HQ 957752: Classification and Country of origin of kitchen terry tie towel; heading 6302, HTSUS; processing in India and the Philippines

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 957752

                          July 12, 1995

CLA-2 R:C:T 957752 CMR

CATEGORY: Classification

TARIFF NO.: 6302.60.0020

Ms. Teresita Estrella
Creative Home Linens, Inc.
Tiongson Building, Tiongson Compound
K-41 MacArthur Hi-way
Guinhawa, Malolos, Bulacan, Philippines

RE: Classification and Country of origin of kitchen terry 
    tie towel; heading 6302, HTSUS; processing in India and the
    Philippines

Dear Ms. Estrella:

     This is in response to your letter of February 1, 1995,
requesting a tariff classification for a tie towel.  From your
letter, it appears you would also like a country of origin
determination for quota purposes.  A sample tie towel was
received with your letter.  You indicate the item will be entered
in New Jersey.

FACTS:

     The article at issue, known as a tie towel, consists of a
padded woven top portion and a terry towel bottom portion.  The
top of the article is trapezoid in shape and consists of a
relatively thin layer polyfill center with a cotton woven
exterior.  Capping is sewn around all four sides of the top
portion and the side capping extends to form a strap.  Sewn to
the top portion is a 100 percent cotton terry towel that is
specially folded so that at its widest point (at the bottom of
the towel), it measures about 6 inches wide.  The towel in its
unfolded condition measures approximately 11-« by 15-¬ inches. 
The face of the towel is cut terry and features a bird house
applique.  The back of the towel has terry loops.

     In your letter, you indicate a 15 by 25 inch towel is
imported into the Philippines from India.  In the Philippines,
the towel is cut in half and the bird house applique is attached
and embroidered.  The top portion of the item is assembled from
Philippine materials and the top portion is attached to the towel
portion.                               -2-


ISSUE:

     What is the classification of the tie towel at issue and
what is its country of origin?

LAW AND ANALYSIS:

     Classification of goods under the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA) is governed by the
General Rules of Interpretation (GRIs).  GRI 1 provides that
"classification shall be determined according to the terms of the
headings and any relative section or chapter notes and, provided
such headings or notes do not otherwise require, according to
[the remaining GRIs taken in order]."

     Customs has issued rulings on virtually identical articles
also known as tie towels.  See, Headquarters Ruling Letter (HRL) 
956432 of November 7, 1994; HRL 089866 of September 4, 1991; New
York Ruling Letter (NYRL) 881579 of January 7, 1993; and, NYRL
804935 of January 6, 1995.  In those rulings, Customs held that
the presence of the tie or ties precludes classification as a
"dish towel".  Therefore, tie towels are classified as "other"
kitchen towels.

     In HRL 956432, Customs classified a tie towel which was
described as having a bottom portion consisting of "a towel made
of 100 percent cotton fabric which is looped on one side and has
sheared loops on the reverse side (velour toweling)."  Citing the
Explanatory Note for heading 5802, at page 795, Customs found the
fabric of the towel to be terry toweling.  The Explanatory Note
describes terry toweling fabric as including fabrics where "the
loops often appear twisted and are generally produced on both
sides of the cloth, but sometimes only on one; [the loops] may
sometimes be cut."  Although not legally binding, the Explanatory
Notes to the Harmonized Commodity Description and Coding System
are recognized as the official interpretation of the Harmonized
Tariff System at the international level.  As the tie towel at
issue is virtually identical to that described in HRL 956432, it
too is classifiable as of terry toweling.

     Section 12.130 of the Customs Regulations, 19 CFR 12.130,
sets forth the principles for determining the country of origin
of textiles and textile products subject to section 204 of the 
Agricultural Act of 1956, as amended (7 U.S.C. 1854).  The
regulation provides that a textile or textile product produced by
processing in more than one country will be considered a product
of that country in which it last underwent a substantial
transformation.  19 CFR 12.130(b).  Substantial transformation is
defined in 12.130(b) as a transformation "by means of substantial
manufacturing or processing operations into a new and different
article of commerce."                               -3-


     Section 12.130(e)(1) provides, in pertinent part, that an
article or material usually will be considered a product of a
particular country if while in that country it undergoes any of 
the following:

     (iv) Cutting of fabric into parts and the assembly of those
     parts into the completed article; 

     In the Philippines, the Indian towel is cut to the size used
in the tie towel.  The top portion, i.e, the woven outer fabric,
the polyfill, and the capping, is cut and assembled with the
bottom terry portion.  The bird house applique is attached and
embroidered.

     In the Philippines, the fabric components of the tie towel
are cut into parts and those parts are assembled into the
finished good.  Applying 12.130(e)(1)(iv), the country of origin
of the tie towel is the Philippines.

HOLDING:

     The tie towel at issue is classified as a cotton kitchen
towel of terry toweling, other than a dish towel, in subheading
6302.60.0020, HTSUSA, textile category 363, dutiable at 10.2
percent ad valorem. 

     The country of origin of the tie towel is the Philippines.

     This ruling is issued pursuant to the provisions of Part 177
Customs Regulations (19 CFR Part 177).  The holding in this
ruling only applies to the specific factual situation presented
and the merchandise identified in the ruling request.  If the
information furnished is not accurate or complete, or there is a
change in the factual situation, this ruling will no longer be
valid.  In such an event, a new ruling request should be
submitted.  

     The designated textile and apparel category may be
subdivided into parts.  If so, the 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 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 updated weekly and
is available for inspection at your local Customs office.
                               -4-


     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