HQ 0950690 - Classification of household felt products; classifiable in Heading 6307; CFTA - United States International Trade Commision Rulings

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HQ 950690

March 4, 1992

CLA-2 CO:R:C:T 950690 CC

CATEGORY: CLASSIFICATION

TARIFF NO.: 6307.90.9480

Paul F. Weale
Modern Caster Inc.
P.O. Box 59
Concord, Ontario L4K 1B2
Canada

RE: Classification of household felt products; classifiable in Heading 6307; CFTA

Dear Mr. Weale:

This letter is in response to your inquiry of October 28, 1991, requesting the tariff classification of household felt products. Samples were submitted for examination.

FACTS:

Two samples were submitted for examination, both designated by you as "surface savers." They are made of wool felt and have a circular shape, one measuring 1-1/16 inch in diameter and the other measuring inch in diameter. You state that there is an adhesive on the back of these articles, so they can be applied to doors, tables, lamps, cupboards, and corners to reduce noise, scratching, and marking. They will be marketed in hardware stores and supermarkets as household articles.

According to your submissions, Australian felt is sent to Canada, where it is compressed and die cut. In addition, adhesive is applied, and the merchandise is packaged in Canada. You state that over 50 percent of the value of this merchandise is added in Canada.

ISSUE:

What is the tariff classification of the submitted merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

Whether the merchandise at issue is considered goods originating in the territory of Canada in accordance with the United States-Canada Free Trade Agreement (CFTA)?

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 6307, HTSUSA, provides for other made up articles. The Explanatory Notes to Heading 6307 state, "This heading covers made up articles of any textile material which are not included more specifically in other headings of Section XI or elsewhere in the Nomenclature." The submitted merchandise is a made up article not more specifically provided for in another heading of the tariff schedule. Consequently this merchandise is classifiable in Heading 6307.

CFTA

Concerning the eligibility of this merchandise for a duty reduction in accordance with the CFTA, General Note 3(c)(vii) provides the following:

(B) For the purposes of subdivision (c)(vii) of this note, goods imported into the customs territory of the United States are eligible for treatment as "goods originating in the territory of Canada" only if--

(1) they are goods wholly obtained or produced in the territory of Canada and/or the United States, or

(2) they have been transformed in the territory of Canada and/or the United States, so as to be subject--

(I) to a change in tariff classification as described in the rules of subdivision
(c)(vii)(R) of this note, or

(II) to such other requirements subdivision (c)(vii)(R) of this note may provide when no change in tariff classification occurs, and they meet the other conditions set out in (R) of this note.

General Note 3(c)(vii)(R), which concerns whether a change in tariff classification has taken place, at Section XI states regarding Chapter 63 the following:

(pp) A change to any heading of chapter 63 from any heading outside that chapter other than headings 5106 through 5113, 5204 through 5212, 5306 through 5311, or headings of Chapters 54 and 55; provided, that goods are both cut and sewn in the territory of Canada and/or the United States.

The merchandise at issue is not sewn in Canada. Therefore this merchandise would not be considered goods originating in Canada by having undergone a change in tariff classification, in application of General Note 3(c)(vii)(R)(11)(pp).

Another method for goods to be treated as originating in Canada is provided for by General Note 3(c)(vii)(H), which states the following:

Notwithstanding subdivision (c)(vii)(G), goods described in that paragraph shall be considered to have been transformed in the territory of Canada and be treated as goods originating in the territory of Canada if --

(1) the value of materials originating in the territory of Canada and/or the United States that are used or consumed in the production of the goods plus the direct cost of assembling the goods in the territory of Canada and/or the United States constitute not less than 50 percent of the value of the goods when exported to the territory of the United States, and

(2) the goods have not subsequent to assembly undergone processing or further assembly in a third country and they meet the requirements of subdivision (c)(vii)(E) of this note.

You state essentially that the merchandise at issue should be considered as originating in Canada by application of General Note 3(c)(vii)(H). General Note 3(c)(vii)(I) provides that the provisions of subdivisions (c)(vii)(H) of this note shall not apply to goods of chapters 61 through 63. Because the merchandise at issue is classifiable in Chapter 63, it cannot be considered goods originating in Canada in application of General

HOLDING:

The submitted merchandise is classified under subheading 6307.90.9480, HTSUSA, which provides for other made up articles, other, other, other, other. No textile category is currently assigned to merchandise classified under this subheading.

This merchandise is not considered goods originating in the territory of Canada for duty purposes. Consequently the general rate of duty of 7 percent ad valorem is applicable.

Sincerely,

John Durant, Director

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