CLA-2 RR:TC:TE 961956 SS

TARIFF NOS.: 4901.99.0092

Ms. Maggie Smith
Coppersmith Inc.
1599 Grandview Drive
So. San Francisco, CA 94080

RE: Reconsideration of NY C84124; “Hair Wraps” Book Set; Quota and Visa Requirements Applicable to Textile Articles Which are Classified as Parts of Sets

Dear Ms. Smith:

This is in response to your letter, dated May 26, 1998, on behalf of your client, Klutz, Inc., requesting reconsideration of New York Ruling Letter (NY) C84124, dated February 27, 1998, regarding classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of a book entitled “Hair Wraps” with an attached packet of hair-ornamentation supplies. A physical sample was provided with the request for reconsideration.

FACTS:

The submitted sample consists of a thirty-page spiral-bound, paper-covered book entitled “Hair Wraps” with an attached packet of related hair-ornamentation supplies. The supplies consist of: several meters of cotton embroidery floss (yarn) put up on ten (10) small cards, nine (9) glass beads and five (5) gold-colored metal charms. The kit is intended to enable the user to undertake the art of “hair wrapping,” in which slender braids of hair are ornamented with yarns, beads and/or charms. The book contains detailed text and illustrations on a number of techniques and styles. The packet of supplies gives the consumer sufficient materials to get started in the activity.

In NY C84124, Customs determined that the merchandise constituted a set pursuant to General Rule of Interpretation 3(b) and that the essential character was imparted by the book. Accordingly, the “Hair Wraps” book set was classified under subheading 4901.99.0092, HTSUSA, the provision for other printed books. You agree with that determination. However, the ruling also stated that although the cotton embroidery floss (yarn) was included as a constituent part of the set for classification purposes, it fell within textile category 220, and such products are subject to visa and quota requirements. You disagree with this portion of the ruling and contend that quota and visa requirements are governed solely by the component which imparts the essential character and, thus, quota and visa requirements do not apply to the cotton embroidery floss which is merely a “secondary” item in the set.

ISSUE:

Whether quota and visa requirements apply to the cotton embroidery floss (yarn) component of the “Hair Wraps” book set?

LAW AND ANALYSIS:

Customs has repeatedly stated that all applicable visa and quota requirements apply for textile articles which are classified as parts of a set. See HQ 085001, dated November 15, 1989; HQ 087180, dated January 11, 1991; HQ 951902, dated August 28, 1992; HQ 953064, dated February 25, 1993; HQ 953395, dated May 12, 1993; HQ 954298, dated October 27, 1993; HQ 954288, dated October 27, 1993; and HQ 959083, dated May 17, 1995. See also, Federal Register, Vol. 54, No. 163. August 24, 1989, p. 35223.

By Customs Headquarters’ telex 06761 (August 22, 1989), Customs informed the field and the trade, in pertinent part, as follows:

...All applicable visa and quota requirements will apply for textiles and their products which are classified as parts of a set. This rule applies to all items which, if imported separately, would have required a visa or be subject to quota restraints....Entry is to be prohibited for all textile items without a visa for which classification is claimed as sets under General Rules of Interpretation (GRI) 3 of the HTS,....

This policy has been reiterated in several Customs rulings.

Customs has previously stated that quota and visa requirements apply to textile products which are classified as parts of sets even if the essential character of the set is imparted by a non-textile component. In HQ 087180, dated January 11, 1991, Customs classified a hand held sewing device which was packaged with a spool of thread, an extra needle, a needle threader and a set of instructions as a set pursuant to General Rule of Interpretation 3(b) . Even though the spool of thread was included as a constituent part of the set for classification purposes, Customs stated that it still fell within textile category designation 200 and was subject to visa and quota requirements. The ruling cited to a Federal Register notice and letter to the Commissioner of Customs published on December 29, 1988 (53 FR 52765) which announced separate visa and separate statistical reporting requirements for textiles and textile products entered as sets. The letter stated as follows:

This letter amends the directive of December 23, 1988 to further clarify the intent of the Committee for the Implementation of Textile Agreements on the applicability of visa requirements and quota reporting of textiles and their products entered as sets under GRI 3 of the Harmonized Tariff Schedule. Effective on August 24, 1989, the directive of December 23, 1988 is amended to read as follows: Under the terms of Section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854); and in accordance with the provisions of Executive Order 11651 of March 3, 1972, as amended; all applicable visa and quota requirements will apply for textiles and their products which are classified as parts of a set. This rule applies to all items which, if imported separately, would have required a visa and the reporting of quota. Effective January 1, 1989, you are directed to prohibit entry for consumption or withdrawal from warehouse for consumption into the United States [i.e., the 50 states, the District of Columbia and the Commonwealth of Puerto Rico] of any textile item for which classification is claimed as sets under General Rules of Interpretation [GRI] 3 of the HTS, where a separate textile category currently exists or comes into existence requiring separate reporting of the components forming those sets. Entry shall be permitted if all visa and quota requirements are met. The Committee for the Implementation of Textile Agreements has determined that these actions fall within the foreign affairs exception to the rulemaking provisions of 5 U.S.C. 553(a)(1).

