HQ 953018: Other made up articles of heading 6307; "Cathedral Square" fabric pieces; Legal Note 7 to Section XI; Explanatory Notes to heading 6307; assembly by sewing; subheading 9802.00.80; 19 CFR 10.24; 19 CFR 10.16; 19 CFR 12.130; 19 CFR 10.22; 19 U.S.C. 1304; country of origin marking

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 953018

                          March 9, 1993

CLA-2 CO:R:C:T  953018  NLP

CATEGORY: Classification

TARIFF NO.: 6307.90.9986

Mr. Paul A. Kalsbeek
RR2-Box 143
Victoria, VA 23974

RE:  Other made up articles of heading 6307; "Cathedral Square"
     fabric pieces; Legal Note 7 to Section XI; Explanatory Notes
     to heading 6307; assembly by sewing; subheading 9802.00.80;
     19 CFR 10.24; 19 CFR 10.16; 19 CFR 12.130; 19 CFR 10.22;    
     19 U.S.C. 1304; country of origin marking    

Dear Mr. Kalsbeek:

     This is in response to your letter dated November 4, 1992,
in which you requested the tariff classification of "Cathedral
Square" fabric under the Harmonized Tariff Schedule of the United
States (HTSUS).  In addition, you inquired as to the
applicability of subheading 9802.00.80, HTSUS, to these articles
as they are assembled abroad from components of U.S. origin.  A
sample of the "Cathedral Square" and the fabric pieces that
comprise it were provided for our examination.

FACTS:

     The article at issue is a "Cathedral Square" composed of 100
percent cotton floral woven fabric measuring approximately 10-
13/16 inches by 10-13/16 inches with smaller pieces of floral and
plain woven fabric sewn onto the center to form a design.  The
article will be sewn into quilts and pillows after it is
imported. 

     The U.S. components of this article consist of cut to size
floral and plain woven fabric squares.  The floral fabric squares
measure approximately 6-1/2 inches by 11 inches.  The plain
fabric squares measure approximately 2 inches by 2 inches.  These
pieces are exported to the Philippines where they are assembled
into the "Cathedral Squares".  The assembly in the Philippines
consists of the following:

     1. Fold over a 6-1/2 inch floral fabric square a 1/4 inch
all the way around.

     
     2. Fold the square in half and sew halfway toward the fold
with overcast stitch.

     3. Turn the square inside out and place overcast seams
together at the center.  Mark the square halfway between the
center and corner.  Slip stitch between these 2 marks.  Do not
catch bottom.

     4. Turn the square over and fold each corner into the center
and stitch in the center. Press.

     5. Make 3 more squares in the same way.

     6. With the right side together overcast 2 squares together
on one edge.  Add 2 more to form a block.

     7. Place a print square in the center of a diamond, roll
over edge of muslin about 1/4 inch to cover edge of print, slip
stitch along covered edges all around the print square.

     8. After sewing units of 4 blocks together, slip stitch the
block into the background of a piece of the floral fabric.

After assembly, the "Cathedral Squares" are returned to the U.S.

ISSUE:

     What is the tariff classification of the "Cathedral Square"
fabric?

     Whether fabric squares are entitled to a partial duty
exepmtion under subheading 9802.00.80, HTSUS, when returned to
the U.S?

     Are the returned fabric squares subject to country of origin
marking requirements?

LAW AND ANALYSIS: 

     The classification of goods under the HTSUS is governed by
the General Rules of Interpretation (GRI's), taken in order.  GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.  In the event that the goods cannot be classified solely
on the basis of GRI 1, and if the headings and legal notes do not
otherwise require, the remaining GRI's may be applied, taken in
order.  





ISSUE #1

     Heading 6307, HTSUS, provides for "[o]ther made up articles,
including dress patterns."  It is a residual provision which
provides for other made up articles of textiles that are not
provided for more specifically elsewhere in the nomenclature. 
Legal Note 7 to Section XI, HTSUS, provides that for the purposes
of this section, the expression "made up" means:

     (a)  Cut otherwise than into squares or rectangles;

     (b)  Produced in the finished state, ready for use (or
          merely needing separation by cutting dividing threads)
          without sewing or other working (for example, certain
          dusters, towels, table cloths, scarf squares,
          blankets);

     (c)  Hemmed or rolled edges, or with a knotted fringe at any
          of the edges, but excluding fabrics the cut edges of
          which have been prevented from unravelling by whipping
          or by other simple means; 

     (d)  Cut to size and having undergone a process of drawn
          thread work;

     (e)  Assembled by sewing, gumming or otherwise (other than
          piece goods consisting of two or more lengths of
          identical material joined end to end and piece goods
          composed of two or more textiles assembled in layers,
          whether or not padded);

          *         *         *         *         *

     In understanding the language of the HTS, the Harmonized
Commodity Description and Coding System Explanatory Notes (ENs)
may be utilized.  The ENs, although not legally binding, comprise
the official interpretation of the Harmonized System at the
international level.  The ENs to Section XI further clarify the
expression "made up" in Chapters 56 to 63 as follows:

     (1)  Merely cut, otherwise than into squares or rectangles,
          for example, dress patterns of textile material;
          articles with their edges pinked (e.g., certain
          dusters) are also regarded as made up. 

