CLA-2 RR:TC:TE 961160 RH
Arlen T. Epstein, Esq.
Serko & Simon, LLP
One World Trade Center
Suite 3371
New York, NY 10048
RE: Classification and country of origin of fabric picture
frames; heading 6307;
19 C.F.R. 102.21(c)(5); last country where an important
assembly
or manufacturing process occurred
Dear Mr. Epstein:
This is in reply to your letter dated September 15, 1997, on
behalf of Russ Berrie and Company, Inc., requesting a ruling on
the classification and country of origin of fabric picture
frames.
You enclosed two samples of picture frames for us to examine. In
order to return the samples, as you requested, you will need to
contact this office and provide us with your Federal Express
account number.
FACTS:
The sample picture frames, styles 15165(a) and 15165(b), measure
approximately 7" x 5". The frames open like a book to reveal a
pocket with an oval cutout on each side into which a photograph
may be inserted. The oval shaped cutouts are covered with glass
and trimmed with an ornamental edging. The frames are
constructed of cardboard that has been covered with woven
cotton/polyester tapestry fabric or with woven polyester ottoman
fabric on the outsides and on the pockets. The outer portion of
the pockets have also been padded with a foam plastic layer and a
paper layer between the woven fabric and the cardboard to provide
shape and softness. The interior of the pockets have been
covered with 100 percent acetate satin woven fabric. The picture
frames have a polyester textile cord and tassel sewn into the top
center of the frames.
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Style 15165(a) is produced in the following countries:
China South Korea
- form 55 percent cotton 45 percent polyester fabric -
form 100 percent acetate satin
- form 100 percent polyester cord and tassel
fabric used for lining
- produce cardboard
- cut and sew Korean and Chinese materials to make frames
- attach tassel and cord
Style 15161(b) is manufactured as follows:
China South Korea
- form 100 percent polyester cord and tassel - form 100
percent polyester ottoman - produce cardboard fabric
- cut and sew Korean and Chinese materials to - form 100
percent acetate satin
make frames
fabric used for lining
- attach tassel and cord
You contend that the correct classification of the picture frames
is under subheading 6307.90.9989 of the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA), as other made
up textile articles, and that their country of origin is where
the fabric that predominantly comprises the outer covering was
formed - China for style 15161(a) and South Korea for style
15161(b). You claim that fabric provides the aesthetic appeal to
the picture frames.
ISSUE:
What are the classification and country of origin of the fabric
picture frames?
LAW AND ANALYSIS:
Classification under the HTSUSA is made in accordance with the
General Rules of Interpretation (GRI's). The systematic detail
of the harmonized system is such that virtually all goods are
classified by application of GRI 1, that is, according to the
terms of the headings of the tariff schedule and any relative
Section or Chapter Notes. In the event that the goods cannot be
classified solely on the basis of GRI 1, and if the headings and
legal notes do not otherwise require, the remaining GRI's may
then be applied.
You cite Headquarters Ruling Letter (HQ) 086259, dated April 18,
1990, and HQ 953393, dated April 16, 1993, regarding the
classification of fabric covered picture frames. Like the
merchandise at issue, the frames in HQ 086259 and 953393 were
constructed of paperboard covered with textile material that was
padded with foam. The frames were not classifiable in a specific
heading under GRI 1 and we examined the composite materials to
determine which one
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provided the essential character to the frames. The textile
material greatly enhanced the marketability of the frames while
the paperboard material provided support and rigidity. We note
that the plastic foam padding was found to be an incidental
material which did not merit consideration. We concluded that
the essential character could not be determined and classified
the frames in heading 6307, in accordance with the principles of
GRI 3(c), the heading which appears last in numerical order among
those which equally merit consideration.
In this case, we find that the facts are substantially similar to
those in HQ 086259 and 953393. Accordingly, the frames are
classifiable under subheading 6307.90, under the same rationale
set forth in those decisions.
As you know, on December 8, 1994, the President signed into law
the Uruguay Round Agreements Act. Section 334 of that Act
provides new rules of origin for textiles and apparel entered, or
withdrawn from warehouse, for consumption, on and after July 1,
1996. On September 5, 1995, Customs published Section 102.21,
Customs Regulations, in the Federal Register, implementing
Section 334 (60 FR 46188). Thus, effective July 1, 1996, the
country of origin of a textile or apparel product shall be
determined by sequential application of the general rules set
forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states that "The country of origin of a textile
or apparel product is the single country, territory, or insular
possession in which the good was wholly obtained or produced."
