CLA-2 CO:R:C:T 952931 SK
John M. Colomaio
Trans-Border Customs Services, Inc.
656 Elmwood Avenue, ste. 200
Buffalo, N.Y. 14222
RE: Classification of bridal veils; 6214.30.0000; country of
origin; 19 CFR 12.130; headpieces made in China; veils
made from U.S. material; substantial transformation of U.S.-
made fabric into new and different article in Canada; U.S.-
Canada Free-Trade Agreement; Gen. Note 3 (c)(vii)(R)(11)(oo)
to Section XI.
Dear Mr. Colomaio:
This is in response to your inquiry of October 1, 1992, on
behalf of Arthur Harris Imports Inc., requesting a binding ruling
on the tariff classification and country of origin status of
bridal veils and whether these items qualify for preferential
treatment under the U.S.-Canada Free-Trade Agreement
Implementation Act of 1988 (CFTA).
FACTS:
Four styles of bridal veils were submitted to this office.
Styles M100 and M101 have headpieces that are covered with
plastic pearls and/or beads which, if imported alone, would be
classifiable under heading 3926, HTSUSA. Styles M102 and M103
have headpieces that contain artificial flowers and sequins
which, if imported alone, would be classifiable under heading
6702, HTSUSA. The headpieces will be imported into Canada from
China. The headpieces consist of wire frames covered with white
tissue paper. In addition to the covered frame, Style M100 has a
nylon mohair backing. The decorative trim consists of plastic
pearls from Hong Kong, crystals from Czechoslovakia, and material
for the artificial flowers from China.
The bridal veils are cut and sewn in Canada from 100 percent
nylon tulle made in the United States. The decorative trim on
the veils is purchased from various countries: plastic pearls
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from Japan; crystals from Czechoslovakia; and plastic combs from
Hong Kong. The veils are decorated and attached to the
headpieces in Canada.
The processing done in Canada to produce the veils is as
follows. A pattern for the veils is made. The cutter cuts out
the veil and puff from the material according to the pattern. A
skilled sewer serges the edge of the veil by using a marrow
machine. Another sewer gathers the veil together by using a
special gathering foot on a sewing machine. The puff is also
made by gathering the cut material with the gathering foot. A
trained factory worker manually glues plastic pearls and crystals
to the veil and the puff in pre-designed patterns. The finished
puff and veil are then hand sewn together. These steps are the
same for all the veils with the exception of Style M102. This
style has no puff. After the veil is finished, a skilled sewer
hand sews the headpiece to the veil.
ISSUES:
1) What is the proper classification for the bridal veils?
2) What is their country of origin?
3) Are these articles eligible for preferential treatment under
the U.S.-Canada Free-Trade Agreement (CFTA)?
LAW AND ANALYSIS:
CLASSIFICATION
Classification of merchandise under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) is governed by
the General Rules of Interpretation (GRI's), taken in order. GRI
1 provides that classification shall be in accordance with the
terms of the headings and any relative section or chapter notes.
Heading 6214, HTSUSA, provides for shawls, scarves,
mufflers, mantillas, veils and the like. Explanatory Note (EN)
(4) to heading 6214, HTSUSA, states that the term "veils"
pertains to "a variety of articles generally made of light,
transparent or net material, or sometimes of lace, whether worn
for ornamental or utilitarian purposes (e.g., wedding, ...). At
the time of importation from Canada, the articles at issue are
completed bridal veils to be used during weddings. As such, they
are specifically provided for in subheading 6214.30.0000, HTSUSA,
which provides for, inter alia, veils of synthetic fibers.
COUNTRY OF ORIGIN
Section 12.130(b) of the Customs Regulations (19 CFR
12.130(b)) provides that a textile product that is processed in
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more than one country or territory shall be a product of that
country or territory where it last underwent a substantial
transformation. A textile or textile product will be considered
to have undergone a substantial transformation if it has been
transformed by means of substantial manufacturing or processing
operations into a new and different article of commerce.
Section 12.130 sets forth a two-pronged test: a new and different
article of commerce must be formed in the country of origin and
the article must undergo a substantial processing operation
there. In the instant case, the first prong of that test has
been met: U.S.-made fabric and headpieces manufactured in China
were assembled in Canada to form completed bridal veils. The
bridal veils are new and different articles of commerce
distinguishable from the nylon tulle fabric and the headpiece
components that entered Canada. Also, based upon the
manufacturing steps that take place in Canada, as described
above, these operations are complex enough to be deemed
"substantial" for purposes of determining country of origin.
Accordingly, the country of origin of the bridal veils is Canada
and Canadian quota restraints and visa requirements apply.
U.S.-CANADA FREE-TRADE AGREEMENT APPLICABILITY
General Note 3(c)(vii) to the HTSUSA sets forth the terms
and conditions in which the United States-Canada Free-Trade
Agreement Implementation Act of 1988 applies. General Note
3(c)(vii)(F) provides:
Whenever the processing or assembly of goods in the
territory of Canada and/or the United States results
in one of the changes in tariff classification in
Canada described by the rules set forth in subdivision
(c)(vii)(R) of this note, such goods shall be
considered to have been transformed in the territory
of Canada and shall be treated as goods originating
in the territory of Canada ... .
General Note 3(c)(vii)(R) reads:
Change in Tariff Classification Rules
(11) Section XI: Chapters 50 through 63.
(oo) A change to any heading of Chapter 62 from
any heading outside that chapter other than
heading 5111 through 5113 ... or 6001 through
6002; provided, that the goods are both cut and
sewn in the territory of Canada and/or the United
States."
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As mentioned supra, the headpieces referenced Styles M100 and
M101, if imported alone, would be classifiable under heading
3926, HTSUSA. The headpieces referenced Styles M102 and M103, if
imported alone, would be classifiable under heading 6702, HTSUSA.
The fabric would have been classifiable under heading 5804,
HTSUSA. The finished bridal veils are classifiable under heading
6214, HTSUSA. This is a change in classification which results
in a substantial transformation for purposes of the CFTA
according to subdivision (c)(vii)(R)(11)(oo).
HOLDING:
The articles at issue are classifiable under subheading
6214.30.0000, HTSUSA, which provides for shawls, scarves,
mufflers, mantillas, veils and the like. The bridal veils are
eligible for preferential treatment under the CFTA and their
reduced rate of duty is 5.3 percent ad valorem.
The country of origin of the subject merchandise is Canada.
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 importing the merchandise to determine
the current applicability of any import restraints or
requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division