OT:RR:CTF:CPMMA H310888 RRB/BJK
Ms. Paula Connelly, Esq.
Sandler, Travis & Rosenberg, P.A.
100 Trade Center, Suite G-700
Woburn, MA 01801
RE: Revocation of NY N307758; Tariff classification of polyurethane-coated weft knit fabric materials from China
Dear Ms. Connelly:
On May 7, 2020, you submitted a request for reconsideration, pursuant to 19 C.F.R. § 177.2(b)(2)(ii)(C), of New York Ruling Letter (“NY”) N307758, issued to you on behalf of Commando, LLC, on April 7, 2020, regarding the classification of two polyurethane-coated weft knit fabric materials from China, described as imitation leather materials and identified as FLEATH01 and FLEATH02, respectively, under the Harmonized Tariff Schedule of the United States (“HTSUS”). In NY N307758, U.S. Customs and Border Protection (“CBP”) classified the polyurethane-coated weft knit fabric materials in subheading 3921.13.15, HTSUS, as “[o]ther plates, sheets, film, foil and strip, of plastics: [c]ellular: [o]f polyurethanes: [c]ombined with textile materials: [p]roducts with textile components in which man-made fibers predominate by weight over any other single textile fiber: [o]ther.” Upon receipt of your request for reconsideration and after reviewing the ruling in its entirety, CBP finds it to be in error. For the reasons set forth below, CBP is revoking NY N307758 and reclassifying the fabric materials under heading 5903, HTSUS.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), notice proposing to revoke NY N087996 was published on September 11, 2024, in Volume 58, Number 36, of the Customs Bulletin. No comments were received in response to the notice.
FACTS:
In NY N307758, the subject merchandise is described as follows:
The samples, identified as FLEATH01 and FLEATH02, are weft knit fabrics which have been visibly coated on one side with plastics. According to U.S. Customs and Border Protection (CBP) laboratory analysis, FLEATH01 is a weft knit fabric with no surface treatments. The fabric is composed of 95.6 percent rayon and 4.4 percent elastomeric yarns. The fabric was dyed a single uniform color and is coated on one side with polyurethane which is cellular in nature. The fabric weighs 356 g/ m² and the plastic accounts for 52.3 percent by weight of the material. CBP laboratory analysis indicates that FLEATH02 is a weft knit fabric with no surface treatments. The fabric is composed of 94 percent rayon and 6 percent elastomeric yarns and was dyed a single uniform color. The fabric was dyed a single uniform color and is coated on one side with polyurethane which is cellular in nature. The fabric weighs 381.4 g/ m² and the plastic accounts for 59.5 percent by weight of the material.
In your ruling request, dated November 19, 2019, you described FLEATH01 as an “embossed faux leather material constructed of polyurethane and a knit base fabric consisting of viscose and spandex.” Additionally, you described FLEATH02 as a “polished faux leather material which resembles a patent leather” that is also made of polyurethane and a knit base fabric of viscose and spandex. FLEATH01 and FLEATH02 are imported in rolls of various lengths and widths ranging from 52 inches to 54 inches.
In your request for reconsideration, dated May 7, 2020, you explain that the subject merchandise, best described as an imitation/faux leather fabric, is used in manufacturing leggings, skirts, bralettes, and tops, in which the knit fabric side will rest directly against the wearer’s skin. You also state that the material is very pliable and has a significant stretch factor due to the textile base. In your reconsideration request, you explain that the “weft material is formulated specifically for use with this type of apparel. The viscose fiber is anti-static, and the smoothness ensures that it [is] comfortable to the skin which is required for the body fitting apparel.” Moreover, the material has moisture characteristics to help prevent sweating and is considered a “breathable fabric” with great tensile elastic properties allowing for stretch in both directions.
The information cited in NY N307758 is based on swatch samples that were sent with the underlying ruling request to CBP’s Laboratories and Scientific Services (“LSS”) for testing. NY N307758 was premised on the findings contained in CBP Lab Report No. NY20200068, dated March 2, 2020, which concerned FLEATH01, and CBP Lab Report No. NY20200070, dated February 25, 2020, which concerned FLEATH02. In the instant reconsideration request, you submitted additional samples of the garments of each material, which were subsequently tested by LSS. According to CBP Lab Report No. NY20200526, dated July 15, 2020, which addressed the fabric swatch claimed to be “FLEATH01” and pants made of the same material, the FLEATH01 fabric swatch weighs 374 grams per square meter, is composed of a weft knit fabric (46.2 percent by weight), and is coated, covered, or laminated on one surface with a cellular polyurethane type of plastic material (53.8 percent by weight). Additionally, the knit fabric portion of the FLEATH01 swatch is composed of 95.4 percent of rayon fibers and 4.6 percent of elastomeric yarn by weight. The knit fabric sample identified as FLEATH01 is dyed a single uniform color and does not have any surface treatments.
