CLA-2 CO:R:C:G 083277 CRS
Mr. Mario A. Ruiz
Vice President
Sales and Marketing
Latin America/Caribbean
Smith & Nephew United, Inc.
P.O. Box 1970
Largo, Florida 34639-1970
RE: Woven Cotton Gauze Cloth from South Africa
Dear Mr. Ruiz:
This is in reply to John Lustig's letter of October 11,
1988, requesting a tariff classification ruling concerning the
above-referenced merchandise. A sample of the merchandise was
submitted with your request.
FACTS:
The article in question is a bolt of plain woven, bleached,
100 percent cotton fabric, manufactured in South Africa by your
affiliate, Smith & Nephew Ltd. The fabric contains 20 single
threads per inch in the warp and 14 single threads per inch in
the filling. The fabric weighs 16.6 g/m. The average yarn
number is 80 in the metric system.
You state that your company is responsible for coordinating
the export sales of your parent company, Smith & Nephew, P.L.C.,
and its affiliates, in Latin America and the Caribbean, including
Puerto Rico. Although you have no sales responsibilities within
the U.S. domestic market, you state that you may wish to hold
products manufactured by your South African affiliate in bond in
Miami for the sole purpose of re-exporting them to markets in
Latin America.
ISSUE:
Whether the cotton fabric in question is classifiable in
heading 5803 or heading 5208, HTSUSA, and whether this and other
products of South African origin may be held in bond in the
United States.
LAW AND ANALYSIS:
Articles are classified under the HTSUSA in accordance with
the General Rules of Interpretation (GRIs). GRI 1 provides that
the classification of articles is determined according to the
terms of the headings and any relative section or chapter notes
and, provided the headings or notes do not otherwise require,
according to the remaining GRIs taken in order.
Heading 5803, HTSUSA, covers gauze, other than narrow woven
fabrics of heading 5806. The Explanatory Notes, which constitute
the official interpretation of the Harmonized System at the
international level, state in regard to heading 5803 that:
The heading does not apply to plain loosely woven fabrics of
plain weave, such as those chiefly used for bandages and
dressings; these are often called gauze but fall in heading
30.05 (if medicated or put up in forms or packing for retail
sale for medical, surgical, dental or veterinary purposes)
or Chapters 50 to 55.
The gauze at issue is marketed to the hospital and medical market
and is therefore excluded from heading 5803.
Heading 5208, HTSUSA, covers woven fabrics of cotton,
containing 85 percent or more by weight of cotton, weighing not
more than 200 g/m. The Explanatory Note to heading 5802 states
in relevant part that:
This heading covers woven fabrics (as defined in Part (I)
(C) of the General Explanatory Note to Section XI) weighing
not more than 200 g/m, containing 85% or more by weight of
cotton.
The Note excludes bandages (heading 3005), fabrics of heading
5801, terry toweling of heading 5802, gauze (heading 5803) and
woven fabrics for technical uses (heading 5911). The fabric in
question is not covered by the enumerated exclusions. Moreover,
the fabric meets the technical specifications for inclusion in
heading 5802; it weighs less than 200 g/m and is more than 85
percent cotton by weight. Thus it is Customs' position that the
woven cotton fabric in question is classifiable in heading 5802,
HTSUSA.
However, in accordance with the Comprehensive Anti-Apartheid
Act of 1986, 22 U.S.C. 5001-5116, and the South African
Transactions Regulations, codified at 31 CFR, Part 545, certain
items produced or manufactured in South Africa are prohibited
from importation into the United States. 31 CFR 545.211,
specifically prohibits the importation of South African uranium
ore, uranium oxide, coal and textiles into the United States.
The Office of Foreign Assets Control, Department of Treasury,
regularly notifies the Customs Service of prohibited South
African articles under the HTSUSA. South African articles listed
by the Office of Foreign Assets Control as prohibited from
entering the United States include, inter alia, all textile
articles provided for in HTSUSA Chapters 50 to 63.
Other Agency Compliance Circular No. 196, CIE N-45/87, dated
July 21, 1987, provides in pertinent part that:
13. Entry of goods into Customs bonded warehouses or
admittance into foreign-trade zones is permissible only if
the goods would be permitted entry for consumption under
these instructions.
Since the entry for consumption of South African textile products
is prohibited, the entry of such merchandise in bond or its
admittance into a foreign-trade zone is similarly prohibited.
HOLDING:
The woven cotton gauze cloth in question is classifiable in
subheading 5208.21.6090, HTSUSA, under the provision for woven
fabrics of cotton..., bleached, plain weave, weighing not more
than 100 g/m, of number 69 or higher, cheesecloth; lawns, voiles
or batistes, and is subject to duty at a rate of 13.5 percent ad
valorem. The textile category is 226. Articles from South
Africa with this classification are prohibited from entering the
United States pursuant to the South African Transactions
Regulations (specifically, 31 CFR 545.211). Accordingly, Smith &
Nephew's proposed importation of woven cotton gauze cloth and
other South African products is prohibited. Further questions
concerning the prohibition of South African imports should be
directed to the Office of Foreign Assets Control, Department of
Treasury, Washington, D.C.
Sincerely,
John Durant, Director
Commercial Rulings Division