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HQ 961160




February 5, 1998

CLA-2 RR:TC:TE 961160 RH

CATEGORY: CLASSIFICATION COUNTRY OF ORIGIN

TARIFF NO.: 6307.90.9989

Arlen T. Epstein, Esq.
Serko & Simon, LLP
One World Trade Center
Suite 3371
New York, NY 10048

RE: Classification and country of origin of fabric picture frames; heading 6307;
19 C.F.R. ?102.21(c)(5); last country where an important assembly or manufacturing process occurred

Dear Mr. Epstein:

This is in reply to your letter dated September 15, 1997, on behalf of Russ Berrie and Company, Inc., requesting a ruling on the classification and country of origin of fabric picture frames.

You enclosed two samples of picture frames for us to examine. In order to return the samples, as you requested, you will need to contact this office and provide us with your Federal Express account number.

FACTS:

The sample picture frames, styles 15165(a) and 15165(b), measure approximately 7" x 5". The frames open like a book to reveal a pocket with an oval cutout on each side into which a photograph may be inserted. The oval shaped cutouts are covered with glass and trimmed with an ornamental edging. The frames are constructed of cardboard that has been covered with woven cotton/polyester tapestry fabric or with woven polyester ottoman fabric on the outsides and on the pockets. The outer portion of the pockets have also been padded with a foam plastic layer and a paper layer between the woven fabric and the cardboard to provide shape and softness. The interior of the pockets have been covered with 100 percent acetate satin woven fabric. The picture frames have a polyester textile cord and tassel sewn into the top center of the frames.

Style 15165(a) is produced in the following countries:

China South Korea
- form 55 percent cotton 45 percent polyester fabric - form 100 percent acetate satin
- form 100 percent polyester cord and tassel fabric used for lining
- produce cardboard
- cut and sew Korean and Chinese materials to make frames - attach tassel and cord

Style 15161(b) is manufactured as follows:

China South Korea
- form 100 percent polyester cord and tassel - form 100 percent polyester ottoman - produce cardboard fabric - cut and sew Korean and Chinese materials to - form 100 percent acetate satin make frames fabric used for lining
- attach tassel and cord

You contend that the correct classification of the picture frames is under subheading 6307.90.9989 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as other made up textile articles, and that their country of origin is where the fabric that predominantly comprises the outer covering was formed - China for style 15161(a) and South Korea for style 15161(b). You claim that fabric provides the aesthetic appeal to the picture frames.

ISSUE:

What are the classification and country of origin of the fabric picture frames?

LAW AND ANALYSIS:

Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI's). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's may then be applied.

You cite Headquarters Ruling Letter (HQ) 086259, dated April 18, 1990, and HQ 953393, dated April 16, 1993, regarding the classification of fabric covered picture frames. Like the merchandise at issue, the frames in HQ 086259 and 953393 were constructed of paperboard covered with textile material that was padded with foam. The frames were not classifiable in a specific heading under GRI 1 and we examined the composite materials to determine which one
provided the essential character to the frames. The textile material greatly enhanced the marketability of the frames while the paperboard material provided support and rigidity. We note that the plastic foam padding was found to be an incidental material which did not merit consideration. We concluded that the essential character could not be determined and classified the frames in heading 6307, in accordance with the principles of GRI 3(c), the heading which appears last in numerical order among those which equally merit consideration.

In this case, we find that the facts are substantially similar to those in HQ 086259 and 953393. Accordingly, the frames are classifiable under subheading 6307.90, under the same rationale set forth in those decisions.

As you know, on December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section." The picture frames are classified under subheading 6307.90, HTSUSA. The rule for subheading 6307.90, HTSUSA, states:

6307.90 The country of origin of a good classifiable under subheading 6307.90 is the country, territory or insular possession in which the fabric comprising the good was formed by a fabric-making process.

Customs ruled in HQ 960337, dated April 22, 1997, that paragraph (c)(2) was not applicable where fabric comprising decorative pillows was formed in both Belgium and the United States. See also, HQ 959742, dated October 28, 1996 (where the fabric is formed in more than one country paragraph (c)(2) is not applicable). Like those cases, the fabric comprising picture frame 15161(a) in this case was formed in more than one country (South Korea and China) and, therefore, country of origin cannot be determined under 102.21(c)(2). However, the country of origin of picture frame 15161(b) is South Korea, as it is comprised wholly of fabric from that country.

Paragraph (c)(3) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (c)(2) of this section:

(I) If the good was knit to shape, the country of origin of the good is the single country, territory or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled."

As picture frame 15161(a) is not knit to shape and falls within an excepted provision under (c)(3)(ii), the country of origin is not determinable under paragraph (c)(3).

Paragraph (c)(4) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory, or insular possession in which the most important assembly or manufacturing process occurred." In this case, the most important process is fabric formation. In
HQ 960305, dated June 6, 1997, Customs addressed similar facts to those in this case. In that ruling, the outer covering of a zippered binder was constructed of fabric from Taiwan and a different fabric from China on the interior. We determined that Taiwan was the country of origin as it was the fabric from that country that predominately comprised the outer covering of the binder and gave the binder its aesthetic appeal. Similarly, in this case the fabric on the outer covering of the picture frame provides the aesthetic appeal to the article, and we find that the formation of that fabric is the most important manufacturing process. Accordingly, China is the country of origin of picture frame 15165(a).

Finally, marking frame 15165(a) "Made in China" and frame 15165(b) "Made in South Korea" is consistent with the origin rules set forth in section 102.21, Customs Regulations, and with the country of origin marking requirements in Part 134, Customs Regulations. To obtain more information on marking requirements or to obtain a binding ruling on that subject, you may write to the Chief, Marking and Special Classification Branch, U.S. Customs Service, Office of Regulations and Rulings, 1300 Pennsylvania Avenue, NW, Washington, D.C. 20229.

HOLDING:

The fabric picture frames are classifiable under subheading 6307.90.9989, HTSUSA, as other made up textile articles. They are dutiable at the general column rate of duty at 7 percent ad valorem.

The country of origin of style 15165(a) is China. The country of origin of style 15165(b) is South Korea.

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 the local Customs office prior to importing the merchandise to determine the current status of any import restraints or requirements.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in 19 C.F.R. ?177.9(b)(1), which states that each ruling letter is issued on the assumption that all of the information furnished and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R. revocation. A change in the facts previously furnished may affect the determination of country of origin.

Thus, if there is any change in the facts provided to Customs, it is recommended that a new ruling request be submitted in accordance with 19 C.F.R. ?177.2.

Sincerely,

John Durant, Director
Commercial Rulings Division

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