CLA-2 CO:R:C:G 082075 DSN

John B. Pellegrini, Esquire
Ross & Hardies
575 Fifth Avenue
New York, New York 10017-2470

Re: Classification of footwear

Dear Mr. Pellegrini:

Your inquiry of December 11, 1987, on behalf of the Timberland Company, addressed to our New York office concerning classification of certain types of footwear under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), was referred to this office for a direct reply. Two samples were originally submitted and three additional samples were later furnished. All samples were manufactured in the Dominican Republic.

FACTS:

The first sample, which we have labelled number 1, is a three eyelet oxford with padded collar and tongue. The oxford is fully shaped and has been back-part lasted as evidenced by the shaped heel in the rear of the shoe. The upper is lined with leather and has a single oblong shaped opening measuring approximately one and one half inches long by three quarters of an inch wide. The hole is cut approximately one inch forward from the back of the heel.

The second sample, which we have labelled number 2, is a penny loafer which is considered fully shaped by way of a visible line inside the rear area. This line is evidently the result of the upper being placed on a last or some other device, which gives the leather a permanent turn inward to form the flat surface. The plastic inside counter at the extreme rear of the loafer has not been shaped, the leather tab which covers it has been turned inward to form a horizontal ridge. The loafer has an oblong shaped hole measuring approximately three and one half

-2-

inches long, by one half to a quarter inch wide. The hole runs from the back of the heel to the mid-arch. In addition, there is a circular hole about one inch in front of the other hole described above, which measures approximately three quarters of inch in diameter.

The additional samples are labelled A, B and C. Sample A is a three eyelet moccasin type upper which is closed at the bottom. The sample appears not to have been back-part lasted. The sample has a "kicker" which forms the back part of the upper. According to your submissions, the vamp portion was hand sewn on a last and then removed. The upper was not dried on a last. The uppers will have to be soaked, relasted and dried on a last after importation into the United States in order to give the moccasin its final shape and form.

Sample B is a loafer type upper with a tongue. The loafer has an oblong shaped hole measuring approximately four and three quarter inches long, by one and one half inches wide. This hole runs from the back of the heel to the mid-arch. The leather around the heel area falls into a straight position, and has no "tuck". Like the second sample, there is a circular hole which measures approximately three quarters of an inch in diameter. According to your submissions, the upper was dried on a last but was not back part lasted. The back-part lasting operation would take place after importation into the United States.

Sample C is identical in design to sample "B" except that the vamp was not dried on a last. Acccording to your submission, the upper would have to be soaked, re-lasted and dried after importation into the United States in order to obtain its final shape.

ISSUE:

Whether the samples at issue are classified as formed uppers or other uppers under the HTSUSA.

LAW AND ANALYSIS:

Formed uppers and other uppers are within Heading 6406, HTSUSA, which provides for parts of footwear, removable insoles, heel cushions and similar articles, gaiters, leggings and similar articles, and parts, thereof. Subheading 6406.10.05, HTSUSA, provides for uppers and parts thereof, formed uppers, of leather. Subheading 6406.10.65, HTSUSA, provides for uppers and parts thereof, other.

The term formed upper is not clearly defined under the HTSUSA, nor by the Explanatory Notes which constitute the

-3-

official interpretation of the tariff at the international level. Additional United States Note 4 to Chapter 64 provides an indication of the intention of the drafters of the provision. Note 4 to Chapter 64, HTSUSA, states that formed uppers cover uppers, with closed bottoms, which have been shaped by lasting, molding or otherwise but not by simply closing at the bottom.

You state in your original inquiry, that samples 1 and 2 cannot be considered as having closed bottoms because they have holes cut out. We construe the phrase closed bottoms as uppers which are substantially closed. It is our view that substantially closed means that more of the lower surface that is intended to cover the bottom of the foot is present, than is absent. Samples 1 and 2 are substantially closed because more of the lower surface is present than absent. Moreover, samples 1 and 2 have been shaped all around their perimeters by more than simply closing at the bottom. Sample 1 is completely back-part lasted. The narrow one inch wide heel tab is the only part of the back of sample 2 which is partially lasted, the balance of the back part being fully lasted. We note that the partial lasting at the heel of sample 2 is so minimal that it is still considered fully formed.

Moreover, we distinguish samples 1 and 2 from the uppers described in Headquarters Ruling Letter 080786 of October 15, 1987. That ruling dealt with parts for moccasin-type loafers. The uppers had not been back-part lasted, whereas samples 1 and 2 have been back-part lasted and are considered fully formed.

The analysis for samples A, B, and C is somewhat different. None of these samples have been back-part lasted and all require further processing to attain their final shape. With respect to sample A, the limited amount of shaping as a result of the stitching precludes it from being classified as a formed upper. With respect to samples B and C, the degree of shaping is minimal. Since neither of these samples has been back-part lasted and they need to be soaked, re-lasted and dried after importation in order to obtain their final shape, they are precluded from classification as a formed upper.

HOLDING:

In view of the foregoing, samples 1 and 2 are classified under subheading 6406.10.0500, HTSUSA, as parts of footwear, removable insoles, heel cushions and similar articles, uppers and parts thereof, formed uppers, of leather or composition leather, for men, youths and boys. The merchandise is dutiable at the rate of 8.5 percent ad valorem.

Samples A, B and C are classified under subheading

-4-

6406.10.65, HTSUSA, which provides for parts of footwear, uppers and parts thereof, other of leather. The merchandise is dutiable at the rate of 3.7 percent ad valorem. This classification decision is under the HTSUSA, effective January 1, 1989, subject to changes in the law before the effective date.


Sincerely,

John Durant, Director
Commercial Rulings Division