether it is classified under the subheading for curtains, knitted or crocheted, or instead, under the subheading for curtains, other. GRI 3(b) provides that mixtures and composite goods consisting of different materials shall be classified as if they consisted of the material or component which gives them their essential character. Since the knit fabric, which constitutes most of the submitted merchandise, imparts its essential character, the submitted merchandise is classifiable under the subheading for curtains, knitted or crocheted.

Country of Origin

Section 12.130 of the Customs Regulations (19 CFR 12.130) 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)(2) of the regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following factors will be considered in each country: the physical change in the material or article, the time involved in manufacturing or processing operations, the complexity of the operations, the level or degree of skill and/or technology required, and the value added to the article.

Processing of the submitted merchandise consists basically of the following operations: cutting fabric to length and width to form the components; sewing ruffles to the tiebacks, and to one side, the bottom, and the top of the curtain bodies; hemming the outer side of the curtains; and sewing the header to the curtain bodies. 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 submitted merchandise are substantial. Therefore, the last substantial transformation for the submitted merchandise occurs in Haiti.

HOLDING:

The submitted merchandise is classified under subheading 6303.12.0000, HTSUSA, which provides for curtains (including drapes) and interior blinds, curtain or bed valances, knitted or crocheted, of synthetic fibers. The rate of duty is 12.8 percent ad valorem and the textile category is 666.

The country of origin of the submitted merchandise 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,


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