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HQ 086581


May 16, 1990

CLA-2 CO:R:C:G 086581 HP

CATEGORY: CLASSIFICATION

TARIFF NO.: 6217.10.0010

Mr. Edward N. Glad
Glad & Ferguson
Attorneys at Law
606 South Olive Street
Suite 1700
Los Angeles, CA 90014

RE: HRL 085630 modified. Embroidered and appliqued crests with pins and backing attached, and with clasps and lacquer added after importation, are completed, made up, clothing accessories.

Dear Mr. Glad:

This is in reply to your letter of February 15, 1990, requesting reconsideration of HRL 085630.

FACTS:

The merchandise at issue consists of crests or emblems which are designed to be worn on apparel. They are intended to be applied to the upper pocket of a jacket to identify the wearer as belonging to a partic- ular group or organization. The samples have a substantial amount of gold or silver plated copper wire, textile fabric, and textile yarns embroidered on what we assume is a cotton/velvet background. The two samples are completely finished with pins projecting from their rear sides, which, when combined with clips, enable the crests to be attached to garments.

In HRL 085630 of January 31, 1990, we stated that

[e]xamination of the samples indi- cates that in order for the pins to be attached to the crests, the two backing fabrics and the center cardboard layers which are glued to the crests must also be added in the United States. Accordingly, the imported merchandise consists of patches or emblems that can, as imported, either be sewn to gar- ments or have backings and clips added. [Emphasis added.]

Accordingly, we classified the emblems under subheading 5810.91.00, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as an embroidered motif.

ISSUE:

Whether HRL 085630 was incorrectly decided due to a mistake of fact?

LAW AND ANALYSIS:

In your request for reconsideration, you stated that the above-emphasized text is incorrect. You state that, in its imported condition, the merchandise con- sists of the embroidery, two backing fabrics, and pins. After importation, this sample is then sprayed with a liquid plastic pure gloss lacquer, and has added to it the clips which will hold the crest to the garment.

We have held that if crests similar to the ones at issue were imported with the pins and clips attached, they would be classifiable under heading 6217, HTSUSA, as made up clothing accessories. HRL 084204 of August 16, 1989. Taking this into account, we must now decide whether the instant merchandise, imported with the pins attached, is also classifiable under heading 6217.

Heading 5810, HTSUSA, provides for embroidery in the piece. The Explanatory Notes (EN) to the HTSUSA constitute the official interpretation of the tariff at the international level. While not legally binding, they do represent the considered views of classification experts of the Harmonized System Committee. It has therefore been the practice of the Customs Service to follow, whenever possible, the terms of the Explanatory Notes when interpreting the HTSUSA. The EN to this heading states, inter alia, that:

The embroidery classified here comprises mainly the following three groups:

(III) APPLIQUE WORK

This consists of a ground of textile fabric or felt on which are sewn, by embroi- dery or ordinary stitches:

All varieties of embroidery described remain within this head- ing when in the following forms:

(2) In the form of motifs, i.e., individual pieces of embroidered design serving no other function than to be incorporated or appliqud as elements of embroidery in, for example, underwear or articles of apparel or furnishings. They may be cut to any shape, backed or otherwise assembled.
They include badges, em- blems, flashes , ini- tials, numbers, stars, national or sporting in- signia, etc.

The heading does not cover:
articles of embroidery, completely finished, ready for use as such, which are embroidered directly in their final shape without any further fabrication. This wide range of articles is classified as made up articles (e.g., Chapter
61, 62, 63 or 65)....

The merchandise at issue are individual articles of embroidery which are embroidered directly in their final shape prior to importation. It is our opinion that the post-importation processes, i.e., the spraying with liquid plastic pure gloss lacquer and the addition
of the clips, are not sufficient to be considered further fabrication ; the emblems; therefore, are completely finished, and excluded from heading 5810.

HOLDING:

As a result of the foregoing, the instant merchandise is classified under subheading 6217.10.0010, HTSUSA, textile category 359, as other made up clothing accessories, of cotton. The applicable rate of duty is 15.5 percent ad valorem.

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 negotiations 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 issuance of the U.S. Customs Service, which is updated weekly and is available at your local Customs office.

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

This notice to you should be considered a modification of HRL 085630 of January 31, 1990, as to the merchandise described as crests, under 19 C.F.R. 177.9(d)(1) (1989). It is not to be applied retro- actively to HRL 085630 (19 C.F.R. 177.9(d)(2) (1989)) and will not, therefore, affect the transaction for the importation of your merchandise under that ruling. However, for the purposes of future transactions in merchandise of this type, HRL 085630 will not be valid precedent. We recognize that pending transactions may be adversely affected by this modification, in that current contracts for importations arriving at a port subsequent to the release of HRL 086581 will be classified under the new ruling. If such a situation arises, you may, at your discretion, notify this office and apply for relief from the binding effects of the new ruling as may be dictated by the circumstances.

Sincerely,


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