CLA-2 CO:R:C:G 083587 PR
Mr. Jorg B. Hipp
Beratex of Canada Ltd.
P. O. Box 333, Etobicoke
Toronto, Ontario
Canada
RE: Classification of liners used in tire manufacturing
Dear Mr. Hipp:
This ruling is in response to your letter of January 4,
1989, requesting a ruling on the tariff status of certain liners
used in the manufacture of tires.
FACTS:
The submitted samples are plain woven textile fabrics made
from continuous polyethylene monofilaments. The monofilaments
are produced by slitting a polyethylene film into strips and then
stretching those strips until they are less than 1 millimeter in
cross-sectional diameter. The merchandise is in the size and
shape of the finished product as it comes off the loom.
However, after it emerges from the loom, the liners must still be
subjected to two manufacturing processes--(1) heat setting to
stabilize the fabric, and (2) heat sealing the edges to prevent
fraying.
The merchandise will be imported in lengths which vary from
20 yards to 650 yards and in widths of both less than and more
than 30 centimeters. They are manufactured to size and never
cut. The liners are used to prevent layers of dipped tire fabric
from sticking together during the tire manufacturing process.
ISSUE:
The issue presented is whether the instant merchandise is
classifiable under the provisions for other "made up" articles
or under the provisions for woven fabrics?
LAW AND ANALYSIS:
Note 7 to Section XI, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), states in pertinent part:
7. For the purposes of this Section, the expression "made
up" means:
* * *
(b) Produced in the finished state, ready for use (or
merely needing separation by cutting dividing threads)
without sewing or other working (for example, certain
dusters, towels, table cloths, scarf squares,blankets);
* * *
The Explanatory Notes to the Harmonized Commodity
Description and Coding System, the official interpretation of the
HTSUSA at the international level, elaborate somewhat on note
7(b).
Goods of this kind include products knitted or crocheted
directly to shape and certain dusters, towels, table cloths,
scarf squares, blankets, etc., with threads along the warp
left unwoven or the weft edges cut to form a fringe. Such
articles may have been woven separately on the loom, but
may also have been simply cut from lengths of fabric which
have bands of unwoven threads (generally warp threads) at
regular intervals.
The implication that may be taken from the Explanatory Notes
is that the merchandise, to be considered "Produced in the
finished state," must be complete (except for possibly the
cutting of dividing threads) as it comes off the loom. However,
the Explanatory Notes do not clearly require that implication.
Note 7(b) only requires that for goods to be "made up" for
purposes of Section XI, those goods must be finished and ready
for use. No limitation is placed on the word "Produced".
Accordingly, there is no authority to hold that the word
"Produced" in Note 7(b) is limited in scope to merchandise in its
condition as it leaves the loom or knitting machine and that any
other manufacturing process performed on that merchandise will
remove it from the purview of that note. We interpret the word
"Produced" in Note 7(b) to refer to the condition of the
merchandise at the time of importation.
The liners are considered to be "made up", pursuant to Note
7(b), and are described by two 4-digit headings--Heading 5407, in
Chapter 54, HTSUSA, which provides for woven fabrics of synthetic
filament yarn, and Heading 6307, in Chapter 63, HTSUSA, which
provides for other made up articles.
General Rule of Interpretation (GRI) 3(a), HTSUSA, provides,
in essence, that where goods are classifiable in two or more
headings, of which only one, or none, refers to materials or
substances in mixed or composite goods, the heading which is most
specific will govern. Since "made up" articles are limited to
fabrics which meet the requirements of Note 7, Heading 6307 is
more specific than Heading 5407 and, therefore, the liners are
classifiable under Heading 6307. This conclusion is supported by
the Explanatory Notes, at page 711, which state that goods made
up within the meaning of Note 7 to Section XI are excluded from
classification in Chapters 50 to 55.
HOLDING:
The polyethylene liners described in the facts portion of
this ruling are classifiable under the provision for other made
up articles, in Subheading 6307.90.9030, HTSUSA.
Due to the changeable nature of the statistical annotation
and the restraint (quota/visa) categories, you should contact
your local Customs office prior to importation of this
merchandise to determine the current status of any import
restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division
Attachment