CLA-2 CO:R:C:T 953506 CC
Ms. Patti Noble
Schenkers International Forwarders, Inc.
4709 LaGuardia Dr.
St. Louis, MO 63134
RE: Revocation of HRL 085325; cork laminated to a fabric
backing
Dear Ms. Noble:
In Headquarters Ruling Letter (HRL) 085325, dated November
21, 1989, we issued a ruling to you, classifying cork laminated
to a fabric backing in Heading 4502 of the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA). We have had
the occasion to review this ruling and find that it is in error.
FACTS:
The merchandise at issue consists of a material backing that
has been laminated with cork. It is made up of a thin layer of
glued-up and sliced cork veneer laminated to a woven unbrushed
fabric. The fabric is 70 percent polyester and 30 percent rayon.
The value of the cork exceeds the value of the fabric by ten
times. The weight of the cork exceeds the weight of the fabric.
The material is to be used to decorate the heels of women's
shoes. It can also be used for decorating other articles such as
belts or purses.
ISSUE:
Whether the merchandise at issue is classifiable in Heading
4502, HTSUSA, or in Heading 4503, HTSUSA?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes.
Heading 4502 provides for natural cork, debacked or roughly
squared, or in rectangular (including square) blocks, plates,
sheets or strip (including sharp-edged blanks for corks or
stoppers). Heading 4503 provides for articles of natural cork.
The Harmonized Commodity Description and Coding System,
Explanatory Notes, the official interpretation of the HTSUSA at
the international level, states at page 648 that Heading 4502
covers products which have been further worked into the form of
rectangular (including square) blocks, plates, sheets or strip
obtained from the bulk cork of Heading 4501, by slicing both
faces and cutting the edges at right angles. Such products
remain classified in this heading whether or not consisting of
layers of cork placed one above the other and glued together.
Blocks, plates, sheets and strip cut to shapes other than
rectangular (including square) are regarded as articles of cork
(Heading 4503).
In HRL 952504, dated January 12, 1993, we ruled on
merchandise made by laminating layers of cork together to produce
thick blocks, slicing the blocks to produce thin veneer sheets,
and laminating the cork veneer sheets to the fabric. We found
that those operations go beyond that contemplated for natural
cork of Heading 4502, according to the Explanatory Notes. Thus,
those operations produced an article of natural cork of Heading
4503.
The merchandise at issue is similar to that of HRL 952504.
Consequently, it is classifiable in Heading 4503.
HOLDING:
The merchandise at issue is classified under subheading
4503.90.6000, HTSUSA, which provides for articles of natural
cork, other, other. The rate of duty is 18 percent ad valorem.
In order to insure uniformity in Customs classification of
this merchandise and eliminate uncertainty, we are revoking
HRL 085325 to reflect the above classification effective with the
date of this letter. However, if after your review, you disagree
with the legal basis for our decision, we invite you to submit
any arguments you might have with respect to this matter for our
review. Any submission you wish to make should be received
within 30 days of the date of this letter.
This notice to you should be considered a revocation of
HRL 085325 under 19 CFR 177.9(d)(1). It is not to be applied
retroactively to HRL 085325 (19 CFR 177.9(d)(2)) and will not,
therefore, affect past transactions for the importation of your
client's merchandise under that ruling. However, for the
purposes of future transactions in merchandise of this type,
HRL 085325 will not be valid precedent. We recognize that
pending transactions may be adversely affected by this
revocation, in that current contracts for importations arriving
at a port subsequent to this decision will be classified pursuant
to it. If such a situation arises, your client may, at its
discretion, notify this office and apply for relief from the
binding effects of this decision as may be warranted by the
circumstances. However, please be advised that in some instances
involving import restraints, such relief may require separate
approvals from other government agencies.
Sincerely,
John Durant, Director
Commercial Rulings Division