CLA-2 CO:R:C:T 955456 CMR
TARIFF NO: 5806.10.2000
Michael F. Watson
A.W. Fenton Co.
P.O. Box 360614
Columbus, Ohio 43236-0614
RE: Revocation of HRL 086438 of February 21, 1990; Classification
of a hook and loop pad and strip; not made up articles;
Explanatory Note clarification of meaning of "made up"
Dear Mr. Watson:
On February 21, 1990, this office issued HRL 086438 to you in which a hook and loop pad and strip were classified as other made up articles of heading 6307 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The basis for this decision was our interpretation of the meaning of the term "made up" for purposes of the tariff. Note 7 of Section XI defines "made up" as it applies to textiles classified in Section XI. The Explanatory Notes to the Harmonized Commodity Description and Coding System further explain the meaning of "made up" as it is used in Note 7. While the Explanatory Notes are not legally binding, they are the official interpretation of the Harmonized System at the international level and provide assistance in determining the proper interpretation of provisions within the tariff.
The Explanatory Notes underwent various amendments (Amending Supplements 1 through 5) from 1988 to 1990. These amendments were contained in the edition of the Harmonized Commodity Description and Coding System Explanatory Notes (Complete First Edition (1986) with Supplements 1, 2, 3, 4 and 5 Incorporated) issued February 1990 and distributed to Customs personnel. One of the amendments related to the meaning of "made up" and revealed that our initial interpretation of "produced in the finished state" as it is applies to the term "made up" was partially incorrect. HRL 086438 was based on early interpretations of the meaning of "produced in the finished state" and, in light of the amended Explanatory Note, was decided incorrectly. Rulings issued subsequent to receipt of the amended -2-
version of the Explanatory Notes have followed the interpretation evident by the amended notes. As a result, in order to avoid confusion and ensure uniformity of treatment, it is necessary to revoke the ruling issued to you for Road Pro Electronics. Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993) (hereinafter section 625), notice of the proposed revocation of HRL 086438 was published April 27, 1994, in the Customs Bulletin, Volume 28, Number 17.
FACTS:
The hook and loop pad and strip are described in HRL 086438 as follows:
The merchandise at issue consists of two samples, a hook and loop pad which measures one inch by one inch, and a hook and loop strip which measures two inches by six inches. The strip is gummed on the edges and one entire side. The pad and strip will be used for mounting CB radios, radar detectors and microphones to the dashboards of cars and trucks. The pad and strip are made of 100 percent nylon and will be imported from Taiwan.
Samples from the file appear to have been simply cut from larger pieces of fabric.
ISSUE:
What is the proper classification of a hook and loop pad and strip?
LAW AND ANALYSIS:
Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to [the remaining GRIs taken in order]."
Note 7, Section XI, defines the term "made up" as follows:
(a) Cut otherwise than into squares or rectangles;
(b) Produced in the finished state, ready for use (or merely
needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, table cloths, scarf squares, blankets); -3-
(c) Hemmed or with rolled edges, or with a knotted fringe at
any of the edges, but excluding fabrics the cut edges of which have been prevented from unravelling by whipping or by other simple means;
(d) Cut to size and having undergone a process of drawn
thread work;
(e) Assembled by sewing, gumming or otherwise (other than
piece goods consisting of two or more lengths of
identical material joined end to end and piece goods composed of two or more textiles assembled in layers, whether or not padded);
(f) Knitted or crocheted to shape, presented in the form of
a number of items in the length.
In HRL 086438, Customs classified the hook and loop pad and strip as other made up articles of heading 6307, HTSUSA, based upon our understanding at that time of the meaning of Note 7(b), i.e., "produced in the finished state". Because the pad or strip would not be furthered processed after importation, we believed it was in its finished state, ready for use, as required by Note 7(b), and thus we classified the items as made up articles.
As stated previously, in February 1990, an amended version of the Explanatory Notes was available and distributed to Customs personnel. One of the amendments contained therein was the addition of a new paragraph to the notes which expound on the language of Note 7, i.e., what is meant by "made up." Specifically, the new paragraph expanded the explanation of the language of Note 7(b), "produced in the finished state, ready for use". It states:
However, rectangular (including square) articles simply cut out from larger pieces without other working and not incorporating fringes formed by cutting dividing threads are not regarded as "produced in the finished state" within the meaning of this Note. The fact that these articles may be presented folded or put up in packings (e.g., for retail sale) does not affect their classification.
The cited paragraph appears to describe the hook and loop pads and strips. Although they will not be further processed after importation that does not affect the determination of whether they are considered "made up" within the meaning of Note 7. Based upon the clarification of the Explanatory Note, the hook and loop pads and strips are not items which are within the meaning of "produced in the finished state", and as they do not -4-
fit any of the other possible meanings of "made up" as defined in Note 7, the hook and loop pads and strips are classifiable as fabric.
The hook and loop pads and strips are gummed on one side. Customs Office of Laboratories and Scientific Services tested the file samples and determined that the coating is a clear plastics
material of the polyurethane type which is then covered with an acrylic adhesive. Textile fabrics which are impregnated, coated, covered or laminated with plastics may be classifiable in heading 5903, HTSUSA, provided they meet the terms of Note 2 of Chapter 59. This note states is relevant part:
2(a) Textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square meter and whatever the nature of the plastic material (compact or cellular), other than:
(1) Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change of color;
* * * * *
The pertinent test therefore is whether the plastic coating on the hook and loop pads and strips is visible to the naked eye. Based upon the samples, we believe the coating is not visible as it does not obscure the weave of the fabric.
Heading 5806, HTSUSA, provides for narrow woven fabrics. Note 5(a), Chapter 58, states in relevant part:
For the purposes of heading 5806, the expression "narrow woven fabrics" means:
(a) Woven fabrics of a width not exceeding 30 cm, whether woven as such or cut from wider pieces, provided with selvages (woven, gummed or otherwise made) on both edges;
* * * * *
The hook and loop pads and strips are less than 30 cm in width. Therefore, they fall within the definition of narrow woven fabrics as stated above.
-5-
HOLDING:
HRL 086438 is hereby revoked. The hook and loop pads and strips are classifiable as narrow woven fabrics in subheading 5806.10.2000, HTSUSA, which provides for, among other things, narrow woven pile fabrics of man-made fibers. The goods fall within textile category 229 and are dutiable at 9.5 percent ad valorem.
The designated textile and apparel category 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 changeable 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 accordance with section 625, this ruling will become effective 60 days after its publication in the Customs Bulletin. Publication of rulings or decisions pursuant to section 625 does not constitute a change of practice or position in accordance with section 177.10(c)(1), Customs Regulations (19 CFR 177.10 (c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division