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HQ 089072


August 5, 1991

CLA-2 CO:R:C:T 089072 CC

CATEGORY: CLASSIFICATION

TARIFF NO.: 6303.92.0000

Mr. Herbert Lichtenberg
President
S. Lichtenberg & Co., Inc.
261 Fifth Ave.
New York, NY 10016

RE: Classification and country of origin of curtains

Dear Mr. Lichtenberg:

This letter is in response to your inquiry of April 3, 1991, requesting the tariff classification and country of origin of curtains. Samples were submitted for examination.

FACTS:

The curtains at issue are made of woven polyester fabric and measure approximately 60 inches by 84 inches. The merchandise has a rod pocket at the top and is embroidered.

According to your submissions, fabric of United States origin will be sent to Mexico in fabric on bolts 60 yards to 80 yards long. In Mexico the fabric will be cut to length and machine embroidered with polyester yarn in patterns, including openwork embroidery patterns. The top will be folded and sewn to create a pocket through which a curtain rod may be inserted, and the bottom will be folded and sewn. The curtains will then be packaged.

ISSUE:

Whether the merchandise at issue is classifiable in Heading 6303 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

What is the country of origin of the merchandise at issue?

LAW AND ANALYSIS:

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.

For country of origin purposes, Section 12.130 of the Customs Regulations (19 CFR 12.130) is applicable to the merchandise at issue. Section 12.130(b) of the Customs Regulations 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)(1) states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:

(i) Commercial designation or identity,
(ii) Fundamental character or
(iii) Commercial use.

Section 12.130(d)(2) of the Customs Regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

The processing operations performed in Mexico result in a new and different article of commerce. In addition, we believe that the processing operations performed in Mexico, which include cutting the fabric to length to form the body of the curtains, doing the embroidery work, folding and sewing at the top to form the rod pocket, and folding and sewing at the bottom, constitute substantial manufacturing and processing operations on this merchandise. Therefore the last substantial transformation occurs in Mexico, and the country of origin is Mexico.

HOLDING:

The merchandise at issue is classified under subheading 6303.92.0000, HTSUSA, which provides for curtains (including drapes) and interior blinds, other, of synthetic fibers. The rate of duty is 12.8 percent ad valorem, and the textile category is 666.

The country of origin for the merchandise at issue is Mexico.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Should it subsequently be determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished this may affect the determination of country of origin. Accordingly, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2).

Your question concerning a possible partial duty exemption for these goods has been transferred to our Special Classification Branch and will be the subject of a separate reply.

Sincerely,

John Durant, Director

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