CLA-2 CO:R:C:T 088777 CRS
Alice Wagner
C.J. Tower
128 Dearborn Street
Buffalo, New York 14207-3198
RE: Thermoplastic microdot coating is visible to the naked eye
such that everfuse interlining fabrics are considered coated for
the purposes of heading 5903. Modification of HRL 083993.
Dear Mrs. Wagner:
This in reply to your letter dated February 22, 1991, on
behalf of Canada Haircloth Co., Inc., on the classification of
coated fabrics from Canada under the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA). Fabric samples were
submitted.
FACTS:
You have submitted six sample fabrics colored white,
natural, tan, grey, charcoal and black. The charcoal and black
fabrics were previously ruled to be coated for tariff purposes.
Headquarters Ruling Letter (HRL) 083993 dated June 20, 1989.
However, this ruling held that the white, natural, tan and grey
fabrics were not visible to the naked eye. Nevertheless, you
state that Canada Hair Cloth's competitors have been importing
similar fabrics under the provision for coated fabrics of heading
5903. Accordingly, you have asked that we reconsider HRL 083993.
The fabrics are manufactured in Canada. They are a blend of
cotton and man-made fibers and are used in the manufacture of
apparel. For the purposes of this ruling we assume that they are
capable of providing a bond under the application of heat and
pressure.
ISSUE:
Whether the plastic thermodot coating applied to the instant
fabrics is visible to the naked eye such that the fabrics are
classifiable in heading 5903, HTSUSA.
LAW AND ANALYSIS:
Heading 5903, HTSUSA, covers textile fabrics impregnated,
coated, covered or laminated with plastics, other than those of
heading 5902. Note 2(a), Chapter 59, HTSUSA, provides that
fabrics are considered coated for the purposes of heading 5903
whatever the weight and nature of the plastic material, except
for those fabrics where the impregnation, coating or covering is
not visible to the naked eye.
The Harmonized Commodity Description and Coding System,
Explanatory Notes (EN), while not legally binding, nevertheless
constitute the official interpretation of the Harmonized System
at the international level. EN 59.03, 815-816, states in
pertinent part that among the fabrics deemed coated for tariff
purposes are:
textile fabrics which are spattered by spraying with
visible particles of thermoplastic material and are
capable of providing a bond to other fabrics under the
application of heat and pressure.
The instant fabrics have been spattered with a thermoplastic
material which we assume is capable of providing a bond to other
fabrics. The thermoplastic material resembles small crystalline
particles and is visible to the naked eye. HRL 086891 dated May
7, 1990.
Subheading Note 2, Section XI, HTSUSA, provides that
products of Chapters 56 to 63 containing two or more textile are
regarded as consisting wholly of that material which would be
selected under Note 2, Section XI, HTSUSA. Note 2 provides that
goods consisting of two or more materials are classifiable as if
they consisted wholly of that material which predominates by
weight over each other single textile material. The fabrics at
issue are a blend of cotton and man-made fibers and are therefore
classifiable at the subheading pursuant to Note 2, Section XI.
General Note 3(c)(vii), HTSUSA, provides in relevant part
that goods imported into the Customs territory of the United
States are eligible for treatment as goods originating in the
territory of Canada if they are wholly obtained or produced in
the territory of Canada. The instant fabrics are wholly produced
in Canada and are therefore eligible for special tariff treatment
under the United States-Canada Free-Trade Agreement.
HOLDING:
If the fabrics at issue are predominantly cotton by weight,
they are classifiable in subheading 5903.90.1000, HTSUSA, under
the provision for textile fabrics impregnated, coated, covered or
laminated with plastics . . . ; other; of cotton. As goods
originating in the territory of Canada they are dutiable at the
rate of 3.7 percent ad valorem.
If the fabrics are predominantly man-made fibers by weight,
they are classifiable in subheading 5903.90.2500, HTSUSA, under
the provision for textile fabrics impregnated, coated, covered
or laminated with plastics . . . ; other; of man-made fibers;
other; other. As goods originating in the territory of Canada
they are dutiable at the rate of 5.9 percent ad valorem and are
subject to quota category 229.
Whether classifiable as of cotton or as of man-made fibers,
the fabrics are not subject to quota/visa requirements.
In order to insure uniformity in Customs classification of
this merchandise and eliminate uncertainty, we are modifying HRL
083993 to reflect the above classification effective with the
date of this letter. However, if, after your review, you
disagree with the legal basis for our decision, we invite you to
submit any arguments you might have with respect to this matter
for our review. Any submission you wish to make should be
received within thirty days of the date of this letter.
This notice to you should be considered a modification of
HRL 083993 under 19 CFR 177.9(d)(1). It is not to be applied
retroactively to HRL 083993 (19 CFR 177.9(d)(2)) and will not,
therefore, affect past transactions for the importation of your
client's merchandise under that ruling. However, for the
purposes of future transactions in merchandise of this type, HRL
083993 will not be valid precedent. We recognize that pending
transactions may be adversely affected by this modification, in
that current contracts for importations arriving at a port
subsequent to this decision will be classified pursuant to it.
If such a situation arises, your client may, at its discretion,
notify this office and apply for relief from the binding effects
of this decision as may be warranted by the circumstances.
However, please be advised that in some instances involving
import restraints, such relief may require separate approvals
from other government agencies.
Sincerely,
John Durant, Director
Commercial Rulings Division