HQ 0955457 - Revocation of HRL 083524 of June 12, 1989; Classification of cloth squares; not made up articles; Note 7, Section XI; Amendment to Explanatory Notes - United States International Trade Commision Rulings

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HQ 955457

June 8, 1994

CLA-2 CO:R:C:T 955457 CMR

CATEGORY: CLASSIFICATION

TARIFF NO: 5310.10.00; 5310.90.00

Mr. David Seidler
The Grady-Travelers Company
146 Stewart Avenue
Brooklyn, New York 11237

RE: Revocation of HRL 083524 of June 12, 1989; Classification of cloth squares; not made up articles; Note 7, Section XI; Amendment to Explanatory Notes

Dear Mr. Seidler:

This office issued HRL 083524 to you on June 12, 1989. That ruling classified certain cloth squares as other made up articles of heading 6307 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The basis for this decision was our interpretation of the meaning of the term "made up" for purposes of the tariff. Note 7 of Section XI defines "made up" as it applies to textiles classified in Section XI. The Explanatory Notes to the Harmonized Commodity Description and Coding System further explain the meaning of "made up" as it is used in Note 7. While the Explanatory Notes are not legally binding, they are the official interpretation of the Harmonized System at the international level and provide assistance in determining the proper interpretation of provisions within the tariff.

The Explanatory Notes underwent various amendments (Amending Supplements 1 through 5) from 1988 to 1990. These amendments were contained in the edition of the Harmonized Commodity Description and Coding System Explanatory Notes (Complete First Edition (1986) with Supplements 1, 2, 3, 4 and 5 Incorporated) issued February 1990 and distributed to Customs personnel. One of the amendments related to the meaning of "made up" and revealed that our initial interpretation of "produced in the finished state" as it is applies to the term "made up" was partially incorrect. HRL 083524 was based on early interpretations of the meaning of "produced in the finished state, ready for use". Based upon the amended Explanatory Notes, the decision in HRL 083524 is incorrect. Rulings issued subsequent to receipt of the amended version of the Explanatory -2-

Notes have followed the interpretation evident by the amended notes. As a result, in order to avoid confusion and ensure uniformity of treatment, it is necessary to revoke HRL 083524. Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993) (hereinafter section 625), notice of the proposed revocation of HRL 083524 was published April 27, 1994, in the Customs Bulletin, Volume 28, Number 17.

FACTS:

The samples at issue in HRL 083524 were hessian cloth squares. The squares were described in HRL 083524 as follows:

. . . plain woven 100 percent jute products. They will be imported in square shapes only, with dimensions varying from 28 by 28 inches to 72 by 72 inches. Two of the edges have selvages while the other two edges are raw-cut. The squares are intended to be used by nurseries to wrap the root systems of plants and trees. The squares in their imported condition will not be further cut or processed.

ISSUE:

Is the hessian jute cloth square properly classified as a made up article?

LAW AND ANALYSIS:

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to [the remaining GRIs taken in order]."

Note 7, Section XI, defines the term "made up" as follows:

(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 with 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; -3-

(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);

(f) Knitted or crocheted to shape, presented in the form of a number of items in the length.

In classifying the cloth square as a made up article in HRL 083524, Customs stated therein:

It is our opinion that part (a) above only applies to those squares and rectangles that require further cutting or sewing or other processing to be adapted for their intended use. The condition of the merchandise at issue is considered in its finished state at the time of importation because no further cutting or processing will take place. It is ready for its intended use of covering the roots of plants and trees.

As stated previously, in February 1990, an amended version of the Explanatory Notes was available and distributed to Customs personnel. One of the amendments contained therein was the addition of a new paragraph to the notes which expound on the language of Note 7, i.e., what is meant by "made up." Specifically, the new paragraph expanded the explanation of the language of Note 7(b), "produced in the finished state, ready for use". It states:

However, rectangular (including square) articles simply cut out from larger pieces without other working and not incorporating fringes formed by cutting dividing threads are not regarded as "produced in the finished state" within the meaning of this Note. The fact that these articles may be presented folded or put up in packings (e.g., for retail sale) does not affect their classification.

The cloth square clearly falls within the scope of goods addressed by this paragraph. It is square, cut from a larger piece of fabric, does not have fringes and is presented as ready for use. Based upon this clarifying paragraph, the cloth square is not a "made up" article for purposes of Note 7, Section XI, and therefore, HRL 083524 is incorrect. The cloth square is properly classified as 100 percent jute fabric.

HOLDING:

HRL 083524 is hereby revoked. The cloth square is classified as woven fabric of jute in subheading 5310.10.00, HTSUSA, if unbleached. The applicable duty rate is free. If not unbleached, the fabric is classified in subheading 5310.90.00, HTSUSA, with a duty rate of 1 percent ad valorem.

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.

In accordance with section 625, this ruling will become effective 60 days after its publication in the Customs Bulletin. Publication of rulings or decisions pursuant to section 625 does not constitute a change of practice or position in accordance with section 177.10(c)(1), Customs Regulations (19 CFR 177.10 (c)(1)).

Sincerely,

John Durant, Director
Commercial Rulings Division

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