CLA-2 RR:TC:SM 560557 KSG
Mr. Carlton Hershner
1601 Roam Court
Owing MD 20736-9785
RE: Eligibility of carpet for duty-free treatment under the
Generalized System of Preferences (GSP)
Dear Mr. Hershner:
This is in response to your letter of July 7, 1997,
asking if a carpet purchased by you in New Delhi, India
could be entered duty free under the GSP.
FACTS:
According to the invoice you enclosed, the carpet is
handmade/hand knotted. The fiber composition is 90% silk
and 10% cotton. The company preparing the invoice is
located in New Delhi, India.
ISSUE:
Whether the carpet is eligible for special tariff
treatment under GSP.
LAW AND ANALYSIS:
Under the GSP, eligible articles the growth, product or
manufacture of a designated beneficiary developing country
(BDC) which are imported directly into the customs territory
of the U.S. from a BDC may receive duty-free treatment if
the sum of (1) the cost or value of materials produced in
the BDC, plus (2) the direct costs of the processing
operations performed in the BDC, is equivalent to at least 35 percent
of the appraised value of the article at the time of entry
into the U.S. See
19 U.S.C. 2463(a). According to 19 U.S.C. 2463(b)(1)(A),
"{t}extile and apparel articles which were not eligible
articles for purposes of this subchapter on January 1,1994,"
may not be designated as GSP eligible articles.
Based on the information you have provided, the carpet
would be classified at subheading 5701.90.10.10, Harmonized
Tariff Schedule of the United States ("HTSUS"). General
Note 3(c)(I), HTSUS, provides, in part, that special tariff
treatment under the GSP is indicated in the "Special"
subcolumn in the tariff by the symbol "A" or "A*". Under
General Note 4(a), HTSUS, India is designated as a
beneficiary developing country for GSP purposes. However,
the "Special" subcolumn opposite subheading 5701.90.10.10,
HTSUS, does not contain the symbol "A" or "A*" for GSP
treatment. The general tariff rate of duty for the carpet
is 3.4% ad valorem.
HOLDING:
Based on the information you provided, the carpet would
be classified at subheading 5701.90.10.10, HTSUS, with a
1997 general rate of duty of 3.4 percent ad valorem. The
merchandise is not eligible for special tariff treatment
under the GSP.
A copy of this ruling letter should be attached to the
entry documents filed at the time this merchandise is
entered. If the documents have been filed without a copy,
this ruling should be brought to the attention of the
Customs officer handling the transaction.
Sincerely,
John Durant
Director
Tariff Classification Appeals
Division