CLA-2-57:S:N:N6:349 805625
Mr. Robert J. Flick
California Carpet
2227 Commerce Place
Hayward, CA 94545
RE: The tariff classification of a tufted rug from China.
Dear Mr. Sun:
In your letter dated December 29, 1994, you requested a
classification ruling.
Photographs and swatches of rugs were submitted to this
office. The face of the rugs are made of nylon yarns. The yarns
are inserted into a pre-existing polypropylene base and are held
in place with an adhesive and a secondary fabric backing. The
rugs will measure approximately 4 x 6 feet, 6 x 9 feet and 9 x 12
feet. The edges will be finished with a polyester
seaming/binding tape. The corner swatch of the rug shows that
the finished item will have a large rectangular central area
trimmed with a 2 inch wide contrasting color border. Carpet,
seaming tape, mesh and other materials are sent from the United
States to China. In China the carpets are cut to length and
width, 45 degree angles are cut on the ends of the border strips
and the sections are joined using Chinese glue to form rugs of
various color combinations. The rugs are carved along the seam
between the border and the center sections.
The applicable subheading for the 4 x 6 and 6 x 9 foot rugs
will be 5703.20.2010, Harmonized Tariff Schedule of the United
States (HTS), which provides for carpets and other textile floor
coverings, tufted, whether or not made up: of nylon or other
polymides: other... measuring not more than 5.25 m2 in area. The
duty rate will be 7.5 percent ad valorem.
The applicable subheading for the 9 x 12 foot rug will be
5703.20.2090, HTS, which provides for carpets and other textile
floor coverings, tufted, whether or not made up: of nylon or
other polymides: other... other. The duty rate will be 7.5
percent ad valorem.
The rugs fall within textile category designation 665.
Based upon international textile trade agreements products of
China are subject to quota and the requirement of a visa.
The designated textile and apparel categories 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.
The fact that these rugs will be made from United States
components raises the possible applicability of subheading
9802.00.80, HTS, which provides for articles assembled abroad in
whole or in part of U.S. fabricated components which (a) were
exported in condition ready for assembly without further
fabrication, (b) have not lost their physical identity in such
articles by change in form shape or otherwise, and (c) have not
been advanced in value or improved in condition abroad except by
being assembled and except by operations incidental to the
assembly process such as cleaning, lubricating and painting. The
provision levies a duty upon the full value of the imported item,
less the costs or value of the components which are products of
the United States, at the same rate that would apply to the
imported article were it not subject to subheading 9802.00.80,
HTS. Except for possibly the binding tape and the mesh used to
back the glued seams, all items are further fabricated (cut to
length and width, carved, etc.) and therefore not eligible for
consideration under heading 9802, HTS. Your letter provides
insufficient detail to determine the applicability of this
provision to the binding tape and mesh. Details as to the form
of these items when imported into China and as to the exact
processes performed on them during the manufacture of the rugs
would be necessary to making such a determination.
Also, if the U.S. materials are provided free or at a
reduced cost to the Chinese company, the materials constitute an
assist as defined in Section 152 of the Customs Regulations (19
CFR 152.102). Under Section 152 of the Customs Regulations, to
the extent that the value of the assist is not otherwise included
in the price actually paid or payable for the merchandise, the
value of the assist must be added to the price paid or payable
for the merchandise in determining the transaction value of the
imported merchandise (19 CFR 152.102, 19 CFR 152.103).
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport