CLA-2 CO:R:C:T 953503 CC

Michael C. Dolina
Universal Convertors and Importers, Inc.
9303 East 46th Street
Tulsa, Oklahoma 74145-7700

RE: Revocation of HRL 086089; HRL 084797; classification of cork laminated to a fabric backing

Dear Mr. Dolina:

In Headquarters Ruling Letter (HRL) 084797, dated August 29, 1989, we issued a ruling to you, classifying cork laminated to a fabric backing in Heading 5907 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). In HRL 086089, dated February 5, 1990, we modified that ruling, classifying the merchandise in Heading 4502, HTSUSA. We have had the occasion to review these rulings and find that they are in error.

FACTS:

The merchandise at issue is a cork veneer sliced from a glued-up block of natural cork laminated to material made of 100 percent polyester which has been brushed. The stated weights are 110 grams for the cork and 150 grams for the fabric (per square meter). You state that the merchandise is used as a wall covering.

ISSUE:

Whether the merchandise at issue is classifiable in Heading 4502, HTSUSA, or in Heading 4503, HTSUSA?

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.

Heading 4502 provides for natural cork, debacked or roughly squared, or in rectangular (including square) blocks, plates, sheets or strip (including sharp-edged blanks for corks or stoppers). Heading 4503 provides for articles of natural cork. The Harmonized Commodity Description and Coding System, Explanatory Notes, the official interpretation of the HTSUSA at the international level, states at page 648 that Heading 4502 covers products which have been further worked into the form of rectangular (including square) blocks, plates, sheets or strip obtained from the bulk cork of Heading 4501, by slicing both faces and cutting the edges at right angles. Such products remain classified in this heading whether or not consisting of layers of cork placed one above the other and glued together. Blocks, plates, sheets and strip cut to shapes other than rectangular (including square) are regarded as articles of cork (Heading 4503).

In HRL 952504, dated January 12, 1993, we ruled on merchandise made by laminating layers of cork together to produce thick blocks, slicing the blocks to produce thin veneer sheets, and laminating the cork veneer sheets to the fabric. We found that those operations go beyond that contemplated for natural cork of Heading 4502, according to the Explanatory Notes. Thus, those operations produced an article of natural cork of Heading 4503. The merchandise at issue is similar to that of HRL 952504. Consequently, it is classifiable in Heading 4503.

HOLDING:

The merchandise at issue is classified under subheading 4503.90.6000, HTSUSA, which provides for articles of natural cork, other, other. The rate of duty is 18 percent ad valorem.

In order to insure uniformity in Customs classification of this merchandise and eliminate uncertainty, we are revoking HRL 086089 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 30 days of the date of this letter.

This notice to you should be considered a revocation of HRL 086089 under 19 CFR 177.9(d)(1). It is not to be applied retroactively to HRL 086089 (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 086089 will not be valid precedent. We recognize that pending transactions may be adversely affected by this revocation, 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