CLA-2 RR:CR:TE 967828 BtB
Ms. Yolanda S. Massey
Import Manager
Michaels Stores, Inc.
8000 Bent Branch Dr.
Irving, Texas 75063
Re: Classification of braid in the piece; NY J82797 revoked
Dear Ms. Massey:
On April 10, 2003, U.S. Customs and Border Protection (CBP) issued New York Ruling Letter (NY) J82797 to Michaels Stores, Inc. (“Michaels”). In NY J82797, CBP classified two articles identified as Vendor Style # MXT-12209, Sample A and Sample B, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).
Upon review of that ruling, we have found that the classifications provided for these articles are incorrect. This ruling, Headquarters Ruling Letter (HQ) 967828, hereby revokes NY J82797 and sets forth the correct classification of those samples.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), 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), notice of the proposed revocation of NY J82797 was published in the Customs Bulletin, Volume 40, Number 2, on January 4, 2006. CBP received no comments during the notice and comment period that closed on February 3, 2006.
FACTS:
In NY J82797, Sample A and Sample B were described as follows:
Sample A is described as 100% polyester. It is composed of six gimped strands (a multifilament core wrapped by a strip) mixed with numerous strips. They are all braided together. It is flat and measures 1/8” across.
Sample B is a braided nylon core sheathed in braided textile strip. It measures 1/16” in diameter.
The strip in Sample A and Sample B is metallic. Both articles are made in Taiwan. In NY J82797, CBP classified Sample A and Sample B under subheading 5605.00.9000, HTSUSA, which provides for “Metalized yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal: Other.”
ISSUE:
Whether Sample A and Sample B were properly classified in heading 5605, HTSUSA, as metalized yarns or are they classified as braid in the piece in heading 5808, HTSUSA.
LAW AND ANALYSIS:
Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides, in part, that classification decisions are to be "determined according to the terms of the headings and any relative section or chapter notes." If the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied, in order.
The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI. While neither legally binding nor dispositive of classification issues, the EN provide commentary on the scope of each heading of the HTSUSA and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
Heading 5605, HTSUSA, provides for “Metalized yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal.” The ENs to heading 5605 state that, among other articles, the heading covers:
Yarn consisting of any textile material (including monofilament, strip and the like and paper yarn) combined with metal thread or strip, whether obtained by a process of twisting, cabling or by gimping, whatever the proportion of the metal present ….
Braided constructions are not provided for in the terms of heading 5605 or mentioned in the ENs to that heading.
Heading 5808, HTSUSA, however, does provide for braided constructions. In its entirety, the heading provides for: “Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles.” The ENs to heading 5808 state that the products classified in the heading, among other articles, include:
(1) Flat or tubular braids.
These are obtained by interlacing diagonally yarns, or the monofilament, strip and the like of Chapter 54.
* * * * * *
Braid is made on special machines known as braiding or spindle machines.
Varieties of braid include lacing (e.g., for boot or shoe laces), piping, soutache, ornamental cords, braided galloons, etc. Tubular braid may have a textile core.
Braid is used for edging or ornamenting certain articles of apparel (e.g., decorative trim and piping) or furnishing articles (e.g., tiebacks for curtains), as sheathing for electrical wiring, for the manufacture of certain shoes laces, anorak or track suit cords, cord belts for dressing gowns, etc.
The construction of Sample A or Sample B is not obtained by twisting, cabling or by gimping. Rather, both are of braided construction. The articles are not yarns, but braids in the piece. They are, therefore, classified pursuant to GRI 1, under heading 5808, HTSUSA, which specifically provides for such articles. Both samples are classified in subheading 5808.10, which provides for braids in the piece.
We note that while Sample A and Sample B may not be strictly decorative, they are not as tightly plaited and compact as the braided articles of heading 5607, HTSUSA, and are not suitable for the uses set forth for articles classified in that heading (as twine, cordage, ropes or cables). See generally, HQ 965230, dated June 3, 2002.
While a yarn that contains any amount of metal is regarded in its entirety as a “metalized yarn,” a braid of heading 5808, HTSUSA, that contains any amount of metal is not regarded in its entirety as being of metalized yarn. The metallic strip in Sample A and Sample B is considered textile for tariff purposes because it meets the dimensional requirements of man-made fiber textile strips set forth in Note 1(g) to Section XI, HTSUSA.
As the braids at issue are classified under heading 5808, HTSUSA, and contain two or more textile materials, Subheading Note 2 to Section XI, HTSUSA, is applicable to them. Subheading Note 2, in pertinent part, states:
2. (A) Products of chapters 56 to 63 containing two or more textile
materials are to be regarded as consisting wholly of that textile
material which would be selected under note 2 to this section for
the classification of a product of chapters 50 to 55 or of heading
5809 consisting of the same textile materials.
(B) For the application of this rule:
(a) Where appropriate, only the part which determines the
classification under general interpretative rule 3 shall be
taken into account[.]
Note 2 to Section XI, HTSUSA, in turn, states:
Goods classifiable in chapters 50 to 55 or in heading 5809 or 5902 and of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over each other single textile material.
Where braids in the piece of heading 5808, HTSUSA, are composed only of interlaced textile material, the braid is akin to fabric of headings 50 to 55 and will be classified according to the textile material which predominates by weight pursuant to Note 2 to Section XI, HTSUSA. However, where braids in the piece of heading 5808, HTSUSA, are composed of an exterior braid of one material around a core of a different material, it is appropriate, pursuant to Subheading Note 2 to Section XI, HTSUSA, to take into account only the part which determines the classification of the braid under GRI 3. See HQ 957751, dated June 6, 1995. It would be in error to use chief weight alone to decide classification of the braid. Id. Such braids constitute composite goods. GRI 3(b) directs that for a composite good consisting of different materials, which cannot be classified by reference to GRI 3(a), classification shall be according to the component that imparts the essential character of the good.
In the case at hand, Sample A is composed only of metalized material. Note that the gimped strands in the construction, individually, are considered metalized yarns because their multifilament core is wrapped by metalized strip. Consequently, Sample A is classified in subheading 5808.10.9000, HTSUSA, which provides for: “Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles: Braids in the piece: Other: Other.”
Sample B, however, is composed of an exterior braid of metallic strip around a nylon core. Pursuant to Subheading Note 2 to Section XI, HTSUSA, it is appropriate to take into account only the part which determines the classification of the braid under GRI 3. The braid cannot be classified pursuant to GRI 3(a). Under GRI 3(b), the exterior metallic strip imparts the essential character of the good. Sample B, therefore, is also classified in subheading 5808.10.9000, HTSUSA.
HOLDING:
The articles identified as Sample A and Sample B in NY J82797 are classified in subheading 5808.10.9000, HTSUSA, which provides for: “Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles: Braids in the piece: Other: Other.” The applicable column one, general duty rate under the 2006 HTSUSA is 4.2 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUSA and the accompanying duty rates are provided on the world wide web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY J82797, dated April 10, 2003, is hereby revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial & Trade Facilitation Division