CLA-2-63:RR:NC:TP:345 818295
MR. Bill Zurheide
Western Textile Products
3400 Tree Court Industrial Blvd.
Box 7139
St. Louis, MO. 63177-1139
RE: The tariff classification of a three ply fabric band from Mexico
Dear Mr. Zurheide:
In your letter dated January 18,1996, you requested a tariff classification ruling.
The product you submitted is a 1 1/4 to 1 1/2 inch wide three ply fabric band which is used as a sweatband on the inside of a cap. You indicate that the bands are made in a wide variety of styles and colors, and are sold to domestic cap makers. The product can be produced in three different versions and you wish to know the tariff implications of each in order to pursue the least costly approach.
The components are:
1. Cotton lining, usually a 48 inch wide 64 X 56 print cloth, product of Pakistan or North America, 47% by weight
2. Padding, usually a 60 inch wide urethane foam, product
of USA, 24% by weight
3. Backing, usually a 60 inch wide nonwoven fabric, Poly/ Rayon blend, product of USA, 28% by weight
4. Polyester sewing thread, product of USA, 1% by weight
The assembly steps are:
1. Sew cotton print cloth into a tube
2. Spiral cut fabric tube into a biased lining, about 1 3/4 inch wide
3. Straight cut foam to 1 1/4 inch width
4. Straight cut nonwoven to 1 1/4 inch width
5. Sew components into band
6. Wind band into a roll and place roll into a box
In version 1, the print cloth of Pakistani greige goods is
finished in the USA by dyeing and adding a resin starch finish. All assembly steps are performed in Mexico.
In version 2, North American yarn, made from fibers grown in the USA, is processed into fabric and finished in the USA. All assembly steps are performed in Mexico.
In version 3, the Pakistani greige print cloth is finished in the USA. Assembly steps 1 and 2 are performed in the USA. All remaining steps are performed in Mexico.
In all versions the finished product will be returned to the USA for sale to cap makers.
You propose consideration under Subheading 9802.00.80 of the Harmonized Tariff Schedule of the United States (HTS). However, in each of the versions you describe, some or all of the fabrics used in the assembly will not be exported from the United States in a condition ready for assembly as required under this provision. By cutting to width in Mexico before and after sewing, they will have lost their physical identity in the process. Therefore, this subheading cannot be the applied.
You also propose consideration under Heading 6507 HTS which provides for Headbands, linings, covers, hat foundations, hat frames, peaks (visors) and chinstraps, for headgear. However, the finished band you plan to import will be wound into a roll in Mexico, and will be cut to size and sewn into caps after importation. Therefore, this heading cannot be applied.
The applicable subheading for the three ply fabric bands as described in versions 1, 2 and 3 will be 6307.90.9989, HTS, which provides for Other made up articles...Other: Other: Other: Other.
Under versions 1 and 3, the country of origin would be Mexico but the goods would not qualify for the special column rate under the North American Free Trade Agreement (NAFTA). The general column rate of 7 percent ad valorem would apply. Under 19 CFR 102.21, Rules of Origin for Textile and Apparel Products, which will apply to goods entered, or withdrawn from warehouse on and after July 1, 1996, the country of origin would change to Pakistan and the goods would have to be marked accordingly. However, they would not qualify for the special column rate under the Generalized System of Preferences.
Under version 2, the country of origin would be Mexico and the goods would qualify for the special column rate, Free under the NAFTA.
This ruling is being issued under the provisions of Parts 177 and 181 of the Customs Regulations (19 C.F.R. 177 & 181).
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 V. Gualario at 212-466-5886.
Sincerely,
Roger J. Silvestri
Director
National Commodity
Specialist Division