CLA-2 RR:CR:SM 560567 KSG
M. W. Rollin
Rudolph Miles & Sons, Inc.
417 Union Pacific Blvd.
P.O. box 2489
Laredo, Texas 78041
RE: Applicability of subheading 9802.00.90, HTSUS, to
women's blazers; findings; trim; fusible
material; Article 509
Dear Mr. Rollin:
This is in reference to your letter of June 6, 1997,
requesting a ruling regarding the applicability of
subheading 9802.00.90, Harmonized Tariff Schedule of the
United States ("HTSUS"), to certain women's blazers which
will be assembled in Mexico. Samples of a blazer and
fusible material were submitted with your request.
FACTS:
The subject of this ruling is a women's blazer made
from a blend of 55% polyester and 45% wool fabric. All of
the fabric except the fusible material is formed in the U.S.
The fusible material is formed in Germany. All of the
components are cut in the U.S. and assembled in Mexico. You
state that the cost of the fusible material is 4.5% of the
total value of the materials used in the production of the
garment. The purpose of the fusible material is to support
or reinforce stress areas such as behind buttons, button
holes and around the pocket. According to the product
specifications, the fusible material is also used in the
fronts, the panels, lapels, side gores, and at the neck edge
and bottom.
ISSUE:
Whether the fusible material is a "finding or trimming"
for purposes of determining whether the women's blazers will
qualify for the duty exemption available under subheading
9802.00.90, HTSUS.
LAW AND ANALYSIS:
Appendix 2.4 of Annex 300-B of the North American Free
Trade Agreement ("NAFTA") provides that:
On January 1, 1994, the U.S. shall eliminate customs
duties
on textile and apparel goods that are assembled in
Mexico
from fabrics wholly formed and cut in the United States
and
exported from and reimported into the United States
under:
(a) U.S. tariff item 9802.00.80.10; or
(b) Chapter 61, 62, or 63 if, after such assembly,
those goods
that would have qualified for treatment under
9802.00.80.10
have been subject to bleaching, garment dyeing, stone-
washing, acid-washing, or perma-pressing.
Thereafter, the U.S. shall not adopt or maintain any
customs duties on textile and apparel goods of Mexico
that satisfy the requirements of any successor provision
to U.S. tariff item 9802.00.80.10.
Consequently, subheading 9802.00.90, HTSUS, was created
to provide for the duty-free entry of:
textile and apparel goods, assembled in Mexico in which
all
fabric components were wholly formed and cut in the
United
States, provided that such fabric components, in whole
or in
part, (a) were exported in condition ready for assembly
without further fabrication, (b)have not lost their
physical identity in such articles by change in form,
shape or otherwise, and have not
been advanced in value or improved in condition abroad
except by being assembled and except by operations
incidental
to the assembly process; provided that goods
classifiable in
chapters 61, 62 or 63 may have been subject to
bleaching, garment dyeing, stone-washing, acid-washing
or perma-pressing after assembly as provided for
herein.
Because the enactment of subheading 9802.00.90, HTSUS,
specifically was intended to extend duty-free and quota-free
status to all goods which previously were eligible for entry
under the Special Regime Program, it is Custom's view that
all of the policy directives implementing this program
should be considered applicable for the administration of
subheading 9802.00.90, HTSUS. One policy under the Special
Regime Program included the allowance of "Findings,
trimmings, and certain elastic strips of foreign origin" to
be incorporated into the assembled good "provided they do
not exceed 25 percent of the cost of the components of the
assembled product." Examples of findings and trimmings are
sewing thread, hooks and eyes, snaps, buttons, bow buds,
lace trim, zippers, including zipper tapes and labels. See
53 Fed. Reg. 15726
(May 3, 1988).
The exception for findings and trimmings under the
Special Regime Program was intended to be of a restrictive
nature as the intent of the program was to ensure that all
fabric components be fully formed and cut in the U.S. For
example, the exception for foreign-origin elastic strips was
limited to strips of less than one inch in width. This
exception applied to brassiere straps only, and could not be
used for a more substantial component, such as waistbands,
which are in excess of one inch in width.
While "findings and trimmings" for purposes of the
Special Regime Program are not specifically defined, the
examples set forth above are indicative of the types of
components which may be considered exceptions to the
requirement that all fabric components be wholly formed and
cut in the U.S. Customs has previously held that
reinforcing tape is a finding or trimming" because it is
analogous to zipper tape (HRL 559552, dated February 14,
1996), but that a cotton velveteen collar (HRL 558954, dated
June 30, 1995), shoulder pads and sleeve headers (HRL
559552, dated February 14, 1996), a chest piece and suede
yoke and elbow patches (HRL 559738, dated July 2, 1996), and
a textile drawstring cord were not "findings or trimmings"
for purposes of the Special Regime Program.
In this case, the fusible material is more analogous to
lining or pocketing which under the Special Regime Program
were required to be wholly U.S. formed and cut. Therefore,
since the fusible material is a fabric component and is not
wholly formed and cut in the U.S., the women's blazers are
not eligible for duty-free treatment under subheading
9802.00.90, HTSUS, treatment upon return to the U.S.
HOLDING:
The fusible material used in the assembly of the
women's blazers is not considered a "finding" or "trimming".
Since the fusible material is a fabric component and is not
wholly formed in the U.S., the women's blazers are not
eligible for duty-free treatment under subheading
9802.00.90, HTSUS, upon return to the U.S.
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
Commercial Rulings Division