HQ 0953018 - Other made up articles of heading 6307; "Cathedral Square" fabric pieces; Legal Note 7 to Section XI; Explanatory Notes to heading 6307; assembly by sewing; subheading 9802.00.80; 19 CFR 10.24; 19 CFR 10.16; 19 CFR 12.130; 19 CFR 10.22; 19 U.S.C. 1304; country of origin marking - United States International Trade Commision Rulings

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HQ 953018

March 9, 1993

CLA-2 CO:R:C:T 953018 NLP

CATEGORY: CLASSIFICATION

TARIFF NO.: 6307.90.9986

Mr. Paul A. Kalsbeek
RR2-Box 143
Victoria, VA 23974

RE: Other made up articles of heading 6307; "Cathedral Square" fabric pieces; Legal Note 7 to Section XI; Explanatory Notes to heading 6307; assembly by sewing; subheading 9802.00.80; 19 CFR 10.24; 19 CFR 10.16; 19 CFR 12.130; 19 CFR 10.22; 19 U.S.C. 1304; country of origin marking

Dear Mr. Kalsbeek:

This is in response to your letter dated November 4, 1992, in which you requested the tariff classification of "Cathedral Square" fabric under the Harmonized Tariff Schedule of the United States (HTSUS). In addition, you inquired as to the applicability of subheading 9802.00.80, HTSUS, to these articles as they are assembled abroad from components of U.S. origin. A sample of the "Cathedral Square" and the fabric pieces that comprise it were provided for our examination.

FACTS:

The article at issue is a "Cathedral Square" composed of 100 percent cotton floral woven fabric measuring approximately 10- 13/16 inches by 10-13/16 inches with smaller pieces of floral and plain woven fabric sewn onto the center to form a design. The article will be sewn into quilts and pillows after it is imported.

The U.S. components of this article consist of cut to size floral and plain woven fabric squares. The floral fabric squares measure approximately 6-1/2 inches by 11 inches. The plain fabric squares measure approximately 2 inches by 2 inches. These pieces are exported to the Philippines where they are assembled into the "Cathedral Squares". The assembly in the Philippines consists of the following:

1. Fold over a 6-1/2 inch floral fabric square a 1/4 inch all the way around.

2. Fold the square in half and sew halfway toward the fold with overcast stitch.

3. Turn the square inside out and place overcast seams together at the center. Mark the square halfway between the center and corner. Slip stitch between these 2 marks. Do not catch bottom.

4. Turn the square over and fold each corner into the center and stitch in the center. Press.

5. Make 3 more squares in the same way.

6. With the right side together overcast 2 squares together on one edge. Add 2 more to form a block.

7. Place a print square in the center of a diamond, roll over edge of muslin about 1/4 inch to cover edge of print, slip stitch along covered edges all around the print square.

8. After sewing units of 4 blocks together, slip stitch the block into the background of a piece of the floral fabric.

After assembly, the "Cathedral Squares" are returned to the U.S.

ISSUE:

What is the tariff classification of the "Cathedral Square" fabric?

Whether fabric squares are entitled to a partial duty exepmtion under subheading 9802.00.80, HTSUS, when returned to the U.S?

Are the returned fabric squares subject to country of origin marking requirements?

LAW AND ANALYSIS:

The classification of goods under the HTSUS is governed by 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. 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.

ISSUE #1

Heading 6307, HTSUS, provides for "[o]ther made up articles, including dress patterns." It is a residual provision which provides for other made up articles of textiles that are not provided for more specifically elsewhere in the nomenclature. Legal Note 7 to Section XI, HTSUS, provides that for the purposes of this section, the expression "made up" means:

(a) Cut otherwise than into squares or rectangles;

(b) Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, table cloths, scarf squares, blankets);

(c) Hemmed or rolled edges, or with a knotted fringe at any of the edges, but excluding fabrics the cut edges of which have been prevented from unravelling by whipping or by other simple means;

(d) Cut to size and having undergone a process of drawn thread work;

(e) Assembled by sewing, gumming or otherwise (other than piece goods consisting of two or more lengths of identical material joined end to end and piece goods composed of two or more textiles assembled in layers, whether or not padded);

In understanding the language of the HTS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, although not legally binding, comprise the official interpretation of the Harmonized System at the international level. The ENs to Section XI further clarify the expression "made up" in Chapters 56 to 63 as follows:

(1) Merely cut, otherwise than into squares or rectangles, for example, dress patterns of textile material; articles with their edges pinked (e.g., certain dusters) are also regarded as made up.

