CLA-2 CO:R:C:G 087280 CB
Mr. Brian Derham
W.G. Carroll & Co., Inc.
168-01 Rockway Boulevard
Suite 200
Jamaica, New York 11430
RE: Modification of HQ 086610 issued March 16, 1990
Dear Mr. Derham:
On March 16, 1990, a classification ruling was issued (HQ
086610) classifying certain ponchos with carrying bags. Upon
further consideration, that ruling is determined to be in error.
FACTS:
A description of the goods was set forth in HQ 086610 and is
incorporated by reference herein. That ruling determined that
the carrying bags sold with the ponchos were not classifiable
with the garment under General Rule of Interpretation 5, because
the bags were not specially shaped or fitted to contain the
ponchos and are suitable for repetitive use.
ISSUE:
Whether the carrying bags are classifiable separately under
the Harmonized Tariff Schedule of the United States Annotated?
LAW AND ANALYSIS:
Classification of merchandise under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) is made in
accordance with the General Rules of Interpretation (GRI's) 1
through 6. The systematic detail of the HTSUSA is such that
virtually all goods are classified by application of GRI 1, that
is, according to the terms of the headings of the tariff schedule
and any relevant section or chapter notes. In the event that the
goods cannot be classified solely on the basis of GRI 1, and if
the headings and legal notes do not otherwise require, the
remaining GRI's may be applied, taken in order.
-2-
GRI 5(a) provides that containers specially shaped or fitted
to contain specific articles, suitable for long-term use and
entered with the articles, shall be classified with such articles
when of a kind normally sold therewith. In addition, pursuant to
GRI 5(b), packing materials and packing containers are also
classified with the goods. However, the provision does not apply
if the packing materials and packing containers are clearly
suitable for repetitive use. For the purposes of GRI 5(b), the
term "repetitive use" is interpreted to mean use with goods of
the kind presented in the packing container. It is Customs
position that the subject carrying bag does not meet the
requirements of either GRI 5(a) or (b). The carrying bag is not
specially shaped or fitted to contain the poncho and is suitable
for repetitive use.
On considering whether the garment and carrying bag
constitute composite goods under the Harmonized Tariff Schedule,
we note the following criteria set forth under paragraph (IX) of
Rule 3(b) of the Explanatory Notes:
For the purposes of this Rule, composite goods made up
of different components shall be taken to mean not only
those in which the components are attached to each
other to form a practically inseperable whole but also
those with separable components, provided these
components are adapted one to the other and are
mutually complementary and that together they form a
whole which would not normally be offered for sale in
separate parts.
It is our view that the poncho and bag do qualify as
composite goods as that term is defined and applied in the
HTSUSA. GRI 3(b) provides that composite goods shall be
classified as if they consisted of the component which gives them
their essential character. In the instant case, the ponchos are
classifiable in heading 6202, HTSUSA, and the carrying bags are
classifiable in heading 4202, HTSUSA. With respect to the
subject goods, the ponchos impart the essential character.
Therefore, both the ponchos and carrying bags are classifiable in
subheading 6202.13.4020, HTSUSA.
HOLDING:
The ponchos and carrying bags are classifiable in subheading
6202.13.4020, HTSUSA, which provides for women's or girls'
overcoats, carcoats, capes, cloaks and similar coats, of man-made
fibers, other, other, women's. The rate of duty is 29.5 percent
ad valorem and the textile category is 635.
-3-
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the tariff number) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to importation of this merchandise to
determine the current status of any import restraints or
requirements.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report on Current Import Quotas (Restraint Levels), an issuance
of the U.S. Customs Service, which is updated weekly and is
available at your local Customs office.
HQ 086610 is modified accordingly pursuant to
19 CFR 177.9(d). This notice is not to be applied retroactively
to HQ 086610 (19 CFR 177.9(d)(2)(1989)) and will not, therefore,
affect the transaction for the importation of your merchandise
under that ruling. However, for the purposes of future
transactions in merchandise of this type, HQ 086610 will not be
valid precent. We recognize that pending transactions may be
adversely affected by this modification, in that current
contracts for importations arriving at a port subsequent to the
release of HQ 086610 will be classified under the new ruling. If
such a situation arises, you may, at your discretion, notify this
office and apply for relief from the binding effects of the new
ruling as may be dictated by the circumstances.
Sincerely,
John Durant, Director
Commercial Rulings Division