CLA-2 CO:R:C:G 083887 JS

TARIFF NO: 5807.10.1020

Mr. Dennis Macias
Expeditors International
of Washington, Inc.
880 Hinckley Road
P.O. Box 4389
Burlingame, CA. 94011-4389

RE: Classification of Labels - Modification of NYRL 831363

Dear Mr. Macias:

On September 12, 1988, a classification was issued (NYRL 831363) classifying various jacquard woven polyester labels intended for use on clothing in subheading 6307.90.3020, which provides for other made up articles, other, labels, other. Upon further consideration, that classification is determined to be in error.

FACTS:

The samples submitted with your request were several jacquard woven polyester labels. The labels depict various names, designs and letters, and are intended for use on clothing. Each label is rectangular in shape, with two selvaged edges and no embroidery. Two sides of each label are folded over and heat set.

ISSUE:

Are woven polyester clothing labels considered "made up" for purposes of classification under the HTSUSA?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is to be determined first in accordance with the terms of the headings of the tariff and

any relevant section or chapter notes. Goods which cannot be classified in accordance with GRI 1 are to be classified in accordance with subsequent GRI's, taken in order.

GRI 3 states, in pertinent part:

When, by application of Rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:

(a) The heading which provides the most specific description shall be preferred to headings providing a more general description.

Heading 5807 provides for labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered. Explanatory Note (2) in heading 5807 states that "They must be in the piece, in strips (as is usually the case) or in separate units obtained by cutting to size or shape but must not otherwise be made up."

In determining whether the labels are considered "made up", we turn to Section XI Note 7(c) which lists "hemmed" as one of the features that constitute "made up". This office has taken the position that the folding over of two sides and heat setting of the labels is not considered hemming as contemplated by the drafters of the HTSUSA. We believe the hem should be sewn in order to constitute hemming, even though the fold will be sewn when the label is sewn to the garment. Therefore, the sample labels are not considered made up, and are precluded from classification in heading 6307, HTSUSA.

HOLDING:

For the above stated reasons, and pursuant to 19 CFR 177.9(d), NYRL 831363 is modified to reflect that the subject labels are properly classifiable under subheading 5807.10.1020, HTSUSA, which provides for labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered, woven, labels, of man-made fibers. The textile category is 669 and the applicable rate of duty is 9 per cent ad valorem.

Due to the changeable nature of the statistical annotation and the restraint (quota/visa) categories applicable to textile merchandise, you should contact you local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

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 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 issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

Sincerely,

John Durant, Director
Commercial Rulings Division