CLA-2 CO:R:C:T 956965 ch
George Gallegos
St. James Textiles
5435 Balboa Boulevard
Suite 110
Encino, California 91316
RE: Classification of billiard table fabrics; part;
material; unfinished articles; GRI 2(a).
Dear Mr. Gallegos:
This is in response to your letter of August 22, 1994,
requesting tariff classification under the Harmonized Tariff
Schedule of the United States (HTSUS) for certain billiard table
fabrics. Samples were provided to this office for examination.
FACTS:
You have provided this office with the following background
information:
Common practice within the billiard industry is for
billiard table manufacturers to ship partially
assembled billiard tables to their respective
distributors throughout the country. The core parts of
the tables are shipped together, which includes the
slate, rails, legs and main table assembly. This is
done for two reasons. The first is to lower shipping
costs and the second is to allow the distributors to
offer custom features on the tables, such as different
colored billiard cloth and custom fitted pockets. As a
result, billiard distributors purchase whole rolls of
billiard fabric to accommodate the various sizes of
billiard tables. There are approximately 9 (nine)
different sizes of pool tables, each requiring a
different size of billiard fabric and approximately 20
different colors of billiard fabric. As a result, a
billiard distributor cannot stock cut pieces of every
type and color fabric for each size of table.
Therefore, the billiard fabric is only cut when the
distributor sells a finished table. The fabrics and
pockets are then installed at the table's place of use.
The billiard fabric industry is composed of four main
segments. There are specific billiard fabric products
which have been developed for use in specific or all
segments. Each of our billiard fabrics has been
designed to comply with essential industry criteria. A
complete listing of this criteria and technical
specifications are listed below:
PRODUCT # TECHNICAL/INDUSTRY SPECIFICATIONS
3043 Content: 60% wool, 40 % polyester
Weight: 350 gm/mtr2
Weight: 18 oz/yd
Finish: Non-directional, medium-high speed
ball
3066 Content: 75% wool, 25% nylon
Weight: 350 gm/mtr2
Weight: 18 oz/yd
Finish: Non-directional, medium-low ball
speed
3078 Content: 75% wool, 25% nylon
Weight: 400 gm/mtr2
Weight: 21 oz/yd
Finish: Non-directional, medium-ball speed
The four segments are listed below with the current
product number(s) which are being used in each segment:
SEGMENT PRODUCT #
Original Equipment Manufacturer 3043, 3066
Coin Operator 3043, 3066
Commercial Billiard Room 3078
Home 3078
ISSUE:
Whether the billiard table fabrics are classifiable in
subheading 5111.30.0500, HTSUS, which provides for woven fabrics
of carded wool or carded fine animal hair: other, mixed mainly
or solely with man-made staple fibers: tapestry fabrics and
upholstery fabrics of a weight exceeding 300 g/m2; or subheading
9504.20.8000, HTSUS, which provides for parts and accessories for
billiards?
LAW AND ANALYSIS:
As you recognize, Customs regards billiard table fabric as
an upholstery fabric of heading 5111, HTSUS. See Headquarters
Ruling Letter (HRL) 088129, dated January 24, 1991.
Consequently, you concede that the instant fabrics are prima
facie classifiable in this heading. However, you contend that
the fabrics are also described by subheading 9504.20.8000, HTSUS,
which provides for parts and accessories for billiards. On this
basis, you conclude that the merchandise is classifiable in two
headings. Therefore, classification must be effected according
to the rules of specificity, essential character or numerical
order set forth in General Rule of Interpretation 3, HTSUS.
Textile fabrics are regarded as materials and have a number
of potential applications. On the other hand, a part has been
processed to the point where it is an article suitable for use
solely or principally with a given object (e.g. a billiard
table). In light of this distinction, we do not agree that the
provisions for both upholstery fabric and parts for billiards
describe the merchandise. Rather, the issue presented is whether
the billiard fabric imported in the piece should be regarded as a
material or an article for classification purposes.
General Rule of Interpretation (GRI) 2(a) states in part
that:
Any reference in a heading to an article shall be taken
to include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete
or unfinished article has the essential character of
the complete or finished article.
Thus, if the fabric has the "essential character" of an article
which is a component for a billiard table, it may be classified
as a part.
