September 12, 2007 CBP Bulletin Notice on Certain Coated Fabrics
In the September 12, 2007 issue of the U.S. Customs and Border Protection Bulletin(Vol. 41, No. 38), CBP published a notice proposing to modify a classification ruling and revoke a treatment as follows:
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Proposed modification of ruling; proposed revocation of treatment. CBP is proposing to modify a ruling on the classification of certain coated fabrics. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed ruling modification, or any party involved with a substantially identical transaction, should advise CBP by October 12, 2007, the date that written comments on the proposed ruling is due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
Certain coated fabrics. The merchandise at issue consists of two woven fabrics that are coated on one side with a clear polyurethane coating. The fabrics are used to create backpacks, luggage and similar articles. Style 6004530AU is a textured polyester oxford woven fabric made from 600 denier polyester thread. The weight of the polyester is 7.0 oz/yd2 and comprises 79.55% of the weight of the fabric. The clear polyurethane coating weighs 1.8 oz./yd.2 and comprises 20.45% of the weight of the fabric. Style 10502220AU is a nylon basket weave woven fabric made from 1050 denier nylon thread. The weight of the nylon is 12.4 oz./yd2 and comprises 86.11% of the weight of the fabric. The clear polyurethane coating weighs 2.0 oz/yd2 and comprises 13.89% of the total weight of the fabric.
CBP is proposing to issue HQ W968299 in order to modify NY M81369, and reclassify the two fabrics in HTS 5903.20.2500, which provides for "textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902: With polyurethane: Of man-made fibers: Other: Other," rather than in HTS 5407.52.2060, as "woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404, other woven fabrics, containing 85 percent or more by weight of filaments of nylon or other polyamides, dyed, weighing not more than 170 g/m2."
CBP proposes this change as a correction based on HTS Chapter 59, Note 2, which states that heading 5903 applies to textile fabrics, impregnated, coated, covered or laminated with plastics, other than fabrics in which the impregnation, coating or covering cannot be seen with the naked eye, etc.
Based on administrative precedent, CBP considered a number of factors in determining whether the coating can be seen with the naked eye: whether the coating has visibly altered the surface of the fabric, whether the plastic is visible in the interstices of the fabric, whether the thread or weave is blurred or obscured; and whether the surface of the fabric is leveled or smoothed and whether the coating itself creates a distinct visible pattern. CBP notes that these factors are not exclusive and none is determinative.
CBP now finds that applying the "visible to the naked eye" test on the fabrics of style 6004530AU and style 10502220AU, using normally corrected vision in a well-lighted room, the clear polyurethane coating has filled the gaps in the interstices. Accordingly, CBP proposes that the subject fabrics feature a coating which is visible to the naked eye, and therefore should be classified as coated textile fabrics under heading 5903.
proposed: 5903.20.2500, 7.5%; current: 5407.52.2060, 14.9%
(Of additional note: recently published proposed ruling HQ W968381 covers similar merchandise and reflects the same analysis. See ITT's Online Archives or 09/12/07 news, 07091245, for BP summary of proposed HQ W968381)
September 12, 2007 CBP Bulletin (Vol. 41, No. 38) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2007/