CLA-2 R:C:T 957751 CMR

Ms. Barbara Ho
720 Iwilei Road, Ewa Wing 280
Honolulu, HI 96817

RE: Modification of New York Ruling Letter (NYRL) 883073; classification of a braided metallic yarn; essential character

Dear Ms. Ho:

On April 5, 1993, Customs issued NYRL 883073 to you regarding the classification of various decorative cords from China. We have reviewed that ruling and found we erred in the classification of one of the cords at issue therein. The item is described below.

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 modification of (NYRL) 883073 was published May 3, 1995, in the Customs Bulletin, Volume 29, Number 18.

FACTS:

The cord at issue was described in NYRL 883073 as a 5/32- inch diameter silver cord consisting of a braided core of polyester with an outer covering of tubular braided metallic yarn. The Customs laboratory in New York reported the composition of the cord as: 73.9 percent braided core polyester, 22.4 percent metallic yarn, and 3.7 percent braided core collar.

The yarn was classified in subheading 5808.10.3010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as a braid in the piece, other, of man-made fibers. This classification was based on the chief weight of the cord. -2-

ISSUE:

What is the proper classification of the cord at issue and on what basis is the determination made?

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 2(A), Section XI, provides, in relevant part:

Goods classifiable in chapters 50 to 55 or in heading 5809 or 5902 and of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over each other single textile material.

* * *

Subheading Note 2, Section XI, provides, in part:

(A) Products of chapters 56 to 63 containing two or more textile materials are to be regarded as consisting wholly of that textile material which would be selected under note 2 to this section for the classification of a product of chapters 50 to 55 consisting of the same textile materials.

(B) For the application of this rule:

(a) Where appropriate, only the part which determines the classification under general interpretative rule 3 shall be taken into account;

* * *

The braid at issue was properly classified in heading 5808, HTSUSA, as a braid in the piece. Therefore, Subheading Note 2 is the applicable provision. This provision requires the classification be determined using GRI 3. Thus, it is not a matter of classifying based on the component in chief weight. Customs erred in NYRL 883073 by using chief weight in deciding the proper classification of the cord.

The subject braided cord consists of an exterior metallic braid with a braided man-made fiber core. As such, it is a -3-

composite good. GRI 3(b) directs that for a composite good consisting of different materials, which cannot be classified by reference to GRI 3(a), classification shall be according to the component that imparts the essential character of the good. In this case, we believe the metallic braid outer covering imparts the essential character of the good.

HOLDING:

The subject metallic braided cord is classified in subheading 5808.10.9000, HTSUSA, which provides for braids in the piece, other than braids in the piece suitable for making or ornamenting headwear, other than of cotton or man-made fibers, dutiable at 8 percent ad valorem. At the time NYRL 883073 was issued, the proper classification was subheading 5808.10.3090, HTSUSA, which was the predecessor to subheading 5808.10.9000, HTSUSA.

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)).

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.

Sincerely,

John Durant, Director
Commercial Rulings Division