CLA-2 CO:R:C:G 084635 DSN
Salvatore E. Caramagno, Esquire
Ross & Hardies
888 16th Street, N.W.
Washington, D.C. 20006-4103
RE: Reconsideration of NYRL 832074 of November 28, 1988
Dear Mr. Caramagno:
This ruling letter is in response to your inquiry of May
12, 1989, on behalf of Frontenac Industries, Inc., for
reconsideration of NYRL 832074 of November 28, 1988, regarding
classification and the applicablility of subheading 9802.00.80,
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), for certain vertical blinds to be imported from Canada.
A sample and photographs were submitted for examination.
FACTS:
The blinds at issue are described as room darkening blinds.
They contain a horizontal aluminum housing which is designed for
mounting on a ceiling or wall. The housing supports a number of
vertical plastic opaque slats. There are two pull cords. One
pull cord allows the slats to be rotated 180 degrees so that
light can be let in or kept out of the room. The other pull cord
allows the slats to be positioned uniformly across the length of
the housing or pulled to either end of the housing.
The slats are approximately 3-3/4 inches wide. The slats
are composed of a rigid plastic vane and a piece of acrylic
fabric. The fabric is connected to the vane by spraying a small
amount of glue to the top of each grooved vane, then sliding the
fabric piece between the lips of the grooves. The fabric and
plastic vane are stapled together with a plastic rivet.
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NYRL 832074 of November 28, 1988 classified the blinds
under subheading 6303.99.0010, HTSUSA. You assert that the
blinds should be classified under subheading 3925.30.10, HTSUSA.
ISSUE:
ISSUE ONE
Whether the blinds at issue are classifed under subheading
6303.99.0010, HTSUSA, or under subheading 3925.30.10, HTSUSA.
ISSUE TWO
Whether the merchandise at issue when returned to the U.S.,
is eligible for the partial duty exemption in subheading
9802.00.80, HTSUSA.
LAW AND ANALYSIS:
ISSUE ONE
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. When an article consists of more than one
component as in this case, GRI 3 is applicable.
GRI 3(a) provides that the heading that is most specific
shall be preferred. However, when two or more headings refer to
part only of the materials or substances contained in composite
goods, those headings are to be regarded as equally specific in
relation to those goods, even if one of them gives a more
complete or precise description of the goods. Heading 3925,
HTSUSA, provides for builders' wares of plastics, not elsewhere
specified or included. Heading 6303, HTSUSA, provides for
curtains and interior blinds, curtain or bed valances.
The chapter notes to chapter 63, HTSUSA, provide that
subchapter 1 applies only to made up articles, of any textile
fabric. Since the blinds at issue are composed of plastic and
textile, we cannot determine by relative specificity that heading
6303 is more specific. Therefore, we proceed to GRI 3(b).
GRI 3(b) provides that composite goods consisting of
different components, are classified by the component which gives
them their essential character. The Explanatory Notes constitute
the official interpretation of the tariff at the international
level. The Explantory Notes to GRI 3(b), state that essential
character may be determined by the nature of the component, its
bulk, quantity, weight or value, or by the role of a constituent
material in relation to the use of the goods.
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According to your submissions the plastic portion
constitutes 65 percent of the weight of the blinds and 58 percent
of the total cost of the blinds. The role of the plastic in
relation to the use of the goods is to block natural light by
virtue of the plastic opaque slats. The function of the textile
portion is that it provides a textured appearance to the plastic,
but does not contribute to the darkening of the room. Therefore,
we believe that the essential character of the blinds at issue is
imparted by the plastic portion. NYRL 832074 is amended
accordingly.
ISSUE TWO
Subheading 9802.00.80, HTSUSA, applies to articles
assembled abroad in whole or in part of fabricated components,
the product of the U.S., with no operations performed thereon
except the attachment of the components to form the imported
merchandise and operations incidental thereto. An article
classified under subheading 9802.00.80, HTSUSA, is subject to
duty upon the full appraised value of the imported article, less
the cost or value of such products of the U.S.
Section 10.16(a), Customs Regulations (19 CFR 10.16(a)),
provides that assembly operations performed abroad may consist of
any method used to join or fit together solid components, such as
welding, gluing or the use of fasteners, and may be preceded,
accompanied, or followed by operations incidental to the
assembly.
Section 10.16(b), Customs Regulations (19 CFR 10.16(b)),
provides that operations incidental to the assembly process
whether performed before, during, or after assembly, do not
constitute further fabrication, and shall not preclude the
application of the exemption. Operations specified in this
provision as incidental to the assembly process include cutting
to length of wire, thread, tape foil and similar products
exported in continuous length.
In the present case, the assembly operation involve cutting
the fabric to length in Canada and then glueing and fastening to
another component, the plastic vane. This operation is
incidental to the assembly process.
HOLDING:
The merchandise at issue is classified under subheading
3925.30.1000, HTSUSA, which provides for builders' ware of
plastics, not elsewhere specified or included, shutters, blinds
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(including venetian blinds) and similar articles and parts
thereof, blinds. The rate of duty, if this merchandise is
considered "goods originating in the territory of Canada", is 3
percent ad valorem under the Special duty rate column.
Otherwise, the merchandise is dutiable at the rate of 3.36
percent ad valorem.
NYRL 832074 of November 28, 1988 is modified in accordance
with this ruling.
Allowances in duty may be made under subheading 9802.00.80,
HTSUSA, for the cost or value of the U.S. made fabric upon return
of the vertical blinds, provided the documentation requirements
of section 10.24, Customs Regulations (19 CFR 10.24) are
satisfied.
Sincerely,
John Durant, Director
Commercial Rulings Division