HQ 087060: Classification and country of origin of baseball-style caps; polyester cap with braid between the peak and crown is classifiable as not in part of braid

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 087060

                         August 17, 1990




CLA-2  CO:R:C:G   087060  CC

CATEGORY:  Classification

TARIFF NO.:  6505.90.2500, 6505.90.8060

Mr. Steve Hill
General Manager
Four Seasons
1111 Western Row Road
Mason, OH 45040

RE:  Classification and country of origin of baseball-style caps;
     polyester cap with braid between the peak and crown is
     classifiable as not in part of braid

Dear Mr. Hill:

     This letter is in response to your inquiry of April 18,
1990, requesting tariff classification and country of origin
determinations for baseball-style caps.

FACTS:

     Two samples were submitted for classification.  The first
sample is a baseball-style cap made of 100 percent cotton twill
fabric.  There is a braid, which measures approximately 9 inches
long and 3/16 inch wide and is the same color as the cap, between
the peak and the crown of the cap.  In addition, a plastic
adjustable closure is at the back of the cap.  The second sample
is identical to the first, except that it is made of 65 percent
polyester and 35 percent cotton fabric.

     You present two different scenarios for manufacture of the
caps.  In the first, Chinese fabric is cut into unassembled cap
components in China and shipped to the United States for
assembly into completed caps.  In the second scenario, Chinese
fabric is shipped to Korea for cutting into unassembled cap
components and shipped to the United States for assembly into
completed caps.


ISSUE:

     What is the classification of the submitted merchandise
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA)?

     Whether the cap that is 65 percent polyester is classifiable
as "in part of braid" in Heading 6505, HTSUSA?

     What is the country of origin of the submitted merchandise?

LAW AND ANALYSIS:

Classification

     Classification of merchandise under the HTSUSA is in
accordance with 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.

     Both samples are classifiable in Heading 6505, HTSUSA, which
provides for hats and other headgear, knitted or crocheted, or
made up from lace, felt or other textile fabric, in the piece
(but not in strips), whether or not lined or trimmed.  The
applicable subheading for the cap made of 100 percent cotton
fabric is 6505.90.2500, HTSUSA, which provides for other, of
cotton, flax or both, not knitted, other.

     The applicable subheadings for the cap made of 65 percent
polyester and 35 percent cotton fabric are 6505.90.70, HTSUSA,
which provides for other, of man-made fibers, other, wholly or in
part of braid, and 6505.90.80, HTSUSA, which provides for other,
of man-made fibers, other, not in part of braid.  Thus the issue
for this cap is whether it is in part of braid.

     General Note 7 provides in pertinent part the following:

     Definitions.  For the purposes of the tariff schedule,
     unless the context otherwise requires--

     ...

     (e)  The terms "wholly of", "in part of", and "containing",
          when used between the description of an article and a
          material (e.g., "woven fabrics, wholly of cotton"),
          have the following meanings:

          ...



          (ii) "in part of" or "containing" mean that the goods
               contain a significant quantity of the named
               material.

          With regard to the application of the quantitative
          concepts specified above, it is intended that the de
          minimis rule apply.

     The de minimis rule states that an ingredient or component
of an article may be ignored for classification purposes
depending upon "whether or not the amount used has really
changed or affected the nature of the article and, of course, its
salability."  Varsity Watch Company v. United States, 34 CCPA
155, C.A.D. 359 (1947).  The Customs Service has determined in
application of the de minimis rule to "in part of braid" that if
the quantity of braid in the sample submitted served a useful
purpose or affected the nature of the article or increased the
salability of the article, it would be considered in part of
braid.  See HRL 084340, dated August 9, 1989.  Also see HRL
083632, dated April 27, 1989; HRL 084083, dated July 14, 1989;
and HRL 084075, dated July 14, 1989.

     We do not believe that the subject cap is classifiable as
in part of braid in application of the de minimis rule and the
above-cited cases.  The subject merchandise is a baseball-style
cap, with or without the braid.  We do not see how the amount of
braid has affected the nature of the cap or has served any useful
purpose.  In addition, we have no evidence that shows that the
braid increases the salability of the cap.  Thus the subject cap
is classifiable as not in part of braid under subheading
6505.90.80, HTSUSA.

Country of Origin

     Section 12.130 of the Customs Regulations (19 CFR 12.130)
provides that a textile product that is processed in more than
one country or territory shall be a product of that country or
territory where it last underwent a substantial transformation.
A textile product will be considered to have undergone a
substantial transformation if it has been transformed by means of
substantial manufacturing or processing operations into a new and
different article of commerce.

     Section 12.130(d)(2) of the Customs Regulations states that
in determining whether merchandise has been subjected to
substantial manufacturing or processing operations, the following
will be considered:

     (i) The physical change in the material or article as a
     result of the manufacturing or processing operations in each
     foreign territory or country, or insular possession of the
     U.S.

     (ii) The time involved in the manufacturing or processing
     operations in each foreign territory or country, or insular
     possession of the U.S.

     (iii) The complexity of the manufacturing or processing
     operations in each foreign territory or country, or insular
     possession of the U.S.

     (iv) The level or degree of skill and/or technology required
     in the manufacturing or processing operations in each
     foreign territory or country, or insular possession of the
     U.S.

     (v) The value added to the article or material in each
     foreign territory or country, or insular possession of the
     U.S., compared to its value when imported into the U.S.

     Since we do not have sufficient information concerning the
factors listed above, we are unable to issue a ruling concerning
the country of origin for the merchandise at issue at this time.
We would also need more detailed information concerning the
manufacturing and processing operations done to create each
article.

     If you still wish to receive a ruling concerning the country
of origin of the submitted caps, please submit a new request,
containing the additional information requested, to the following
address:


                              Mr. John Durant
                              Director
                              Commercial Rulings Division
                              U.S. Customs Service
                              1301 Constitution Avenue, N.W.
                              Washington, D.C. 20229



HOLDING:

     The cap made of 100 percent cotton fabric is classified
under subheading 6505.90.2500, HTSUSA, which provides for hats
and other headgear, knitted or crocheted, or made up from lace,
felt or other textile fabric, in the piece (but not in strips),
whether or not lined or trimmed, other, of cotton, flax or both,
not knitted, other.  The rate of duty is 8 percent ad valorem,
and the textile category is 859.

     The cap made of 65 percent polyester and 35 percent cotton
fabric is classified under subheading 6505.90.8060, HTSUSA,
which provides for hats and other headgear, knitted or crocheted,
or made up from lace, felt or other textile fabric, in the piece
(but not in strips), whether or not lined or trimmed, other, of
man-made fibers, other, not in part of braid, other, other.  The
rate of duty is 22/kg plus 8 percent ad valorem and the textile
category is 659.

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

     The designated textile and apparel category may be
subdivided into parts.  If so, visa and quota requirements
applicable to the subject merchandise may be affected.  Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report On Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service, which is available for
inspection at your local Customs office.


                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division