[FR Doc. 89-19965 Filed 8-23-89; 8:45 am]. See Federal Register, Vol. 54, No. 163, August 24, 1989, p.35223. More recently in HQ 959083, dated May 17, 1995, Customs reiterated its position on the applicability of quota and visa requirements to a textile component of a similar hair braiding book set. The importer inquired as to the necessity of a textile quota/visa for the merchandise. Customs confirmed that a textile visa was necessary for the yarn component of the book set as the textile component was subject to quota. Customs also advised that the importer might be able to obtain a visa waiver by contacting the embassy for the country that was the country of origin of the yarn component and/or the Committee for the Implementation of Textile Agreements (CITA). We also note that there have been several New York ruling letters which address the issue of quota/visa requirements for book activity sets which include textile articles. In New York Ruling Letter (NY) 814896, dated October 11, 1995, a “Native American Treasure Chest” which included a book, a length of braided synthetic textile cord and a spool of cotton sewing thread was classified as a set under heading 4901.99.0092, HTSUSA. The ruling advised that the cotton thread and braided synthetic textile cord were subject to quota/visa requirements despite not being separately classifiable. In NY 817017, dated December 6, 1995, a book entitled “Hair Braiding” imported with a small skein of several different colors of yarn were classified as a set under heading 4901.99.0092, HTSUSA. Although the yarn was not separately classifiable, the ruling advised that it was subject to quota and the requirements of visa. Lastly, in NY A89316, dated November 27, 1996, a book packed with a knit terry wash mitt was classified as a set under 4901.99.0092, HTSUSA. Customs stated that although the wash mitt was included as a constituent part of the book set for classification purposes, it was subject to visa and quota requirements.

Applying the established precedent concerning the applicability of quota and visa requirements to textile articles which are classified as parts of sets, we conclude that the cotton embroidery floss falls within textile category 200 and is subject to quota and visa requirements.

In support of your position you cite to another ruling received by your client which involved a book set which you allege to be similar to the merchandise at issue. See NY A80976, dated March 21, 1996. In NY A80976 Customs classified a book entitled “String Games from Around the World” accompanied by three braided cords as a set in heading 4901, HTSUSA, and did not mention any quota and visa requirements. Although a review of the ruling indicates that quota and visa requirements may have been applicable, since a sample is not available for review and we do not have any details as to the nature of the cords, we regret that we are unable to comment on the correctness of that decision.

On December 8, 1993, Title VI of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), which is also known as the Customs Modernization Act or “Mod Act,” became effective. These provisions amended many sections of the Tariff Act of 1930 and related laws. Two new concepts emerged from the Mod Act: “informed compliance” and “shared responsibility.” These concepts are premised on the idea that in order to maximize voluntary compliance with Customs laws and regulations, the trade community needs to be informed of its legal obligations. Accordingly, Customs makes its decisions available to the public by various methods of public distribution and the trade community has a duty to maintain awareness of stated requirements. Under section 484 of the Tariff Act, as amended, (19 U.S.C. § 1484) the importer of record is responsible for using reasonable care when entering imported merchandise. We understand your disappointment in not receiving quota and visa requirement information in response to your request for a classification ruling. However, we note that the information was readily available.

Furthermore, Customs supplies textile quota and visa requirement information merely as a courtesy to the importer. Quota and visa requirements are related to entry procedures and are not integral to the legal classification of merchandise. We note the you were provided with the legal classification for the merchandise at issue. Generally, when an inquirer asks only for a classification or duty rate, if the ten digit classification indicates that the goods may be subject to restraints, as a courtesy, Customs supplies the category number. Customs enforces not only its own laws and regulations, but also those of other agencies. In the textile area, there are many things which Customs does not comment on unless specifically requested to--e.g. care labels, fabric content labels, country of origin marking, etc. The failure to inform you, as a courtesy, of the applicability of quota/visa requirements in the case of the cotton embroidery floss component imported with the “Hair Wraps” book does not negate that requirement.

HOLDING:

The information provided in the ruling letter that the cotton embroidery floss component of the “Hair Wraps” book set was subject to quota and visa requirements was correct.

The “Hair Wraps” book set is classifiable in subheading 4901.99.0092, HTSUSA, which provides for other (than certain enumerated) printed books containing 5 or more pages each, but not more than 48 pages each. The rate of duty will be free. Even though the cotton embroidery floss is included as a constituent part of the set for classification purposes, it falls within textile category 200, and is subject to quota and visa 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 (Restrain 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