United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1995 NY Rulings > NY 804095 - NY 804223 > NY 804215

Previous Ruling Next Ruling
NY 804215

December 15, 1994

CLA-2-57:S:N:N6:349 804215


TARIFF NO.: 5703.20.2010

Mr. William Sun
WTS Customs Brokerage Co., Inc.
5730 W. Manchester Blvd.
Suite 280
Los Angeles, CA 90045

RE: The tariff classification of a tufted rug from China.

Dear Mr. Sun:

In your letter dated November 8, 1994, received in this office on November 18, 1994, you requested a classification ruling on behalf of Gatchie Enterprises.

An oval shaped tufted rug was submitted to this office. The face of the rug is made of nylon yarns. The yarns are inserted into a pre-existing base and are held in place with an adhesive backing. The rug measures approximately 49.5 centimeters by 88 centimeters and the edges are finished with a polyester seaming/binding tape. The face of the rug is dusty rose with a bunny design. Carpet, seaming tape, mesh and other materials are sent from the United States to China. In China the carpets are cut and joined to form rugs of various patterns, designs and color combinations.

The applicable subheading for the rug will be 5703.20.2010, Harmonized Tariff Schedule of the United States (HTS), which provides for carpets and other textile floor coverings, tufted, whether or not made up: of nylon or other polymides: other... measuring not more than 5.25 m2 in area. The duty rate will be 7.6 percent ad valorem.

The rug falls within textile category designation 665. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa.

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.

In your letter, you also inquire as to any possible duty exemption since U.S. materials are provided. There are possible duty reductions under subheading 9802.00.80, HTS, which provides for articles assembled abroad in whole or in part of U.S. fabricated components which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting. The provision levies a duty upon the full value of the imported item, less the costs or value of the components which are products of the United States, at the same rate that would apply to the imported article were it not subject to subheading 9802.00.80, HTS. Except for the binding tape, all items are further fabricated, etc. Therefore, upon compliance with the documentary requirements of Customs Regulations [19 CFR 10.24 and 10.16(a)], the imported rug may be entered under subheading 9802.00.80, HTS with allowances made for the cost of the binding tape. The information substantiating 9802.00.80 must be submitted at the time of entry.

Also, if the U.S. materials are provided free or at a reduced cost to the Chinese company, the materials constitute an assist as defined in Section 152 of the Customs Regulations (19 CFR 152.102). Under Section 152 of the Customs Regulations, to the extent that the value of the assist is not otherwise included in the price actually paid or payable for the merchandise, the value of the assist must be added to the price paid or payable for the merchandise in determining the transaction value of the imported merchandise (19 CFR 152.102, 19 CFR 152.103).

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
New York Seaport

Previous Ruling Next Ruling

See also: