Classification of knitted pile fabrics turns on whether pile yarns are cut during weaving or sheared after manufacture.

Imported polyester knitted pile fabrics produced on circular knitting machines and sheared after manufacture were treated as looped pile fabrics under Heading 6001.22, not cut pile fabrics under Heading 6001.92. The technical distinction applied was that cut pile fabrics are made by cutting pile yarns during the weaving process, whereas knitted fabrics in tubular form may only be sheared after production and can remain looped pile fabrics. Because the goods were produced by shearing loops after manufacture, they were not classified as cut pile fabrics.

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Issues: Whether the imported polyester knitted fabrics were correctly classifiable as looped pile fabrics under Heading 6001.22 of the Customs Tariff Act, 1975, or as cut pile fabrics under Heading 6001.92.

Analysis: The imported goods were knitted pile fabrics produced on circular knitting machines and thereafter sheared to the desired pile height. The distinguishing feature was that, in the case of knitted fabrics made in tubular form, the pile could not be cut during weaving itself. The technical material relied upon showed that cut pile fabrics are produced by cutting the pile yarns during the weaving process, whereas knitted pile fabrics may be sheared after production and may remain looped pile fabrics. On the facts, the fabrics were produced by shearing loops after manufacture and were not cut pile fabrics created during weaving.

Conclusion: The goods were held to be looped pile fabrics classifiable under Heading 6001.22, not cut pile fabrics under Heading 6001.92, and the finding was in favour of the assessee.

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