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HQ 560557



August 29, 1997

CLA-2 RR:TC:SM 560557 KSG

CATEGORY: CLASSIFICATION

TARIFF NO.: 5701.90.10.10

Mr. Carlton Hershner
1601 Roam Court
Owing MD 20736-9785

RE: Eligibility of carpet for duty-free treatment under the Generalized System of Preferences (GSP)

Dear Mr. Hershner:

This is in response to your letter of July 7, 1997, asking if a carpet purchased by you in New Delhi, India could be entered duty free under the GSP.

FACTS:

According to the invoice you enclosed, the carpet is handmade/hand knotted. The fiber composition is 90% silk and 10% cotton. The company preparing the invoice is located in New Delhi, India.

ISSUE:

Whether the carpet is eligible for special tariff treatment under GSP.

LAW AND ANALYSIS:

Under the GSP, eligible articles the growth, product or manufacture of a designated beneficiary developing country (BDC) which are imported directly into the customs territory of the U.S. from a BDC may receive duty-free treatment if the sum of (1) the cost or value of materials produced in the BDC, plus (2) the direct costs of the processing operations performed in the BDC, is equivalent to at least 35 percent of the appraised value of the article at the time of entry into the U.S. See
19 U.S.C. 2463(a). According to 19 U.S.C. 2463(b)(1)(A), "{t}extile and apparel articles which were not eligible articles for purposes of this subchapter on January 1,1994," may not be designated as GSP eligible articles.

Based on the information you have provided, the carpet would be classified at subheading 5701.90.10.10, Harmonized Tariff Schedule of the United States ("HTSUS"). General Note 3(c)(I), HTSUS, provides, in part, that special tariff treatment under the GSP is indicated in the "Special" subcolumn in the tariff by the symbol "A" or "A*". Under General Note 4(a), HTSUS, India is designated as a beneficiary developing country for GSP purposes. However, the "Special" subcolumn opposite subheading 5701.90.10.10, HTSUS, does not contain the symbol "A" or "A*" for GSP treatment. The general tariff rate of duty for the carpet is 3.4% ad valorem.

HOLDING:

Based on the information you provided, the carpet would be classified at subheading 5701.90.10.10, HTSUS, with a 1997 general rate of duty of 3.4 percent ad valorem. The merchandise is not eligible for special tariff treatment under the GSP.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is 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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