CLA-2 CO:R:C:G 086435 HP
Ms. Ann Williams
A.N. Derringer, Inc.
30 West Service Road
Champlain, NY 12919-9703
RE: Coated yarn for braided valve stem packing
material of man-made fiber and glass is textile article
for technical uses with essential character imparted by
man-made fibers. Cordage; GRI 2(a); complete;
finished; incomplete; unfinished
Dear Ms. Williams:
This is in reply to your letter of January 29,
1990, requesting reconsideration of NYRL 833728 of
December 7, 1988. Please reference your client Garlock
du Canada Limite.
Pursuant to section 177.2(b)(7), Customs
Regulations (19 C.F.R. 177(b)(7)), your request for
confidentiality of all cost specifications in your
ruling request is granted.
FACTS:
The merchandise at issue, Style Nos. M455-1410,
M455-1100, and 08455-1406, consists of yarn to be used
to manufacture braided stem packing for pumps. The
yarns are composed of:
M455-1410 M455-1100 08455-1406
Item % by Item % by Item % by
Weight Weight Weight
11.6 60 37 50 37 20
ETDE ETDE ETDE
contin contin contin
uous uous uous
glass glass glass
filame filame filame
nt nt nt
Acryli 24 Acryli 30 75 10
c c ECDE
fiber fiber contin
uous
glass
filame
nt
Rayon 16 Rayon 20 37 20
Viscos fiber ECDE
e contin
uous
glass
filame
nt
Acryli 50
c non-
contin
uous
filame
nt
The textile cordage is manufactured as packaging
for pumps and valves. The textile components of the
cordage are mixed with various other materials (i.e.,
Teflon ) to generate chemical abrasion and/or heat
resistance.
In NYRL 833728, we classified this merchandise
under heading 7019, HTSUSA, as glass fibers and
articles thereof.
ISSUE:
Whether the instant merchandise is classifiable as
textile products or as articles of glass fiber?
LAW AND ANALYSIS:
HRL 083830 of May 31, 1989, HRL 085417 of October
31, 1989, HRL 085813 of January 10, 1990, and HRL
086497 of March 29, 1990, among others, addressed to
your company, concerned similar-type goods manufactured
by Garlock du Canada Limite, to be used for the same
purposes as the instant merchandise. In those rulings,
we held that packing yarn composed of various
components was classifiable under heading 5911, HTSUSA,
which provides for textile products and articles, for
technical uses, specified in Note 7 to Chapter 59,
HTSUSA. Note 7 provides, inter alia, that heading 5911
applies to textile cords, braids and the like, of a
kind used as packing or lubricating materials, whether
in the piece or cut to length.
By using the locution "cords, braids and the like,"
the merchandise covered by that portion of Note 7 is
not required to be twine, rope or braid; it must only
be something that resembles, in appearance and use,
cord and braid. A physical examination of the instant
merchandise clearly shows that its outward appearance
is that of cords; indeed, you have stated that the
sample will be used as cords in the construction of
braided packing material.
It has been argued that since the sample will be
used as cords in the construction of braided packing
material, rather than as braided packing material,
classification in heading 5911 is precluded. This
classification of raw materials as finished products
was analogized to classifying 70 denier nylon yarns as
taffeta or fabric used to make a blouse as a blouse.
This reasoning is misplaced.
The General Rules of Interpretation (GRIs) to the
HTSUSA govern the classification of goods in the tariff
schedule. GRI 1 states, in pertinent part:
... classification shall be determined
according to the terms of the headings and any
relative section or chapter notes ...
Goods which cannot be classified in accordance with GRI
1 are to be classified in accordance with subsequent
GRIs, taken in order. GRI 2(a) provides:
Any reference in a heading to an
article shall be taken to include a
reference to that article incomplete or
unfinished, provided that, as entered,
the incomplete or unfinished article
has the essential character of the
complete or finished article.
It is clear in the instant matter that the yarn, as
entered, has the essential character of completed
packing material. After importation, the yarn is
braided. You have demonstrated that this yarn is
worthless except for use in construction of braided
packing materials. In addition, current industry
practice recognizes this type of yarn as dedicated for
use in the construction of braided packing materials.
Therefore, under the GRI 2(a) analysis narrated above,
the instant yarn is classifiable under heading 5911 as
finished braided packing materials.
