CLA-2 CO:R:C:T 955028 jb

District Director
U.S. Customs Service
P.O. Box 610
Pembina, ND, 58271-0610

RE: Decision on Application for Further Review of Protest No. 3401-93-100017; wool clippings are not yarn waste; clippings are more specifically described as used or new rags; waste is a by-product of a fiber yarn process; rags are a by-product of a fabric process

Dear Sir:

This is a decision on application for further review of a protest timely filed on behalf of George Litchman & Son Inc. and Standard Knitting Co. Ltd., on July 28, 1993, against your decision regarding the classification of wool fabric cuttings. All entries were liquidated on April 30, 1993. Samples were provided to this office for examination.

FACTS:

The merchandise at issue consists of small new cuttings of 100 percent wool. The cuttings are small pieces that remain after patterns are cut from the larger pieces. You classified the material in subheading 6310.10.1000, HTSUSA, which provides for, among other things, used or new rags. The protestant disagrees and requests classification in subheading 5103.20.0000, HTSUSA, which provides for, among other things, waste of wool or fine animal hair.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI), taken in order. GRI 1 requires 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.

Heading 5103, HTSUSA, provides for waste of wool or fine or coarse animal hair, including yarn waste but excluding garnetted stock. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN) to heading 5103, HTSUSA, state, in pertinent part:

In general this heading covers all waste (other than garnetted stock) of wool or of fine or coarse animal hair, i.e., the waste recovered during the successive treatments converting the raw wool or hair into washed, carded, combed, spun, woven, knitted, etc., products.

The principal wastes included here are:

(1) Wastes from combing, carding or other processes preparatory to spinning, such as: noils, the most important waste, composed of short fibres removed during combing; lap and sliver ends, small waste pieces of the combed lap; burr waste and carded shoddy, wastes collected during carding; fibres recovered on cleaning the rollers of carding machines and known as strippings.

(2) Yarn waste such as broken, knotted or tangled yarns collected as waste during spinning, doubling, reeling, weaving, knitting, etc., operations.

Heading 6310, HTSUSA, provides for, among other things, used or new rags. The EN to heading 6310, HTSUSA, state in pertinent part:

Rags of textile fabrics (including knitted or crocheted fabrics, felt on nonwovens). Rags may consist of articles of furnishing or clothing or of other old textile articles so worn out, soiled or torn as to be beyond cleaning or repair, or of small new cuttings (e.g., dressmakers' or tailors' snippings).

* * * To fall in the heading, these products must be worn, dirty or torn, or in small pieces. They are generally fit only for the recovery (e.g., by pulling) of the fibres (which are usually re- spun), for the manufacture of paper or plastics, for the manufacture of polishing materials (e.g., polishing wheels), or for use as industrial wipers (e.g., machine wipers).

All other textile waste and scrap, however, is excluded from this heading. This exclusion applies particularly to tangled yarn obtained during the process of manufacturing knitted and crocheted fabrics, or by unravelling worn out knitted or crocheted articles; any other waste or scrap textile yarns or fibres (including those obtained from the padding of old mattresses, cushions, bed-spreads, etc); garnetted stock. These products are classified in Chapters 50 to 55 in the relevant headings relating to "waste" or "garnetted stock".

Close reading of heading 5103, HTSUSA, reveals that the heading addresses itself to yarn waste. Yarn waste can be defined as a by-product of the fiber or yarn process. As such, what is intended as "waste" includes fibers and yarns up to the point at which they become fabric, but stopping at the fabric. The subject wool cuttings are, from a processing perspective, beyond the point of mere fibers or yarns. At the time they are considered waste they are already cut pieces of fabric. The wool cuttings are a by- product of making the garment or article itself and are thus precluded from classification in heading 5103, HTSUSA.

Heading 6310, HTSUSA, includes within its provision, used or new rags of textile fabrics. Among the definitions for "rags", the EN to heading 6310, HTSUSA, state small new cuttings (e.g., dressmakers' or tailors' snippings). The instant wool cuttings are obtained from the process of cutting the pattern for the garment; at that time they are considered small new cuttings, i.e., snippings of fabric and not just fibers or yarns. Consequently, the submitted wool cuttings are akin to the articles specifically described in heading 6310, HTSUSA. Customs has, in the past, issued many rulings on similar types of materials. In Headquarters Ruling Letter (HQ) 951216, dated March 31, 1992 and HQ 083704, dated June 14, 1989, new scrap carpeting and shredded Nomex material produced from defective rolls or from trimmings, respectively, were both classified in heading 6310, HTSUSA (See also, HQ 952757, dated March 9, 1993, New York Ruling Letter (NY) 889026, dated August 13, 1993, NY 866226, dated August 26, 1991, and HQ 082518, dated May 1, 1989).

HOLDING:

The submitted wool cuttings were correctly classified in subheading 6310.10.1000, HTSUSA, which provides for, among other things, used or new rags.

The protest should be denied in full. A copy of this ruling should be appended to the Form 19 Notice of Action and furnished to the Protestant.

Sincerely,

John Durant, Director
Commercial Rulings Division