The tariff classification of raw cotton fibers of U.S. origin, reimported from Mexico without having been advanced in value or improved in condition while abroad

N022563 February 19, 2008 CLA-2-98:OT:RR:E:NC:N3:351 CATEGORY: Classification TARIFF NO.: 9801.00.10, 5201.00.14, 5201.00.18 Ms. Edna Lorena Carmona Edna Lorena Carmona, CHB 402 Grand Central Blvd. Laredo, TX 78045 RE: The tariff classification of raw cotton fibers of U.S. origin, reimported from Mexico without having been advanced in value or improved in condition while abroad Dear Ms. Carmona: In your letter dated Jan. 29, 2008, on behalf of Plains Cotton Cooperative Assoc., of Lubbock, Texas, you requested a tariff classification ruling. Your letter concerns cotton fibers of United States origin, not carded or combed, having a staple length under 1-1/8”. The raw cotton fibers will be exported to Mexico where they will be stored in a bonded warehouse for distribution. You request a ruling on the classification of any of the cotton returned to the United States without having been advanced in value or improved in condition while abroad. Subheadings 5201.00.14 and 5201.00.18, Harmonized Tariff Schedule of the United States (HTSUS), both cover cotton that has not been carded or combed and has a staple length under 28.575mm (1-1/8”). Subheading 5201.00.14 covers cotton that is described in Additional U.S. Note 5 to Chapter 52 (“Note 5") and entered pursuant to its provisions. Subheading 5201.00.18 is a residual provision that covers cotton that is not classified in 5201.00.14 or the preceding subheadings. Accordingly, classification in this case depends on whether or not the cotton meets the description contained in Note 5. Note 5 established an “in-quota” quantity within a tariff-rate quota (TRQ) system for cotton, not carded or combed having a staple length under 28.575 mm. TRQs are a two-tier tariff system under which a specified in-quota quantity of an article enters at a lower in-quota tariff rate, and over-quota quantities enter at a substantially higher over-quota rate. In the case of the cotton at issue, the in-quota cotton is classified in subheading 5201.00.14; the over-quota classification is subheading 5201.00.18. Subheading 9801.00.10, HTSUS, provides for the free entry of products of the U.S. that have been exported and returned without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. With regard to heading 9801, U.S. Note 1 to Chapter 98 states that the provisions of that chapter are not subject to the rule of relative specificity in General Rule of Interpretation 3(a). By virtue of Note 1, the cotton returned to the United States without having been advanced in value or improved in condition while in Mexico would be accorded duty-free re-entry into the United States. Note 1 further states that any article which is described in Chapter 98 is classifiable in said provision if the conditions and requirements thereof and of any applicable regulations are met. The decision as to whether such conditions/requirements and applicable regulations are met is within the purview of the Port Director at the port of entry. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Mitchel Bayer at 646-733-3102. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division