HQ 0087364 - Blank Emblems - United States International Trade Commision Rulings

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HQ 087364
August 28, 1990

CLA-2 CO:R:C:G 087364 JS

CATEGORY: CLASSIFICATION

TARIFF NO.: 5810.92.0040

John F. Cowen
Phillip T. Cowen
Customhouse Brokers
1918 Elizabeth
Brownsville, TX 78520

RE: Blank Emblems

Dear Mr. Cowen:

This is in reference to your letter of May 18, 1990, on behalf of The Penn Companies, requesting classification of blank emblems with merrow stitching on the edges. A sample at various stages of completion was provided for our inspection.

FACTS:

The merchandise at issue is a blank emblem made of 100 percent polyester twill ground fabric with a polyurethane adhesive film backing. The fabric is fed into a clicking machine in 48" x 50" lengths, which is then cut into the 4 1/2" x 2 1/2" emblem shapes which become the final product. Polyester yarn is then used to merrow stitch all four edges of the cut fabric. The stitched product is then inspected and packaged in clear plastic bags in varying counts, and imported into the United States for sale by The Penn Companies. The purchasing companies will then embroider or imprint the blank emblems with names or logos.

ISSUE:

Whether the merrow stitching around the edge of a blank emblem constitutes embroidery for purposes of classification under the Harmonized Tariff Schedule of the United States Annotated ("HTSUSA")?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation ("GRI"), 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 5810, HTSUSA, provides for embroidery in the piece. The Explanatory Notes, the official interpretation of the Tariff at the international level, state that heading 5810 includes "embroidery in which the embroidering thread does not usually cover the whole of the ground fabric, but appears in the form of patterns on the surface or around its edges. The stitches used are varied and include running stitch, chain-stitch, back or lock-stitch, herring-bone stitch, pointe de poiste, seed-stitch, loop-stitch, buttonhole stitch."

The merrow stitching bordering the blank emblems at issue satisfies the foregoing criteria: the polyester yarn does not cover the whole of the ground fabric, and it appears around its edges in stitching similar to the above exemplars.

Since the blank emblems, although not ready for direct use, have been advanced to the shape of the finished article, they are considered unfinished articles in accordance with GRI 2(a), which states that any reference in a heading to an article shall be taken to include a reference to that article unfinished, provided that, as entered, the unfinished article has the essential character of the finished article; classification in heading 5810, HTSUSA, is thus appropriate.

HOLDING:

The merchandise at issue is classified in subheading 5810.92.0040, HTSUSA, which provides for embroidery in the piece, in strips or in motifs: other embroidery, of man-made fibers, badges, emblems and motifs, dutiable at the rate of 8.4 percent ad valorem.

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

Sincerely,

John Durant, Director
Commercial Operations Division

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