CLA-2 CO:R:C:G 084898 CC
Mr. Steven L. Markowitz
President
Max Kahn Curtain Corporation
261 Fifth Avenue
New York, N.Y. 10016
RE: Classification and country of origin for curtains and
tiebacks
Dear Mr. Markowitz:
This letter is in response to your inquiry of June 21, 1989,
requesting country of origin and tariff classification
determinations for curtains under the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA). A sample was submitted
for examination.
FACTS:
The sample at issue, style number PS-7709, is assembled in
Haiti. It consists of two ruffled rod pocket priscilla curtains
and two matching tiebacks. The curtains are made from the same
100 percent polyester knit fabric.
According to your submissions, unmarked, uncut fabric of 100
percent raschel open knit polyester is imported on bolts into
Haiti. There the fabric is cut to length and width to create the
bodies of the curtains, headers, tiebacks, and ruffles. Each
header is folded and a pocket through which a curtain rod may be
inserted is created by sewing across it. A header is sewn at the
top of each curtain body, and a ruffle is sewn to the seams which
join the curtain body and header, creating a valance. Ruffles are
also sewn to the tiebacks, and along one side edge and the bottom
of each curtain body. One side edge of each curtain body, which
has not been cut and to which no ruffle is attached, is not
hemmed or overlocked. Plastic rings are attached to the
tiebacks. The articles are then packaged together.
ISSUE:
Whether the submitted merchandise is classifiable in Heading
6303, HTSUSA?
Whether the processing done in Haiti is sufficient to effect
a substantial transformation for country of origin purposes for
the submitted merchandise?
LAW AND ANALYSIS:
Classification
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes. Heading 6303, HTSUSA,
provides for curtains (including drapes) and interior blinds,
curtain or bed valances. Therefore, the curtains are
classifiable in Heading 6303.
Heading 6304, HTSUSA, provides for other furnishing
articles. The Explanatory Notes, the official interpretation of
the HTSUSA at the international level, state that this heading
covers furnishing articles of textile materials and includes
curtain loops. Thus, according to the Explanatory Notes, the
submitted curtain tiebacks are the kind of article provided for
in Heading 6304, and they are classifiable in this heading.
Although the curtains and tiebacks are classifiable in
different headings, they are imported in a common packing and,
therefore, are subject to classification in accordance with the
principles of GRI 3. GRI 3 provides for classification of goods
that are, prima facie, classifiable under two or more headings.
According to GRI 3(b), composite goods made up of different
components shall be classified as if they consisted of the
material or component which gives them their essential character.
The Explanatory Notes to GRI 3(b) provide the following
interpretation of the term composite goods:
For the purposes of this Rule [GRI 3(b)], composite
goods made up of different components shall be taken to mean
not only those in which the components are attached to each
other to form a practically inseparable whole but also those
with separable components, provided these components are
adapted one to the other and are mutually complementary and
that together they form a whole which would not normally be
offered for sale in separate parts.... As a general rule,
the components of these composite goods are put up in a
common packing.
The tiebacks match the curtains, and are made of the same
fabric as the curtains. In addition, the curtains and tiebacks
are packaged together. We believe that they are mutually
complementary and would not normally be sold separately.
Therefore, the submitted curtains and tiebacks are considered
composite goods.
Because they are composite goods, the curtains and tiebacks
are classified together for both duty and quota purposes. Since
the curtains impart the essential character to this merchandise,
it is classified in Heading 6303, HTSUSA.
Country of Origin
Section 12.130 of the Customs Regulations (19 CFR 12.130)
provides that a textile product that is processed in more than
one country or territory shall be a product of that country or
territory where it last underwent a substantial transformation.
A textile product will be considered to have undergone a
substantial transformation if it has been transformed by means of
substantial manufacturing or processing operations into a new and
different article of commerce.
Section 12.130(d) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place. This regulation states that
these criteria are not exhaustive; one or any combination of
criteria may be determinative, and additional factors may be
considered.
Section 12.130(d)(2) of the regulations states that in
determining whether merchandise has been subjected to substantial
manufacturing or processing operations, the following factors
will be considered in each country: the physical change in the
material or article, the time involved in manufacturing or
processing operations, the complexity of the operations, the
level or degree of skill and/or technology required, and the
value added to the article.
Processing of the submitted merchandise consists basically
of the following operations: cutting fabric to length and width
to form the components; sewing ruffles to the tiebacks, and to
one side, the bottom, and the top of the curtain bodies; and
sewing the header to the curtain bodies. In applying the
criteria for determining country of origin under 19 CFR 12.130,
we believe that the processing operations performed in Haiti on
the submitted merchandise is substantial. Therefore, the last
substantial transformation for the submitted merchandise occurs
in Haiti.
HOLDING:
The submitted merchandise is classified under subheading
6303.12.0000, HTSUSA, which provides for curtains (including
drapes) and interior blinds, curtain or bed valances, knitted or
crocheted, of synthetic fibers. The rate of duty is 12.8 percent
ad valorem and the textile category is 666.
The country of origin of the submitted merchandise is Haiti.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements.
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.
Sincerely,
John Durant, Director
Commercial Rulings Division