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HQ 088197


March 9, 1991

CLA-2 CO:R:C:T 088197 KWM

CATEGORY: CLASSIFICATION

TARIFF: 5704.90.0000

Ms. Deborah Crowell
Masson Customs Brokers
11 E. Mount Royal Avenue
Baltimore, Maryland 21202-2714

RE: Numdha rugs; Carpets and other textile floor coverings; wall hangings; wool; felt.

Dear Ms. Crowell:

This is in response to your correspondence dated November 5, 1991, requesting a binding ruling for merchandise described as "numdha rugs." In addition, we have received a sample of the merchandise for examination. We hold here that the goods are classified in subheading 5704.90.0000 of the Harmonized Tariff Schedule of the United States (HTSUSA). Our rationale follows.

FACTS:

The merchandise at issue is referred to as "numdha rugs."

They are hand-made woolen textile goods from India, whose primary use in the United States may be as a rug or as a wall hanging. The documentation included with your correspondence describes the hand crafted portion of the rug's manufacture:

After shearing, the wool is matted by using a soap solution and "kneading" the wool to the required size and shape. This process of kneading continues with more wool being added until a thickly matted rug is formed. The soap is then washed out of the wool and the rugs are laid on the hills outside to dry in the sun. After drying, the embroidering of designs is done in brightly colored yarns and the rugs are again washed in the river and dried before using.

The sample provided measures approximately 24 inches by 48 inches. The textile materials used may be either 100 percent wool, or 60 percent wool and 40 percent cotton by weight.

Your letter also indicates that numdha rugs similar to those at issue have been entered under the HTSUSA subheading 5701.10.2090 (textile category 465). During early 1990, a shipment of rugs was classified at the Port of Baltimore in
subheading 5704.90.0000 (textile category 665). Further, the latest entry of numdha rugs was entered under HTSUSA classification 5705.00.2010 (textile category 465). Your request is for a binding ruling covering all prospective shipments of numdha rugs.

ISSUES:

Is the merchandise at issue classified in subheading 5701.10.2090, subheading 5704.90.0000 or subheading 5705.00.2010, HTSUSA, providing for, respectively, knotted textile floor coverings, felt floor coverings or other floor coverings?

What is the appropriate textile category for these goods?

LAW AND ANALYSIS:

Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is made in accordance with the General Rules of Interpretation (GRI's). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relevant Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's may be applied, taken in order.

The headings in question provide for:

5701 Carpets and other textile floor coverings, knotted, whether or not made up:

5704 Carpets and other textile floor coverings, of felt, not tufted or flocked, whether or not made up:

5705 Other carpets and other textile floor coverings, whether or not made up:

With regard to the headings of that chapter, legal note 1 to Chapter 57 states:

1. For the purpose of this chapter, the term "carpets and other textile floor coverings" means floor coverings in which textile materials serve as the exposed surface of the article when in use and includes articles having the characteristics of textile floor coverings but intended for other purposes.

Lastly, the Explanatory Notes (EN's) to the HTSUSA, which are not legally binding but constitute the official interpretation of the nomenclature at the international level, include the following:

This Chapter covers carpets and other textile floor coverings in which textile materials serve as the exposed surface of the article when in use. It includes articles having the characteristics of textile floor coverings (e.g., thickness, stiffness and strength) but intended
for use for other purposes (for example, as wall hangings or table covers or for other furnishing purposes).

Emphasis added. In your correspondence you state that the merchandise may be used as either a floor covering (rug) or as a wall hanging. We believe that the notes indicate an intent to include such items in chapter 57, HTSUSA. The items at issue possess the characteristics of rugs: they are shaped and finished as rugs would be; their physical characteristics are similar to those of rugs; they are similar in size to small throw rugs. That they are considered "carpets" or "other floor coverings" is clear. The issue is one of determining which of the floor covering headings is most appropriate.

Heading 5701, HTSUSA, provides for "knotted" floor coverings. The Explanatory Notes indicate that knotted carpets and other floor coverings have a distinct warp around which pile threads are knotted or twisted. The numdha rugs at issue have no warp, and any knots that occur are the result of the matting operation. This merchandise is not classified in heading 5701, HTSUSA.

Heading 5704, HTSUSA, provides for carpet and other floor coverings of felt. The term "felt" is described in the EN's to heading 5602, HTSUSA:

Felt is usually obtained by superimposing, one layer on the other, a number of layers of textile fibres (usually the laps as produced by carding or air-laying); These are then moistened (generally with steam of hot soapy water) and subjected to heavy pressure and a rubbing or beating action. . .

The hand-crafting process you described is similar to that used in the manufacture of felt. The numdha rugs are crafted by hand, and felt is generally manufactured mechanically, but we believe that the result is the same. The rugs, like felt, are composed of interlocking fibers, and are produced in sheets of even thickness, "much more difficult to disintegrate than wadding, and quite distinct from felted woven fabrics." In fact, your letter of August 2, 1990 describes the numdha rugs as being composed of "felt (ground)". For tariff purposes, the matted material will be considered "felt", provided for by the terms of heading 5704, HTSUSA.

Having determined that the terms of heading 5704, HTSUSA, provide for the goods, we need not consider the "other" or 'basket' provisions of heading 5705, HTSUSA. As between the two, the prior heading is clearly the more specific.

Within heading 5704, HTSUSA, there are two subheadings, one providing for "tiles" having a maximum surface area of 0.3 square meters, and the other classifying any remaining felt floor coverings. The sample merchandise will fall into the second subheading, and is classified as other carpet or floor covering, of felt, in subheading 5704.90.0000, HTSUSA.

Textile categories

A classification in subheading 5704.90.0000, HTSUSA, is associated with textile category 665, for which a visa must be
obtained from the country of origin before the goods may be entered into the United States. We note that the language of the subheading, or the superior heading for that matter, does not specify a material from which the felt floor coverings must be made. However, the textile category, 665, is used for textile products of man-made fibers. Woolen or other natural fiber felt rugs classified in subheading 5704.90.0000, HTSUSA, will never be presented for entry with a textile visa for category 665. The visa issued for such goods would be of textile category 465. The result in this case is a proper tariff classification but an anomalous textile category associated with it.

We have been informed by the Committee for the Implementation of Textile Agreements (CITA) that waivers for the entry of woolen felt rugs under category 665 will be issued to importers, provided that they can supply a valid visa for category 465, and indicate the expected port of arrival. These documents should be submitted to CITA at the following address:

Chairman
Committee for the Implementation of Textile Agreements
United States Department of Commerce
Washington, D.C. 20230

To expedite the entry process, we suggest that the visa waivers be secured in advance of the merchandise arrival at port.

We have also been advised that the need for an additional breakout for felt rugs of natural materials will be taken under review by CITA, and should the situation warrant, a classification provided for such merchandise.

HOLDING:

The merchandise at issue, numdha rugs made of 100 percent wool felt, or a wool and cotton blend felt, are classified in subheading 5704.90.0000, HTSUSA. The applicable rate of duty is 5.3 percent ad valorem. The textile category associated with that heading is 665. The vias requirement is subject to waiver as described above.

The designated textile and apparel category may be subdivided into parts. If so, the visa and quota category 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 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) categories, you should contact your local Customs office prior to the importation of this merchandise to determine the current status of any import
restraints or requirements.

Sincerely,

John A. Durant
Director

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