CLA-2 CO:R:C:T 957277 CMR
Mr. Ron Sheppard
Galaxy Enterprises, Inc.
2421 Crofton Lane, Unit 14
Crofton, MD 21114
RE: Modification of DD 800498 of August 24, 1994; Classification
of embroidered fabric in the piece; 5810.92.10, HTSUSA, v.
5810.92.90; HTSUSA
Dear Mr. Sheppard:
This ruling is a modification of DD 800498 of August 24,
1994. In that ruling, Customs classified two products, styles
E-7733 and E-7734, as embroidered motifs in subheading
5810.92.0040, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). The ruling indicated the rate of duty as 8.4
percent ad valorem.
Customs has reviewed the decision in DD 800498 and
determined that we erred in the classification of style E-7734.
Therefore, we are issuing this modification to correct that
error. Pursuant to section 625(c)(1), 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(c)(1)), notice of the proposed
modification of DD 800498 was published March 8, 1995 in the
Customs Bulletin, Volume 29, Number 10.
FACTS:
Style E-7734 is an embroidered scalloped fabric strip that
is imported in material lengths. The submitted sample has ragged
edges indicating it has been cut from a larger piece. The item
is created by embroidering woven rayon fabric with embroidery
threads and sewing sequins and beads onto the rayon ground
fabric. The embroidery, sequins and beads create a pattern which
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is continuously repeated along the fabric with no discernable
break and then repetition of the pattern. In other words, this
is fabric in the piece which has been embroidered.
ISSUE:
Was style E-7734 properly classified as an embroidered motif
in DD 800498 or is it classified as embroidery in the piece?
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]."
Heading 5810, HTSUSA, provides for "embroidery in the piece,
in strips or in motifs". The Explanatory Notes to the Harmonized
Commodity Description and Coding System, the official
interpretation of the tariff at the international level, offers
guidance in discerning the forms of embroidery classified in
heading 5810, HTSUSA. The Explanatory Notes state in regard to
heading 5810, in pertinent part, the following:
All varieties of embroidery described remain within this
heading when in the following forms:
(1) In the piece or in strips or various widths.
These pieces or strips may bear a series of identical
designs, whether or not intended for subsequent
separation to be made up into finished articles (e.g.,
strips of embroidered labels for marking articles of
apparel, or pieces embroidered at regular intervals
intended to be cut up and made up into bibs).
(2) In the form of motifs, i.e., individual pieces of
embroidered design serving no other function than to be
incorporated or appliqued as elements of embroidery in,
for example, underwear or articles of apparel or
furnishings. They may be cut to any shape, backed or
otherwise assembled. They include badges, emblems,
"flashes", initials, numbers, stars, national or
sporting insignia, etc.
It is clear from the descriptions in the Explanatory Notes
that embroidery in the form of motifs means individual pieces or
items of embroidery, not embroidery in continuous lengths with no
separation or clearly identifiable separate units of embroidery.
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As style E-7734 is an embroidered scalloped fabric strip
that is imported in material lengths, it is not classifiable as a
motif. Reference to it as a motif in DD 800498 was an error as
was its classification as a motif in subheading 5810.92.0040,
HTSUSA.
HOLDING:
Style E-7734 is properly classified as embroidery in the
piece, of man-made fibers, other, other, in subheading
5810.92.9080, HTSUSA. Goods classifiable in this provision fall
within textile category 229 and are dutiable according to the
terms of U.S. Additional Note 3, Chapter 58. That note states
that the rate of duty applicable to goods classified in
subheading 5810.92.90, HTSUSA, and subject to duty at the general
rate (most favored nation) is 8.3 percent, "but in the case of
embroidery in the piece not less than the rate which would apply
to such product if not embroidered", i.e., not less than the rate
applicable to the ground fabric.
The ground fabric for style E-7734 is woven rayon, thus,
style E-7734 is dutiable at 16.8 percent ad valorem. This is the
rate of duty for woven fabrics of artificial filament yarn
classified in subheading 5408.21.0030, HTSUSA, which is where the
woven rayon ground fabric would be classified if not embroidered.
DD 800498 of August 24, 1994, is hereby modified to reflect
classification of style E-7734 as stated above. In accordance
with section 625(c)(1), this ruling will become effective 60 days
after its publication in the Customs Bulletin. Publication of
rulings or decisions pursuant to section 625(c)(1) 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)).
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.
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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.
Sincerely,
John Durant, Director
Commercial Rulings Division