CLA-2-56:S:N:N3H:350 869026
TARIFF NO: 5602.10.9090; 6307.90.9490
Mr. Stephen J. Schilt
Pac Rim Trading
P.O. Box 2095
Santa Ana, CA 92707
RE: The tariff classification of a needleloom felt fabric and
certain die-cut shapes made from such fabric. The country of
origin will be either Taiwan or China.
Dear Mr. Schilt:
In your letter dated November 4, 1991, which was received by this
office November 20, 1991, you requested a tariff classification
ruling.
The instant sample consists of needleloom felt of acrylic man-made
fiber construction. You state that this material will be sent to China
in rolls measuring 36 inches in width and 50 yards in length where it
will be die-cut into various configurations such as stars, circles,
snowmen and even squares or rectangles before being shipped to the
United States.
It is our position that the cutting of the fabric in China into
various shapes and patterns (other than squares or rectangles)
constitutes a substantial transformation and, as such, makes those
articles products of China. The cutting of the rolls of fabric into
squares or rectangles is not considered to be a substantial
transformation and, as such, they remain a product of Taiwan for quota
and duty assessment purposes.
The applicable subheading for the fabric, whether imported in
rolls or squares or rectangles, will be 5602.10.9090, Harmonized Tariff
Schedule of the United States (HTS), which provides for needleloom felt
and stitch bonded fiber fabrics. The rate of duty will be 12.5 percent
ad valorem.
The applicable subheading for the die-cut patterns (other than
squares or rectangles) cut from such fabric, will be 6307.90.9490, HTS,
which provides for other made-up articles, including dress patterns,
other, other, other, other. The duty rate is 7 percent ad valorem.
The fabric, if imported as roll goods or in squares or rectangles
falls within textile category designation 223. Based upon
international textile trade agreements, products of Taiwan are subject
to quota and the requirement of a visa. There are no textile restraints
for any die-cut patterns deemed classifiable in item 6307.90.9490.
The designated textile and apparel category may be subdivided into
parts. If so, 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 that 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 available for
inspection at your local Customs office.
This ruling is being issued under the provisions of Section 177 of
the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be brought
to the attention of the Customs officer handling the transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport