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NY 888930

August 24, 1993

CLA-2-59:S:N:N6:350 888930


TARIFF NO.: 5907.00.9090; 9905.00.30

Mr. Maurice J. Deslauriers
John V. Carr & Son Inc.
One Emery Drive
P.O. Box 149
Norton, VT 05907

RE: The tariff classification of a flocked upholstery fabric produced in the United States that has been sent to Canada where a printing operation has been performed, before being returned to the United States.

Dear Mr. Deslauriers:

In your letter dated July 27, 1993, on behalf of Marc J. Fisher, Inc., you requested a tariff classification ruling.

The instant sample, which was not identified as to style or quality number, consists of a flocked fabric having a woven backing cloth composed of a 65%/35% polyester/cotton blend. This material has been coated on one surface with a 100% nylon flock. Your letter indicates that this material is shipped to Canada where the flocked portion is printed with a leopard spot design and you wish to know the dutiable status of this material upon its return to the United States.

The situation presented here basically consists of "greige" fabric of U.S. origin being sent up to Canada where it is further manufactured before being returned to the United States. Section 12.130(c) of the U.S. Customs regulations states " Chapter 98, Subchapter ll, Note 2, Harmonized Tariff Schedule of the United States, provides that any product of the U.S. which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article for the purpose of the Tariff Act of 1930, as amended". We deem that the printing is a further manufacturing process of the "greige" fabric in Canada and, therefore, meets this definition.

Subheading 9802.00.50, HTS, provides for a partial duty exemption for articles returned to the U.S. after having been exported abroad to be either advanced in value or improved in condition by any process of manufacture or other means resulting in a repair or alteration. Generally, "alterations are made to already completed articles"- C.A.D. 1225. The mere "greige" fabric sent to Canada is not considered a finished article in that state, and, therefore, the requirements of 9802... are not met. Therefore, no allowance in duty can be made for the cost or value of the fabric supplied from the U.S.

General Note 3(c)(vii)(B)(1) to the tariff schedules states "For the purposes of subdivision (c)(vii) of this note, goods imported into the customs territory of the United States are eligible for treatment as "goods originating in the territory of Canada"... if they are goods wholly obtained or produced in the territory of Canada and/or the United States". It would appear that this material meets that criteria. A special USCFTA rate of duty would normally apply in this instance.

This type of material is classifiable in subheading 5907.00.9090, HTS, which provides for textile fabrics otherwise impregnated, coated, or covered, however, we note that there is a special footnote to this tariff number that remands us to HTS item 9905.00.30 which provides a duty free status for upholstery fabrics certified by the importer as intended for use as outer covering in the manufacture of upholstered furniture provided in, amongst other HTS provisions, item 5907.00. This material, upon its importation into the United States, may very well meet this requirement with necessary documentation and, as such, would be duty free.

If, however, this criteria is not met, goods classifiable under subheading 5907.00.9090, HTS, which have originated in the territory of Canada, will be entitled to a 2.9 percent rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations.

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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