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NY 861171

APR 02 1991

CLA-2-54:S:N:N3H:352 861171


TARIFF NO.: 5407.20.0000

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.


Jean F. Maguire
Area Director

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