CLA-2 RR:TC:TE 960572 ASM

Mr. R.S. Barot
Hobnob, Inc.
P.O. Box 1584
Livingston, NJ 07039

RE: Printed garment imported from India; not "India Item" exempt from quota

Dear Mr. Barot:

This is in reference to your letter of February 21,1997, in which you request a binding ruling on behalf of Hobnob, Inc., for printed rayon or cotton garments. In addition, we have received your supplemental submissions dated March 4, 1997, March 12, 1997, and June 6, 1997. Specifically, your request concerns the classification of these garments and whether they qualify as an "India Item" under the United States/India bilateral textile agreement which would exempt them from quota.

FACTS:

The merchandise which is the subject of this request is identified by you as a "Chola." The sample submitted is an ankle length garment that is loose and flowing in design. There is no shaping at the waistline and the neck has no collar or lapel. The print pattern interspersed with a lace type print. In your submission, you describe a hand printing process in which designs or motifs are carved out on thin tin. Next, the paint/dye is poured through the stencil onto the fabric which has been stretched out over long tables. This process is repeated over the length of the fabric.

ISSUE:

What is the proper classification of the subject garments imported from India and do they qualify as "India Items" under the United States/India bilateral textile agreement?

LAW AND ANALYSIS:

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (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. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN' s), which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI' s.

The garment at issue is classified in the provision for women' s dresses in subheading 6204.42, HTSUSA. Their designation as "India Items" exempt from quota is not determined by the HTSUSA, but by the language of the bilateral textile agreement between the United States and India regarding such items.

The U.S./India bilateral textile agreement describes "India Items," in part, as:

* * * traditional folklore handicraft textiles products made in the cottage industry. They comprise clothes, clothing accessories and decorative furnishings whose shape and design are traditionally and historically Indian. [Emphasis supplied]

The subject garment is identified as a "Chola" which is defined in the United States/India bilateral agreement, Annex E, as: "An ankle length, loose-fit, long Kurta traditionally worn by religious priests." A "Kurta" is defined by Annex E as: "A loose, almost straight cut tunic of any length from the hips to the ankles with quarters, half or full length narrow or loose sleeves, with or without buttons at the neck or cuff but without out-turned shirt-style cuffs or out-turned shirt collar."

The article in question, is an ankle length, loose-fitting straight cut tunic with a loose half-length sleeve. The neckline is a simple rounded cut with a "v" shape in the center and no collar or lapel. As such, we find that the design is consistent with the traditional design of a "Chola" or "Kurta."

We have carefully reviewed your written submissions and pictures depicting the printing process and identified this as "silk-screening" which is not a traditional form of hand painting or hand priming. By way of example, a traditional form of Indian hand painting would include "kalamkari" which involves the use of stencils, soot, and handpen to form a design. A traditional form of hand printing would include "block printing" which is printing on to the fabric with hand held blocks of wood which have a hand-cut design.

The printed patterns that you describe, i.e., floral, animal, geometric shapes, and the multicolored striped sample, are examples of motifs which would not be considered representative of any patterns historically used in traditional Indian folklore handicraft textiles. In order to be considered "Indian Items," the garments must be ornamented in patterns characteristic of the traditional Indian folk styles. In a Memorandum of Understanding Between the Governments of the United States of America and India, dated December 31, 1994, it is stated that the printed design should be a uniquely "traditional and historical Indian" design thereby excluding such designs as "airplanes, buses, cowboys, cartoon characters, logos of products/programs, holiday/festival designs such as Halloween, Thanksgiving, etc." It is important to note that this Memorandum of Understanding is to be used in conjunction with Annex E for the purposes of issuing and accepting exempt certifications.

Based upon our examination of the garment at issue and all the information provided to Customs regarding an "India Item" and the "Chola" or "Kurta" as used in the bilateral textile agreement and in the traditional/historical sense, it is our belief that these garments do not qualify as quota exempt India items as defined in the agreement.

If you would like information regarding items which are considered "India Items," exempt from quota, under the U. S ./India bilateral textile agreement, we suggest you contact the Chairman of CITA. She may be reached by writing to:

Chairman, Committee for the Implementation of Textile Agreements U.S. Department of Commerce 14th & Constitution Ave., N.W. Washington, D.C. 20230

Her office may also be contacted at (202) 482-3737.

HOLDING:

The printed rayon garments imported from India are properly classified under 6204.43.4030, HTSUSA, which provides for "Women's or girls' suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Dresses: Of synthetic fibers: Other: Other; Other: Women's." This provision is dutiable at the general column one rate at 16.7 percent ad valorem. if the garment is 100 percent cotton, it is classifiable under subheading 6204.42.3050, HTSUSA, which provides "Women's or girls' suits, ensembles, suit-type jackets, blazers, dresses, skins, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Dresses: Of cotton: Other: Other: Other: Other: Women's." The general column one rate of duty is 11.3 percent ad valorem. These garments are not "India Items" pursuant to the United States/India bilateral textile agreement, and therefore, are subject to textile visa/quota restraints. Upon entry, textile visas from India for categories 636 (rayon) and 336 (cotton) will be required.

The designated textile and apparel category may be subdivided into parts. If so, the 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 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 updated weekly and is available for inspection at your local Customs office.

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 your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director
Tariff Classification Appeals Division