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HQ 952931


January 5, 1993

CLA-2 CO:R:C:T 952931 SK

CATEGORY: CLASSIFICATION

TARIFF NO.: 6214.30.0000

John M. Colomaio
Trans-Border Customs Services, Inc.
656 Elmwood Avenue, ste. 200
Buffalo, N.Y. 14222

RE: Classification of bridal veils; 6214.30.0000; country of origin; 19 CFR 12.130; headpieces made in China; veils made from U.S. material; substantial transformation of U.S.- made fabric into new and different article in Canada; U.S.- Canada Free-Trade Agreement; Gen. Note 3 (c)(vii)(R)(11)(oo) to Section XI.

Dear Mr. Colomaio:

This is in response to your inquiry of October 1, 1992, on behalf of Arthur Harris Imports Inc., requesting a binding ruling on the tariff classification and country of origin status of bridal veils and whether these items qualify for preferential treatment under the U.S.-Canada Free-Trade Agreement Implementation Act of 1988 (CFTA).

FACTS:

Four styles of bridal veils were submitted to this office. Styles M100 and M101 have headpieces that are covered with plastic pearls and/or beads which, if imported alone, would be classifiable under heading 3926, HTSUSA. Styles M102 and M103 have headpieces that contain artificial flowers and sequins which, if imported alone, would be classifiable under heading 6702, HTSUSA. The headpieces will be imported into Canada from China. The headpieces consist of wire frames covered with white tissue paper. In addition to the covered frame, Style M100 has a nylon mohair backing. The decorative trim consists of plastic pearls from Hong Kong, crystals from Czechoslovakia, and material for the artificial flowers from China.

The bridal veils are cut and sewn in Canada from 100 percent nylon tulle made in the United States. The decorative trim on the veils is purchased from various countries: plastic pearls
from Japan; crystals from Czechoslovakia; and plastic combs from Hong Kong. The veils are decorated and attached to the headpieces in Canada.

The processing done in Canada to produce the veils is as follows. A pattern for the veils is made. The cutter cuts out the veil and puff from the material according to the pattern. A skilled sewer serges the edge of the veil by using a marrow machine. Another sewer gathers the veil together by using a special gathering foot on a sewing machine. The puff is also made by gathering the cut material with the gathering foot. A trained factory worker manually glues plastic pearls and crystals to the veil and the puff in pre-designed patterns. The finished puff and veil are then hand sewn together. These steps are the same for all the veils with the exception of Style M102. This style has no puff. After the veil is finished, a skilled sewer hand sews the headpiece to the veil.

ISSUES:

1) What is the proper classification for the bridal veils?

2) What is their country of origin?

3) Are these articles eligible for preferential treatment under the U.S.-Canada Free-Trade Agreement (CFTA)?

LAW AND ANALYSIS:

CLASSIFICATION

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be in accordance with the terms of the headings and any relative section or chapter notes.

Heading 6214, HTSUSA, provides for shawls, scarves, mufflers, mantillas, veils and the like. Explanatory Note (EN) (4) to heading 6214, HTSUSA, states that the term "veils" pertains to "a variety of articles generally made of light, transparent or net material, or sometimes of lace, whether worn for ornamental or utilitarian purposes (e.g., wedding, ...). At the time of importation from Canada, the articles at issue are completed bridal veils to be used during weddings. As such, they are specifically provided for in subheading 6214.30.0000, HTSUSA, which provides for, inter alia, veils of synthetic fibers.

COUNTRY OF ORIGIN

Section 12.130(b) of the Customs Regulations (19 CFR 12.130(b)) 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 or 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 sets forth a two-pronged test: a new and different article of commerce must be formed in the country of origin and the article must undergo a substantial processing operation there. In the instant case, the first prong of that test has been met: U.S.-made fabric and headpieces manufactured in China were assembled in Canada to form completed bridal veils. The bridal veils are new and different articles of commerce distinguishable from the nylon tulle fabric and the headpiece components that entered Canada. Also, based upon the manufacturing steps that take place in Canada, as described above, these operations are complex enough to be deemed "substantial" for purposes of determining country of origin. Accordingly, the country of origin of the bridal veils is Canada and Canadian quota restraints and visa requirements apply.

U.S.-CANADA FREE-TRADE AGREEMENT APPLICABILITY

General Note 3(c)(vii) to the HTSUSA sets forth the terms and conditions in which the United States-Canada Free-Trade Agreement Implementation Act of 1988 applies. General Note 3(c)(vii)(F) provides:

Whenever the processing or assembly of goods in the territory of Canada and/or the United States results in one of the changes in tariff classification in Canada described by the rules set forth in subdivision (c)(vii)(R) of this note, such goods shall be considered to have been transformed in the territory of Canada and shall be treated as goods originating in the territory of Canada ... .

General Note 3(c)(vii)(R) reads:

Change in Tariff Classification Rules
(11) Section XI: Chapters 50 through 63.

(oo) A change to any heading of Chapter 62 from any heading outside that chapter other than heading 5111 through 5113 ... or 6001 through 6002; provided, that the goods are both cut and sewn in the territory of Canada and/or the United States."

As mentioned supra, the headpieces referenced Styles M100 and M101, if imported alone, would be classifiable under heading 3926, HTSUSA. The headpieces referenced Styles M102 and M103, if imported alone, would be classifiable under heading 6702, HTSUSA. The fabric would have been classifiable under heading 5804, HTSUSA. The finished bridal veils are classifiable under heading 6214, HTSUSA. This is a change in classification which results in a substantial transformation for purposes of the CFTA according to subdivision (c)(vii)(R)(11)(oo).

HOLDING:

The articles at issue are classifiable under subheading 6214.30.0000, HTSUSA, which provides for shawls, scarves, mufflers, mantillas, veils and the like. The bridal veils are eligible for preferential treatment under the CFTA and their reduced rate of duty is 5.3 percent ad valorem.

The country of origin of the subject merchandise is Canada.

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 importing the merchandise to determine the current applicability of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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