CLA-2 CO:R:C:T 953941 SK
TARIFF: 6001.29.0000
Mr. Sooseong Park
Lee Company
137 Eucalyptus Drive
El Segundo, CA 90245
RE: Revocation of HRL 952804 (1/28/93); knit fabric with laid-in
metalized strips and Mylar sequins; classification of knit pile
fabric (uncut) under heading 6001; not other knitted or crocheted
fabric of heading 6002; EN (4) to heading 6001, HTSUSA; HRL
951374 (10/30/92); HRL 951111 (8/5/92); HRL 084317 (5/21/90); the
process involved in the production of the fabric determines
whether the fabric is classifiable as a pile fabric.
Dear Mr. Park:
On January 28, 1993, this office issued you Headquarters
Ruling Letter (HRL) 952804 which classified two samples of knit
fabric with laid-in metalized strips and Mylar sequins as "other
knitted fabric of man-made fibers" under heading 6002 of the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). Upon review, HRL 952804 is determined to be in error.
FACTS:
At issue are two nylon jersey knitted fabrics which are
identical except for color. The fabrics have laid-in
metalized strips which are approximately 0.5 millimeters in width
and when these laid-in yarns are removed, the base fabrics
maintain their structural integrity. The laid-in yarns form
loops visible on the surface of the material, and they protrude
slightly from the fabric surface. The loops are capable of being
pushed from side to side and rise over two courses of the knit
fabric beneath them. The fabrics have metalized Mylar circular
dots, 6 millimeters in diameter, attached by means of an
adhesive.
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ISSUE:
Whether the fabrics in question are classifiable under a
provision for pile fabrics in heading 6001, HTSUSA, or under a
provision for other knitted or crocheted fabrics in heading 6002,
HTSUSA?
LAW AND ANALYSIS:
Classification of merchandise under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) is in accordance
with the General Rules of Interpretation (GRI's). The GRI
require that classification be determined according to the terms
of the headings and any relative section or chapter notes, taken
in order. Where goods cannot be classified solely on the basis
of GRI 1, the remaining GRI will be applied in the order of their
appearance.
The competing headings at issue are heading 6001, HTSUSA,
which provides for pile fabrics, knitted or crocheted, and
heading 6002, HTSUSA, which provides for other knitted or
crocheted fabrics.
Explanatory Note (EN) (4) to heading 6001, HTSUSA, which
provides the official interpretation of the tariff schedule at
the international (six digit) level, states that for a fabric to
be classifiable as a pile fabric, it must have protruding yarns
(or their equivalent). The EN enumerate the following methods of
production as those mainly used for knit pile fabrics:
(1) a circular knitting machine produces a knitted fabric in
which, by means of an additional yarn, protruding loops are
formed; afterwards the loops are cut to form pile and thus
give a velvet-like surface;
(2) a special warp knitting machine knits the fabrics face to
face with common pile yarn; the two fabrics are then
separated by cutting to produce two knitted fabrics with a
cut pile;
(3) textile fibres from a carded sliver are inserted into the
loops of a knitted ground fabric as it is formed ("long
pile" fabrics);
(4) textile yarn to form loops ("imitation terry fabrics")
(see General Explanatory Note). Such fabrics have rows
of chain stitches on the back of the fabrics and they differ
from the pile fabrics of heading 58.02, which are
characterized by rows of stitches having the appearance of
running along the length of the back of the fabric.
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As the fabrics at issue consist of laid-in yarns, forming
loops, inserted during the knitting process and protruding from
the base material, EN (4) to heading 6001, HTSUSA, provides for
this merchandise. The fact that the fabrics at issue are not
constructed in the same way as traditional terry-knit material
does not exclude them from heading 6001, HTSUSA, as the
constructions described in the EN are examples and not exhaustive
listings.
As set forth in HRL 951374, dated October 30, 1992, and HRL
951111, dated August 5, 1992, this office is of the opinion that
it is the process involved in the production of a fabric which
determines whether that fabric is classifiable as a pile fabric.