According to CBP Lab Report No. NY20200527, dated July 15, 2020, which addressed the fabric swatch claimed to be “FLEATH02” and pants made of the same material, the FLEATH02 fabric swatch weighs 381.8 grams per square meter, is composed of a weft knit fabric (45 percent by weight), and is coated, covered, or laminated on one surface with a cellular polyurethane type of plastic material (55 percent by weight). Additionally, the knit fabric portion of the FLEATH02 swatch is composed of 96.2 percent of rayon fibers and 3.8 percent of elastomeric yarn by weight. The knit fabric sample identified as FLEATH02 is dyed a single uniform color and does not have any surface treatments.
CBP notes that there are slight differences in the swatches that were tested in connection with NY N307758 and those submitted with the instant reconsideration request. This difference could be due, in part, to the fact that only swatches were tested by LSS in the lab reports detailed in NY N307758, whereas the swatches analyzed for purposes of this reconsideration request and subject to CBP Lab Report Nos. NY20200526 and NY20200527 were cut directly from pants that were already manufactured, which may have undergone any number of finishing processes that could have changed the various measurements cited in the ruling. Nevertheless, these slight changes do not affect the analysis and conclusions set forth below.
ISSUE:
Whether polyurethane-coated, weft knit, fabric materials are classified in heading 3921, HTSUS, as “[o]ther plates, sheets, film, foil and strip, of plastics,” or in heading 5903, HTSUS, as “[t]extile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902.”
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The 2024 HTSUS headings under consideration are as follows:
3921 Other plates, sheets, film, foil and strip, of plastics:
Cellular:
3921.13 Of polyurethanes:
Combined with textile materials:
Products with textile components in which man-made fibers predominate by weight over any other single textile fiber:
3921.13.15 Other…
5903 Textile fabric impregnated, coated, covered or laminated with plastics, other than those of heading 5902:
5903.20 With polyurethane:
Of man-made fibers:
Other:
5903.20.25 Other…
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Note 2(p) to Chapter 39, HTSUS, provides as follows:
2. This chapter does not cover:
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(p) Goods of section XI (textiles and textile articles);
Note 1(h) to Section XI excludes the following from classification under Section XI, “Textiles and Textile Articles”: “[w]oven, knitted or crocheted fabrics, felt or nonwovens, impregnated, coated, covered or laminated with plastics, or articles thereof, of chapter 39.”
Notes 1, 2, and 3 to Chapter 59, HTSUS, provide in pertinent part, as follows:
Except where the context otherwise requires, for purposes of this chapter the expression “textile fabrics” applies only to the woven fabrics of chapters 50 to 55 and headings 5803 and 5806, the braids and ornamental trimmings in the piece of heading 5808 and the knitted or crocheted fabrics of headings 6002 to 6006.
2. Heading 5903 applies to:
Textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square meter and whatever the nature of the plastic material (compact of cellular), other than:
Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change of color;
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(5) Plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes (chapter 39) [emphasis added]; . . . .
3. For purposes of heading 5903, “textiles fabrics laminated with plastics” means products made by the assembly of one or more layers of fabrics with one or more sheets or film of plastics which are combined by any process that bonds the layers together, whether or not the sheets or film of plastics are visible to the naked eye in the cross-section.
The Explanatory Notes (“ENs”) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
In regard to plastic and textile combinations, the General ENs to chapter 39, HTSUS, provide, in pertinent part, as follows:
The following products are also covered by this Chapter:
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(d) Plates, sheets and strip of cellular plastics combined with textile fabrics (as defined in Note 1 to Chapter 59), felt or nonwovens, where the textile is present merely for reinforcing purposes.
In this respect, unfigured, unbleached, bleached or uniformly dyed textile fabrics, felt or nonwovens, when applied to one face only of these plates, sheets or strip, are regarded as serving merely for reinforcing purposes. Figured, printed or more elaborately worked textiles (e.g., by raising) and special products, such as pile fabrics, tulle and lace and textile products of heading 58.11, are regarded as having a function beyond that of mere reinforcement [emphasis added].
The ENs to heading 5903, HTSUS, further describe plastic and textile combinations and provide, in relevant part, that:
This heading covers textile fabrics which have been impregnated, coated, covered or laminated with plastics (e.g., poly(vinylchloride)).
Such products are classified here whatever their weight per m2 and whatever the nature of the plastic component (compact or cellular) . . . .
This heading covers “textile fabrics laminated with plastics” as defined in Note 3 to this chapter. . . .
