CLA-2 CO:R:C:T 952389 jb

TARIFF: 6304.99.6010; 6307.90.9986; 6304.92.0000; 4202.22.8060;
6307.90.9986

Mr. William C. Cain
Cain Customs Brokers, Inc.
Progreso Int'l Bridge
P.O. Box 10
Progreso, TX 78579

RE: Request for classification of handmade products from Mexico; qualification as Folklore articles; subheadings 6304.99.6010; 6307.90.9986; 6304.92.0000; 4202.22.8060; 6307.90.9986, HTSUSA

Dear Mr. Cain:

This letter is in response to your inquiry of July 22, 1992, on behalf of your client, Carol Bell (DBA Carolyn Bell Imports), requesting a classification ruling and information on whether the submitted articles can be classified as folklore articles and thus not subject to quota restraints or visa requirements. Samples were submitted to this office for examination and will be returned under separate cover.

FACTS:

The merchandise consists of handmade textile products from the Chiapas and Oaxaca regions of Mexico. Five samples were submitted as follows:

1. Sample F is a finished wall hanging composed of cotton woven fabric and wool thread. It measures approximately 15-1/4 inches by 36-5/16 inches, exclusive of a 2-1/4 inch fringe at each end;

2. Sample G is a textile decoration composed of cotton woven fabric and cotton thread. It measures approximately 16 inches by 34 inches. The edges are hemmed with a slight running stitch;

3. Sample H is an unfinished wall hanging attached to two wooden rods. The finished portion is composed of cotton fabric with wool thread and the center is unfinished with cotton thread running in the warp direction. The upper rod has a loop which is used to hang the article;

4. Sample I is a purse composed of cotton woven fabric with wool thread. It has a zipper closure and a crocheted shoulder strap;

5. Sample J is a goat figurine textile article. It is composed of burlap, goat hair and wool yarn.

ISSUE:

I. What is the proper classification for the articles at issue?

II. Do the articles qualify as Folklore articles for purposes of quota and visa exemption?

LAW AND ANALYSIS:

I. Classification

Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined according with the terms of the headings and any relative section of chapter notes. Where goods cannot be classified solely on the basis of GRI 1, the remaining GRI will be applied in the order of their appearance. Sample F, referred to as a wall hanging, is classifiable in subheading 6304.99.6010, HTSUSA, which provides for other furnishing articles, excluding those of heading 9404, of wool or fine animal hair.

Sample G is referred to as a textile decoration. It is stated that this article will be used either as a wall hanging or a runner. The competing provisions for this sample are heading 6304, HTSUSA, which provides for other furnishing articles, excluding those of heading 9404, and heading 6307, HTSUSA, which provides for other made up articles, including dress patterns.

This sample has a slight running stitch as a hem, finishing the edges. It is different from Sample F in that in the latter, the edge is finished with a fringe. This difference in the finish results in the possibility that Sample G can have a variety of uses other than as a wall hanging. For example, Sample G could be used as a loose cover for furniture, or as a cover for a cushion, or it could be folded and made into a handbag.

In HQ 951372, dated April 24, 1992, Customs ruled on a similar article. That ruling stated that when the item in question has several possible uses, including uses which fall beyond the parameters of heading 6304, HTSUSA, the item cannot specifically be classified as a wall hanging. As such, classification devolves to heading 6307, HTSUSA.

Since Sample G has other uses beyond the purview of articles under heading 6304, HTSUSA, the more appropriate heading for this article is 6307, HTSUSA. The article is classified in subheading 6307.90.9986, HTSUSA, which provides for other made up articles.

Exhibit H, similar to Sample F, is referred to as a wall hanging. This article is composed of two parts: the finished portion is constructed of cotton woven fabric with wool thread, and the unfinished center portion is constructed of cotton thread in the warp direction. If the chief weight of the article is cotton, it is classifiable in subheading 6304.92.0000, HTSUSA, which provides for other furnishing articles excluding those of heading 9404, not knitted or crocheted, of cotton. If, on the other hand, the chief weight of the article is wool, it is classifiable in subheading 6304.99.6010, HTSUSA, which provides for other furnishing articles, excluding those of heading 9404, of wool or fine animal hair.