As the subject merchandise is not wholly obtained or produced in
a single country, paragraph (c)(1) of Section 102.21 is
inapplicable.
Paragraph (c)(2) states that "Where the country of origin of a
textile or apparel product cannot be determined under paragraph
(c)(1) of this section, the country of origin of the good is the
single country, territory, or insular possession in which each
foreign material incorporated in that good underwent an
applicable change in tariff classification, and/or met any other
requirement, specified for the good in paragraph (e) of this
section." The picture frames are classified under subheading
6307.90, HTSUSA. The rule for subheading 6307.90, HTSUSA,
states:
6307.90 The country of origin of a good classifiable under
subheading 6307.90 is the country, territory or
insular possession in which the fabric comprising
the good was formed by a fabric-making process.
Customs ruled in HQ 960337, dated April 22, 1997, that paragraph
(c)(2) was not applicable where fabric comprising decorative
pillows was formed in both Belgium and the United States. See
also, HQ 959742, dated October 28, 1996 (where the fabric is
formed in more than one country paragraph (c)(2) is not
applicable). Like those cases, the fabric comprising picture
frame 15161(a) in this case was formed in more than one country
(South Korea and China) and, therefore, country of origin cannot
be determined under 102.21(c)(2). However, the country of origin
of picture frame 15161(b) is South Korea, as it is comprised
wholly of fabric from that country.
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Paragraph (c)(3) states that "Where the country of origin of a
textile or apparel product cannot be determined under paragraph
(c)(1) or (c)(2) of this section:
(I) If the good was knit to shape, the country of origin of
the good is the single country, territory or insular
possession in which the good was knit; or
(ii) Except for goods of heading 5609, 5807, 5811,
6213, 6214, 6301 through 6306, and 6308, and subheadings
6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was
not knit to shape and the good was wholly assembled
in a single country, territory, or insular
possession, the country of origin of the good is the country,
territory, or insular possession in which the
good was wholly assembled."
As picture frame 15161(a) is not knit to shape and falls within
an excepted provision under (c)(3)(ii), the country of origin is
not determinable under paragraph (c)(3).
Paragraph (c)(4) states that "Where the country of origin of a
textile or apparel product cannot be determined under paragraph
(c)(1), (2) or (3) of this section, the country of origin of the
good is the single country, territory, or insular possession in
which the most important assembly or manufacturing process
occurred." In this case, the most important process is fabric
formation. In
HQ 960305, dated June 6, 1997, Customs addressed similar facts to
those in this case. In that ruling, the outer covering of a
zippered binder was constructed of fabric from Taiwan and a
different fabric from China on the interior. We determined that
Taiwan was the country of origin as it was the fabric from that
country that predominately comprised the outer covering of the
binder and gave the binder its aesthetic appeal. Similarly, in
this case the fabric on the outer covering of the picture frame
provides the aesthetic appeal to the article, and we find that
the formation of that fabric is the most important manufacturing
process. Accordingly, China is the country of origin of picture
frame 15165(a).
Finally, marking frame 15165(a) "Made in China" and frame
15165(b) "Made in South Korea" is consistent with the origin
rules set forth in section 102.21, Customs Regulations, and with
the country of origin marking requirements in Part 134, Customs
Regulations. To obtain more information on marking requirements
or to obtain a binding ruling on that subject, you may write to
the Chief, Marking and Special Classification Branch, U.S.
Customs Service, Office of Regulations and Rulings, 1300
Pennsylvania Avenue, NW, Washington, D.C. 20229.
HOLDING:
The fabric picture frames are classifiable under subheading
6307.90.9989, HTSUSA, as other made up textile articles. They
are dutiable at the general column rate of duty at 7 percent ad
valorem.
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The country of origin of style 15165(a) is China. The country of
origin of style 15165(b) is South Korea.
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 the local Customs
office prior to importing the merchandise to determine the
current status of any import restraints or requirements.
The holding set forth above applies only to the specific factual
situation and merchandise identified in the ruling request. This
position is clearly set forth in 19 C.F.R. 177.9(b)(1), which
states that each ruling letter is issued on the assumption that
all of the information furnished and incorporated in the ruling
letter, either directly, by reference, or by implication, is
accurate and complete in every material respect.
Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 C.F.R.
177.9(b)(1), the ruling will be subject to modification or
revocation. A change in the facts previously furnished may
affect the determination of country of origin.
Thus, if there is any change in the facts provided to Customs, it
is recommended that a new ruling request be submitted in
accordance with 19 C.F.R. 177.2.
Sincerely,
John Durant, Director
Commercial Rulings Division