HQ 954306: Coated Nylon Fabric Pieces; Automobile Seat Parts; Air Bladders; Explanatory Note 94.01; Country of Origin; 19 CFR 134.1(b); Ferrostaal Metals Corp. v. U.S.

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 954306
                          July 29, 1993


CLA-2 CO:R:C:M 954306 DWS

CATEGORY: Classification

TARIFF NO.: 9401.90.10

Mr. Bruce N. Shulman
Stein Shostak Shostak & O'Hara
1620 L Street, N.W., Suite 807
Washington, DC 20036-5605

RE: Coated Nylon Fabric Pieces; Automobile Seat Parts; Air       
     Bladders; Explanatory Note 94.01; Country of Origin; 
    19 CFR 134.1(b); Ferrostaal Metals Corp. v. U.S.

Dear Mr. Shulman:

     This is in response to your letter of May 26, 1993, on behalf
of American Components, Inc., concerning the country of origin and
classification of pieces of textile and plastic sheet goods under
the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

     The merchandise consists of pieces of textile and plastic
sheet goods.  Nylon fabric coated with polyetherurethane and
polyetherurethane sheeting in continuous rolls is purchased from
sources in Asia, and is then imported into Mexico.  In Mexico, the
rolls will be cut into pieces specifically dedicated for use in the
final assembly of automobile seat air bladders in the U.S.  The air
bladders are used in automobile seats as lumbar supports, the
amount of support depending on the volume of air in the bladder.

     Finished automobile seat air bladders are composed of three
pieces cut from the sheet goods.  The first piece is composed of
nylon coated with polyetherurethane and is used to secure the air
bladder in a fixed position within an automobile seat.  The piece
measures approximately 14 inches by 10 1/2 inches, and has a hole,
approximately 5/16 inch in diameter, which is centered between both
edges and is approximately 3 inches from the top.  This piece also
has 13 small holes at each end, 10 of which are round and measure
approximately 1/8 inch in diameter, and 3 of which are rectangular
and measure approximately 1/8 inch by 5/8 inch.  In the U.S., the
edges containing the holes will be folded over and heat sealed to
form two small pockets into which hooks will be inserted.  The
pockets will be used to secure the entire air bladder within the
seat.

     The two other pieces are the components which hold the air,
and they are composed of polyetherurethane sheeting.  When
assembled together by heat sealing, these pieces form a pillow-
like bladder which, in turn, is heat sealed to the first piece. 
The two pieces measure approximately 9 inches by 9 inches.  Both
pieces have edges which are concave, the center portions of which
are set back approximately 1/4 inch from the edge at the corners. 
One of the pieces has a hole into which an air tube is inserted.

     The subheading under consideration is as follows:

     9401.90.10: [p]arts: [o]f seats of a kind used for motor    
                  vehicles.

     The general, column one rate of duty is 3.1 percent ad
     valorem.

ISSUE:

     Whether the coated nylon fabric pieces are classifiable under
subheading 9401.90.10, HTSUS, as parts of automobile seats?

     Whether the country of origin of the pieces is Mexico?

LAW AND ANALYSIS:

     Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.

     In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized.  The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS.  54
Fed. Reg. 35127, 35128 (August 23, 1989).  Explanatory Note 94.01
(p. 1575) states that:

     [t]his Chapter only covers parts, whether or not in the rough, 
     of the goods of headings 94.01 to 94.03 and 94.05, when
     identifiable by their shape or other specific features as 
     parts designed solely or principally for an article of those
     headings.  They are classified in this Chapter when not more
     specifically classified elsewhere.

     It is our position that the subject pieces are identifiable
by their irregular shape and other features as parts designed
solely for the automobile seats of heading 9401, HTSUS.  The pieces
are not more specifically classified elsewhere in the HTSUS.  The
pieces are parts of air bladders which, in turn, are parts of
automobile seats.  They are specially cut to shape and are
processed in such a way that they are identifiable solely as parts
of automobile seats.  Consequently, we find that the pieces are
classifiable under subheading 9401.90.10, HTSUS.

     We will now deal with the country of origin of the pieces.  
"Country of origin" is defined in section 134.1(b), Customs
Regulations [19 CFR 134.1(b)], as "the country of manufacture,
production, or growth of any article of foreign origin entering the
United States.  Further work or material added to an article in
another country must effect a substantial transformation in order
to render such other country the 'country of origin' within the
meaning of this part."  

     "The essence . . . is that a product cannot be said to
originate in the country of exportation if it is not manufactured
there.  The question, therefore, is whether operations performed
on products in the country of exportation are of such a substantial
nature to justify the conclusion that the resulting product is a
manufacture of that country. 'Manufacture' implies a change, but
every change is not manufacture . . .  There must be
transformation; a new and different article must emerge, 'having
a distinctive name, character or use'."  Ferrostaal Metals Corp.
v. U.S., 11 CIT 470, 473 (1987).

     The subject pieces, produced from coated nylon fabric rolls
purchased in Asia, are processed in Mexico.  Based upon the above
described processing of the pieces, it is our position that a
substantial transformation has occurred in Mexico, and a new and
different article has emerged having a "distinctive name, character
or use".  After processing in Mexico, the rolls are substantially
transformed into parts of automobile seats.  Therefore, we find
that the country of origin of the subject pieces is Mexico.

HOLDING:

     The coated nylon fabric pieces are classifiable under
subheading 9401.90.10, HTSUS, as parts of automobile seats. 
Articles from Mexico classifiable under subheading 9401.90.10,
HTSUS, have previously been eligible for duty free treatment under
the Generalized System of Preferences (GSP), upon compliance with
the requirements in sections 10.171 - 10.178, Customs Regulations
(19 CFR 10.171 - 10.178).  However, because the GSP expired at
midnight on July 4, 1993, duties at the rate of 3.1 percent ad
valorem must now be deposited.  Legislation which would reinstate
the GSP retroactively has been proposed but has not been enacted.

      The country of origin of the coated nylon fabric pieces is
Mexico.

                           Sincerely,



                           John Durant, Director