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HQ 957277




April 11, 1995

CLA-2 CO:R:C:T 957277 CMR

CATEGORY: CLASSIFICATION

TARIFF NO.: 5810.92.9080

Mr. Ron Sheppard
Galaxy Enterprises, Inc.
2421 Crofton Lane, Unit 14
Crofton, MD 21114

RE: Modification of DD 800498 of August 24, 1994; Classification of embroidered fabric in the piece; 5810.92.10, HTSUSA, v. 5810.92.90; HTSUSA

Dear Mr. Sheppard:

This ruling is a modification of DD 800498 of August 24, 1994. In that ruling, Customs classified two products, styles E-7733 and E-7734, as embroidered motifs in subheading 5810.92.0040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The ruling indicated the rate of duty as 8.4 percent ad valorem.

Customs has reviewed the decision in DD 800498 and determined that we erred in the classification of style E-7734. Therefore, we are issuing this modification to correct that error. Pursuant to section 625(c)(1), 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(c)(1)), notice of the proposed modification of DD 800498 was published March 8, 1995 in the Customs Bulletin, Volume 29, Number 10.

FACTS:

Style E-7734 is an embroidered scalloped fabric strip that is imported in material lengths. The submitted sample has ragged edges indicating it has been cut from a larger piece. The item is created by embroidering woven rayon fabric with embroidery threads and sewing sequins and beads onto the rayon ground fabric. The embroidery, sequins and beads create a pattern which
is continuously repeated along the fabric with no discernable break and then repetition of the pattern. In other words, this is fabric in the piece which has been embroidered.

ISSUE:

Was style E-7734 properly classified as an embroidered motif in DD 800498 or is it classified as embroidery in the piece?

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]."

Heading 5810, HTSUSA, provides for "embroidery in the piece, in strips or in motifs". The Explanatory Notes to the Harmonized Commodity Description and Coding System, the official interpretation of the tariff at the international level, offers guidance in discerning the forms of embroidery classified in heading 5810, HTSUSA. The Explanatory Notes state in regard to heading 5810, in pertinent part, the following:

All varieties of embroidery described remain within this heading when in the following forms:

(1) In the piece or in strips or various widths. These pieces or strips may bear a series of identical designs, whether or not intended for subsequent separation to be made up into finished articles (e.g., strips of embroidered labels for marking articles of apparel, or pieces embroidered at regular intervals intended to be cut up and made up into bibs).

(2) In the form of motifs, i.e., individual pieces of embroidered design serving no other function than to be incorporated or appliqued as elements of embroidery in, for example, underwear or articles of apparel or furnishings. They may be cut to any shape, backed or otherwise assembled. They include badges, emblems, "flashes", initials, numbers, stars, national or sporting insignia, etc.

It is clear from the descriptions in the Explanatory Notes that embroidery in the form of motifs means individual pieces or items of embroidery, not embroidery in continuous lengths with no separation or clearly identifiable separate units of embroidery.

As style E-7734 is an embroidered scalloped fabric strip that is imported in material lengths, it is not classifiable as a motif. Reference to it as a motif in DD 800498 was an error as was its classification as a motif in subheading 5810.92.0040, HTSUSA.

HOLDING:

Style E-7734 is properly classified as embroidery in the piece, of man-made fibers, other, other, in subheading 5810.92.9080, HTSUSA. Goods classifiable in this provision fall within textile category 229 and are dutiable according to the terms of U.S. Additional Note 3, Chapter 58. That note states that the rate of duty applicable to goods classified in subheading 5810.92.90, HTSUSA, and subject to duty at the general rate (most favored nation) is 8.3 percent, "but in the case of embroidery in the piece not less than the rate which would apply to such product if not embroidered", i.e., not less than the rate applicable to the ground fabric.

The ground fabric for style E-7734 is woven rayon, thus, style E-7734 is dutiable at 16.8 percent ad valorem. This is the rate of duty for woven fabrics of artificial filament yarn classified in subheading 5408.21.0030, HTSUSA, which is where the woven rayon ground fabric would be classified if not embroidered.

DD 800498 of August 24, 1994, is hereby modified to reflect classification of style E-7734 as stated above. In accordance with section 625(c)(1), this ruling will become effective 60 days after its publication in the Customs Bulletin. Publication of rulings or decisions pursuant to section 625(c)(1) 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)).

The designated textile and apparel category may be subdivided into parts. If so, the 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 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 updated weekly and 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, 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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