CLA-2-39:OT:RR:NC:N1:137
Matthew McDonagh
KNG Inc.
2102 East Karcher Road
Nampa, ID 83687
RE: The tariff classification of one woven and one nonwoven textile fabric coated with cellular polyvinyl chloride (PVC), from China
Dear Mr. McDonagh:
In your letter dated November 15, 2018, you requested a tariff classification ruling. Samples were provided to this office and submitted to the Customs and Border Protection (CBP) Laboratory for analysis.
In your submission and in previous and subsequent correspondence, you indicate that these materials are commonly known in the trade as “vinyl leatherette.” They consist of a textile layer, completely covered on one side of the fabric with an embossed plastic layer. You state that these products, which come in various sizes and colors, will be used in the United States primarily in the manufacture of menu covers, or occasionally other items such as aprons. The products will be imported in rolls of up to 57 inches in width and in lengths of up to 131 yards.
Item 1 consists of a white plain weave fabric covered with a plastic material. CBP laboratory analysis indicates that the plastic layer is polyvinyl chloride (PVC), and is cellular in nature. The weight of the PVC coating is 276.6 g/m2 (66.4% by weight) and the weight of the polyester woven fabric is 140 g/m2 (33.6% by weight), for a total weight of 416.6 g/m2.
Item 2 consists of a thin white or dyed nonwoven fabric covered with a plastic material. CBP laboratory analysis indicates that the plastic layer is PVC and is cellular in nature. The weight of the PVC coating is 232.9 g/m2 (84.6% by weight) and the weight of the polyester nonwoven fabric is 42.4 g/m2 (15.4 % by weight), for a total weight of 275.3 g/m2.
In your letter, you suggest classification either as a plastic-coated textile under heading 5903, Harmonized Tariff Schedule of the United States (HTSUS), or as textile-reinforced plastic sheeting under heading 3921, HTSUS.
The classification of textile and plastic combinations is determined by the Notes found in Chapters 39 and 59, and in Sections VII and XI of the Harmonized Tariff Schedules of the United States (HTSUS). Classification is also guided by the Explanatory Notes (EN) to the Harmonized Tariff Schedule (HTS), which have been ruled to be the official interpretation of the Harmonized Code at the international level.
Chapter 59, Note 1, states
Except where the context otherwise requires, for the 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.
Therefore, Item 1, which has a woven backing fabric of Chapters 54-55, could be classified in Chapter 59 if it meets the other notes to that chapter. However, Item 2, which has a nonwoven backing fabric of heading 5603, cannot be classified in Chapter 59 since it is not a “textile fabric” as defined by Note 1 to Chapter 59.
Chapter 59, Note 2(a)(5), states in pertinent part, the following:
2. Heading 5903 applies to
(a) Textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square meter and whatever the nature of the plastic material (compact or cellular), other than: […]
(5) Plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes (chapter 39)…
The General Explanatory Notes to Chapter 39, in the section titled “Plastics and textile combinations,” define the term “merely for reinforcing purposes” as follows:
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.
The Subheading Notes to Section XI define dyed fabric and fabric of yarns of different colors:
(f) Dyed woven fabric […] (i) is dyed a single uniform colour other than white (unless the context otherwise requires) or has been treated with a coloured finish other than white (unless the context otherwise requires), in the piece; or (ii) consists of coloured yarn of a single uniform colour.
Chapter 56, Note 3, states in pertinent part, the following:
Headings 5602 and 5603 cover respectively felt and nonwovens, impregnated, coated, covered or laminated with plastics or rubber whatever the nature of these materials (compact or cellular). […]
Headings 5602 and 5603 do not, however, cover: […]
(c) Plates, sheets or strip of cellular plastics or cellular rubber combined with felt or nonwovens, where the textile material is present merely for reinforcing purposes (chapter 39 or 40).
Since the PVC coating is cellular in nature, and since both the woven and nonwoven backing fabrics meet the definition found in the Explanatory Notes for “mere reinforcement,” neither Item 1 nor Item 2 can be classified in in Section XI as a coated textile. Therefore, these products are excluded from classification in Chapter 56 or Chapter 59, HTSUS.
The applicable subheading for Item 1, a woven fabric covered with a layer of cellular PVC, will be 3921.12.1500, HTSUS, which provides for Other plates, sheets, film, foil and strip, of plastics: Cellular: Of polymers of vinyl chloride: Combined with textile materials: Products with textile components in which man-made fibers predominate by weight over any other single textile fiber: Other. The rate of duty will be 6.5 percent ad valorem.
The applicable subheading for Item 2, a nonwoven fabric covered with a layer of cellular PVC, will be 3921.12.1100, HTSUS, which provides for Other plates, sheets, film, foil and strip, of plastics: Cellular: Of polymers of vinyl chloride: Combined with textile materials: Products with textile components in which man-made fibers predominate by weight over any other single textile fiber: Over 70 percent by weight of plastics. The rate of duty will be 4.2 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.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 3921.12.1100 and 3921.12.1500, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.8802, in addition to subheading 3921.12.1100 and 3921.12.1500, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of Customs and you should resubmit for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic Customs laboratory analysis at the time of importation and to verification by Customs, and the fabric may be reclassified at that time.
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 Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division