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HQ 950029

April 15, 1992

CLA-2 CO:R:C:T 950029 HP


TARIFF NO.: 5401.10.0000; 5608.19.2090; 5807.10.1020

Mr. Nicholas R. Devine
Assistant District Director
Commercial Operations
U.S. Customs Service
Patrick V. McNamara Building
477 Michigan Avenue
Detroit, MI 48266

RE: Further Review of Protest Number 3801-0-003214

Dear Mr. Devine:

This is in reply to your Memorandum of July 26, 1991, forwarding Application for Further Review of Protest Number 3801- 0-003214. Please reference CLA-2-CO:CT ML P0003214/TXTFRISC.


The merchandise at issue consists of various items described by protestant's counsel, Dorsey & Whitney, as follows:

[Importer's] facilities manufacture automobile map pockets and cargo restrain net assemblies (Assemblies) for installation as original motor vehicle equipment in automobiles assembled in the United States by bona-fide motor-vehicle manufacturers. The components of the Assemblies are: (1) man- made fiber netting, which can be either (a) raschel or (b) knotted; (2) webbing, which is woven from polyester and sewn on the lengthwise borders of the netting; (3) polypropylene and neoprene bungee border cords (bungee), which are inserted through the webbing, and have a loop sewn on each end; (4) thread, which is used to sew the webbing onto the netting; (5) plastic and metal hardware, which is used to connect the Assemblies to the automobiles by fitting in the loops of the bungee; and (6) patent- pending and warning labels which are sewn on the Assemblies.

Assemblies are installed in the United
States by [domestic automobile manufacturers] in the trunks of their new passenger vehicles. The Assemblies are used to prevent luggage or other articles from moving around in the motor vehicles. The Assemblies are manufactured to the precise size and shape required for the specific location in the particular automobiles in which they will be installed.

U.S. motor-vehicle manufacturers order
Assemblies from [Importer] for installation in new automobiles. in the past, all the
Assemblies were assembled in Canada and supplied directly to the motor-vehicle manufacturer or its original equipment manufacturer for installation in the component parts of new automobiles.
Beginning in 1989, however, [Importer's U.S.] facility was open to provide an additional assembly facility for the Assemblies. The U.S. motor-vehicle manufacturers continue to place their orders with [Importer's Canada facility], and that facility decides whether to fill the order with Assemblies from
[Canada] or [the U.S.]. In either case, the Assemblies are made to order specifically for the model of automobile in which they will be installed. If the Assemblies are assembled at [the U.S. facility], the components are shipped there from [Canada]. The merchandise that is the subject of this protest consists of component parts of the Assemblies shipped to [the U.S. facility] from [Canada] to be used as original motor-vehicle equipment in new automobiles pursuant to contracts between [the Canada facility] and bona-fide motor- vehicle manufacturers in the United States.

The netting is produced ... from nylon yarn loaded into a bobbin. The machines used ... make nets of a certain number of loops and the exact width for a particular car or truck. The appropriate quantities of netting, webbing, and bungee to make the desired number of Assemblies for a particular automobile are shipped to [the U.S.], with the appropriate amount of thread, labels, and hardware for the [A]ssemblies.

At [the U.S. facility], the nets, webbing, and bungee are cut to the appropriate length for the new Assemblies for particular automobiles. The webbing is sewn onto the net, the bungee is inserted through the webbing, and the labels are sewn on. The finished Assemblies are then shipped to the U.S. motor-vehicle manufacturers for installation as original equipment in new automobiles.

All of the components of the Assemblies were produced in Canada. A Shipper's
Declaration of Canadian Origin was filed with the entries.

Importer attempted to enter the merchandise subject to this PRD as follows:

Knotted made up net under subheading 5608.19.2090, HTSUSA, as other made up nets, free of duty under the APTA or dutiable under the CFTA at 8 percent ad valorem. Customs agreed with the tariff subheading, but disallowed duty reduction under either Agreement.

Thread, under subheading 5204.19.0000, HTSUSA, as other cotton sewing thread. Customs disagreed, classifying it under subheading 5401.10.0000, HTSUSA, as sewing thread of man-made fibers.

Labels, under subheading 8708.29.00, HTSUSA, as automobile parts. Counsel now claims classification under subheading 4821.10.4000, HTSUSA, as articles similar to registers, account books, order books, and receipt books.


Whether the thread and net are considered automobile parts under the HTSUSA? If not, whether any items are entitled to duty-reduced treatment under the CFTA?


Claimed Classification

Heading 8707, HTSUSA, provides for parts and accessories of motor vehicles. In HRL 088757 of March 16, 1992, we ruled upon this Importer's Application for Further Review of Protest #0901- 90-000276 - finished Assemblies for automobiles. Therein, we held that the made up cargo nets could not be classified as parts of automobiles because "the provision for made up nets [5608] specifically describes the goods in question, i.e., the cargo net assemblies are made up nets of textile materials." See General Explanatory Note III to Section XVII, HTSUSA (parts must not be more specifically included elsewhere in the Nomenclature). Clearly, if a completed net would not be classified as an automobile part, items intended to be made up to form that net also would not be so classified.

Counsel failed to provide a rationale for its thread classification in Chapter 52 and labels classification in Chapter 48, HTSUSA, argument. No samples were submitted. Section 174.25, Customs Regulations, (19 C.F.R. 174.25), requires that an application for Further Review of a Protest must include "(3) [a] statement of facts or additional legal arguments ... upon which the party relies...." Therefore, since counsel did not submit a complete description or argument so as to allow us to review tariff classification de novo, we will afford the appraised classifications a presumption of correctness.

CFTA Reduced Duty

Section 10.307(c), Customs Regulations (19 C.F.R. 10.307(c)), states that for goods for which a preference is claimed under the CFTA, an Exporter's Certificate of Origin (CF 353) must be available at the time the preference is claimed. The Shipper's Declaration of Canadian Origin, while documentation required under APTA, does not substitute for the CF 353. Duty reduction under the CFTA was properly denied.


As a result of the foregoing, the instant merchandise is classified as follows:

Knotted Net

... under subheading 5608.19.2090, HTSUSA, textile category 229, as knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials, of man-made textile materials, other, other, other. The applicable rate of duty is 10 percent ad valorem.


... under subheading 5401.10.0000, HTSUSA, textile category 200, as sewing thread of man-made filaments, whether or not put up for retail sale, of synthetic filaments. The applicable rate of duty is 13 percent ad valorem.


... under subheading 5807.10.1020, HTSUSA, textile category 669, as labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered, woven, labels, of man- made fibers. The applicable rate of duty is 9 percent ad valorem.

You are instructed to Deny the protest in full. A copy of this decision should be attached to the Form 19 Notice of Action.


John Durant, Director
Commercial Rulings Division

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