CLA-2 RR:TC:TE 959878 DHS
Mr. Charles Erkus
Import Manager
Trade Am International, Inc.
6580 Jimmy Carter Blvd.
Norcross (Atlanta), GA 30071
RE: Tariff classification of cotton terry towels; Dust cloths,
mop cloths and polishing cloths; Auto detail cloths
Dear Mr. Erkus:
This letter is in response to your inquiry of September 12,
1996, sent to our New York office, wherein you inquire about
altering the packaging procedures, of cotton terry towels from
India, presently utilized by your company. The Chief, Textile
and Apparel Branch, National Commodity Specialist Division, has
forwarded your letter for our response and a review of the proper
tariff classification under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA). Samples have been provided for
our inspection. Our response follows.
FACTS:
The submitted samples consist of 100 percent cotton woven
terry towels. They are full terry, of one solid color, with
loops on both sides and hemmed on all four sides. The towels
have been rolled three to a bundle and wrapped with a paper
strap. Six of the towels were measured; these measurements were
found to be: 37 x 46 cm., 36 x 43 cm., 37 x 47 cm., 38 x 48 cm.,
38 x 45 cm. and 38 x 46 cm.
Trade Am International, Inc. (Trade Am) imports these towels
in bulk and currently repacks them, in packaging (paper strap
label or poly bag) supplied by your customer, Clean Rite, Inc.,
in the United States. The paper strap label refers to these
items as "The Detailers Choice" 3 pack Terry Towels 100% Cotton
14 in. X 17 in. (35.5 cm. X 43.1 cm.). Only one towel fits the
size specified on the label. The label also indicates that the
towels are "Made in India," and contains Clean Rite's name and
U.S. address approximately one inch below and in the same size as
the "Made in India" marking. Clean Rite, Inc. sells the towels
as auto detailing towels to auto parts wholesalers, retailers,
detail shops, etc. Trade Am would like to retail pack these
towels in India rather than in the U.S.
ISSUES:
I. What is the tariff classification of the towels?
II. What are the country of origin marking requirements of
the towels?
LAW AND ANALYSIS:
I. Classification
Classification of merchandise is in accordance with the
General Rules of Interpretation (GRI's). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes. Merchandise
that cannot be classified in accordance with GRI 1 is to be
classified in accordance with subsequent GRI's taken in order.
Heading 6307, HTSUS, provides for other made up textile
articles. According to the Harmonized Commodity Description and
Coding System, Explanatory Notes, the official interpretation of
the HTSUSA at the international level, at page 867, Heading 6307
covers made up articles of any textile material which are not
included more specifically in other headings of Section XI or
elsewhere in the nomenclature.
Note 7, Section XI, HTSUSA, states, in pertinent part:
For the purposes of this section, the expression "made
up" means:
* * *
(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 unraveling
by whipping or by other simple means;
* * *
In accordance with Note 7(c), Section XI, HTSUSA, the
instant cloths have been hemmed on all four sides; therefore, for
tariff classification purposes, they are "made up". The articles
are not otherwise specifically provided for elsewhere in the
tariff, thus classification under Heading 6307, HTSUS, is
required.
The question then arises as to whether the towels in
question are classifiable under subheading 6307.10.1000, HTSUSA,
as dust cloths, mop cloths and polishing cloths, or subheading
6307.10.2020, HTSUSA, as bar mops. Previous importations of
these towels, by Trade Am, have been entered and classified,
according to a furnished copy of a C.F. 7501, under subheading
6307.10.2020, HTSUSA, as bar mops.
Heading 6307 and the applicable subheadings provide:
6307 Other made up articles, ...:
6307.10 Floor cloths, dish cloths, dusters and
similar cleaning cloths:
6307.10.1000 Dust cloths, mop cloths and
polishing cloths, of cotton ....
6307.10.20 Other
6307.10.2020 Bar mops (measuring 46 to 57
cm. in length and 38 to 43 cm.
in width) of cotton terry
fabric...
The Guidelines for the Reporting of Imported Products in
Various Textile and Apparel Categories, CIE 13/88, states with
respect to the size requirements specific to bar mops: "While
sizes may vary, only those bar mops which are 38 to 43
centimeters in width and 46 to 57 centimeters in length fall
within category 369. Tolerances are not allowed. Bar mops not
within the stated dimensions are included in category 363." Not
all of the towels in issue fit within these size requirements
(only two of the six towels measured).
