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HQ 951086




March 19, 1992

CLA-2 CO:R:C:T 951086 CAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 5407.54.0040

Ms. Kathy Arellanes
Union Transport Corporation
5450 West 104th Street
Los Angeles, CA 90045

RE: Classification of Necktie Fabric

Dear Ms. Arellanes:

This ruling is in response to your inquiry of December 20, 1991, on behalf of Union Transport Corporation, requesting a tariff classification for fabric under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The fabric will be imported from Korea. A sample was submitted for examination.

FACTS:

The fabric in question is composed of 100 percent woven polyester. The fabric is imported in rolls that have pre-marked lines of demarcation. The lines in the fabric are intended to be an indication of how much fabric is need to make a necktie and exactly where to lay the pattern.

You have stated that the fabric will be exclusively utilized in the United States to make neckties and cannot be used to make anything other than neckties.

ISSUE:

Whether the instant fabric is considered "made up" under the HTSUSA and can be classified as a necktie under Heading 6117, HTSUSA?

LAW AND ANALYSIS:

Made Up Articles

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 relative Section or Chapter Notes. Merchandise that cannot be classified in accordance with GRI 1 are to be classified in accordance with subsequent GRI's taken in order.

Section XI, which pertains to textiles and textile articles, Note 7(c) states the following:

For the purposes of this section, the expression "made up" means:

(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, tablecloths, scarf squares, blankets...

The fabric at issue has pre-marked lines of demarcation, so that it can (1) indicate how much fabric is needed to make a necktie, and (2) display exactly where to lay the pattern on the fabric. However, merely marking lines of demarcation is not enough to constitute a necktie under the HTSUSA. In order for a piece of fabric to be considered "made up" a significant amount of processing is necessary. This processing requires laying of a pattern, cutting to shape, sewing, and significant post-cutting processing. None of which has been done in this instance.

Neckties

Heading 6117, HTSUSA, is suggested for the classification of the fabric. This heading provides for other made up clothing accessories. The wording of the heading stipulates that merchandise to be classified thereunder, (1) not be provided for in other headings of Section XI, and (2) be made up within the terms of Section XI, Note 7, HTSUSA.

Following the above wording, the fabric at issue cannot be classified under Heading 6117, HTSUSA, because it not made up as both the legal note and the heading stipulate. In this instance, the necktie cannot be seen emerging from the fabric. Instead, there are significant post-importation processing steps that are necessary to create a finished product. The fabric, therefore, is not discernable as an individual article, and is not significantly advanced in the manufacturing process to be more than mere material.
HOLDING:

The sample in question is classifiable under subheading 5407.54.0040, HTSUSA, as woven fabric of synthetic filament yarn. The applicable rate of duty is 17 percent ad valorem and the textile restraint category is 619.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importing the merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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