CLA-2 CO:R:C:G 085022 CC
Mr. F. Gordon Lee
O'Connor & Hannan
1919 Pennsylvania Avenue, N.W.
Suite 800
Washington, D.C. 20006-3483
RE: Classification and country of origin for curtain valances
and a window shade
Dear Mr. Lee:
This letter is in response to your inquiries, on behalf of
Max Kahn Curtain Corporation, concerning country of origin and
tariff classification under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA) of curtain valances and a
window shade. Samples were submitted for examination.
FACTS:
The submitted sample, designated as Style No. 175, is a
roller window shade packaged with two matching valances. The
window shade, which measures approximately 37 inches by 64
inches, is made of a blend of 70 percent cotton and 30 percent
polyester woven fabric. This fabric has an application of a
vinyl substance on one side. At the top of the shade is an
attached roller, which is made from cellulose and has metal caps
with hooks on each end. A plastic rod is inserted near the
bottom of the shade.
According to your submissions, the fabric to be used for the
window shades is made in Poland or some other country. The
unmarked and uncut fabric is sent to the United States on bolts
in continuous lengths. In the United States these bolts are
unrolled and a vinyl substance is dispersed onto one side of the
fabric by machine. This substance is smoothed over the entire
surface of one side of the fabric with blades. Then the fabric
is cured in an oven prior to being rolled back onto the bolts.
The fabric is sent to Haiti where it is cut to length and
may or may not be slit to width, according to your submissions.
The body of the shade is hemmed near the bottom and a pocket is
formed, where the plastic rod is inserted. The body of the shade
is affixed to the roller by masking tape or glue.
The two matching swag-type curtain valances are made of the
same type of fabric of the window shade. The triangular-shaped
valances have a ruffle, with an attached edging. You state that
unmarked and uncut fabric is exported from Poland or some other
country to Haiti on bolts. Also, polyester raschel knit trim
from Poland, Colombia, or the United States is shipped to Haiti
on bolts or spools in the width that appears on the edge of the
ruffled valance. In Haiti the fabric is cut to length and slit
to width to form the body of the valances and the ruffle. The
ruffle is sewn to the body of the valance, and the edging is
attached to the ruffle. The valances are hemmed at the top to
form rod pockets and are hemmed at the side.
You contend that the shade is coated with plastics material,
and, therefore, is classifiable in Chapter 39. In addition, you
believe that the shade and valances are classified as a set;
since the shade imparts the essential character to this set, it
is classified in Chapter 39.
ISSUE:
Whether the submitted shade is classifiable in Chapter 39,
HTSUSA?
Whether the processing done in Haiti is sufficient to
effect a substantial transformation for country of origin
purposes for the submitted valances and shade?
LAW AND ANALYSIS:
Classification
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes.
Heading 5903, HTSUSA, provides for textile fabrics
impregnated, coated, covered, or laminated with plastics. Note 2
to Chapter 59, HTSUSA, provides, in pertinent part, that Heading
5903 applies to the following:
(a) Textile fabrics, impregnated, coated, covered or
laminated with plastics, whatever the weight per square
meter and whatever the nature of the plastic material
(compact or cellular), other than:
(3) Products in which the textile fabric is either
completely embedded in plastics or entirely coated or
covered on both sides with such material, provided
that such coating or covering can be seen with the
naked eye with no account being taken of any resulting
change of color (chapter 39)
The plastics material is applied only to one side of the
fabric of the curtain shade. Since it is not completely embedded
in plastics or entirely coated or covered on both sides with such
material, the submitted shade is not classifiable in Chapter 39.
Heading 6303, HTSUSA, provides for curtains (including
drapes), interior blinds, and curtain or bed valances. According
to the Explanatory Notes, the official interpretation of the
HTSUSA at the international level, Heading 6303 includes the
following:
(1) Curtains (including drapes), which are used, for
example, inside windows or to close recesses, theatre
stages, etc. The expression "curtains" covers lightweight
and transparent or semi-transparent articles and articles
made of thick fabrics.
(2) Interior blinds, which are usually opaque and of the
roller variety (e.g., those for railway carriages).
