CLA-2 CO:R:C:T 955457 CMR
TARIFF NO: 5310.10.00; 5310.90.00
Mr. David Seidler
The Grady-Travelers Company
146 Stewart Avenue
Brooklyn, New York 11237
RE: Revocation of HRL 083524 of June 12, 1989; Classification of
cloth squares; not made up articles; Note 7, Section XI;
Amendment to Explanatory Notes
Dear Mr. Seidler:
This office issued HRL 083524 to you on June 12, 1989. That
ruling classified certain cloth squares as other made up articles
of heading 6307 of the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA). The basis for this decision was our
interpretation of the meaning of the term "made up" for purposes
of the tariff. Note 7 of Section XI defines "made up" as it
applies to textiles classified in Section XI. The Explanatory
Notes to the Harmonized Commodity Description and Coding System
further explain the meaning of "made up" as it is used in Note 7.
While the Explanatory Notes are not legally binding, they are the
official interpretation of the Harmonized System at the
international level and provide assistance in determining the
proper interpretation of provisions within the tariff.
The Explanatory Notes underwent various amendments (Amending
Supplements 1 through 5) from 1988 to 1990. These amendments were
contained in the edition of the Harmonized Commodity Description
and Coding System Explanatory Notes (Complete First Edition (1986)
with Supplements 1, 2, 3, 4 and 5 Incorporated) issued February
1990 and distributed to Customs personnel. One of the amendments
related to the meaning of "made up" and revealed that our initial
interpretation of "produced in the finished state" as it is applies
to the term "made up" was partially incorrect. HRL 083524 was
based on early interpretations of the meaning of "produced in the
finished state, ready for use". Based upon the amended Explanatory
Notes, the decision in HRL 083524 is incorrect. Rulings issued
subsequent to receipt of the amended version of the Explanatory -2-
Notes have followed the interpretation evident by the amended
notes. As a result, in order to avoid confusion and ensure
uniformity of treatment, it is necessary to revoke HRL 083524.
Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), as
amended by section 623 of Title VI (Customs Modernization) of the
North American Free Trade Agreement Implementation Act, Pub. L.
103-182, 107 Stat. 2057, 2186 (1993) (hereinafter section 625),
notice of the proposed revocation of HRL 083524 was published April
27, 1994, in the Customs Bulletin, Volume 28, Number 17.
FACTS:
The samples at issue in HRL 083524 were hessian cloth squares.
The squares were described in HRL 083524 as follows:
. . . plain woven 100 percent jute products. They will be
imported in square shapes only, with dimensions varying from
28 by 28 inches to 72 by 72 inches. Two of the edges have
selvages while the other two edges are raw-cut. The squares
are intended to be used by nurseries to wrap the root systems
of plants and trees. The squares in their imported condition
will not be further cut or processed.
ISSUE:
Is the hessian jute cloth square properly classified as a made
up article?
LAW AND ANALYSIS:
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRIs). GRI 1 provides that
"classification shall be determined according to the terms of the
headings and any relative section or chapter notes and, provided
such headings or notes do not otherwise require, according to [the
remaining GRIs taken in order]."
Note 7, Section XI, defines the term "made up" as follows:
(a) Cut otherwise than into squares or rectangles;
(b) Produced in the finished state, ready for use (or merely
needing separation by cutting dividing threads)
without sewing or other working (for example,
certain dusters, towels, table cloths, scarf
squares, blankets);
(c) Hemmed or with rolled edges, or with a knotted fringe at
any of the edges, but excluding fabrics the cut edges of
which have been prevented from unravelling by whipping
or by other simple means; -3-
(d) Cut to size and having undergone a process of drawn
thread work;
(e) Assembled by sewing, gumming or otherwise (other than
piece goods consisting of two or more lengths of
identical material joined end to end and piece goods
composed of two or more textiles assembled in layers,
whether or not padded);
(f) Knitted or crocheted to shape, presented in the form of
a number of items in the length.
In classifying the cloth square as a made up article in HRL
083524, Customs stated therein:
It is our opinion that part (a) above only applies to
those squares and rectangles that require further cutting or
sewing or other processing to be adapted for their intended
use. The condition of the merchandise at issue is considered
in its finished state at the time of importation because no
further cutting or processing will take place. It is ready
for its intended use of covering the roots of plants and
trees.
As stated previously, in February 1990, an amended version of
the Explanatory Notes was available and distributed to Customs
personnel. One of the amendments contained therein was the
addition of a new paragraph to the notes which expound on the
language of Note 7, i.e., what is meant by "made up."
Specifically, the new paragraph expanded the explanation of the
language of Note 7(b), "produced in the finished state, ready for
use". It states:
However, rectangular (including square) articles simply
cut out from larger pieces without other working and not
incorporating fringes formed by cutting dividing threads are
not regarded as "produced in the finished state" within the
meaning of this Note. The fact that these articles may be
presented folded or put up in packings (e.g., for retail sale)
does not affect their classification.
The cloth square clearly falls within the scope of goods
addressed by this paragraph. It is square, cut from a larger piece
of fabric, does not have fringes and is presented as ready for use.
Based upon this clarifying paragraph, the cloth square is not a
"made up" article for purposes of Note 7, Section XI, and
therefore, HRL 083524 is incorrect. The cloth square is properly
classified as 100 percent jute fabric.
-4-
HOLDING:
HRL 083524 is hereby revoked. The cloth square is classified
as woven fabric of jute in subheading 5310.10.00, HTSUSA, if
unbleached. The applicable duty rate is free. If not unbleached,
the fabric is classified in subheading 5310.90.00, HTSUSA, with a
duty rate of 1 percent ad valorem.
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.
In accordance with section 625, this ruling will become
effective 60 days after its publication in the Customs Bulletin.
Publication of rulings or decisions pursuant to section 625 does
not constitute a change of practice or position in accordance with
section 177.10(c)(1), Customs Regulations (19 CFR 177.10 (c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division