CLA-2-63:RR:NC:TA:349 D84863
Dr. Eric Kochman
Thermosoft International Company
800 E. Northwest Highway, Suite 700
Palatine, IL 60067
RE: The tariff classification of an electrically heated automobile
throw and seat pad from China
Dear Dr. Kochman:
In your letter dated November 1, 1998, received by this office
on November 19, 1998, you requested a classification ruling.
You have submitted two items referred to as the "Thermo Throw"
and the "Thermo SoftPad". These items are electrically heated
using narrow woven tapes that contain copper wire and/or carbon
fibers. The "Thermo Throw" is made from a 100 percent polyester
knit pile fabric and it measures 42 x 54 inches. The "Thermo
SoftPad" is made from 100 percent polyester knit pile fabrics that
have been laminated to an approximately 1/16 inch thick layer of
plastic foam. The pad measures 18 inches square. Both the pad and
the throw are made from two layers of the knit fabrics with the
electroconductive tapes arranged between the layers. They are
designed to plug into an automobile's 12 volt electrical system.
The seat pad is made for the front seat, while the throw is made to
cover the rear bench seat of an automobile.
The heating tapes and bus conductors are woven in the United
States. The 60 inch wide knit pile fabrics, fusible interfacing,
fusible webbing and thermostats are also made in the United States.
The 60 inch wide fusible interfacing is cut into 19, 12.5 and 2
inch widths. These items and manufacturing equipment are shipped
to China. Although the source country was not identified, you
indicated that the power cord, cigarette lighter adapter, tuck
tape, thread and small connectors were not products of the United
States. All of the various components are cut, sewn and assembled
into the throw and seat pad in China.
The applicable subheading for the "Thermo Throw" and the
"Thermo SoftPad" will be 6304.91.0040, Harmonized Tariff Schedule
of the United States (HTSUS), which provides for other furnishing
articles, excluding those of heading 9404: other: knitted or
crocheted... of man-made fibers. The duty rate will be 9.2 percent
ad valorem. Effective January 1, 1999, the duty rate will be 8.6
percent ad valorem.
You have also requested a ruling on whether the United States
origin fabrics tapes, webbing, interfacing and thermostats qualify
as a United States fabricated component for purposes of subheading
9802.00.8065, HTSUS. Subheading 9802.00.80, HTSUS, provides a
partial duty exemption for articles assembled abroad in whole or in
part of fabricated components, the product of the United States,
which were exported in condition ready for assembly without further
fabrication, have not lost their physical identity in such articles
by change in form, shape or otherwise, and have not been advanced
in value or improved in condition abroad except by being assembled
and except by operations incidental to the assembly process such as
cleaning, lubrication, and painting.
All three requirements of subheading 9802.00.80, HTSUS, must
be satisfied before a component may receive a duty allowance. An
article entered under this tariff provision is subject to duty upon
the full value of the imported assembled article, less the cost or
value of such U.S. components, upon compliance with the documentary
requirements of Section 10.24, Customs Regulations (19 C.F.R.
10.24).
Section 10.14(a), Customs Regulations [19 C.F.R. 10.14(a)],
states that the components must be in a condition ready for
assembly without further fabrication at the time of their
exportation from the United States to qualify for the exemption.
Components will not lose their entitlement to the exemption by
being subjected to operations incidental to the assembly either
before, during, or after their assembly with other components.
Section 10.16(a) Customs Regulations [19 C.F.R. 10.16(a)] provides
that the assembly operation performed abroad may consist of any
method used to join or fit together solid components, such as
welding, soldering, riveting, force fitting, gluing, laminating,
sewing, or the use of fastener.
The narrow woven heating tapes, bus conductors and the fusible
webbing are cut to the necessary lengths and are assembled by
sewing and gluing. The cutting to length of these components is an
operation that is incidental to the assembly. The thermostats are
in a condition ready for simple assembly. The polyester knit pile
fabrics are cut to length and width in China. Cutting fabric to
length and width abroad is not an acceptable assembly operation or
an operation incidental to assembly, but rather is a further
fabrication of the fabric. These cutting operations are similar to
cutting fabric to a specific pattern piece. The fusible
interfacing is cut into three different sizes in the United States.