(3) Curtain valances (or pelmets), which consist of strips
of fabric designed to be fitted above windows to hide the
tops of curtains, ....
Webster's Third New International Dictionary, Unabridged
(1986) defines a blind as "1 : something to hinder sight or keep
out light: as a : (2) : a roller window shade." Thus, the
submitted window shade can be considered a blind, and, according
to the Explanatory Notes, is classifiable in Heading 6303.
The submitted valances are also classifiable in Heading
6303. Since the submitted valances and shade are made of the
same type of fabric, they are each classifiable under the same
subheading in accordance with GRI 1.
Country of Origin
Section 12.130(b) of the Customs Regulations provides that a
textile product that is processed in more than one country or
territory shall be a product of that country or territory where
it last underwent a substantial transformation. A textile
product will be considered to have undergone a substantial
transformation if it has been transformed by means of substantial
manufacturing or processing operations into a new and different
article of commerce.
Section 12.130(d) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place. This regulation states that
these criteria are not exhaustive; one or any combination of
criteria may be determinative, and additional factors may be
considered.
Section 12.130(d)(1) states that a new and different article
of commerce will usually result from a manufacturing or
processing operation if there is a change in:
(i) Commercial designation or identity,
(ii) Fundamental character or
(iii) Commercial use.
12.130(d)(2) states that in determining whether merchandise
has been subjected to substantial manufacturing or processing
operations, the following will be considered:
(i) The physical change in the material or article as a
result of the manufacturing or processing operations in each
foreign territory or country, or insular possession of the
U.S.
(ii) The time involved in the manufacturing or processing
operations in each foreign territory or country, or insular
possession of the U.S.
(iii) The complexity of the manufacturing or processing
operations in each foreign territory or country, or insular
possession of the U.S.
(iv) The level or degree of skill and/or technology required
in the manufacturing or processing operations in each
foreign territory or country, or insular possession of the
U.S.
(v) The value added to the article or material in each
foreign territory or country, or insular possession of the
U.S., compared to its value when imported into the U.S.
In addition to the above regulations, Section 12.130(e)(1)
of the Customs Regulations describes manufacturing or processing
operations from which an article will usually be considered a
product of the country in which the processes occurred. Section
12.130(e)(2) of the Customs Regulations describes manufacturing
or processing operations from which an article will usually not
be considered a product of the country in which the processes
occurred.
The processing operations done in Haiti to create the shade
consist basically of cutting fabric to length, affixing the body
of the shade to the roller with tape or glue, hemming the
bottom, and inserting the plastic rod. You state that the shades
may or may not be slit to width in Haiti. In applying the
criteria for determining country of origin under 19 CFR 12.130,
we do not believe that the processing operations performed in
Haiti are substantial for the shades that are not slit to width.
For these shades, the last substantial transformation occurs
where the fabric is made. For the shades that are made by
slitting to width, in addition to cutting to length, we believe
that substantial manufacturing processes have been performed in
Haiti. Therefore, a substantial transformation has occurred in
Haiti for those shades.
Processing of the valances in Haiti consists basically of
the following operations: cutting fabric to length and width to
form the body and ruffle, cutting the edging, sewing the ruffle
to the body, attaching the edging to the ruffle, and hemming the
top and side. In applying the criteria for determining country
of origin under 19 CFR 12.130, we believe that the processing
operations performed in Haiti on the valances are substantial.
Therefore, the last substantial transformation for the valances
occurs in Haiti.
HOLDING:
The submitted curtain valances and shade are each
classified under subheading 6303.91.0000, HTSUSA, which provides
for curtains (including drapes) and interior blinds, curtain or
bed valances, other, of cotton. The rate of duty is 11.7 percent
and the textile category is 369.
If the shade is made by cutting to width, in addition to
length, it is substantially transformed in Haiti, and the
country of origin is Haiti. If the shade is not cut to width, in
addition to length, it is not substantially transformed in Haiti,
and the country of origin is the country in which the fabric is
produced.
The country of origin of the submitted valances is Haiti.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or 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 (Restraint 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