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NY C88463




June 8, 1998

CLA-2-60:RR:NC:TA:351 C88463

CATEGORY: CLASSIFICATION

TARIFF NO.: 6001.92.0020; 6002.93.0080

Mr. Michael Murphy
The Pinnacle Company
2720 West 43rd St., Suite 202
Minneapolis, MN 55410

RE: The tariff classification of knit fabric laminated in Taiwan.

Dear Mr. Murphy:

In your letter dated May 28, 1998, you requested a classification ruling.

You submitted two samples of knit fabric and supplied the following information:

Sample 1 - The fabric is made of three layers of fabric laminated together. The top layer is described as 100% polyester fleece of circular knit, cut loop construction. It is made in Taiwan. The "middle" layer is a polyester elastomer clear plastic laminate, which is made in the United States. The backing is 100% polyester brushed mesh. It is made in Taiwan. The fabric, when reimported fully assembled, weighs over 271 grams per square meter.

Sample 2 - The fabric is made of four layers of fabric. The top (face) is 100% polyester tricot circular knit fabric which is made in Taiwan. The second layer is a polyester clear plastic laminate, made in the U.S. The third layer is a stretchable insulation, also made in the U.S. The backing (fourth layer) is a 100% polyester brushed mesh.

For both of these fabrics, you contemplate shipping the U.S. made fabric to Taiwan. It will be shipped in 300 yard rolls of continuous length. In Taiwan the fabrics will be laminated together by virtue of passing through a machine which will laminate each layer to the other(s). This is a multi-step process, as each layer or side must be laminated, set aside to "cure" and then passed through the machinery again to laminate the next layer. For sample 1, this will entail two such passages through the machinery; for sample 2, it will be three such passes. You stated in a telephone conversation that the length of the finished laminated fabric is a consequence of manufacture and not an intent thereof. Minimal trimming of the selvage is done at this time.

You requested classification of the fabric upon its return to the U.S. from Taiwan and asked if heading 9802 of the Harmonized Tariff Schedule is applicable.

The applicable subheading for sample 1 will be 6001.92.0020, Harmonized Tariff Schedule of the United States (HTS), which provides for pile fabrics, knitted or crocheted: other, of man-made fibers, over 271 grams per square meter, other. The rate of duty will be 18.6 percent ad valorem.

This fabric falls within textile category designation 224. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa.

The applicable subheading for sample 2 will be 6002.93.0080, Harmonized Tariff Schedule of the United States (HTS), which provides for other knitted or crocheted fabrics, other, of man-made fibers, other. The rate of duty will be 12.4 percent ad valorem.

This fabric falls within textile category designation 222. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa.

Subheading 9802.00.80, HTS, provides for a partial duty exemption for:

Articles...assembled abroad in whole or in part of fabricated components, the product of the United States, which (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 such as cleaning, lubricating and painting.

It should be noted that all three requirements listed in subheading 9802.0080, HTS, must be satisfied before a component may receive the benefit of having its value exempted from duty.

Section 10.16(a) of the Customs Regulations (CR) provides that the assembly performed abroad may consist of any method used to join solid components together such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fasteners. Operations that are incidental to the assembly process are not considered further fabrication as they are in general of a minor nature. Section 10.16(b) describes various operations that are incidental to the assembly process and as such are not a bar to consideration as a fabricated component eligible for duty exemption. Among the processes listed that are germane to this issue is cutting to length of wire, thread, tape, foil and similar products exported in continuous lengths.

The foreign process which you described in our telephone conversation, mere lamination without cutting to length or width, allows for the U.S. made fabric to be claimed as duty exempt under 9802.0080, HTS, since the cutting to length is a process incidental to assembly under Section 10.16(b)(6) CR.

This ruling is being issued under the provisions of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Camille R. Ferraro at 212-466-5885.

Sincerely,

Robert B. Swierupski
Director

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