CLA-2 RR:CR:TE 962371 jb

Frederic D. Van Arnam, Jr., Esq.
Barnes, Richardson & Colburn
475 Park Avenue South
New York, NY 10016

RE: Classification of non-textured filament polyester fabric

Dear Mr. Van Arnam:

This is in response to your letter, dated March 17, 1998, on behalf of your client, Eurofab (U.S.A.), Inc., requesting the classification under the Harmonized Tariff Schedule of the United States, (HTSUS), of certain merchandise which you refer to as “hemmed voile curtain fabric in the piece.” Samples were submitted to this office for review.

FACTS:

The submitted finished sample, referenced Lisette 60", is a plain woven fabric made from 100 percent non-textured filament polyester yarns, which appears to be bleached or dyed white. An unfinished and unbleached sample of the subject merchandise was also submitted. The subject merchandise contains 28 single yarns per centimeter in the warp, 28 single yarns per centimeter in the filling, weighs approximately 48.1 g/m², and is imported in 150 centimeter widths.

You state in your letter that the subject merchandise will be woven on a loom with a width of 118/120 inches and will be slit in half before export to the United States. After the weaving process is finished the subject merchandise will also be dyed. In your opinion, this merchandise will be used exclusively for the manufacture of curtain panels, and “cannot be used for any other purpose.” Additionally, in your opinion, the fabric, as imported, features one inch side “hems”, which you refer to as “Continental” hems, which are prewoven into the fabric on the left and right sides and lengthwise into the middle of the fabric.

In support of your claim that the subject merchandise features “Continental” or prewoven hems, you make reference to Coraggio Design, Inc. v. United States, 12 CIT 143 (1988). As such, you claim that the appropriate classification for this merchandise is in heading 6303, HTSUS, as curtains, or in the alternative, heading 6307, HTSUS, as other made up articles. ISSUE:

Is the subject merchandise properly classified in heading 6303, HTSUS, as curtains, or in heading 6307, HTSUS, as other made up articles?

LAW AND ANALYSIS:

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes, taken in order. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI.

Fundamental to the proper classification of this merchandise is an understanding of the distinction between a “hem” and a “selvage”. As you correctly point out, in Coraggio Customs interpretation of the term “hem” was broadened when the Court determined that the “Continental” hem at issue therein, although not a hem in the traditional sense (since it is not a finished edge or border made by folding back a fabric and sewing it down), did nonetheless function as a hem for drapery purposes by preventing unravelling, adding aesthetic beauty and ensuring straight drapery hanging. The Continental hem in that case was incorporated into, roughly, the last sixteen to twenty-four inches of the product by infusing additional heavier yarns on the bottom portion of the roll. This hem was significant in that it offered weight at the bottom of the drapery enabling it to hang in a straight manner. Nevertheless, the Court determined that “material cannot be classified as more than woven fabric when it is not processed to the point where the individual ‘article’ is identifiable with certainty, not cut into specific lengths or marked for cutting, and not advanced to a point where significant processing steps no longer remain.” Accordingly, that merchandise was simply held to be classified as material, that is, drapery fabric out of which finished draperies are made.

In your submission, you also make reference to three Headquarters Ruling Letters (HQ 952650, dated June 8, 1993; HQ 953343, dated June 21, 1993; and HQ 955036, dated January 18, 1994) wherein the merchandise addressed in each of those rulings was determined to be classified in heading 6303, HTSUS, as curtains. You believe the merchandise addressed in those rulings is similar to the merchandise at issue and thus is supportive of your position that the subject merchandise should be classified in heading 6303, HTSUS. We note however, that in the case of all the merchandise referenced in those rulings the determination centered on the fact that the hems consisted of complex embroidery along the edge of the fabric such that the merchandise needed only minor alterations to create a curtain. In the case of the subject merchandise however, there are no elaborately manufactured edges, and the fabric requires more than simple alterations to create a curtain. Furthermore, unlike the merchandise addressed in Coraggio, the “hem” on the subject merchandise neither adds that critical “weight” element to the bottom of the fabric (weighing the fabric down and allowing it to drape appropriately, yielding that much sought after linear effect), nor does it affect a substantial amount of fabric. In the case of the subject merchandise there is an insignificant addition of weight to the side of the fabrics, that in no way can be stated to dedicate the fabric to any one sole use.

