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NY I81917

October 1, 2002

CLA-2-56:RR:NC:N3:351 I81917


TARIFF NO.: 5511.10.0030

Jennifer L. Cope
Willson Int’l. Ltd.
2808 Fort St., Suite 104
Detroit, MI 48216

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a yarn crocheting kit imported from Canada; Article 509

Dear Ms. Cope:

In your letter dated May 16, 2002, you requested a ruling on the status of a yarn crocheting kit imported from Canada under the NAFTA.

You submitted a sample of “Bernat Kits ’n Crafts – Crochet Baby Blanket.” The kit consists of four balls of yarn, a plastic crochet hook from Mexico, and an instruction card for crocheting a blanket, also called an afghan or a throw. The card is marked “Printed in Canada.” All of the above is packaged in Canada in a plastic zipper bag which is made in China.

The yarn is stated to be 98% acrylic, 2% polyester. We had to submit a sample of the yarn for laboratory analysis. According to our laboratory, the samples are a 3-ply white yarn, and a 3-ply white/light blue/yellow yarn. Both yarns have the same construction. The yarns are composed of 1-ply acrylic spun yarn loosely twisted with 1-ply acrylic spun yarn to make a 2-ply yarn, which is then twisted with 1-ply polyester yarn to make a 3-ply yarn. The 1-ply polyester yarn consists of filament fibers. The 3-ply yarn has loops protruding from the body of the yarn at spaced intervals which is characteristic of boucle yarns.

We consider the “Bernat Kits ’n Crafts – Crochet Baby Blanket” to be a set according to the definition in General Rule of Interpretation (GRI) 3(b), Harmonized Tariff Schedule of the United States (HTS). Explanatory Note X to GRI 3(b) defines “goods put up in sets for retail sale.” Such goods: (a) consist of at least two different articles that are classifiable in different headings, (b) consist of products put up together to meet a particular need or carry out a specific activity, and (c) are put up in a manner suitable for sale directly to users without repacking. It is the opinion of this office that the kit in question satisfies all of these conditions, and it will be considered a set for classification purposes.

The essential character of the set will determine the classification of the kit and must be determined in accordance with GRI 3(b). We believe that the essential character of this set is imparted by the boucle yarn. The yarn, in balls each weighing approximately 119 grams, is considered “put up for retail sale” for tariff purposes, according to the definition found in Note 4 to Section XI, HTS.

The applicable tariff provision for the yarn, and hence the kit, will be 5511.10.0030, HTS, which provides for yarn (other than sewing thread) of man-made staple fibers, put up for retail sale, of synthetic staple fibers, containing 85 percent or more by weight of such fibers, acrylic or modacrylic. The rate of duty will be 11.9 percent ad valorem.

You state that the acrylic is from the United Kingdom and the polyester is from Canada, extruded from polymers produced in the United States. You describe the manufacturing process to mean the yarn is gilled, spun, twisted, balled, labeled, and packaged, that is, banded in a paper ring, all in the United Kingdom.

The merchandise does not qualify for preferential treatment under the NAFTA because the yarn, having been manufactured in the United Kingdom, will not be wholly obtained or produced entirely in the territory of a NAFTA country. The mere repackaging of these non-originating materials in Canada does not qualify as a change required by General Note 12(t)/56, HTS.

We note that the submitted sample is not marked with its country of origin, which is the United Kingdom. Section 134.11 of the Customs Regulations (19 C.F.R. 134.11) provides in part:

Unless excepted by law...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 container) will permit, in such a manner as to indicate to an ultimate purchaser in the U.S. the English name of the country of origin of the article, at the time of importation into the Customs territory of the U.S.

“Made in Canada” may not appear at all; however, “Packaged in Canada” would be allowed if “Made in the United Kingdom” or “Made in UK” also appears as stated above, in close proximity and at least as prominently, as “Canada.”

Normally, Sections 134.11, CR (19 CFR 134.11) would require that each ball of yarn be marked with the country of origin. However, an article is excepted from marking under 19 USC 1304 (a)(3)(D) and Section 134.32(d), CR (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs is satisfied that the yarn will remain in its container (the plastic zipper bag) until it reaches the ultimate purchaser and if the ultimate purchaser can tell the country of origin (UK) by viewing the container in which it is packaged, the individual balls of yarn would be excepted from marking under this provision.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). Your letter states that there are other kits with different amounts of yarn; please note that this ruling applies only to the item submitted and herein described.

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 Mitchel Bayer at 646-733-3102.

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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