CLA-2 RR:CR:TE 967830 BtB
Janet L. Telles
Global Compliance Manager
Smith International Enterprises, Ltd.
20600 Chagrin Blvd.
Suite 200
Shaker Heights, OH 44122
Re: Classification of braid in the piece from Hong Kong; NY H87352 modified
Dear Ms. Telles:
On February 19, 2002, U.S. Customs and Border Protection (CBP) issued New York Ruling Letter (NY) H87352 to you. In NY H87352, CBP classified several samples of twine, yarns, and trimmings from Hong Kong under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).
Upon review of that ruling, we have found that the classifications provided for several samples are incorrect. This ruling, Headquarters Ruling Letter (HQ) 967830, hereby modifies NY H87352 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 modification of NY H87352 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 H87352, the samples at issue were identified as KS2, KS3, KS5 and KS6. In the ruling, KS3 and KS6 were described as:
They are described as polypropylene and metallic. KS3 and KS6 are braided yarns. KS3 has four polypropylene multifilament strands braided with two metallic strips. KS6 has four multifilament strands of polypropylene braided with four multi-ply strands of multifilament yarn gimped (that is, wrapped) with metallic strips.
Also in NY H87352, KS2 was described as: “… a braided yarn composed of multiple multifilament strands of textile and metallic textile strip.” KS5 was described as: “… a flat braided multifilament yarn gimped with metallic strip.” While not stated in NY H87352, KS5 has a core composed of four twisted single multifilament yarns, which are laid out flat in parallel fashion. Its sheath is composed of sixteen gimped metallic yarns (each is a single multifilament yarn gimped, or wrapped, with metallic strip). These metallic yarns are braided around the core yarns, which are laid out parallel to each other, creating the flat braid.
In NY H87352, CBP classified KS2 and KS3 under subheading 5605.00.1000, 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: Metal coated or metal laminated man-made filament or strip or the like, ungimped, and untwisted or with twist of less than 5 turns per meter.” Also in NY H87352, CBP classified KS5 and KS6 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 the samples identified as KS2, KS3, KS5 and KS6 are 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 the samples identified as KS2, KS3, KS5 and KS6 is not obtained by twisting, cabling or by gimping. Rather, all of these samples 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. Each of the samples is classified in subheading 5808.10, which provides for braids in the piece.
We note that while the samples identified as KS2, KS3, KS5 and KS6 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 each of the constructions 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, KS2, KS3 and KS6 are composed only of interlaced textile material. Accordingly, these articles are classified according to the textile material which predominates by weight. If the man-made fibers in these samples predominate by weight, the samples will be classified in subheading 5808.10.7000, 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: Of cotton or man-made fibers.” However, if the metallic strip in the samples predominates by weight, the samples will be 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.”
KS5 is composed of an exterior braid of sixteen gimped metallic yarns around a core of four twisted single multifilament yarns. 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 yarns impart the essential character of the good. The article, therefore, is classified in subheading 5808.10.9000, HTSUSA.
HOLDING:
The articles identified as KS2, KS3 and KS6 in NY H87352 are classified in subheading 5808.10, 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.” We are not able to classify these articles at the 8-digit or 10-digit level because we do not have information relating to which material predominates by weight in each construction. As a result, we cannot set forth a rate of the duty for the articles.
The article identified as KS5 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.” 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.
Note that if KS2, KS3, and/or KS6 are classified as of man-made fibers in subheading 5808.10.7000, HTSUSA, they will fall within textile category 229. Quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov.
EFFECT ON OTHER RULINGS:
NY H87352, dated February 19, 2002, is hereby modified as to the classification of KS2, KS3, KS5 and KS6. The classifications for the other articles in NY H87352 are correct and this ruling does not affect them. 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