A “selvage” is defined in The Modern Textile and Apparel Dictionary, by George E. Linton, 1973, at 501, as:

...actual part of the cloth running in the warp direction along both edges of cloth. Its purpose is to keep the edges of cloth true, straight, even and parallel....Width of selvage varies from 1/4 to about 1 inch. All woven cloths have a selvage....

The Fashion Dictionary, by Mary Brooks Picken, 1973, at 317, defines selvage as:

Lengthwise edge of woven fabrics, finished so that it will not ravel. Usually cut away in making of garment. Sometimes spelled selvedge.

Upon examination of the subject merchandise, it is our finding that what you refer to as a “hem” is more appropriately considered a selvage of 1/2 inch to 1 inch which is a normal part of any fabric and may be removed by cutting if used in other applications.

Heading 6303, HTSUS, provides for, among other things, curtains. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN) to that heading state, in pertinent part:

This heading also covers material in the length so processed after weaving that it is clearly suitable for conversion, by a minor operation, into finished articles of this heading (e.g., fabric in the length to one edge of which has been added a frilled border and which, by simply cutting to required lengths and hemming, is converted into curtains).

As was the case with the merchandise decided upon by the court in Coraggio, the identity of the subject merchandise is not sufficiently defined in its processing to the point where this fabric is either defined with any certainty or advanced to a point where significant processing steps no longer remain. Although the subject merchandise contains doubled warp yarns similar to a “continental hem”, the fabric is essentially a 59/60 inch wide voile fabric which may be used to make in addition to curtains, blouses or dresses. The function of what is referenced as the 1/2 inch wide hem is to prevent the edge from unravelling, the same as a selvage. To convert this fabric for clear use as a curtain will require more than the simple cutting you suggest. As suggested by the example cited in the EN to heading 6303, HTSUS, the addition of an elaborate border to the edge, or anything similar, would be a manufacturing step which would be considered complex enough to warrant a finding that the merchandise had been significantly “converted” to a curtain. Additionally, to satisfy the terms of the EN, there is reference to processing which occurs after the weaving process. In the case of the subject merchandise however, the “continental hem” is created during the weaving process. Accordingly, the subject merchandise is precluded from classification in heading 6303, HTSUS.

In the alternative, you propose classification of the subject merchandise in heading 6307, HTSUS, a basket provision for articles which are not elsewhere more specified in the tariff. Note 7 to Section XI, HTSUS, states:

For the purposes of this Section, the expression “made up” means:

(a) Cut otherwise than into squares or rectangles;

(c) Hemmed or with rolled edges, or with a knotted fringe at any of the edges, but excluding fabrics the cut edges of which have been prevented from unravelling by whipping or by other simple means;

It thus follows that the subject merchandise, which is both cut into a rectangular shape after weaving and the cut edges of which feature only what we consider to be selvages to prevent unravelling, is similarly precluded from classification in heading 6307, HTSUS.

Heading 5407, HTSUS, provides for woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404, HTSUS. Accordingly, the subject merchandise is classified in the appropriate subheading of this heading.

HOLDING:

If unbleached or bleached, the subject merchandise is classifiable in subheading 5407.61.9905, HTSUSA, which provides for, woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404: other woven fabrics, containing 85 percent or more by weight of polyester filaments: containing 85 percent or more by weight of non-textured polyester filaments: other: other: unbleached or bleached: weighing not more than 170 g/m² : flat fabrics. The applicable general column one rate of duty is 16 percent ad valorem and the quota category is 619.

If dyed, the subject merchandise is classifiable in subheading 5407.61.9925, HTSUSA, which provides for, woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404: other woven fabrics, containing 85 percent or more by weight of polyester filaments: containing 85 percent or more by weight of non-textured polyester filaments: other: other: dyed: weighing not more than 170 g/m² : flat fabrics. The applicable general column one rate of duty is 16 percent ad valorem and the quota category is 619.

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, we suggest that your client 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.


Sincerely,

John Durant, Director
Commercial Rulings Division