Furthermore, as seen in the cases below cotton terry cloths
used for cleaning and polishing automobiles have been classified
under subheading 6307.10.10, HTSUSA, as dust cloths, mop cloths
and polishing cloths.
In HQ 084794, dated September 7, 1989, we held that terry
towels, measuring 38 by 40 centimeters, used principally as
cleaning towels for auto detail shops was classifiable under
subheading 6307.10.1000, HTSUSA. In drawing this conclusion, we
noted that: "Generally, "auto detail" shops provide services for
care of the exterior and interior of automobiles and vans. These
services include washing and waxing the exterior, applying
stripes or decals, cleaning the engine, shampooing the carpeting,
and polishing the interior. The merchandise under consideration
would be used to apply and remove wax, shampoo, cleaners, or
other liquids or to be used as a cloth to remove dust or dirt.
Other uses of a towel of this size and construction would be as a
cleaning cloth to remove dirt or absorb liquids."
In HQ 952926, dated March 9, 1993, we concluded that terry
towels measuring 47 centimeters by 41.5 centimeters (within the
bar mop size) were more specifically provided for in subheading
6307.10.10, HTSUSA, as dust cloths, mop cloths and polishing
cloths than in subheading 6307.10.20, HTSUSA, which is the
"other" provision that ultimately leads to the "bar mops" at the
10-digit level. Since this merchandise is specifically provided
for as a dust cloth, mop cloth, or polishing cloth of subheading
6307.10.10, HTSUS, it could not be classifiable as a bar mop
under subheading 6307.10.2020, HTSUSA.
Based upon the foregoing, the principle use of the towels in
issue, and the description of these towels, makes them
classifiable under subheading 6307.10.1000, HTSUSA, as dust
cloths, mop cloths and polishing cloths.
II. Country of Origin Marking
The marking statute, section 304, Tariff Act of 1930, as
amended (19 U.S.C. 1304), provides that, unless excepted, every
article of foreign origin (or its container) imported into the
U.S. shall be marked in a conspicuous place as legibly, indelibly
and permanently as the nature of the article (or its container)
will permit, in such a manner as to indicate to the ultimate
purchaser in the U.S. the English name of the country of origin
of the article. Part 134, Customs Regulations (19 CFR Part 134)
implements the country of origin marking requirements and
exceptions of 19 U.S.C. 1304.
The "ultimate purchaser" is generally the last person in the
U.S. who will receive the article in the form in which it was
imported. 19 CFR 134.1(d). In this case, the auto parts
wholesalers, retailers, detail shops, etc. will be the ultimate
purchasers. Accordingly, provided these ultimate purchasers will
receive the towels in the paper straps or poly bags properly
indicating the country of origin of the towels, it will not
matter whether the towels are packaged in the U.S. or in India.
Please note that if a locality other than the article's
country of origin (in this case Clean Rite's U.S. address)
appears on an imported article, there shall appear, legibly and
permanently, in close proximity to such words and in at least a
comparable size, the name of the country of origin preceded by
"Made in," "Product of", or other words of similar meaning. See
19 CFR 134.46. In this case, we find that the requirements of 19
CFR 134.46 will be satisfied since "Made in India" appears in the
same size and approximately one inch away from Clean Rite's U.S.
address. As a sample of the towels packaged in a polybag was not
provided, we cannot rule whether the requirements of 19 U.S.C.
1304 will be satisfied.
HOLDING:
The towels in issue are classified under subheading
6307.10.1000, HTSUSA, which provides for "[O]ther made up
articles, ...: floor cloths, dish cloths, dusters and similar
cleaning cloths: Dust cloths, mop cloths and polishing cloths, of
cotton."
The towel is dutiable at a rate of 4.5 percent ad valorem and is
subject to textile quota category 369. Provided the ultimate
purchasers (i.e., the auto parts wholesalers, retailers, detail
shops, etc.) will receive the towels in the paper straps or poly
bags properly indicating the country of origin of the towels, it
will not matter whether the towels are packaged in the United
States or in India. If the towels are used in a manner
inconsistent with that stated in this ruling, it may affect the
classification.
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 of Current Import Quotas (Restraint Levels), an issuance
of the U.S. Customs Service, which is updated weekly and is
available at your local Customs office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the tariff number) 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