CLA 2 CO:R:C:G 083819 DSN
Ms. Linda J. Pirrami
C.J. Tower Inc.
126 Dearborn Street
Buffalo, New York 14207
RE: Classification of fabric pieces for furniture
Dear Ms. Pirrami:
This ruling letter is in response to your inquiry of February 20, 1989, requesting classification under the Harmonized Tariff Schedule of the United States (HTSUSA), for fabric pieces produced in Canada. Samples were submitted for examination.
FACTS:
The submitted samples are fabric pieces composed of textile which are cut to size to be sewn and upholstered onto furniture. The fabric is of U.S. origin and is cut in Canada and then sewn and upholstered onto furniture products in the U.S. Also submitted are computer printed patterns for making a cover for a sofa. You also seek subheading 9801.00.10 and 9802.00.50
treatment based on the fabric being of U.S. origin.
ISSUE:
Whether the samples at issue are classified under Chapter 94, HTSUSA.
LAW AND ANALYSIS:
Chapter 94, HTSUSA, provides for furniture parts. The Explanatory Notes constitute the official interpretation of the tariff at the international level. The Explanatory Notes to
Chapter 94, HTSUSA, state that this chapter only covers parts, whether or not in the rough, when identifiable by their shape or
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other specific features as parts designed solely or principally for an article of those headings. They are classified in this Chapter when not more specifically covered elsewhere.
With respect to the merchandise at issue, the fabric is cut to shape and readily identifiable as pieces to be sewn onto furniture. Moreover, Note 1(s) to Section XI, textile and
textile articles, states that articles of Chapter 94 are excluded from this section. It appears then that fabric upholstery is not specifically covered elsewhere in the tariff other than in
Chapter 94 as a part. There is no language in either the chapter notes or the Explanatory Notes
to Chapter 94 excluding textile articles. Thus, the merchandise at issue is classifiable in
Chapter 94.
With respect to receiving a deduction on duty based on the fabric being of U.S. origin, we note that item 806.20, TSUSA, was carried over into the HTSUSA as subheading 9802.00.50, and item 800.00, TSUSA was carried over as subheading 9801.00.10. Subheading 9802.00.50, HTSUSA, provides for the assessment of duty on the value of repairs or alterations performed on articles returned to the U.S. after having been exported for that purpose. However, the application of this tariff provision is precluded in circumstances where the operations performed abroad destroy the identity of the articles or create new or commercially different articles. See. A.F. Burstrom v. United States, 44 CCPA 27, C.A.D. 631 (1957); Guardian Industries Corporation v. United States, 3 CIT 9 (1982). Treatment under subheading 9802.00.50,
HTSUSA, is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture
of finished articles. Dolliff & Company, Inc. v. United States, 66 CCPA 77, C.A.D. 1225, 599 F.2d 1015 (1979). This subheading is not applicable to the merchandise at issue because the cutting of the fabric in the U.S. is part of the manufacturing process
and more than a mere alteration.
In addition, subheading 9801.00.10, HTSUSA, is also not applicable to this merchandise. Subheading 9801.00.10, HTSUSA, provides for the free entry of articles of U.S. origin which are
exported and returned without having been advanced in value or improved in condition while abroad. Based on the fact that the bolts of fabric have been advanced in value by being cut to size as furniture parts, they are precluded from duty free treatment.
HOLDING:
In view of the foregoing, if the merchandise at issue is for use as parts of seats, it is classifiable under subheading 9401.90.5000, HTSUSA, which provides for seats and parts thereof,
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other, other, and dutiable at the rate of 3.2 percent ad valorem. If the merchandise at issue is for use as parts of furniture other than seats it is classifiable under subheading 9403.90.6000, HTSUSA, which provides for other furniture and parts thereof, parts, other, of textile material, except cotton, and dutiable at the rate of 5.6 percent ad valorem. If the merchandise is composed of cotton, subheading 9403.90.8000, HTSUSA, which provides for other furniture and parts thereof, parts, other, other, would be applicable with a duty rate of 3.2 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division