Proposed Modification of One Ruling Letter and Proposed Revocation of Treatment Relating to the Tariff Classification of Woven Upholstery Fabric

In the Octobe 11, 2023 Customs Bulletin (VOL. 57, NO. 37), CBP gave notice of Proposed Modification of One Ruling Letter and Proposed Revocation of Treatment Relating to the Tariff Classification of Woven Upholstery Fabric.

In Ruling Leter NY N319028 of April 30, 2021, CBP classified various woven upholstery fabrics in heading 5903, HTSUS, specifically in subheading 5903.90.25, HTSUS, which provides for “Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902: Other: Of man-made fibers: Other: Other.” The rate of duty is 7.5%. CBP has reviewed NY N319028 and has determined the ruling letter to be in error. It is now CBP’s position that a certain woven upholstery fabric, Style J1819 (Fringe), is classified in heading 5515, HTSUS, and specifically within sub-heading 5515.12.00, HTSUS, which provides for “Other woven fabrics of synthetic staple fibers: Of polyester stable fibers: Mixed mainly or solely with man-made filaments.” The rate of duty is 12%.

The subject fabrics have been coated with an acrylic coating. At issue is whether they are coated fabrics of Chapter 59, HTSUS, and whether, pursuant to Note 2(a)(1) to Chapter 59, HTSUS, they are products of heading 5903, HTSUS. Heading 5903, HTSUS, provides for the classification of “[t]extile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902.” According to Note 2(a)(1) to Chapter 59, for a fabric to be considered coated within the meaning of heading 5903, HTSUS, the coating must be visible to the naked eye (whatever the nature of the plastic material), but no account is to be taken of changes in color. Therefore, to determine whether these fabrics are classifiable in heading 5903, HTSUS, we must determine whether they are visibly coated with plastic.

Application of the tariff provision relating to coated textiles has the subject of several CBP rulings and at least one court case. Agathon Associates clients can read more at (email David Trumbull at david@agathonassociates.com for the password