CLA-2-39:OT:RR:NC:N1:137
Richard Writsman
Continental Agency Inc.
1768 W. Second St.
Pomona, CA 91766
RE: The tariff classification and country of origin of woven textile fabric coated with cellular plastic from Thailand
Dear Mr. Writsman:
In your letter dated May 21, 2020, you requested a tariff classification and country of origin rulings on behalf of your client, UIC Group Inc.
The two products under consideration are referred to as “polyester canvas” and “poly-cotton canvas.” Samples of each plastic-coated woven fabric were provided to our office. The samples were submitted to the Customs and Border Protection (CBP) Laboratory for analysis.
CBP Laboratory analysis indicates that “polyester canvas” is of plain weave construction composed wholly of polyester multifilament yarns and is impregnated, coated, covered or laminated with an acrylic material. The coating is in a single, cellular layer. The sample weighs 320.6 g/m2 and consists of 74.3 percent plastic material by weight and 25.7 percent textile fabric by weight.
CBP Laboratory analysis indicates that “poly-cotton canvas” is of a weave other than plain, satin, or twill. The woven fabric is composed of a mixture of polyester (78 percent) and cotton (22 percent) staple fiber yarns, impregnated, coated, covered, or laminated with an acrylic material. The coating is in a single, cellular layer. The sample weighs 377.2 g/m2 and consists of 67.7 percent plastic material by weight and 32.3 percent textile material by weight. You indicate that both products are manufactured to be used for inkjet printing.
You suggest classification for both products is provided for under subheading 5901.90.2000, HTSUS, which provides for, in pertinent part, prepared painting canvas of man-made fibers. We disagree. These goods are not prepared painting canvases. Further, the opinion of this office is that these products do not qualify as textile products in Chapter 59.
The classification of textile and plastic combinations is determined by the Notes found in Chapters 39 and 59, and in Sections VII and XI of the Harmonized Tariff Schedules of the United States (HTSUS). Classification is also guided by the Explanatory Notes (EN) to the Harmonized Tariff Schedule (HTS), which have been ruled to be the official interpretation of the Harmonized Code at the international level.
Chapter 59, Note 1, states
Except where the context otherwise requires, for the purposes of this chapter the expression "textile fabrics" applies only to the woven fabrics of chapters 50 to 55 and headings 5803 and 5806, the braids and ornamental trimmings in the piece of heading 5808 and the knitted or crocheted fabrics of headings 6002 to 6006.
Therefore, “polyester canvas” and “poly-cotton canvas”, which has a woven backing fabric of Chapters 54-55, could be classified in Chapter 59 if it meets the other notes to that chapter.
Chapter 59, Note 2(a)(5), states in pertinent part, the following:
2. Heading 5903 applies to
(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: […]
(5) Plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes (chapter 39) …
The General Explanatory Notes to Chapter 39, in the section titled “Plastics and textile combinations,” define the term “merely for reinforcing purposes” as follows:
In this respect, unfigured, unbleached, bleached or uniformly dyed textile fabrics, felt or nonwovens, when applied to one face only of these plates, sheets or strip, are regarded as serving merely for reinforcing purposes. Figured, printed or more elaborately worked textiles (e.g., by raising) and special products, such as pile fabrics, tulle and lace and textile products of heading 58.11, are regarded as having a function beyond that of mere reinforcement.
Since the acrylic coating is cellular in nature, and the woven backing fabric meets the definition found in the Explanatory Notes for “mere reinforcement,” neither “polyester canvas” nor “poly-cotton” can be classified in in Section XI as a coated textile. Therefore, these products are excluded from classification in Chapter 59, HTSUS.
The applicable subheading for the “polyester canvas” and the “poly-cotton” canvas fabrics coated with cellular acrylic coating will be 3921.19.0000, HTSUS, which provides for other plates, sheets, film, foil and strip, of plastics: cellular: of other plastics. The general rate of duty will be 6.5 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
Regarding your request for the appropriate country of origin of the plastic sheets, 19 C.F.R. § 134.1(b) provides in pertinent that the "country of origin" means the country of manufacture, production or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "there must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908).
According to documentation provided, yarns are purchased from suppliers in Thailand, Korea, China, or India. You indicate that from this point forward all manufacturing steps for this product are conducted in factories in Thailand. The yarns are woven into fabric. The plastic coating is created in Thailand based on the specifications for each product. Finally, the fabric is coated with the plastic, and finished in Thailand.
It is the opinion of this office that the weaving of the yarns into fabric, manufacturing of the plastic coating and the application of the plastic coating to the fabric which are all conducted in Thailand, result in a substantial transformation. Therefore, the country of origin of both the “polyester canvas” and the “poly-cotton canvas” plastic sheets is Thailand.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division