In many textile fabrics classified here, the plastic material, usually colored, forms a surface layer which may be smooth or be embossed to simulate, e.g., the grain of leather (“leathercloth”).
* * * *
In NY N307758, CBP classified swatches of two imitation leather materials, identified as FLEATH01 and FLEATH02, and consisting of weft knit fabrics, which have been visibly coated on one side with polyurethane plastic, dyed and embossed or polished to imitate leather under subheading 3921.13.15, HTSUS. In NY N307758, CBP applied the General EN to Chapter 39, HTSUS, to the fabric materials at issue and reasoned that because the weft knit backing fabric was uniformly dyed and not “elaborately worked,” then pursuant to the General EN to Chapter 39, HTSUS, the textile component was present merely for reinforcing purposes. Therefore, because the fabric materials were a combination of plastic and textile, for which the textile component was “mere reinforcement,” CBP classified the fabric materials under subheading 3921.13.15, HTSUS, as cellular plastic combined with textile materials.
The fabric materials at issue here, FLEATH01 and FLEATH02, are plastic and textile combinations. The plastic coating on both materials is visible to the naked eye and detailed (i.e., embossed or polished) to imitate leather. The textile component is a weft knit fabric composed of rayon and elastomeric yarns. Thus, upon reconsideration of NY N307758, CBP first examines whether FLEATH01 and FLEATH02 are properly classified under Chapter 39, HTSUS, as “Plastics and Articles Thereof.”
Note 2(p) to Chapter 39, HTSUS, precludes classification of “Goods of section XI (textiles and textile articles).” Alternatively, Note 1(h) to Section XI, HTSUS, excludes the following from classification under Section XI, “Textiles and Textile Articles”: “[w]oven, knitted or crocheted fabrics, felt or nonwovens, impregnated, coated, covered or laminated with plastics, or articles thereof, of chapter 39.” In determining whether a plastic and textile combination material is an article of plastic of Chapter 39, HTSUS, or a textile article under Section XI, HTSUS, we must determine whether the textile component serves merely for reinforcing purposes. Pursuant to the General ENs to Chapter 39, “[p]lates, sheets and strip of cellular plastics combined with textile fabrics (as defined in Note 1 to Chapter 59), felt or nonwovens, where the textile is present merely for reinforcing purposes” are classifiable under Chapter 39, HTSUS. Here, the weft knit fabric composed of rayon and elastomeric yarns is a textile fabric as described in Note 1 to Chapter 59, HTSUS, which explains that textile fabrics are the woven fabrics of Chapters 50 to 55. Therefore, we now consider whether the weft knit fabric of FLEATH01 and FLEATH02 is “present merely for reinforcing purposes.”
In NY N307758, CBP looked at the General ENs to Chapter 39 to determine what is meant by “mere reinforcement.” CBP reasoned that because the General EN to Chapter 39 states that “unfigured, unbleached, bleached or uniformly dyed textile fabrics, felt or nonwovens, when applied to one face only of these plates, sheets or strip, are regarded as serving merely for reinforcing purposes,” and that “[f]igured, printed or more elaborately worked textiles (e.g., by raising) and special products, such as pile fabrics, tulle and lace and textile products of heading 58.11, are regarded as having a function beyond that of mere reinforcement,” the weft knit fabric component of FLEATH01 and FLEATH02 was for mere reinforcement purposes. CBP determined this because the material was uniformly dyed and was not elaborately worked. Determinations of whether a textile component of a plastic and textile fabric combination is present merely for reinforcing purposes require further consideration.
CBP has previously considered what it means for a textile component to serve a merely reinforcing purpose. In Headquarters Ruling Letter (“HQ”) H296508, dated September 4, 2020, CBP considered whether a polyester fabric covered with polyvinyl chloride, dyed and embossed to simulate leather, which would be used in automobile seat covers, was classified under heading 3921, HTSUS, or heading 5903, HTSUS. There, too, CBP contemplated whether the knit textile fabric was present merely for reinforcing purposes. In HQ H296508, CBP applied the General ENs to Chapter 39 and considered whether the knit textile fabric with applied plastic plate, sheet, or strip, was “unfigured, unbleached, bleached or uniformly dyed,” which per the EN is regarded as serving merely for reinforcing purposes. CBP found that the knit fabric in HQ H296508 was bleached in a uniform color with “no apparent raising, brushing, or other further working.” However, this did not conclude CBP’s analysis. Indeed, CBP further found that the plastic coating, dyed and embossed to imitate leather, would be the only visible surface of the material as the textile fabric would remain hidden in final production of the automobile seat covers and therefore was present merely to reinforce the polyvinyl chloride (PVC) coating. Thus, CBP concluded that the fabric was classified under heading 3921, HTSUS.
