NY 861171
APR 02 1991
CLA-2-54:S:N:N3H:352 861171
Ms. Daphne Chan
Daybreak International, Inc.
301-303 Tenth Street
Oakland, CA 94607
RE: The tariff classification of polypropylene tubular woven
fabric from China.
Dear Ms. Chan:
In your letter dated February 28, 1991, you requested a
tariff classification ruling.
The sample submitted is identified as "polypropylene
fabric". Based on the information provided, the merchandise is
composed of 100% polypropylene. This tubular product is plain
woven and is composed of polypropylene strips that measure
approximately 3 millimeters (mm) in width. The fabric contains
10 strips per inch in the warp and 9 strips per inch in the
filling. The seamless tubing fabric is manufactured on a
circular loom with a width, when flattened, of 19.25 inches and a
circumference measuring 38.50 inches. This product will be used
to manufacture bags and is not capable of carrying fluids.
Your inquiry states that you believe that since the raw
polypropylene in block form used to produce this item will be
exported from the United States to China, the tubular fabric
should be exempt from quota restraints and visa requirements.
This is not correct. Section 12.130 of the Customs Regulations
set forth the method of determining the country of origin of
textile products for the purpose of determining its quota and
visa status. This regulation states that a textile article
processed in more than one country shall be considered a product
of the country where it last underwent a substantial
transformation. A textile product is considered to have
undergone a substantial transformation if it has been transformed
by means of manufacturing or processing operations into a new and
different article. In the transaction before us for
consideration the blocks of polypropylene are processed into
sheets, cut into strips and then woven into a seamless tubular
fabric. Section 12.130 of the Customs regulations states that
weaving, knitting or otherwise forming fabric is a manufacturing
process that will result in a product being substantially
transformed into a product of the country where such processing
occurred. Therefore, the seamless tubular fabric is considered a
product of China for the purposes of The Multi-Fiber
Arrangement.
It should also be noted that the cost of the United States
produced polypropylene which is exported to China is part of the
dutiable value of the tubular fabric. If the polypropylene was
provided to the Chinese manufacturer at no cost or at a reduced
cost and is not part of the invoice price of this product, its
cost must be added to the invoice price as part of the dutiable
value of this merchandise.
The applicable subheading for the polypropylene woven fabric
will be 5407.20.0000, Harmonized Tariff Schedule of the United
States (HTS), which provides for woven fabrics of synthetic
filament yarn, including woven fabrics obtained from materials of
heading 5404, woven fabrics obtained from strip or the like. The
duty rate will be 17 percent ad valorem.
This woven fabric falls within textile category designation
620. Based upon international textile trade agreements, products
of China are subject to quota restraints and export license
requirements.
The designated textile and apparel category 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.
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