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HQ 560009




October 11, 1996

CLA-2 RR:TC:SM 560009 MLR

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.90

Jonathan M. Fee, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman LLP 1201 West Peachtree Street, N.E., Suite 4860 Atlanta, Georgia 30309

RE: Applicability of subheading 9802.00.90, HTSUS, work pant; work shirt; Special Regime; findings; trimmings; post-curing process; perma-press; Mexico

Dear Mr. Fee:

This is in reference to your letter of August 5, 1996, requesting a ruling on behalf of
C & F Textile, L.L.C., regarding the applicability of subheading 9802.00.90, Harmonized Tariff Schedule of the United States (HTSUS), to work pants and shirts subjected to a certain post-curing process in Mexico.

FACTS:

The articles at issue are work pants and shirts assembled in Mexico. It is stated that all fabric components, including the principal components making up the body of each garment and other fabric components making up other parts of the garment, such as pockets and linings, will be cut in the U.S. from fabric woven in the U.S. by U.S. mills. Trim and findings, stated to only include zippers, buttons, thread and labels will either be U.S. or foreign origin, but the value stated to be incorporated in any garment will not exceed 25 percent of the value of all of the components of the garment.

In the U.S., it is stated that the fabric making up the body, consisting of 65 percent polyester and 35 percent cotton, will be impregnated, before it is cut, with a formaldehyde-based resin. After cutting in the U.S., the components are shipped to Mexico for assembly. After assembly into pants and shirts, the garments are steam pressed. To complete the curing, the garments are placed on a conveyor system and passed through a Leonard Automatic post cure tunnel oven which will heat the garments to approximately 325 degrees Fahrenheit for approximately 15 minutes. It is stated that the curing of the fabric by the application of heat, causes the cellulose cotton fibers to react with the resin, partially imparting perma-press or durable press characteristics to the garments. In addition, it is stated that although the polyester fibers are unaffected by the resin, the inherent thermoplastic properties of the polyester fibers contribute to the perma-press characteristics of the garments as a result of both the steam pressing and oven heating.

ISSUE:

Whether the work pants and shirts will qualify for the duty exemption available under subheading 9802.00.90, HTSUS, when returned to the U.S. from Mexico.

LAW AND ANALYSIS:

Subheading 9802.00.90, HTSUS, provides for the duty-free entry of:

Textile and apparel goods, assembled in Mexico in which all fabric components were wholly formed and cut in the United States, provided that such fabric components, in whole or in part (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; provided that goods classifiable in chapters 61, 62, or 63 may have been subject to bleaching, garment dyeing, stone-washing, acid-washing or perma-pressing after assembly as provided for herein.

In view of the fact that the enactment of subheading 9802.00.90, HTSUS, specifically was intended to extend duty-free and quota-free status to all goods assembled in Mexico, which previously were eligible for entry under the Special Regime Program administered under U.S. tariff item 9802.00.8010, HTSUS, it is Customs view that all of the policy directives implementing this program should be considered applicable in the administration of subheading 9802.00.90, HTSUS. One such policy under the Special Regime Program included the allowance of "findings, trimmings, and certain elastic strips of foreign origin" to be incorporated into the assembled good "provided they do not exceed 25 percent of the cost of the components of the assembled product." Examples of findings and trimmings are sewing thread, hooks and eyes, snaps, buttons, "bow buds," lace trim, zippers, including zipper tapes, and labels. See 53 FR 15726 (May 3, 1988).

In this case, it is stated that the only foreign components which may be used to make the pants and shirts are zippers, buttons, thread, and labels. We find that zippers, buttons, thread, and labels are considered "findings or trimmings" as that term is used for purposes of the policy directive regarding findings and trimmings which implemented the Special Regime.

In regard to the described post-curing process which will be used in Mexico after the pants and shirts are assembled, in Headquarters Ruling Letter (HRL) 559584 dated April 2, 1996, Customs considered whether enzyme washing should be considered a process allowable under subheading 9802.00.90, HTSUS, even though "enzyme washing" is not specifically set forth in this tariff provision. Customs found that although "enzyme washing" is not specified in subheading 9802.00.90, HTSUS, there was no reasonable justification for not allowing duty-free treatment to garments which were imparted with essentially the same characteristics as garments subjected to one of the processes specified in the tariff provision. Accordingly, it was held that garments subjected to enzyme washing in Mexico were eligible for subheading 9802.00.90, HTSUS, treatment.

Similarly, we find that the post-curing operation described in Mexico, which is akin to a perma-pressing operation and imparts similar characteristics to the fabric, namely the ability to resist or shed wrinkles, is a permissible operation within the meaning of subheading 9802.00.90, HTSUS. Therefore, the work pants and shirts made with foreign zippers, buttons, thread, and labels may qualify for duty-free treatment under subheading 9802.00.90, HTSUS, provided these items do not exceed 25 percent of the total cost of all of the pant's and shirt's components, and all of the fabric components are U.S.-formed (i.e., the fabric is woven or milled in the U.S.) and cut.

HOLDING:

Based upon the information provided, it is our opinion that zippers, buttons, thread, and labels are considered "findings or trimmings." Additionally, the post-curing operation described above is a permissible operation within the meaning of subheading 9802.00.90, HTSUS. Therefore, the work pants and shirts made with foreign zippers, buttons, thread, and labels may qualify for duty-free treatment under subheading 9802.00.90, HTSUS, provided these items do not exceed 25 percent of the total cost of all of the pant's and shirt's components, and all of the fabric components are U.S.-formed (i.e., the fabric is woven or milled in the U.S.) and cut.

A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. 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,

John Durant, Director
Tariff Classification Appeals

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