CLA-2-58:S:N:N6:351 898356

Mr. Sidney Freidin
Sidney Freidin, Inc.
P.O. Box 1029
Laredo, TX 78042

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Leavers lace and re- embroidered Leavers lace fabrics from Mexico.

Dear Mr. Freidin:

In your letter dated May 18, 1994, on behalf of Encajes Mexicanos, S.A. de C.V., Mexico, you requested a ruling on the tariff classification and status under NAFTA, of Leavers lace fabric and re-embroidered Leavers lace fabric from Mexico.

You have submitted three samples of Leavers lace fabrics identified as patterns Lace 4877, Volant Lace 1103 and Galoon Lace 1160; and two samples of re-embroidered Leavers lace fabrics identified as patterns Re-embroidered Galoon 5039/BO and Re- embroidered Lace 6011/SO. The fabrics will be exported from Mexico in the piece in finished widths measuring 5.36, 35.4, 17, 9.6 and 5.7 inches, respectively. All of the samples are decorative open- work fabrics with floral designs. The first three samples are made of 100% polyamide synthetic man-made fibers. The "Re-embroidered Galoon Lace 5039/BO" fabric is made of 51.15 % polyamide, 11.72% viscose, 32.70% cotton and 5.03% polyester. The "Re-embroidered Lace 6011/SO" fabric is made of 36.1% polyamide, 37.7% viscose, 23.2% cotton and 3.0% polyester. We assume that this breakdown is by weight, not by value. In the Mexican manufacture's statement submitted by your office on June 3, 1994, the fabrics are said to be made in Mexico on a Leavers "knit" machine; we believe that the fabrics are of real Leavers lace construction, not raschel knitted construction. You also indicate that the re-embroidery is done in Mexico. Re-embroidery consists of sewing gimped yarns on to the base material to highlight and outline the lace pattern.

The applicable subheading for pattern names Re-embroidered Galoon Lace 5039/BO and Re-embroidered Lace 6011/SO will be 5810.92.0080, Harmonized Tariff Schedule of the United States (HTS), which provides for embroidery in the piece, in strips or in motifs; other embroidery; of man-made fibers; other; other. The duty rate will be 16 percent ad valorem.

The Leavers lace without re-embroidery work; pattern names Lace 4877, Volant Lace 1103 and Galoon Lace 1160; will be classifiable under the provision for tulles and other net fabrics, not including woven, knitted or crocheted fabrics; lace in the piece, in strips or in motifs; mechanically made lace; of man-made fibers, in subheading 5804.21.0000, HTS. The rate of duty will be 16 percent ad valorem.

This ruling on the issue of tariff classification 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.

Pursuant to Part 181 of the Customs Regulations (19 C.F.R. 181), a request for a ruling on the status of a product under NAFTA must provide sufficient detail to permit proper application of the relevant NAFTA provisions. In this case, we will require additional information in order to issue a ruling on whether these goods originate under NAFTA.

You have already indicated that the formation of the lace on a Leavers machine, and the re-embroidery process, take place in Mexico. To enable us to rule on whether these goods originate under NAFTA, we will also need information on where the yarn was spun, where the fibers (whether natural or man-made fibers) were formed, and where all other processes between raw fiber and finishing occurred.

As provided for in Section 181.94 of the Customs Regulations (19 CFR 181.94), you may submit this additional information within 30 days of the date of this notice. Please address any supplemental letter to this office, and refer to our file number shown above. If you have any questions in regard to this matter, please contact National Import Specialist Jeff Konzet at 212-466- 5885.


Sincerely,

Jean F. Maguire
Area Director
New York Seaport