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HQ 088000


January 18, 1991

CLA-2 CO:R:C:G 088000 JLJ

CATEGORY: CLASSIFICATION OTHER

TARIFF NO.: 5808.90.0010

Mr. Steven Draffen
Elco Freight International, Inc.
Cargo Building 80
P.O. Box 682
J.F.K. International Airport
Jamaica, New York 11430

RE: Quota status of handmade decorative trimmings from India

Dear Mr. Draffen:

In your letter of September 18, 1990, you requested a visa-exempt status determination for several decorative trimmings from India under the United States-India Bilateral Textile Agreement {hereafter the "Agreement"}. Samples of the instant trimmings were not submitted with your request.

FACTS:

The merchandise in question was the subject of a binding ruling letter from our New York Office (NYRL 855878 of September 13, 1990). As described in NYRL 855878, the first item is a cord-like trimming containing two narrow strips of fabric sewn along its edge. It is used inside the seam of a piece of upholstery or a pillow to provide a decorative edging. The second item is a fringed decorative edging for use on curtains or similar articles. The third item is a decorative trimming with small tassels affixed along its length. It is also used to embellish curtains and draperies. All three trimmings are composed of 100 percent viscose rayon. You state that the articles are all completely handmade.

In NYRL 855878, you were advised that the instant decorative trimmings are classified under the provision for ornamental trimmings...tassels, pompons and similar articles, of man-made fibers, in subheading 5808.90.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA) and that textile visa category 229 applies.

ISSUE:

Is category 229 visa-exempt or quota-exempt under the Agreement?

LAW AND ANALYSIS:

For a product of India to acquire exempt status under the Bilateral Textile Agreement, it must be included within Annex D of the Agreement, which reads as follows:

1. The exemption provided for in paragraph 6 of the Agreement shall apply only to the following products:

(A) Handloom fabrics of the cottage industry of India.

(B) Hand-made textile products made in the cottage industry of India from fabrics referred to in (A) above.

(C) Hand-made apparel products made in the cottage industry of India from fabrics referred to in (A) above.

(D) Traditional folklore handicraft textile products made in the cottage industry of India as defined in the list of "India Items" agreed between both the parties and attached herewith at Annex E.

2. Exemption shall be granted only for products covered by an exempt certificate issued by the competent Indian authorities in accordance with the visa and certification systems agreed to between the two parties and attached to this Agreement at Annex F....

Pursuant to a directive from the Committee for the Implementation of Textile Agreements ("CITA") dated February 14, 1990, the visa requirements for India have been amended. Effective Febrary 22, 1990, hand-made handloom made-up
articles, produced or manufactured in India and exported from India on and after January 1, 1989, shall no longer be exempt from quota or visa requirements. Also, visas are required for shipments of hand-made handloom made-up articles produced or manufactured in India and exported from India on or after January 1, 1990.

Inasmuch as the instant merchandise is composed of trimmings, it does not qualify as a fabric under paragraph 1(A), as apparel under paragraph 1(C), nor as a traditional folklore handicraft product under paragraph 1(D). Even if the trimmings did qualify as a hand-made handloom made-up article under paragraph 1(B), they would still not be exempt from quota or visa requirements under the CITA directive cited above.

HOLDING:

As stated in NYRL 855878, the instant trimmings are classified in subheading 5808.90.0010, HTSUSA, dutiable at the rate of 7.8 percent ad valorem. Textile category 229 applies to this subheading. Based on the Agreement and the CITA directive mentioned above, the instant merchandise is subject to visa restraints and quota restraints.

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. Inasmuch as 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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