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NY 813749




September 11, 1995

CLA-2-63:S:N:N6:349 813749

CATEGORY: CLASSIFICATION

TARIFF NO.: 6302.51.2000; 6302.51.4000; 6304.92.0000; 9802.00.80

Mr. Crispin N. Flores
John F. Cowen and Associates
520 E. Levee Street
Brownsville, Texas 78520

RE: The tariff classification of napkins, tablecloths, placemats, potholders and oven mitts from Mexico

Dear Mr. Flores:

In your letter dated August 11, 1995 you requested a tariff classification ruling.

You have submitted samples of a napkin, potholder, placemat and oven mitts. All items will be made from United States origin fabric which will be cut in the United States to form the various component parts. The components are then shipped to Mexico where they will be assembled into a finished product. The napkins and tablecloths are made from a plain woven cotton fabric. The napkins are cut into 15 or 17 inch squares while the tablecloths are cut into 5 x 10 foot or 5 x 8 foot rectangles. In Mexico, the edges of the single layer napkins and tablecloths will be serged to avoid fraying of the fabric. The serging in this case is a closely stitched overcasting along the edge. The items are hand trimmed, counted and packed for shipping to the U.S.

The potholders, placemats and ovenmitts are made from a quilted cotton woven fabric. In Mexico, a matching bias tape will be sewn around the edges of the 7 inch square potholders and the 12 x 17 inch oval placemats. A 2 to 3 inch segment of this tape is folded over and bartacked forming the loop on the potholder. The cut components of the ovenmitts are bound with bias tape along the edge that will eventually be the opening and form a continuous bias strand of mitt forms. In Mexico, the mitt forms are sewn together and turned right side out. A small segment of the bias tape forms a hang loop. The items are hand trimmed, counted and packed for shipping to the U.S.

The applicable tariff provision for the napkins and tablecloths will be 6302.51.2000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: other table linen: of cotton: tablecloths and napkins: other: plain woven. The general rate of duty will be 5.4 percent ad valorem.

The applicable tariff provision for the placemats will be 6302.51.4000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: other table linen: of cotton: other. The general rate of duty will be 7.1 percent ad valorem.

The applicable tariff provision for the potholders and oven mitts will be 6304.92.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other furnishing articles, excluding those of heading 9404: other: not knitted or crocheted, of cotton. The general rate of duty will be 7.1 percent ad valorem.

You have also inquired as to the eligibility of these products for treatment under 9802.00.80, HTSUSA . Subheading 9802.00.80, HTSUSA, provides a partial duty exemption for articles assembled abroad in whole or in part of fabricated components of U.S. origin with no operations performed thereon except the joining of the components and operations incidental thereto. The U.S. components must be exported in condition ready for assembly without further fabrication, and cannot lose their physical identity in the assembled article by change in form, shape or otherwise. Duty is assessed on the full appraised value of the imported merchandise less the cost or value of the U.S.-made components, 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)), states that the assembly operations 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(a) provides that any significant process, operation, or treatment other than assembly whose primary purpose is the fabrication, completion, or 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 such article.

From the information submitted, it is our opinion that the operations performed in Mexico on the placemats, potholders and oven mitts constitute a proper assembly operation under the provisions of subheading 9802.00.80, HTSUSA. Upon compliance with the documentation requirements of 19 CFR 10.24. an allowance in duty for the cost or value of the U.S. components incorporated therein may be granted. The information substantiating 9802.00.80, HTSUSA, must be submitted at time of entry.

Serging the edges of the napkins and the tablecloths is not an acceptable assembly operation. The thread used in sewing the overcast stitches onto the edge of a single ply fabric does not serve as a binding agent but is merely used to prevent the unraveling of the fabric. In L'Eqgs Products, Inc. v. United States, 13 CIT __, 704 F. Supp. 1127 (1989), it was held that the joining of a component to itself with thread constitutes an assembly. In this case, the napkin and tablecloth are not joined to themselves as they would be if a hem were created. The napkins and tablecloths are not eligible for treatment as an assembly operation under subheading 9802.00.80, HTSUSA.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director

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