CLA-2 CO:R:C:G 087388 CC

Mr. R.L. Rostogi
Paramount Trading Corp.
11th Floor
131 West 35th Street
New York, NY 10001-2111

RE: Reconsideration of HRL 086644; polypropylene packing material coated with plastic; plastic not visible; not classifiable in Heading 5903; classifiable in Heading 5407

Dear Mr. Rostogi:

This letter is in response to your inquiry of June 7, 1990, requesting reconsideration of Headquarters Ruling Letter (HRL) 086644, dated June 1, 1990. That ruling concerned the classification of polypropylene packing material.

FACTS:

The merchandise at issue is fabric woven from cut pieces of clear polypropylene, which is coated on one side with clear polypropylene plastic. In HRL 086644, we stated that the plastic coating was not visible and classified this merchandise under subheading 5407.20.0000 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

You state that classification of the same merchandise under the Tariff Schedules of the United States (TSUS), New York Ruling Letter (NYRL) 818886 of June 16, 1986 and NYRL 821565 of January 12, 1987, did not result in any quota or visa requirements. The recent ruling under the HTSUSA resulted in quota and visa requirements, which you believe is inconsistent with the prior rulings.

ISSUE:

Whether the merchandise at issue is classifiable in Heading 5903, HTSUSA, as textile fabrics impregnated, coated, covered or laminated with plastics?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Note 2 to Chapter 59 states that Heading 5903 applies to the following:

(a) Textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square meter and whatever the nature of the plastic material (compact or cellular), other than:

(1) Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change of color.

We have carefully examined a sample, and the coating is not visible to the naked eye. Therefore the merchandise at issue is not classifiable in Heading 5903.

Chapter 54 provides for man-made filaments. Note 8 to Section XI, HTSUSA, states that Chapters 50 to 55 do not apply to goods made up as defined in Note 7. Note 7 to Section XI defines the expression "made up." We do not believe that the merchandise at issue meets the definition of a "made up" article; therefore, it is classifiable in Heading 5407.

The HTSUSA replaced the TSUS as our statutory tariff schedule on January 1, 1989, pursuant to the enactment of the Omnibus Trade and Competitiveness Act of 1988, 1204(c), 19 U.S.C.A. 3004 (c) (West Supp. 1989). Although implementation of the HTSUSA was intended to be, to the extent practicable, duty and quota neutral, some changes were unavoidable when converting from our previously national TSUS to the HTSUSA. It appears that the merchandise at issue is one of those articles in which implementation of the HTSUSA resulted in a change in the textile category designation.

If you have further questions concerning textile visa and quota requirements for the merchandise at issue, you may write the United States Department of Commerce, Committee for the Implementation of Textile Agreements, at the following address:

Chairman Committee for the Implementation of Textile Agreements U.S. Department of Commerce, Room 3001 Washington, D.C. 20230

HOLDING:

The merchandise at issue is classified under subheading 5407.20.0000, HTSUSA, which provides for woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of Heading 5404, woven fabrics obtained from strip or the like. The rate of duty is 17 percent ad valorem, and the textile category is 620.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your 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 internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

HRL 086644, dated June 1, 1990, is affirmed.


Sincerely,

John Durant, Director
Commercial Rulings Division