January 4, 2006 CBP Bulletin Notice on Certain Textile Braids with Metallic Strip
In the January 4, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBPBulletin) (Vol. 40, No. 2), CBP issued a notice proposing to modify one classification ruling and proposing to revoke two classification rulings on certain textile braids with metallic strip. CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions that are contrary to its position in this notice.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
CBP states that any party who has received a contrary ruling or decision on the merchandise that is subject to the proposed rulings, or any party involved with a substantially identical transaction, should advise CBP by February 3, 2006, the date that written comments on the proposed rulings are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
In addition, CBP states that this notice covers any rulings on the subject merchandise that may exist but have not been specifically identified.
Proposed Modification and Revocation of Three Classification Rulings
Certain textile braids with metallic strip. At issue are various types/styles of articles of braided construction that incorporate metallic strip. For example, one of the subject articles is described as 100% polyester and is composed of six gimped strands (a multifilament core wrapped by a strip) mixed with numerous metallic strips that are all braided together. Possible functions of subject articles include being used to wrap gifts and for other similar uses. (See individual rulings for specific article descriptions.)
CBP is proposing to issue HQ 967830 in order to modify NY H87352, and is also proposing to issue HQ 967828 and HQ 967829 in order to revoke NY J82797 and NY J82793, respectively.
CBP is issuing the proposed modification and revocations in order to reclassify subject merchandise under HTS 5808, which provides for "Braids in the piece, other than for headwear," rather than under HTS 5605, which provides for "Metalized yarn, whether or not gimped, being textile yarn, or strip of the like of heading 5404 or 5405, combined with metal in the form of thread, strip, or powder or covered with metal."
The General Explanatory Notes (ENs) to HTS 5605 state that, among other articles, the heading covers: "yarn consisting of any textile material (including monofilament, strip, and the like and paper yarn) combined with metal thread or strip, whether obtained by a process of twisting, cabling or by gimping, whatever proportion of the metal present"
The ENs to HTS 5808 indicate that the products classified in the heading include flat or tubular braids, among other articles.
CBP states that the construction of subject merchandise is not obtained by twisting, cabling or by gimping, but is of braided construction-thus, the subject merchandise is not yarn-it is braid in the piece, which is provided for in HTS 5808.
(CBP adds that subject merchandise is not as tightly plaited and compact as the braided articles of HTS 5607 and are not classified under that heading as twine, cordage, ropes, or cables.)
When braids in the piece of HTS 5808 are composed only of interlaced textile material, CBP states that these items are to be classified according to the textile material1 that predominates by weight. However, when braids in the piece of HTS 5808 are composed of an exterior braid of one material around a core of a different material, it is appropriate to take into account only the part which determines the classification under GRI 3 (as such braid with a core constitutes composite goods). GRI 3(b) directs that for a composite good consisting of different materials, which cannot be classified by reference to GRI 3(a), classification should be accorded to the component that imparts the essential character of the good.
Therefore, based on its review, CBP finds that subject merchandise is classified under HTS 5808 pursuant to GRI I, and is specifically provided for under subheadings that fall within HTS 5808 as described above.
1CBP notes that the metallic strip in subject merchandise are considered textile for
tariff purposes if the strips meet the requirements of man-made fiber textile strips
provided for under HTS Section XI, Note 1(g), which they do in these proposed rulings.
proposed: HTS 5808.102, 5808.10.7000 (cat 229), 7.4%, 5808.10.9000, 4.2%; current: 5605.00.1000, 7.5% and 5605.00.9000 (cat 201), 13.2%.
2CBP states that it is unable to classify certain items of subject merchandise at the 8-digit and 10-digit level because it does not have information relating to which material predominates by weight in each construction. As a result, it cannot set forth a duty rate for these articles.
January 4, 2006 CBP Bulletin (Vol. 40, No. 2) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_01042006_no2/