CLA-2 CO:R:C:G 087161 CC
Ms. Kate King
Import Department
Midwest Trading Company
5455 South 90th Street
Omaha, Nebraska 68127
RE: Classification of a "radio cap"; neither the radio nor the
cap imparts the essential character; classified according to
GRI 3(c)
Dear Ms. King:
This letter is in response to your inquiry of March 28,
1990, requesting tariff classification of a "Sports Radio
Baseball Cap" under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA). Enclosed was a sample for
examination.
FACTS:
The submitted merchandise consists of an AM/FM radio and a
baseball-style cap. The front panel, peak, and two pockets are
made of 100 percent polyester knit fabric. The remainder of the
cap, making up primarily the back, is made of 100 percent nylon
knit mesh. The radio is fitted into the right pocket and has two
knobs, one for volume control and one for tuning. There is also
a switch for AM/FM selection. Attached between the right pocket
and the peak is an adjustable antenna. The left pocket contains
the batteries for the radio. A wire, which is attached to an
earphone, runs through the bottom of each pocket. There is a
hole on each side of the peak where the earphones can be placed
when not being used.
ISSUE:
Whether the submitted merchandise is classified as a hat in
Heading 6505, HTSUSA, or as a radio in Heading 8527, HTSUSA?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes.
The submitted merchandise is provided for under two
headings. It is classifiable in Heading 6505, HTSUSA, which
provides for hats and other headgear, knitted or crocheted, or
made up from lace, felt or other textile fabric, in the piece.
In addition, the submitted merchandise is classifiable in Heading
8527, which provides for reception apparatus for radiotelephony,
radiotelegraphy or radiobroadcasting, whether or not combined, in
the same housing, with sound recording or reproducing apparatus
or a clock.
Since classification of the submitted merchandise in a
single heading cannot be determined by applying GRI 1, we must
apply the other GRI's. GRI 3 provides for goods that are, prima
facie, classifiable in two or more headings. GRI 3(b) provides
that mixtures, composite goods consisting of different materials
or made up of different components, and goods put up in sets for
retail sale, shall be classified as if they consisted of the
material or component which gives them their essential
character.
The submitted merchandise is a composite good made up of a
radio and a baseball-style cap. Therefore the component that
imparts the essential character to this article determines its
classification.
The Explanatory Notes constitute the official interpretation
of the HTSUSA at the international level. Explanatory Note
(VIII) to GRI 3(b) states in reference to essential character the
following:
The factor which determines essential character will
vary as between different kinds of goods. It may, for
example, be determined by the nature of the material or
component, its bulk, quantity, weight or value, or by the
role of a constituent material in relation to the use of the
goods.
The only factor for which you provided information among
those listed above is the value. You stated that the radio
provides 80 percent of the value of the submitted merchandise.
While the greater value of the radio is noteworthy, an
examination of the article does not support a finding that the
role of either component is of sufficient importance as to impart
the essential character to the product.
We believe that the both the radio and the cap play an equal
role in relation to the use of the merchandise. The radio cap
would not be purchased for just one of its components. If a
purchaser wanted a baseball-style cap, there would be no need for
the radio component. Similarly, if a purchaser wanted a portable
radio, an article similar to a Walkman-type radio could be
purchased, and there would be no need for a cap component. In
addition, the radio cap is an integrated article in which the
radio could not be removed from the cap and used separately
without damaging the cap.
Since neither of the components, by itself, imparts the
essential character to this merchandise, GRI 3(c) is applicable.
It states the following:
When goods cannot be classified by reference to 3(b),
they shall be classified under the heading which occurs last
in numerical order among those which equally merit
consideration.
The heading that occurs last in numerical order is Heading
8527, HTSUSA. Therefore the submitted merchandise is classified
in this heading.
HOLDING:
The submitted merchandise is classified under subheading
8527.19.0030, HTSUSA, which provides for reception apparatus for
radiotelephony, radiotelegraphy or radiobroadcasting, whether or
not combined, in the same housing, with sound recording or
reproducing apparatus or a clock, radiobroadcast receivers
capable of operating without an external source of power,
including apparatus capable of receiving also radiotelephony or
radiotelegraphy, other, other, FM only or AM/FM only. The rate
of duty is 6 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division