Alternatively, in HQ 960783, dated June 3, 1998, CBP considered whether a nylon tricot knit fabric coated with a cellular PVC sheeting, to be used in the construction of imitation leather golf bags, was classified under heading 3921, HTSUS, or 5903, HTSUS. There, CBP found that “if the textile backing acts as more than ‘mere enforcement,’ classification in Chapter 39 is not warranted.” CBP considered a number of rulings that the Protestant in that ruling had put forth, including HQ 081489, dated March 27, 1989. HQ 081489 concerned a combination plastic and textile material to be used in automobile upholstery. Citing to HQ 081489, in HQ 960783, CBP reasoned that, absent evidence to the contrary, in applications such as automobile upholstery where the textile backing would not be exposed, the textile portion of a combination plastic and textile material serves as mere reinforcement. Conversely, CBP found that the nylon tricot knit fabric at issue in HQ 960783 served an “explicit purpose” as it provided a soft interior lining for the golf bags into which the golf clubs would be positioned. CBP acknowledged that because many golf clubs consist of graphite shafted clubs that are prone to scratching, a soft textile interior would reduce abrasion. Moreover, CBP found that the textile interiors were “tastefully coordinated to match the exterior color, thus providing a visual motivation for the purchase of a particular golf bag.” As such, CBP concluded that the nylon tricot knit fabric served more than mere reinforcement, and was thus precluded from classification under Chapter 39, HTSUS, and the fabric was classified under heading 5903, HTSUS.
Here, FLEATH01 and FLEATH02 are plastic and textile combinations, featuring a rayon and elastomeric knit fabric with polyurethane coating, dyed, and embossed or polished to imitate leather. Based on the information provided, FLEATH01 and FLEATH02 will be used to produce women’s apparel. Despite the knit fabric component being uniformly dyed and not being “figured, printed, or more elaborately worked,” it cannot be said that the knit fabric in either FLEATH01 or FLEATH02 are for mere reinforcing purposes, as concluded in NY N307758. Instead, the knit fabric clearly serves an “explicit purpose” by being soft and stretchable against a wearer’s skin. Unlike the automobile seat covers at issue in HQ H296508, here the knit textile component serves more than a reinforcing role to the polyurethane coating, as it will come into direct contact with the wearer’s skin and thus will inform purchasing decisions. The combination of rayon and elastomeric yarns that comprise the knit fabric are designed to provide comfort to the wearer of the apparel that the materials into which FLEATH01 and FLEATH02 will be incorporated. Moreover, the textile component will be visible when produced into apparel and will also likely influence purchasing decisions. Like the fabric that was used to manufacture golf bags in HQ 960783, FLEATH01 and FLEATH02 are constructed textile and plastic combinations for which both sides of the product serve purpose extending beyond reinforcement of one side alone. Specifically, the fabric was used to provide a soft interior lining to protect golf clubs. As the textile component of both FLEATH01 and FLEATH02 serve more than mere reinforcement of the polyurethane coating, both are precluded from classification under Chapter 39, HTSUS.
In examining whether FLEATH01 and FLEATH02 are classifiable instead under heading 5903, HTSUS, CBP looks at whether there are any legal or explanatory notes that would preclude classification. Note 2(a)(4) to Chapter 59, HTSUS, precludes classification of products that are “plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes (chapter 39).” As noted above, the rayon and elastomeric knit fabric serves more than reinforcing purposes. The knit fabric is designed to be worn against the wearer’s skin and provide comfort. Thus, FLEATH01 and FLEATH02 are classified under heading 5903, HTSUS, as “Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902.”
Based on the foregoing, we find that the FLEATH01 and FLEATH02 imitation leather materials are properly classified in subheading 5903.20.25, HTSUS, as “[t]extile fabric impregnated, coated, covered or laminated with plastics, other than those of heading 5902: [w]ith polyurethane: [o]f man-made fibers: [o]ther: [o]ther.”
HOLDING:
By application of GRI 1, the FLEATH01 and FLEATH02 imitation leather materials are classified in heading 5903, HTSUS, specifically under subheading 5903.20.25, HTSUS, which provides for “[t]extile fabric impregnated, coated, covered or laminated with plastics, other than those of heading 5902: [w]ith polyurethane: [o]f man-made fibers: [o]ther: [o]ther.” The 2024 column one, general rate of duty is 7.5 percent ad valorem.
Pursuant to U.S. note 20(e) and (f) to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 5903.20.25, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 5903.20.25, HTSUS, listed above.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/.
EFFECT ON OTHER RULINGS:
NY N307758, dated April 7, 2020, is hereby revoked.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division