Sample I, referred to as a purse, is classifiable in subheading 4202.22.8060, HTSUSA, which provides for inter alia, handbags, with an outer surface of textile materials.

Sample J is referred to as a goat figurine and described as a child's toy. In classifying articles as toys, Customs has been consistent in its determination that toys must be designed and constructed with "amusement" in mind. That is to say, the appealability to children and the play value of the article must be obvious. We are of the opinion that the sample goat figurine does not qualify as a toy in heading 9503, HTSUSA. The decorative or ornamental aspect of the figurine outweighs any play value the article might display. Classification is thus in subheading 6307.90.9986, HTSUSA, which provides for other made up articles.

II. Qualification as Folklore Articles for Purposes of Visa and Quota Exemption

Shipments of handloomed fabric, handmade articles made of handloomed fabric and traditional folklore products of the cottage industry are exempt from quota and visa requirements if:

1. they are a product of a country with which the U.S. has both a bilateral and visa agreement which specifically exempts such products; and

2. provided the foreign government has issued a proper and correct exempt certification.

These agreements only waive the quota and visa requirements; they do not waive the duty.

In order to qualify as exempt, the Committee for the Implementation of Textile Agreements (CITA) has required that one of the four conditions set forth below must be met by textile articles exported from Mexico (See Federal Register, Vol. 53, No. 165, August 25, 1988):

1. Handloomed fabric

2. A handmade cottage industry product made of handloomed fabric

3. A properly marked commercial sample shipment valued at $250 or less

4. A particular traditional folklore handicraft textile product or products which have been mutually agreed to and so designated for exemption

As the submitted articles were not issued a proper and correct exempt certification by the foreign government, all articles, except Sample G and Sample J, are subject to quota and visa requirements.

HOLDING:

The submitted articles, Samples F, G, H, I and J are products of Mexico. As they are presently unaccompanied by an exempt certificate, Sample F, Sample H, and Sample I are subject to quota and visa requirements. Sample F, the finished wall hanging, is classifiable in subheading 6304.99.6010, HTSUSA, which provides for other furnishing articles, excluding those of heading 9404, of wool or fine animal hair. The applicable rate of duty is 6.4 percent ad valorem and the textile category is 469. Sample G, the textile decoration, is classifiable in subheading 6307.90.9986, HTSUSA, which provides for other made up articles, including dress patterns. The applicable rate of duty is 7 percent ad valorem.

Sample H, the unfinished wall hanging, if in chief weight cotton, is classifiable in subheading 6304.92.0000, HTSUSA, which provides for other furnishing articles excluding those of heading 9404, not knitted or crocheted, of cotton. The rate of duty is 7.2 percent ad valorem and the textile category is 369. If the chief weight is wool, it is classifiable in subheading 6304.99.6010, HTSUSA, which provides for other furnishing articles, excluding those of heading 9404, of wool or fine animal hair. The rate of duty is 6.4 percent ad valorem and the textile category is 469.

Sample I, the textile purse, is classifiable in subheading 4202.22.8060, HTSUSA, which provides for handbags, with outer surface of textile materials. The applicable rate of duty is 20 percent ad valorem and the textile category is 871.

Sample J, the goat figurine, is classifiable in subheading 6307.90.9986, HTSUSA, which provides for other made up articles, including dress patterns. The rate of duty is 7 percent ad valorem.

Please be advised that there is a countervailing duty order on certain textile mill products from Mexico under Case number C-201-405 (CIE N-208/84, dated February 22, 1989, Suppl. 40). This order affects both Sample F, the finished wall hanging, and Sample H, the unfinished wall hanging.

The designated textile and apparel category may be subdivided into parts. If so, the 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 your client check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service which is updated weekly and is available at the 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, your client should contact the 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