CLA-2-58:S:N:N6:351 882965
Mr. Robert L. Dreifuss
Dreifuss and Company Inc.
350 5th Avenue, suite 3304
New York, NY 10118
RE: The tariff classification of re-embroidered and beaded lace
from various countries.
Dear Mr. Dreifuss:
In your undated letter, received in this office on February
18, 1993, you requested a ruling on the classification and country
of origin of certain lace products.
You have enclosed two samples of lace materials for our
consideration. Sample A is a raschel knit lace fabric which has
been "re-embroidered," that is, gimped yarns have been sewn onto
the base material to highlight and outline the lace pattern. These
gimped yarns, we estimate, cover less than 10 percent of the
surface area of Sample A. Sample B, also a raschel knit lace
fabric, has been similarly re-embroidered and has had beads and
sequins sewn onto it. The beads, sequins and gimped yarn, we
estimate, cover less than one-quarter of the surface area of Sample
B.
You present several scenarios for the production of these
products. In all cases the beading and/or re-embroidery will be
done in the Philippines. However, the raschel knit ground fabric
may have its origin in Hong Kong, Taiwan, China, Korea, Holland,
the Philippines or the United States.
If the ground material is sourced in Hong Kong, Taiwan, China,
Korea, Holland or the Philippines, and re-embroidered and/or beaded
in the Philippines, the country of origin will be that of the
original ground fabric, that is, Hong Kong, Taiwan, China, Korea,
Holland or the Philippines respectively. Duty rates and quota or
visa requirements will then be based on the country of origin.
If, however, the raschel knit ground material is sourced in
the United States and then re-embroidered and/or beaded in the
Philippines, the country of origin will be the Philippines, not the
United States.
The applicable subheading for Samples A and B will be
5810.92.0080, Harmonized Tariff Schedule of the United States
(HTS), which provides for embroidery in the piece...; other
embroidery; of man-made fibers; other; other. The duty rate will
be 14 percent ad valorem.
If the original raschel knit ground fabric is of U.S. origin,
subheading 9802.00.80, HTS, which provides for articles assembled
abroad..., may be applicable if the requirements of the Customs
Regulations are met. An allowance may be made for the value of the
supplied American made raschel knit lace if the fabric is returned
to the United States in the same length as sent out or cut to
smaller lengths in the Philippines only for the convenience of
handling. No allowance will be made for foreign-sourced sequins,
beads and thread when imported into the United States.
Both Samples A and B fall within textile category designation
229. Based upon international textile trade agreements products
of Taiwan, China, Korea, or the Philippines are subject to quota
and the requirement of a visa. Products of Hong Kong are subject
to the requirement of a visa. Products of Holland are currently
not subject to quota or visa requirements.
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.
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