In determining whether the merchandise is a textile
product, and therefore covered by heading 5911, HRLs
083830 and 085417, supra, looked to the General Rules
of Interpretation to the HTSUSA. The instant
merchandise is composed of more than one type of
material. GRI 3 states, in pertinent part:
When by application of Rule 2(b) [goods of more
than one material or substance] or for any
other reason, goods are, prima facie,
classifiable under two or more headings,
classification shall be effected as follows:
* * *
(b) Mixtures, composite goods consisting of
different materials or made up of different
components, and goods put up in sets for
retail sale, which cannot be classified by
reference to 3(a) [which requires that
goods be classified, if possible, under the
more specific of the competing provisions],
shall be classified as if they consisted of
the material or component which gives them
their essential character, insofar as this
criterion is applicable.
The factors which determine essential character of
an article will vary from case to case. It may be the
nature of the materials or the components, its bulk,
quantity, weight, value, or the role a material plays
in relation to the use of the goods. In general,
essential character has been construed to mean the
attribute which strongly marks or serves to distinguish
what an article is; that which is indispensable to the
structure or condition of an article.
In HRLs 083830, 085417, and 085813, supra, the man-
made fibers comprised, by weight and value, only a
small portion of the merchandise. We also stated that,
notwithstanding this small percentage, it is these
fibers which provide the sealing capacity for the
packing material (the primary reason for the material's
usage). The glass and Teflon components were found to
merely enhance, rather than create, the properties of
the packing material. Accordingly, the essential
character of the samples was found to be imparted by
the man-made fibers.
With respect to the instant merchandise, the man-
made fibers still provide the sealing capacity for the
packing material. While the man-made fibers may now,
in one case, be present in a smaller proportion than,
e.g., HRL 085813, the costs of those fibers still
outweigh by far the costs of the lubricating chemicals.
It is our opinion, therefore, that the essential
character of the yarn is imparted by man-made fibers.
HOLDING:
As a result of the foregoing, the instant
merchandise is classified under subheading
5911.90.0000, HTSUSA, as textile products and articles,
for technical uses, specified in note 7 to this
chapter, other. Articles which meet the definition of
"goods originating in the territory of Canada" (see
General Note 3(c)(vii)(B), HTSUSA) are subject to
reduced rates of duty under the United States-Canada
Free Trade Agreement Implementation Act of 1988. If
the merchandise constitutes "goods originating in the
territory of Canada," the applicable rate of duty is
normally 6 percent ad valorem (otherwise, the general
rate of duty is 7.5 percent ad valorem.)
U.S. Note 1 to Subchapter V of Chapter 99, HTSUSA,
however, states:
Unless the context otherwise requires,
goods originating in the territory of
Canada described in the provisions of
this subchapter, for which a rate of
duty followed by the symbol "(CA)" is
herein provided, are subject to duty at
the rate set forth in lieu of the rate
provided therefor in chapters 1 through
98. No other preferential tariff
treatment provided under general note
3(c) to the tariff schedule shall be
afforded under the provisions of this
subchapter. Unless otherwise provided,
the provisions and notes of this
subchapter are effective as to such
goods, under general note 3(c)(vii) to
the tariff schedule, through the close
of December 31, 1998, on which date
this subchapter shall be deleted from
the tariff schedule and shall cease to
apply to any goods entered after that
date.
Subheading 9905.59.10, HTSUSA, provides a Free rate
of duty to goods originating in the territory of Canada
and meeting the following description:
Packing yarns with cores of glass
fibers, whether or not incorporating a
metal wire, covered with a textile
wrapper (provided for in subheading
5911.90.00).
The instant merchandise meets this description. The
applicable rate of duty, therefore, is Free.
This notice to you should be considered a
modification of NYRL 833728 of December 7, 1988, as to
the merchandise described as packing yarn, under 19
C.F.R. 177.9(d)(1) (1989). It is not to be applied
retroactively to NYRL 833728 (19 C.F.R. 177.9(d)(2)
(1989)) and will not, therefore, affect the transaction
for the importation of your merchandise under that
ruling. However, for the purposes of future
transactions in merchandise of this type, NYRL 833728
will not be valid precedent. We recognize that pending
transactions may be adversely affected by this
modification, in that current contracts for
importations arriving at a port subsequent to the
release of HRL 086435 will be classified under the new
ruling. If such a situation arises, you may, at your
discretion, notify this office and apply for relief
from the binding effects of the new ruling as may be
dictated by the circumstances.
Sincerely,
John Durant, Director
Commercial Rulings Division