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NY H89420

April 3, 2002

CLA-2-58:RR:NC:TA:352 H89420


TARIFF NO.: 5810.92.1000

Mr. George Avakian
C.H. Powell Co.
6 Northway Ct., Eastway Business Park
P.O. Box 270
Greer, SC 29652

RE: The tariff classification of four appliqued motifs from Thailand.

Dear Mr. Avakian:

In your letter dated March 14, 2002, on behalf of your client Varsity Spirit Fashions, Inc., you requested a tariff classification ruling.

Four samples of embroidered motifs accompanied your request for a ruling. The first is a simulated paw print of a feline constructed by sewing various shaped woven fabric pieces onto a base fabric of 100% filament polyester twill woven fabric. The base fabric is then cut to the approximate outline of a paw print with the shaped fabric pieces forming the details including the foot pads and claws. Each of the fabric shapes appliqued onto the base fabric is cut from twill woven fabrics of polyester with some of the fabric shapes incorporating some metalized yarns for decorative effect. A second item is the appliqued letter “W” which is formed by sewing a woven fabric cut to the shape of a “W” onto a twill woven polyester base . The third motif is the word “Thunder” which is formed out of capitol letters cut from a woven fabric and sewn to a polyester twill woven base. The last item is the script word “Dance” cut from a woven fabric and then embroidered on a twill woven base fabric of polyester and metalized yarn. Although a fiber breakdown of the twill woven base is not provided, it is obvious from examination that the polyester fiber yarns exceed the weight of the metalized yarns by a considerable margin. Consequently the fiber content of the base fabric is presumed to be of polyester. Each of these motifs will be sewn onto uniforms, jackets or other apparel articles etc. and function as decorative accents and/or identify the wearer as a member of a group or team.

The applicable subheading for the four motifs will be 5810.92.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for embroidery in the piece, in strips or in motifs, other embroidery, of man-made fibers, badges, emblems and motifs. The rate of duty will be 5 percent ad valorem.

Your correspondence also asks whether the individual pieces of embroidery may be exempted from individual marking provided the outer packing is marked with the country of origin since they will be further processed and lose their identity by being incorporated in wearing apparel in the United States.

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.

In this case, the imported motifs are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported motifs and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin "Thailand".

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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 Alan Tytelman at 646-733-3045.


Robert B. Swierupski

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