CLA-2-57:OT:RR:NC:N3:349
Ms. Cheryl Barnes
Dollar General Corporation
100 Mission Ridge
Goodlettsville, Tennessee 37072
RE: The tariff classification of handwoven rugs from China
Dear Ms. Barnes:
In your letter dated January 6, 2017, you requested a tariff classification ruling. Four samples accompanied your letter. The samples will be retained by this office.
The submitted samples are multi-colored, flat woven rugs, SKU# 18924501, made of 100 percent cotton yarn and measuring approximately 20 X 30 inches. You state that all of the rugs are hand-loomed. The rugs come in four different designs. Each design is assigned the same SKU but a different color/pattern (“item”) designation.
Item DG-BT-001 is a flat woven rug with a multi-colored stripe design. Each row of weft is made up of six individual yarns of the same color woven as one. In the middle of each stripe, 12 additional contrast colored yarns are added to two rows of the weft and woven onto the right side of the rug with longer floats. The rug is hemmed at the ends with selvage along the sides.
Item DG-BT-002 is a flat woven rug with a multi-colored check design formed by alternating colored yarns in the warp and weft. Each row of weft consists of 10 individual yarns that are woven as one with three warp yarns at a time giving the appearance of thicker yarns in both the warp and weft. The warp yarns extend beyond the edge to form a 2-1/2 inch knotted fringe with selvage along the sides.
Item DG-BT-003 is a reversible, flat woven rug in a pattern of alternating rows of four different colored squares and stripes. In forming the squares, the rug’s surface design is woven into the rug through the use of weft yarns of different colors which do not run the entire width of the rug. Multiple warp and weft yarns are woven as one creating a ridged surface on both faces of the rug. The ends are hemmed with selvage along the sides.
Item DG-BT-004 is a flat woven rug with a multi-colored stripe design. Each row of weft is made up of six yarns woven as one. In the middle of each stripe, six additional yarns of a contrast color are added to the weft creating a zig-zag pattern. The manner in which these additional yarns are incorporated into the rug does not create a pile construction. The rug is hemmed at the ends with selvage along the sides.
In your letter, you suggest that one or more of the rugs may be classified under 5702.50.5600, Harmonized Tariff Schedule of the United States (HTSUS) which provides for certain handwoven rugs that are “not made up.” We disagree. Section XI, Note 7 of the Harmonized Tariff Schedule of the United States (HTSUS), defines the term "made up" for the purposes of Section XI, as follows:
For the purposes of this section, the expression "made up" means: (a) Cut otherwise than into squares or rectangles;
(b) Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, tablecloths, scarf squares, blankets);
(c) Cut to size and with at least one heat-sealed edge with a visibly tapered or compressed border and the other edges treated as described in any other subparagraph of this note, but excluding fabrics the cut edges of which have been prevented from unraveling by hot cutting or by other simple means;
(d) 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 unravelling by whipping or other simple means;
(e) Cut to size and having undergone a process of drawn thread work;
(f) Assembled by sewing, gumming or otherwise (other than piece goods consisting of two or more lengths of identical material joined end to end and piece goods composed of two or more textiles assembled in layers, whether or not padded); or
(g) Knitted or crocheted to shape, whether presented as separate items or in the form of a number of items in the length.
In this case, the rugs have been made to size on a loom with the ends either hemmed or finished by creating a knotted fringe from the warp yarns. Therefore, all of the rugs are considered to be “made-up.”
The applicable subheading for Item DG-BT-003 will be 5702.10.9020, HTSUS, which provides for “Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including ‘Kelem’, ‘Schumacks’, ‘Karamanie’ and similar hand woven rugs: Other: Of cotton.” The rate of duty will be Free.
The applicable subheading for Items DG-BT-001, DG-BT-002 and DG-BT-004 will be 5702.99.0500, HTSUS, which provides for “Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including ‘Kelem’, ‘Schumacks’, ‘Karamanie’ and similar hand woven rugs: Other, not of pile construction, made-up: Of other textile materials: Of cotton: Woven, but not made on a power-driven loom.” The rate of duty will be 6.8 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division