CLA-2 CO:R:C:G 087471 CRS
Mr. Ron Hodge
F.H. Kaysing Co. of Wichita
P.O. Box 12497
Wichita, KS 67277
RE: Towels of osnaburg fabric not classifiable as kitchen linen
of heading 6302. Subheading 6307.10.20 embraces all towels
fitting the description of shop towels. Bales must be
marked with country of origin until they reach the ultimate
purchaser; or if repacked, the towels must comply with the
certification requirements of 19 CFR 134.26.
Dear Mr. Hodge:
This is in reply to your letter dated May 22, 1990, to the
District Director of Customs, St Louis, on behalf of your client,
The Enterprises, Inc., in which you requested a binding ruling on
the classification of shop towels under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA). You have also
enquired as to the marking requirements applicable to the instant
merchandise. A sample was submitted with your request.
FACTS:
The article at issue is a 100 percent woven cotton osnaburg
towel, with a thread count of 8 to 10, and measures approximately
17 square inches. The towels are made in Mexico and will be
entered through the port of Wichita, Kansas.
The towels will be imported in bales containing 2,500 towels
per bale. Each bale will be wrapped in cloth with lettering in
black, blue or red ink reading "Made in Mexico, 100% Cotton,
Visa No. ____." The towels will be sold as imported, i.e., in
the original bales. The towels will subsequently be resold to
purchasers in the aircraft industry. No information as to how
the shop towels will be packaged when resold has been provided.
ISSUE:
Whether the towels in question are classifiable as kitchen
linen or as other made up articles.
Whether the country of origin marking requirements, 19
U.S.C. 1304, are satisfied by marking the bales in which shop
towels are imported, or whether the towels themselves must be
marked to indicate the country of origin.
LAW AND ANALYSIS:
Classification
Heading 6302, HTSUSA, provides for bed linen, table linen,
toilet and kitchen linen. You maintain that shop towels should
be classified in subheading 6302.91.0050, HTSUSA, the residual
provision of heading 6302, on the basis that they are used for
general cleaning and absorbing purposes. The Explanatory Notes
(1990) to the Harmonized Commodity Description and Coding System,
provide in pertinent part at EN 63.02, 863, that the articles
classifiable in heading 6302 include:
(4) Kitchen linen such as tea towels and glass cloths.
Articles such as floor cloths, dish cloths, scouring cloths,
dusters and similar cleaning cloths, generally made of
coarse thick material, are not regarded as falling within
the description "kitchen linen" and are excluded (heading
6307).
The Guidelines for the Reporting of Imported Products in
Various Textile and Apparel Categories ("Textile Guidelines"), 53
FR 52563, 52564, state that shop towels are:
always plain woven nonpile construction, made from a coarse
fabric, usually an osnaburg or similar low grade fabric, the
average yarn number of which usually falls within the 3 to
12 range.....Shop towels may be square or rectangular in
shape and usually vary in size from 16 to 30 inches wide and
from 16 to 32 inches wide.
The instant towel is woven from a coarse fabric (osnaburg), has a
yarn count of between 3 and 12, and measures approximately 17
inches by 17 inches. As such, Customs considers it to be a shop
towel, a separate and distinct class of merchandise from kitchen
linen and, therefore, not covered by the terms of heading 6302.
Heading 6307, HTSUSA, provides for other made up articles.
Subheading 6307.10.2005, HTSUSA, provides for shop towels
dedicated for use in garages, filling stations and machine shops.
As we stated with regard to subheading 6307.10.20 in Headquarters
Ruling Letter (HRL) 084799 dated September 6, 1989, at 2:
The above-mentioned subheading is an eo nomine and not an
actual use provision. It provides for the class or kind of
imported articles belonging to shop towels. Shop towels,
provided for in this subheading, are used in, but not
limited to use in, garages, filling stations, and machine
shops. Because the towels at issue are made of coarse,
woven, greige fabric, they have virtually no other use than
as shop towels.
Here, while the instant towel will be used for general cleaning
purposes and not necessarily, or perhaps at all, in garages,
filling stations and machine shops, it is nevertheless the class
of merchandise covered by subheading 6307.10.20 and is therefore
classifiable accordingly.
Marking
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304), provides that, unless excepted, every articles of foreign
origin imported into the United States shall be marked in a
conspicuous place as legibly, indelibly, and permanently as the
nature of the article will permit, in such a manner as to
indicate to the ultimate purchaser in the United States the
English name of the country of origin of the article.
Nevertheless, an exception from the marking requirements is
authorized by 19 U.S.C. 1304(a)(3)(C), so long as the marking of
a container will reasonably indicate the origin of the article
enclosed therein. Your client, importer Enterprises, Inc.,
proposes to mark the bales in which the towels will be imported
with the words "Made in Mexico," each bale to contain 2,500
towels. In addition, you have indicated that the towels will be
marketed by the importer to purchasers in the aircraft industry.
Pursuant to Section 134.1(d), Customs Regulations, 19 CFR
134.1(d), the ultimate purchaser is generally the last person in
the United States who will receive merchandise in the form in
which it was imported. Provided that the individual bales remain
marked until such time as they reach the ultimate purchasers,
here purchasers in the aircraft industry, the towels themselves
would therefore be exempt from marking. However, should the
bales be broken up or repacked before the towels are downstreamed
to the ultimate purchasers, the marking scheme you propose would
not satisfy the requirements of 19 U.S.C. 1304, unless subsequent
purchasers or transferees are notified in writing of the marking
requirements.
When articles are repacked after their release from Customs
custody, or if the District Director having custody of the
articles has reason to believe that they will be, Section
134.26(a), Customs Regulations (19 CFR 134.26(a)), provides in
pertinent part that the importer shall certify to the District
Director that:
(1) If the importer does the repacking...the new container
shall be marked to indicate the country of origin of the
article in accordance with the requirements of this part; or
(2) if the article is intended to be sold or transferred to
a subsequent purchaser or repacker, the importer shall
notify such purchaser or transferee, in writing, at the time
of sale or transfer, that any repacking must conform to
these requirements. The importer, or his authorized agent,
shall sign [a] statement [to this effect].
HOLDING:
The towel in question is classifiable in subheading
6307.10.2005, HTSUSA, under the provision for other made up
articles...floorcloths, dishcloths, dusters and similar cleaning
cloths, other, shop towels dedicated for use in garages, filling
stations and machine shops, of cotton, and is subject to duty at
a rate of 10.5 percent ad valorem. The textile category is 369.
The lettering "Made in Mexico" applied to the imported bales
satisfies the marking requirements of 19 U.S.C. 1304, provided
that the lettering is conspicuous. If the shop towels are
repacked after entry but prior to their reaching the ultimate
purchasers, the importer shall adhere to the certification
requirements of 19 CFR 134.26.
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 renegotiations 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 internal
issuance U.S. of the Customs Service, which is available for
inspection 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) 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