CLA2 RR:CR:TE 962126 jb

Jeffrey Goldberg
Roth International
13 West 38th Street
New York, NY 10018

RE: beaded nylon woven and knit items; motifs; garment parts

Dear Mr. Goldberg:

This is in response to your letter, dated July 22, 1998, and subsequent submission, dated December 4, 1998, requesting a classification and country of origin marking ruling for certain beaded articles. Samples of selected styles of the beaded articles, and pictures of all of the subject styles after placement on the garments, were submitted to this office and will be returned under separate cover. Pictures of the samples you have submitted are included as an attachment to this document.

FACTS:

The subject merchandise consists of nine samples containing beads and sequins which are sewn onto a thin ground fabric. We note that in your original submission the articles at issue were identified by style numbers different than those you have presently submitted to Customs. Additionally, although you include a sample of style 4529 with your submission, you did not encorporate this style by reference in your letter. For the purposes of this ruling letter we have addressed only those styles referenced in your December 4th letter, or styles for which you have provided samples. You state in your submission that the subject beaded articles will typically be used as “ornamental attachments to women’s dresses”. Specifically, the nine samples consist of:

Sample Not Provided Style 4536- is composed of a design of white thread flowers and leaves on white woven polyester organza fabric. Three white imitation pearl beads form the center of each of the flowers. The border along the top edge of the neckline of this style is finished with decorative sewing. This style is made to be attached to the bodice and strap area of a dress, and has defined cut-outs for armholes and neckline.

 Style 4537- the top portion of this style consists of light blue woven polyester organza fabric which is embellished by light blue thread forming semi-circles along the borders. The bottom edge is composed of a design of light blue thread and white beads in the shape of flowers on light blue woven polyester organza fabric and a design of separately formed white thread flowers with white beads attached to the fabric by sewing. This style is made to be attached to the bodice and strap area, and has defined cut-outs for armholes and neckline.

 Style 4529- has a deep “V” shape along the top and is composed of tan and metallic gold thread in the shape of flowers on tan woven polyester organza fabric. Some of these flowers feature sequins in the center, while others feature gold metallic thread centers. This style is made to be attached to the bodice area.

 Style 4528- is composed of blue, green and pink thread forming flowers in a decorative pattern on woven polyester organza fabric. This style simulates the shape of an “H” except that the bottom legs of the “H” extend outward. This style is made to be attached to the top part of the back of the garment. We note by your picture that the top “arms” of this “H-shaped” style do not form the actual straps of the garment; there are preexisting straps on the garment onto which this style will be sewn.

 Style 24101- is composed of a woven polyester organza fabric base with iridescent sequins and beads in a criss-cross pattern (forming “diamonds”) with white “imitation pearls” at the center of each diamond. This style is made to be attached to the front bodice area.

 Style 76599- is composed of black thread and beads forming a decorative “flower like pattern” on a black knit nylon net fabric. This style is made to be attached to the bodice area.

Sample Not Provided Style 76627- is identical to style 76599 in decorative pattern except that it is composed on black woven polyester organza fabric. Sample Not Provided Style 76631- is composed of tan and metallic gold thread in the shape of flowers on tan woven polyester organza fabric. Some of these flowers feature sequins in the center, while others feature gold metallic thread centers. This style is identical to style 4529 in its decorative pattern, differing only in the general shape and in the finishing along the neckline.

Sample Not Provided Style 76608- is composed of a woven polyester organza fabric base with metallic thread and iridescent sequins and beads forming a decorative flower design; the top border is finished with decorative sewing. This style is made to be attached to the bodice area.

Sample Not Provided Style 76609- is composed of a woven polyester organza fabric base with a deep “V” shape along the top and featuring white thread and iridescent sequins and beads forming a decorative flower design. This style is made to be attached to the bodice area.

You state that the manufacturing operations for the subject merchandise consists of the following:

Korea polyester organza fabric is woven nylon net fabric is knit

Czech Republic beads are sourced

Austria foil for the sequins is sourced and then punched in China

China pearls are sourced sewing thread is sourced beading (including sequins and other trim elements)

ISSUE:

Whether the articles are classifiable under the provision for embroidery in the piece, in strips, or in motifs, in heading 5810, HTSUS, or under the appropriate provision for parts of garments in heading 6217, or heading 6117, HTSUS?

What is the proper country of origin marking for the subject merchandise? LAW AND ANALYSIS:

Classification

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of Interpretation (GRI). The GRI require that classification be determined according to the terms of the headings and any relative section or chapter notes, taken in order. Where goods cannot be classified solely on the basis of GRI 1, the remaining GRI will be applied in the order of their appearance.

The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, for heading 5810, HTSUSA, state that the embroidery classified within its provisions is comprised mainly of three types of articles. The third type, "applique work", states:

This consists of a ground of textile fabric or felt on which are sewn, by embroidery or ordinary stitches:

(A) Beads, sequins, or similar ornamental accessories; these accessories are generally made of glass, gelatin, metal or wood, and are sewn so as to produce a pattern or a scattered design on the ground fabric.