          *         *         *         *         *
     
     (5)  Assembled by sewing, gumming or otherwise.  These
          articles, which are very numerous, include garments. 
          It should be noted, however, that piece goods
          consisting of two or more lengths of identical material
          joined end to end, or composed of two or more textiles

          assembled in layers, are not regarded as "made up". 
          Nor are textile products in the piece composed of one
          or more layer of textile materials assembled with
          padding by stitching or otherwise. 

     Customs considers the "Cathedral Square" fabric to be within
the meaning of "made up" as set out in Legal Note 7 to Section
XI, HTSUS.  The sample is assembled by sewing and it is not
excluded by the language of Legal Note 7(e) to Section XI, HTSUS. 
Therefore, this item is considered "made up" and as it is not
more specifically classified elsewhere in the nomenclature, it is
classified in heading 6307, HTSUS.  The "Cathedral Square" fabric
piece is classified in subheading 6307.90.9986, HTSUS.

ISSUE #2

     Subheading 9802.00.80, HTSUS, provides a partial duty
exemption for:

     Articles assembled abroad in whole or in part of
     fabricated components, the product of the United 
     States, which (a) were exported in condition ready for
     assembly without further fabrication, (b) have not lost
     their physical identity in such articles by change in form,
     shape or otherwise, and (c) have not been advanced in value
     or improved in condition abroad except by being assembled
     and except by operations incidental to the assembly process
     such as cleaning, lubricating, and painting. 

     All three requirements of subheading 9802.00.80, HTSUS, must
be satisfied before a component may receive a duty allowance.  An
article entered under this tariff provision is subject to duty
upon the full appraised value of the assembled article, less the
cost or value of the U.S. components assembled therein, upon
compliance with the documentation requirements of section 10.24,
Customs Regulations (19 CFR 10.24). 

      Section 10.16(a), Customs Regulations (19 CFR 10.16(a)),
provides that the assembly operation performed abroad may consist
of any method used to join or fit together solid components and
may be preceded, accompanied, or followed by operations
incidental to the assembly process.  However, 19 CFR 10.16(c)
provides that any significant process, operation or treatment
other than assembly whose primary purpose is the fabrication,
completion, physical or chemical improvement of a component shall
not be regarded as incidental to the assembly and shall preclude
the application of the exemption to that component.

     With respect to the facts of this case, the joining of the
pre-cut components in the Philippines by sewing is a qualified
assembly operation under 19 CFR 10.16(a).  Moreover, we believe
that the minor folding required is incidental to the assembly
operation in view of 19 CFR 10.16(b)(5), which states that
"[a]djustments in the shape or form of a component to the extent
required by the assembly being performed abroad" is an operation
incidental to assembly.  Therefore, allowances in duty may be
made under subheading 9802.00.80, HTSUS, for the cost or value of
the U.S.-origin cloth components when the assembled "Cathedral
Squares" are returned to the U.S., upon compliance with the
documentation requirements of 19 CFR 10.24. 

ISSUE #3

     Section 304 of the Tariff Act of 1903, as amended (19 U.S.C.
1304), provides that, unless excepted, every article of foreign
origin 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 manner as to indicate
to the ultimate purchaser in the U.S. the English name of the
country of origin of the article.

     Section 12.130, Customs Regulations (19 CFR 12.130), sets
forth the principles for country of origin marking determinations
for textiles and textile products subject to section 204 of the
Agricultural Act of 1956, as amended (7 U.S.C 1584).

     According to 19 CFR 12.130(c), a textile or textile product
of U.S. origin which is advanced in value or improved in
condition while abroad may not, upon its return to the U.S., be
considered a product of the U.S.  Therefore, the "Cathedral
Squares" at issue would be considered products of the country of
assembly (the Philippines) for purposes of the country of origin
marking requirements of 19 U.S.C. 1304.

     Section 10.22, Customs Regulations (19 CFR 10.22), provides
that if an imported assembled article entitled to tariff
treatment under subheading 9802.00.80, HTSUS, is made entirely of
American-made materials, the U.S. origin of the material may be
disclosed by using a legend such as "Assembled in _________ from
material of U.S. origin," or a similar phrase.  Thus, in this
case, the fabric squares (or their outermost containers) may be
marked "Assembled in the Philippines from components of U.S.
origin," or a similar phrase.

HOLDING:

     The "Cathedral Square" fabric is classified in subheading
6307.90.9986, HTSUS, which provides for "[o]ther made up
articles, including dress patterns: [o]ther: [o]ther: [o]ther:
[o]ther: [o]ther."  The rate of duty for articles classified in
this subheading is 7 percent ad valorem.



     On the basis of the information submitted, we are of the
opinion that the returned "Cathedral Squares" are entitled to
tariff treatment under subheading 9802.00.80, HTSUS.  Allowances
in duty may be made for the cost or value of the U.S.-origin
fabric components which are assembled abroad by sewing and
incidental folding, upon compliance with the documentation
requirements under 19 CFR 10.24.

     Pursuant to 19 CFR 12.130, the country of origin of the
returned fabric squares, for purposes of country of origin
marking requirements, is the Philippines -- the country of
assembly.  The article (or its container) may be marked
"Assembled in the Philippines from components of U.S. origin" or
a similar phrase.

     Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to importation of this merchandise to
determine the current status of any import restraints or
requirements.  

                                   Sincerely,



                                   John Durant, Director
                                   Commercial Rulings Division