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NY I83402

July 5, 2002

CLA-2-55:RR:NC:N3:351 I83402


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 crochet afghan kit imported from Canada; Article 509

Dear Ms. Cope:

In your letter dated June 26, 2002, you requested a ruling on the status of a yarn crocheting kit imported from Canada under the NAFTA.

You submitted a sample of kit # 423602, “Bernat Kits ’n Crafts – Love My Flag,” part of the “Americana Collection.” The kit consists 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 be100% acrylic yarn, manufactured (gilled, spun, twisted, balled, labeled, and packaged, that is, banded in a paper ring) in the United Kingdom. There are17 balls; your letter incorrectly states four. Under simple desk examination, the yarn appears to be of staple fibers, with a decitex under 1000. Each ball weighs approximately 109.3 grams. By these measurements, the yarn meets the tariff definition of “put up for retail sale” found in Section XI, Note 4, Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

We consider kit # 423602 to be a set according to the definition in General Rule of Interpretation (GRI) 3(b), 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 acrylic yarn.

The applicable tariff provision for 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 general rate of duty will be 8.6 percent ad valorem.

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)/55, 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.

Further, “Americana Collection” is considered to be potentially confusing to the retail consumer. Section 134.46, CR (19 C.F.R. §134.46), requires that in any case in which the words “American” or any variation, or the name of any foreign country other than the country of origin appears on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, and in at least a comparable size, the name of the country of origin preceded by “Made in,” Product of,” or other words of similar meaning. In this case, this applies to “Americana” and any reference to Canada. “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.

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 of the yarn 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).

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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