In making this "essential character" determination, we are
mindful of judicial authority pertaining to the distinction
between materials and articles. In United States v. Buss & Co.,
5 Ct. Cust. Appls. 110, 113 (1914), the Court stated that:
The rule expressed by the decisions just cited
recognizes the fact that most small articles are not
produced as individual or separate products of the
loom, but for economy of manufacture are first woven
"in the piece." The rule of decision is therefore
established that where such articles are imported in
the piece and nothing remains to be done except to cut
them apart they shall be treated for dutiable purposes
as if already cut apart and assessed according to their
individual character or identity. This follows,
however, only in case the character or identity of the
individual articles is fixed with certainty and in case
the woven piece in its entirety is not commercially
capable of any other use.
This passage indicates that a bolt of fabric may be classified as
an article if the sole remaining processing operation is to cut
the fabric apart. However, this is so only if the fabric "is not
commercially capable of any other use" and "the character or
identity of the individual articles is fixed with certainty."
In Coraggio Design, Inc. v. United States, 12 CIT 143
(1988), rolls of woven drapery fabric measuring 118 inches wide
by 50 yards long were imported from Italy. The fabric
incorporated a hem on the bottom portion of the roll. In that
decision, the Court stated:
The Court finds that the production step of inserting
the "Continental hem" comports with the first part of
the Buss rule in that the addition of the hem dedicates
the material in question for use solely as a drapery,
commercially unsuitable for any other use. The
imported merchandise fails to satisfy the second
requirement of Buss, however, since the addition of the
hem does not fix the identity of an individual drapery
with certainty. It is well settled that "no matter how
close the importation is to the finished article or how
dedicated it is to a single use, it remains a material
until the identity of actual articles can be seen
emerging with certainty from the undifferentiated
material." (Citations omitted).
* * *
The subject merchandise is imported in rolls or bolts;
the sizes and shapes of the draperies will vary
according to the orders received; and the fabric is
sold by the yard. A specific drapery cannot be seen
emerging from the fabric. Rather, there remain
significant processing steps after importation: the
drapery fabric must be cut according to specifications;
side hems, crinoline, and pleats must be added; and the
drapery must be folded.
Thus, the Court conceded that the fabric was dedicated for use as
drapes. However, the fabric was not classifiable as an
unfinished article as the identity of the article had not been
fixed. Specifically, the outline of the individual drapes was
not evident in the imported rolls. Furthermore, significant
processing steps, such as cutting to specific size, the addition
of side hems, crinoline and pleats, were executed after
importation. Accordingly, the fabric was classifiable as a
material for classification purposes.
The merchandise at issue in Coraggio is substantially
similar to the instant billiard table fabrics. For the sake of
argument, we will assume that the fabrics are incapable of any
use other than as upholstery for billiard tables. However, we
note that there are no lines of demarcation to indicate the
outline of individual billiard tables. Consequently, the
identity of the finished component has not been fixed with
certainty at the time of importation. Furthermore, you state
that the fabrics are imported in the piece for the very purpose
of accommodating several sizes of billiard tables for various
segments of the billiard industry. As a result, the fabrics must
be cut to specific size and otherwise modified after importation.
It should be noted that judicial authority in this area was
decided under the prior tariff, the Tariff Schedules of the
United States (TSUS). Therefore, these cases are not dispositive
of the outcome under the HTSUS. However, they are instructive to
the extent that both the TSUS and the HTSUS contain related
provisions for the classification of unfinished articles.
At the time of importation, the billiard table fabrics are
materials which have a number of potential applications. The
fabrics do not possess lines of demarcation dedicating them to a
particular size or shape. Hence, they have not been processed to
the point that they may be regarded as parts for finished tables.
Therefore, we conclude that the rolls of billiard fabric do not
possess the essential character of an unfinished article pursuant
to GRI 2(a). Accordingly, the billiard table fabrics are
classifiable as an upholstery fabric of heading 5111, HTSUS.
HOLDING:
The subject merchandise is classifiable under subheading
5111.30.0500, HTSUS, which provides for woven fabrics of carded
wool or of carded fine animal hair: other, mixed mainly or
solely with man-made staple fibers: tapestry fabrics and
upholstery fabrics of a weight exceeding 300 g/m2. The
applicable rate of duty is 7 percent ad valorem. The textile
quota category is 414.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are the subject of frequent negotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report on Current Import Quotas (Restraint Levels), an 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, you should contact the local
Customs office prior to importing the merchandise to determine
the current status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division