HQ 086079: Knit Clothing; Knitting Needles

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 086079

                        January 26, 1990



CLA-2 CO:R:C:G 086079 CRS

CATEGORY:  Classification

TARIFF NO.:  Chapter 61; 4417.00.8090

Mr. Peter Hagerty
Soviet American Woolens
RFD 1 Box 57
Kezar Falls, Maine 04047

RE:  Knit Clothing; Knitting Needles

Dear Mr. Hagerty:

     This is in reply to your letter dated November 13, 1989, in
which you enquired as to the dutiable status of knit clothing
and knitting needles to be imported from the Union of Soviet
Socialist Republics.

FACTS:

     Your company imports wool from the Soviet Union, blends this
on an equal basis with U.S. wool to produce a two ply, worsted
weight knitting yarn, which is then sold domestically.  You state
that you have recently formed a joint venture with a Soviet
partner and describe two prospective import transactions which
you expect to result therefrom.  In the first of these, "plan A,"
your firm would ship knitting yarn to the Soviet Union, where
your partner would manufacture clothing from the yarn and return
the hand knit finished articles to the United States.

     In the second scenario, "plan B," your company would export
dowels to the Soviet Union.  From these and a small wooden ball,
you state that your Soviet joint venture partner would
manufacture knitting needles, which would then be returned to the
United States.

ISSUE:

     What rates of duty apply to the articles in question and
how is the duty determined.


LAW AND ANALYSIS:

     The dutiable status of an article is dependent on its
classification under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA).  Articles are classified under the
HTSUSA in accordance with the General Rules of Interpretation
(GRIs).  GRI 1 provides that the classification of articles is to
be determined according to the terms of the headings and any
relative section or chapter notes and, provided the headings or
notes do not otherwise require, according to the remaining GRIs.
taken in order.

     Knit garments are classified in Chapter 61, HTSUSA, which
covers articles of apparel and clothing accessories, knitted or
crocheted.  For example, sweaters, pullovers, sweatshirts,
waistcoats (vests) and similar articles, knitted or crocheted, of
wool or fine animal hair, wholly of cashmere, are classifiable in
subheading 6110.10.10, HTSUSA.  Pursuant to General Note 3 (b),
HTSUSA, the special rates of duty in column 2 of the HTSUSA (non
most-favored-nation) apply to imports from the Soviet Union.
Thus, knit articles of the type listed above are subject to duty
at a rate of 52 percent ad valorem.  Other woolen sweaters are
classifiable in subheading 6110.10.20, HTSUSA, and are dutiable
at a rate of 54.5 percent ad valorem.  Textile imports from the
Soviet Union are not currently subject to quota.

     However, without a detailed description of the clothing you
plan to import we cannot be more specific.  If you require a
more definite answer, you should submit a ruling request
containing a full and complete description of the articles you
plan to import, together with samples.  The publication entitled
"District Rulings Program" outlines the procedure for requesting
a ruling under the HTSUSA.  Several other publications are also
enclosed for your benefit.  In addition, you may wish to consult
a licensed customhouse broker.

     The yarn your company exports to the Soviet Union may be
eligible for drawback, or duty refund.  Drawback is allowable
upon the exportation of products which have been manufactured or
produced in the United States with the use of imported or
substituted merchandise of the same kind and quality.  Title 19,
United States Code, section 1313, the drawback law, requires that
the processing performed by your firm in the United States must
constitute a manufacture or production that transforms the goods
into a new and different article having a distinctive name,
character or use.

     Although we are unable at this time to make a determination
whether the blending operation you perform on the imported Soviet
wool would constitute a manufacture or production within the
meaning of the drawback law without a detailed description of the
process, it would appear from the information provided that a new
and different article has been produced.

     You also ask what the duty would be on wooden knitting
needles.  There is no specific provision for knitting needles in
the HTSUSA; however, knitting needles are a type of implement
used to make clothing and other articles of wool.  Webster's II
New Riverside University Dictionary (1984), at 1217, defines the
word "tool" as "a hand-held implement...used in accomplishing
work."

     Heading 4417, HTSUSA, covers tools, tool bodies, tool
handles, broom or brush handles, of wood; boot or shoe lasts and
trees, of wood.  The articles in question are implements used to
accomplish work, e.g. to make knit clothing.  Thus it is Customs'
position that knitting needles are a form of tool and,
consequently, classifiable in heading 4417, HTSUSA.

HOLDING:

     Knit clothing is classifiable in Chapter 61, HTSUSA.
Various rates of duty apply depending on the nature of the
articles in question.

     Wooden knitting needles are classifiable in subheading
4417.00.8090, HTSUSA, under the provision for tools...of wood,
other, other, and are dutiable at a rate of 33 1/3 percent ad
valorem.

     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,





                         Harvey B. Fox
                         Director, Office of
                         Regulations and Rulings



Enclosures