(5) Assembled by sewing, gumming or otherwise. These articles, which are very numerous, include garments. It should be noted, however, that piece goods consisting of two or more lengths of identical material joined end to end, or composed of two or more textiles
assembled in layers, are not regarded as "made up". Nor are textile products in the piece composed of one or more layer of textile materials assembled with padding by stitching or otherwise.

Customs considers the "Cathedral Square" fabric to be within the meaning of "made up" as set out in Legal Note 7 to Section XI, HTSUS. The sample is assembled by sewing and it is not excluded by the language of Legal Note 7(e) to Section XI, HTSUS. Therefore, this item is considered "made up" and as it is not more specifically classified elsewhere in the nomenclature, it is classified in heading 6307, HTSUS. The "Cathedral Square" fabric piece is classified in subheading 6307.90.9986, HTSUS.

ISSUE #2

Subheading 9802.00.80, HTSUS, provides a partial duty exemption for:

Articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating, and painting.

All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full appraised value of the assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentation requirements of section 10.24, Customs Regulations (19 CFR 10.24).

Section 10.16(a), Customs Regulations (19 CFR 10.16(a)), provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components and may be preceded, accompanied, or followed by operations incidental to the assembly process. However, 19 CFR 10.16(c) provides that any significant process, operation or treatment other than assembly whose primary purpose is the fabrication, completion, physical or chemical improvement of a component shall not be regarded as incidental to the assembly and shall preclude the application of the exemption to that component.

With respect to the facts of this case, the joining of the pre-cut components in the Philippines by sewing is a qualified assembly operation under 19 CFR 10.16(a). Moreover, we believe that the minor folding required is incidental to the assembly operation in view of 19 CFR 10.16(b)(5), which states that "[a]djustments in the shape or form of a component to the extent required by the assembly being performed abroad" is an operation incidental to assembly. Therefore, allowances in duty may be made under subheading 9802.00.80, HTSUS, for the cost or value of the U.S.-origin cloth components when the assembled "Cathedral Squares" are returned to the U.S., upon compliance with the documentation requirements of 19 CFR 10.24.

ISSUE #3

Section 304 of the Tariff Act of 1903, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

Section 12.130, Customs Regulations (19 CFR 12.130), sets forth the principles for country of origin marking determinations for textiles and textile products subject to section 204 of the Agricultural Act of 1956, as amended (7 U.S.C 1584).

According to 19 CFR 12.130(c), a textile or textile product of U.S. origin which is advanced in value or improved in condition while abroad may not, upon its return to the U.S., be considered a product of the U.S. Therefore, the "Cathedral Squares" at issue would be considered products of the country of assembly (the Philippines) for purposes of the country of origin marking requirements of 19 U.S.C. 1304.

Section 10.22, Customs Regulations (19 CFR 10.22), provides that if an imported assembled article entitled to tariff treatment under subheading 9802.00.80, HTSUS, is made entirely of American-made materials, the U.S. origin of the material may be disclosed by using a legend such as "Assembled in _________ from material of U.S. origin," or a similar phrase. Thus, in this case, the fabric squares (or their outermost containers) may be marked "Assembled in the Philippines from components of U.S. origin," or a similar phrase.

HOLDING:

The "Cathedral Square" fabric is classified in subheading 6307.90.9986, HTSUS, which provides for "[o]ther made up articles, including dress patterns: [o]ther: [o]ther: [o]ther: [o]ther: [o]ther." The rate of duty for articles classified in this subheading is 7 percent ad valorem.

On the basis of the information submitted, we are of the opinion that the returned "Cathedral Squares" are entitled to tariff treatment under subheading 9802.00.80, HTSUS. Allowances in duty may be made for the cost or value of the U.S.-origin fabric components which are assembled abroad by sewing and incidental folding, upon compliance with the documentation requirements under 19 CFR 10.24.

Pursuant to 19 CFR 12.130, the country of origin of the returned fabric squares, for purposes of country of origin marking requirements, is the Philippines -- the country of assembly. The article (or its container) may be marked "Assembled in the Philippines from components of U.S. origin" or a similar phrase.

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 importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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