* * *

All varieties of embroidery described remain within this heading when in the following forms:

* * *

(2) In the form of motifs, i.e., individual pieces of embroidered design serving no other function than to be incorporated or appliqued as elements of embroidery in, for example, underwear or articles of apparel or furnishings. They may be cut to any shape, backed or otherwise assembled. They include badges, emblems, "flashes", initials, numbers, stars, national or sporting insignia, etc.

"Motif" is defined by Mary Brooks Picken in The Fashion Dictionary, (1973), p.249, as a “[u]nit of design, or figure; repeated to form pattern or used separately as decoration”.

It is your opinion that the submitted merchandise is clearly within the ambit of the term “motif” as defined above. You claim that each motif is an individual piece of embroidered design which serves no purpose other than to be incorporated or appliqued as an element of embroidery on women’s dresses. In your opinion, the merchandise at issue is not an actual part of the garment to which it is sewn because the garment itself is finished before the “motif” is added. As such, you argue that the “motifs” merely enhance or embellish the garment without adding functionality to the garment.

It is clear both by the terms of the EN and the Fashion Dictionary that the linchpin in the definition of "motif" is that the article be clearly designed to be applied onto a variety of articles as decoration or ornamentation. The term “motifs” is indicative of items which are to be applied on a number of different areas on larger articles for the purpose of identification or decoration. In this respect, motifs are not integral parts of the articles to which they are attached ( See HQ 951914, dated September 1, 1992, and HQ 950190, dated December 1, 1991, wherein certain V-shaped items designed to be incorporated as parts of apparel were determined not to be motifs and classified instead, as garment parts in headings 6117 and 6217, HTSUS).

Heading 6217, HTSUS, covers made up textile clothing accessories, other than knitted or crocheted, not specified or included in other headings of chapter 62 or elsewhere in the nomenclature. The heading also covers parts of garments or of clothing accessories, not knitted or crocheted. Heading 6117, HTSUS, covers, among other things, knit or crocheted garment parts.

The examples of garment parts enumerated in the EN to headings 6217, and 6117, HTSUS, include:

Pockets, sleeves, collars, collarettes, wimples, fallals of various kinds (such as rosettes, bows, ruches, frills and flounces), bodicefronts, jabots (including those combined with collars), cuffs, yokes, lapels and similar articles.

It is a basic tenet of Customs law that merchandise is to be classified based on its condition “as imported” (Carrington Co. et al v. United States, 61 CCPA 77, C.A.C. 1126, 496 F.2d 902 (1974); Olympus Corp. Of America v. United States, 72 Cust. Ct. 176, C.D. 4538 (1974)). The nature of this merchandise however, is such that whether the article is used as a “motif” or a “garment part” is not readily apparent until the article is actually placed on the garment itself. As such, there is at times, an inherent difficulty in the classification of this merchandise in the instance where the importer might not be privy to facts pertaining to the actual use of this merchandise once the merchandise is sold.

In cases such as this, there is no alternative other than to base classification on the physical characteristics of the merchandise in the imported condition. That is to say, if upon examination, Customs determines that certain features are present on the merchandise such that the merchandise resembles a garment part, Customs will presume that classification (i.e, heading 6117 or heading 6217) unless the importer can submit to Customs documentation (by way of advertisements, purchase orders, catalogues, etc.) which would substantiate classification as a motif. As such, Customs will invoke a rebuttable presumption that the merchandise is a garment part if for example, the article clearly features the identifiable shape/contour of a garment part (e.g., sleeve, bodice, neckline). In the case of the subject merchandise, when viewed alone, it is difficult to ascertain whether or not these articles are garment parts. For example, for styles 4536, 4537, 4528, 76599, and 76331, consistent with the features Customs would consider akin to garment parts, the finishing operations along the top portion of the neckline on these articles are such that the articles feature the identifiable shape/contour of a finished neckline. The presumption being in this case, that these articles could stand alone as actual bodice fronts of the dress (allowing the dresses to be unfinished in this area). However, as we have stated, this presumption can be rebutted by substantial documentation. In the case of all of the subject styles, you have submitted photographs which clearly show the way in which the articles will be featured on the front, or back, of the dresses onto which they will be applied. The photographs leave no uncertainties that the articles are merely added for purposes of embellishment, further defining and enhancing the visual impact of the otherwise completed dresses. As such, we agree that these articles act as motifs, classifiable in heading 5810, HTSUS.

Country of origin

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section.”

5810.91-5810.99 (2) For embroidered badges, emblems, insignia, and the like, comprised of multiple components, the country of origin is the place of assembly, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

The subject merchandise consists of the fabric and the beading. As the complete assembly of this merchandise occurs in China, the country of origin of the subject merchandise is China.

HOLDING:

Style numbers 4536, 4537, 4529, 4528, 24101, 76599, 76627, 76631, 76608 and 76609, are properly classified in subheading 5810.92.1000, HTSUSA, which provides for, embroidery in the piece, in strips or in motifs: other embroidery: of man-made fibers: badges, emblems and motifs. The applicable general column one rate of duty is 6.7 percent ad valorem.

The country of origin of the subject merchandise is China.

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 negotiations 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 issuance of the U.S. Customs Service, which is updated weekly and is available at the 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 the local Customs office prior to importing the merchandise to determine the current status of any import restraints or requirements.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change is the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

Sincerely,


John Durant, Director
Commercial Rulings Division