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NY E89043

November 12, 1999

CLA-2-63:RR:NC:TA:349 E89043


TARIFF NO.: 6303.12.0000

Mr. Juan C. Moreno
International Automated Brokers, Inc.
1655 St. Andrews Cove
San Diego, CA 92173

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of pleated fabric window shades from Mexico; Article 509

Dear Mr. Moreno:

In your letter dated October 7, 1999, received by this office on October 21, 1999, you requested on behalf of Industrias La Mesa S.A. de C.V., a ruling on the status of pleated window shades from Mexico under the NAFTA.

You submitted a sample of a pleated fabric window shade. The shade is made from a 100 percent polyester raschel knit fabric laminated to a polyester nonwoven fabric backing. The accordion pleated fabric is attached to a headrail and a bottom rail and will be imported with the mounting brackets and hardware. The window shades or window blinds will be made in various lengths and widths.

The knit fabric is made from 150 denier textured filament yarn made in the United States and 70 denier filament yarn made in Germany. The fabric is knit in the United States. You have stated that depending on the width, the fabric will be composed of either 1.02 ounces per square yard of German yarns and 3.07 ounces per square yard of U.S. yarns or 0.88 ounces per square yard of German yarns and 2.66 ounces per square yard of U.S. yarns. In either case, the knit fabric is approximately 25 percent German yarn and 75 percent U.S. yarn. The warp knit fabric may be dyed in the U.S. The nonwoven backing fabric is completely made in the U.S. The fabrics are joined, multi folded and heat pressed to create an accordion pleated fabric in the U.S. This pleated fabric is shipped to Mexico with U.S. made cord and both U.S. and Taiwanese made plastic and metal components and hardware. In Mexico, the fabric and several plastic components are cut to size, holes are drilled and the various components along with several Mexican made components are assembled into the shade. The shades are labeled and packed for shipment to the U.S.

The applicable tariff provision for the pleated fabric window shade will be 6303.12.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for curtains (including drapes) and interior blinds: curtain or bed valances: knitted or crocheted: of synthetic fibers. The general rate of duty will be 12 percent ad valorem.

You have indicated in your letter that it is your belief that the German yarns should be considered De minimis since they constitute less than 5 percent of the value of the knit fabric. General Note 12(f), HTSUSA, sets out the terms of De Minimis for NAFTA. As the subject merchandise is classified in subheading 6303.12, HTSUSA, General Note 12(f)(vi) provides:

A good provided for in chapters 50 through 63, inclusive, of this schedule that does not originate because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification, provided for in subdivisions (r), (s) and (t) of this note, shall nonetheless be considered to originate if the total weight of all such fibers or yarns in that component is not more than 7 percent of the total weight of that component.

Although the German yarns may constitute less than 5 percent of the value of the knit fabric, they are approximately 25 percent of the total weight of the component of the good that determines the tariff classification of the good. Since the German yarn is more than 7 percent, the De Minimis rule is not applicable.

The merchandise does not qualify for preferential treatment under the NAFTA because The German made filament yarns which are a non-originating material used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/63.3, HTSUSA.

The pleated fabric window shade may be subject to a reduced rate of duty based upon the Tariff Preference Levels (TPL) established in Section XI, Additional U.S. Note 4(b), up to the annual quantities specified in subdivision (d) of Note 4. Upon completion of the required documentation and up to the specified annual quantities, the pleated shades formed from fabric knit in the territory of a NAFTA party from yarn produced or obtained outside the territory of one of the NAFTA parties may be eligible for the preferential rate of Free.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist John Hansen at 212-637-7078.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.


Robert B. Swierupski

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