CLA-2 CO:R:C:G 086581 HP
Mr. Edward N. Glad
Glad & Ferguson
Attorneys at Law
606 South Olive Street
Suite 1700
Los Angeles, CA 90014
RE: HRL 085630 modified. Embroidered and appliqued
crests with pins and backing attached, and with clasps
and lacquer added after importation, are completed,
made up, clothing accessories.
Dear Mr. Glad:
This is in reply to your letter of February 15,
1990, requesting reconsideration of HRL 085630.
FACTS:
The merchandise at issue consists of crests or
emblems which are designed to be worn on apparel. They
are intended to be applied to the upper pocket of a
jacket to identify the wearer as belonging to a partic-
ular group or organization. The samples have a
substantial amount of gold or silver plated copper
wire, textile fabric, and textile yarns embroidered on
what we assume is a cotton/velvet background. The two
samples are completely finished with pins projecting
from their rear sides, which, when combined with clips,
enable the crests to be attached to garments.
In HRL 085630 of January 31, 1990, we stated that
[e]xamination of the samples indi-
cates that in order for the pins to
be attached to the crests, the two
backing fabrics and the center
cardboard layers which are glued to
the crests must also be added in
the United States. Accordingly,
the imported merchandise consists
of patches or emblems that can, as
imported, either be sewn to gar-
ments or have backings and clips
added. [Emphasis added.]
Accordingly, we classified the emblems under subheading
5810.91.00, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), as an embroidered motif.
ISSUE:
Whether HRL 085630 was incorrectly decided due to
a mistake of fact?
LAW AND ANALYSIS:
In your request for reconsideration, you stated
that the above-emphasized text is incorrect. You state
that, in its imported condition, the merchandise con-
sists of the embroidery, two backing fabrics, and pins.
After importation, this sample is then sprayed with a
liquid plastic pure gloss lacquer, and has added to it
the clips which will hold the crest to the garment.
We have held that if crests similar to the ones at
issue were imported with the pins and clips attached,
they would be classifiable under heading 6217, HTSUSA,
as made up clothing accessories. HRL 084204 of August
16, 1989. Taking this into account, we must now decide
whether the instant merchandise, imported with the pins
attached, is also classifiable under heading 6217.
Heading 5810, HTSUSA, provides for embroidery in
the piece. The Explanatory Notes (EN) to the HTSUSA
constitute the official interpretation of the tariff at
the international level. While not legally binding,
they do represent the considered views of
classification experts of the Harmonized System
Committee. It has therefore been the practice of the
Customs Service to follow, whenever possible, the terms
of the Explanatory Notes when interpreting the HTSUSA.
The EN to this heading states, inter alia, that:
The embroidery classified here
comprises mainly the following
three groups:
* * *
(III) APPLIQUE WORK
This consists of a ground of textile
fabric or felt on which are sewn, by embroi-
dery or ordinary stitches:
* * *
All varieties of embroidery
described remain within this head-
ing when in the following forms:
* * *
(2) In the form of motifs,
i.e., individual pieces
of embroidered design
serving no other function
than to be incorporated
or appliqud as elements
of embroidery in, for
example, underwear or
articles of apparel or
furnishings. They may be
cut to any shape, backed
or otherwise assembled.
They include badges, em-
blems, flashes , ini-
tials, numbers, stars,
national or sporting in-
signia, etc.
The heading does not cover:
(d) * * * [I]ndividual
articles of embroidery,
completely finished,
ready for use as such,
which are embroidered
directly in their final
shape without any further
fabrication. This wide
range of articles is
classified as made up
articles (e.g., Chapter
61, 62, 63 or 65)....
The merchandise at issue are individual articles
of embroidery which are embroidered directly in their
final shape prior to importation. It is our opinion
that the post-importation processes, i.e., the spraying
with liquid plastic pure gloss lacquer and the addition
of the clips, are not sufficient to be considered
further fabrication ; the emblems; therefore, are
completely finished, and excluded from heading 5810.
HOLDING:
As a result of the foregoing, the instant
merchandise is classified under subheading
6217.10.0010, HTSUSA, textile category 359, as other
made up clothing accessories, of cotton. The
applicable rate of duty is 15.5 percent ad valorem.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota
requirements applicable to the subject merchandise may
be affected. Since part categories are the result of
international bilateral agreements which are subject to
frequent negotiations and changes, to obtain the most
current information available, we suggest that you
check, close to the time of shipment, the Status Report
On Current Import Quotas (Restraint Levels), an
issuance of the U.S. Customs Service, which is updated
weekly and is available at your local Customs office.
Due to the changeable nature of the statistical
annotation (the ninth and tenth digits of the
classification) and the restraint (quota/visa) catego-
ries, you should contact your local Customs office
prior to importing the merchandise to determine the
current status of any import restraints or
requirements.
This notice to you should be considered a
modification of HRL 085630 of January 31, 1990, as to
the merchandise described as crests, under 19 C.F.R.
177.9(d)(1) (1989). It is not to be applied retro-
actively to HRL 085630 (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, HRL 085630 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 086581 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