We could not ascertain from the samples or the supplied information
whether these cut pieces of fusible interfacing are only cut to
length or cut to both length and width in China.
The cutting to length and width of the various polyester knit
pile fabrics is considered a further fabrication and they are not
eligible for an allowance in duty. The cutting to length and
assembling of the heating tapes, bus conductors and fusible webbing
are acceptable operations for the purposes of reduced duty
treatment in heading 9802. Therefore, the "Thermo Throw" and
"Thermo SoftPad" may enter under subheading 9802.00.8065, HTSUS,
with allowances in duty for the cost or value of the U.S. produced
heating tapes, bus conductors, fusible webbing and thermostats,
upon compliance with the documentary requirements of 19 C.F.R.
10.24. Similarly, if the U.S. produced fusible interfacing is
merely subject to incidental trimming, such as cutting to length,
and not further fabricated, then they may also qualify for duty
allowance under subheading 9802.00.8065, HTSUS, upon compliance
with the documentary requirements of 19 C.F.R. 10.24.
Section 12.130(c) of the Customs Regulations [19 C.F.R.
12.130(c)] in referring to the origin of articles exported for
processing and returned, provides in part that:
Chapter 98, Subchapter II, Note 2, Harmonized Tariff Schedule
of the United States, provides that any product of the U.S.
which is returned after having been advanced in value or
improved in condition abroad, or assembled abroad, shall be a
foreign article for the purposes of the Tariff Act of 1930, as
amended. In order to have a single definition of the term
"product of" and, therefore, a single country of origin for a
textile or textile product, notwithstanding paragraph (b),
merchandise which falls within the purview of Chapter 98,
Subchapter II, Note 2, Harmonized Tariff Schedule of the
United States, may not, upon its return to the U.S., be
considered a product of the U.S.
According to T.D. 90-17, published in the Federal Register on
March 1, 1990 (55 FR 7303), the principles of country of origin for
textiles and textile products contained in 19 C.F.R. 12.130 are
applicable to such merchandise for all purposes, including quota,
duty and marking. Therefore, 19 C.F.R. 12.130(c) must be applied
to determine the country of origin of the subject throw and seat
pad for quota, marking and duty purposes. As the "Thermo Throw"
and the "Thermo SoftPad" will be eligible for subheading
9802.00.80, HTSUS, which falls within the purview of Chapter 98,
Subchapter II, Note 2, HTSUS, the throw and seat pad may not be
considered a product of the U.S. Rather, the throw and seat pad
shall be considered a product of China.
You also indicate in your submission that you will supply
United States made equipment and machine parts to the assembler in
China. Assuming that the equipment and parts are provided free or
at a reduced cost to the Chinese company, the parts and equipment
constitute an assist as defined in Section 152 of the Customs
Regulations [19 C.F.R. 152.102(a)]. Under Section 152 of the
Customs Regulations, to the extent that the value of the assist is
not otherwise included in the price actually paid or payable for
the merchandise, the value of the assist must be added to the price
paid or payable for the merchandise in determining the transaction
value of the imported merchandise (19 C.F.R. 152.102, 19 C.F.R.
152.103).
The "Thermo Throw" and the "Thermo SoftPad" fall within
textile category designation 666. Based upon international textile
trade agreements products of China are subject to quota and the
requirement of a visa.
The designated textile and apparel categories may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Part
categories are the result of international bilateral agreements
which are subject to frequent renegotiations 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 internal issuance of the U.S.
Customs Service, which is available for inspection at your local
Customs office.
This ruling is being issued under the provisions of Part 177
of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above
should be provided with the entry documents filed at the time this
merchandise is imported. If you have any questions regarding the
ruling, contact National Import Specialist John Hansen at 212-466-5854.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division