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HQ 560567




January 6, 1998

CLA-2 RR:CR:SM 560567 KSG

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.90

M. W. Rollin
Rudolph Miles & Sons, Inc.
417 Union Pacific Blvd.
P.O. box 2489
Laredo, Texas 78041

RE: Applicability of subheading 9802.00.90, HTSUS, to women's blazers; findings; trim; fusible material; Article 509

Dear Mr. Rollin:

This is in reference to your letter of June 6, 1997, requesting a ruling regarding the applicability of subheading 9802.00.90, Harmonized Tariff Schedule of the United States ("HTSUS"), to certain women's blazers which will be assembled in Mexico. Samples of a blazer and fusible material were submitted with your request.

FACTS:

The subject of this ruling is a women's blazer made from a blend of 55% polyester and 45% wool fabric. All of the fabric except the fusible material is formed in the U.S. The fusible material is formed in Germany. All of the components are cut in the U.S. and assembled in Mexico. You state that the cost of the fusible material is 4.5% of the total value of the materials used in the production of the garment. The purpose of the fusible material is to support or reinforce stress areas such as behind buttons, button holes and around the pocket. According to the product specifications, the fusible material is also used in the fronts, the panels, lapels, side gores, and at the neck edge and bottom.

ISSUE:

Whether the fusible material is a "finding or trimming" for purposes of determining whether the women's blazers will qualify for the duty exemption available under subheading 9802.00.90, HTSUS.

LAW AND ANALYSIS:

Appendix 2.4 of Annex 300-B of the North American Free Trade Agreement ("NAFTA") provides that:

On January 1, 1994, the U.S. shall eliminate customs duties on textile and apparel goods that are assembled in Mexico from fabrics wholly formed and cut in the United States and exported from and reimported into the United States under:

(a) U.S. tariff item 9802.00.80.10; or

(b) Chapter 61, 62, or 63 if, after such assembly, those goods that would have qualified for treatment under 9802.00.80.10 have been subject to bleaching, garment dyeing, stone- washing, acid-washing, or perma-pressing.

Thereafter, the U.S. shall not adopt or maintain any customs duties on textile and apparel goods of Mexico that satisfy the requirements of any successor provision to U.S. tariff item 9802.00.80.10.

Consequently, subheading 9802.00.90, HTSUS, was created to provide 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 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.

Because the enactment of subheading 9802.00.90, HTSUS, specifically was intended to extend duty-free and quota-free status to all goods which previously were eligible for entry under the Special Regime Program, it is Custom's view that all of the policy directives implementing this program should be considered applicable for the administration of subheading 9802.00.90, HTSUS. One 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 Fed. Reg. 15726
(May 3, 1988).

The exception for findings and trimmings under the Special Regime Program was intended to be of a restrictive nature as the intent of the program was to ensure that all fabric components be fully formed and cut in the U.S. For example, the exception for foreign-origin elastic strips was limited to strips of less than one inch in width. This exception applied to brassiere straps only, and could not be used for a more substantial component, such as waistbands, which are in excess of one inch in width.

While "findings and trimmings" for purposes of the Special Regime Program are not specifically defined, the examples set forth above are indicative of the types of components which may be considered exceptions to the requirement that all fabric components be wholly formed and cut in the U.S. Customs has previously held that reinforcing tape is a finding or trimming" because it is analogous to zipper tape (HRL 559552, dated February 14, 1996), but that a cotton velveteen collar (HRL 558954, dated June 30, 1995), shoulder pads and sleeve headers (HRL 559552, dated February 14, 1996), a chest piece and suede yoke and elbow patches (HRL 559738, dated July 2, 1996), and a textile drawstring cord were not "findings or trimmings" for purposes of the Special Regime Program.

In this case, the fusible material is more analogous to lining or pocketing which under the Special Regime Program were required to be wholly U.S. formed and cut. Therefore, since the fusible material is a fabric component and is not wholly formed and cut in the U.S., the women's blazers are not eligible for duty-free treatment under subheading 9802.00.90, HTSUS, treatment upon return to the U.S.

HOLDING:

The fusible material used in the assembly of the women's blazers is not considered a "finding" or "trimming". Since the fusible material is a fabric component and is not wholly formed in the U.S., the women's blazers are not eligible for duty-free treatment under subheading 9802.00.90, HTSUS, upon return to the U.S.

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
Commercial Rulings Division


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