HRL 951374 states, "if during the weaving or knitting of a
fabric, yarns are caused to project from the surface(s) (i.e.,
the base material) of that fabric creating a "pile" appearance,
that fabric will be considered a pile fabric for the purposes of
the HTSUSA ... ." The manner in which the fabrics at issue are
knitted is such that the laid-in yarns protrude from the base
material. Accordingly, the subject merchandise has been
processed in such a manner so as to be properly classifiable
under heading 6001, HTSUSA, as a pile fabric.
There remains some question as to whether the loops created
by the laid-in yarn protrude enough to warrant classification
under heading 6001, HTSUSA, as a pile fabric. It is this
office's opinion that they do. The EN to heading 6001, HTSUSA,
provides no quantitative guidance as to how much loops must
protrude; it only describes types of processes which produce pile
fabrics. As the fabrics at issue meet the requirements of EN
(4), we are unwilling to create quantitative prerequisites which
would mandate that looped yarn be of a certain length in order to
qualify as a pile fabric. We note, however, that in situations
where the fabric has been knitted so tightly that in effect no
loops have been created, the fabric will not qualify as a pile
fabric classifiable under heading 6001, HTSUSA.
And lastly, we note that Customs erroneously concluded in
HRL 952804 that woven warp pile fabrics (uncut) were not provided
for in heading 5801, HTSUSA, because they were not specifically
cited as included in this heading by Note 2 to Chapter 58 which
reads,
"Heading 5801 also includes woven weft pile fabrics which
have not yet had the floats cut, at which stage they have
no pile standing up."
This office interpreted the above language to mean that "the fact
that the HTSUSA provides a limited exception [for uncut woven
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weft pile fabrics] is a clear statement by the drafters that all
other uncut pile-to-be fabrics which do not have protruding yarns
were not intended to be classifiable under the provisions for
pile fabrics."
This office is now of the opinion that as uncut woven warp
pile fabrics are specifically provided for in subheading 5801.34,
HTSUSA, we are unwilling to preclude classification of the
subject merchandise from heading 5801, HTSUSA, on the basis of
the legal note's failure to explicitly provide for these types
fabrics; the language of the subheading is controlling.
Heading 6001 is the knit pile fabric corollary to heading
5801, HTSUSA. Accordingly, we extend a similar scope to heading
6001, HTSUSA, and deem uncut knit warp pile fabrics as
classifiable within this heading providing the fabric also meets
the prerequisites set forth in the EN, as discussed supra.
HOLDING:
HRL 952804 is revoked.
The subject merchandise in HRL 952804 is classifiable under
subheading 6001.29.0000, HTSUSA, dutiable at a rate of 8 percent
ad valorem. The textile quota category is 414.
The designated textile and apparel categories may be
subdivided into parts. If so, the 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 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 updated weekly and
is available for inspection at your local Customs office.
Due to the nature of the statistical annotation (the ninth
and tenth digits of the classification) and the restraint
(quota/visa) categories, you should contact your local Customs
office prior to importation of this merchandise to determine the
current status of any import restraints or requirements.
In order to ensure uniformity in Customs' classification of
this merchandise and eliminate uncertainty, pursuant to section
177.9(d)(1), Customs Regulations (19 CFR 177.9(d)(1), HRL 952804
is revoked to reflect the above classification effective with the
date of this letter.
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This revocation is not retroactive. However, HRL 952804
will not be valid for importations of the subject merchandise
arriving in the United States after the date of this notice. We
recognize that pending transactions may be adversely affected
(i.e., merchandise previously ordered and arriving in the United
States subsequent to this revocation will be classified
accordingly). If it can be shown that you relied on HRL 952804
ruling to your detriment, you may apply to this office for
relief. However, you should be aware that in some instances
involving import restraints, such relief may require separate
approvals from other agencies.
Sincerely,
John Durant, Director
Commercial Rulings Division