CLA-2 CO:R:C:T 089957 JS
District Director
U.S. Customs Service
300 South Ferry St.
Terminal Island
Room 2017
San Pedro, CA 90731
RE: Decision on Application for Further Review of Protest No.
2704-91-102533 on the classification of artificial flowers
from Macau
Dear Sir:
This is a decision on application for further review of a
protest timely filed by C & R Customs Brokers Inc., on behalf of
Kuang Yi Inc., dated May 20, 1991, against your decision on the
classification of artificial flowers from Macau.
FACTS:
The merchandise at issue are artificial flowers manufactured
by the Great Strong Artificial Flower Factory (Great Strong) of
Macau. These flowers are made of polyester and other materials,
which are die cut, colored, pressed, molded, assembled and packed
for exportation to the United States.
Memorandum INV 8-02 dated October 31, 1991 from the
Assistant Commissioner, Office of Commercial Operations, requires
that all entries claimed to be manufactured in Macau and exported
from Macau by any of the listed factories should be denied GSP
treatment and rate advanced after the issuance of a Proposed
Notice of Action (CF 29). One of the listed companies is Fabrica
de Flores Artificais Great Strong, also known as Fabrica de
Flores Artificiail Great Strong, Fabrica de Flores Artificiail
Tai Keong or Great Strong Artificial Flower Factory.
2
Protestant claims that its goods are eligible for GSP
treatment under subheading 6702.90.4000 (Free), as a product of
Macau. Based on a Customs investigation of Great Strong's
premises and accounts, it was determined that these goods did not
qualify as products of Macau for country of origin purposes. The
goods were subsequently reclassified under HTS 6702.90.4000, with
duty at 9 percent ad valorem.
ISSUE:
Whether artificial flowers produced at the Great Strong
Artificial Flower Factory are eligible for GSP treatment as a
product of Macau.
LAW AND ANALYSIS:
The above-referenced memo, which was based on SCR/Hong Kong
Reports of Investigation, indicates that Great Strong was
determined to be either incapable of manufacturing artificial
flowers in the quantities claimed or otherwise not manufacturing
artificial flowers in Macau. Based on the directive herein, GSP
treatment for the merchandise at issue must be denied.
HOLDING:
The merchandise at issue is properly classified under
subheading 6702.90.4000, which provides for artificial flowers,
foliage and fruit and parts thereof; articles made of artificial
flowers, foliage or fruit: of other materials: other: of man-made
fibers, dutiable at the rate of 9 percent ad valorem.
You are instructed to deny the protest in full on the basis
of INV 8-02, which requires that GSP be denied for entries
claimed to be manufactured by the Great Strong Artificial Flower
Factory in Macau. A copy of this decision should be attached to
the Customs Form 19 and provided to the protestant as part of the
notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division