CLA-2 CO:R:C:M 955499 DFC
Mr. Randy Willette
A.N. Deringer, Inc.
30 West Service Road
Champlain New York 12919-9703
RE: Uppers, plastic boot, partial; Footwear, parts; Laces;
Composite goods; Essential character; HRL's 953600, 085178
Dear Mr. Willette;
This is in reference to your letter dated November, 1, 1993,
to U.S. Customs in Champlain, New York, on behalf of Rallye
Footwear Inc., concerning the tariff classification under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA) of certain footwear "uppers" manufactured in Canada.
Your letter, together with the samples submitted, have been
referred to this office for a response.
FACTS:
The sample "uppers," identified as Styles 7000-ST-01 and
7000-ST-04, are constructed in the same manner. Each style
consists of the shaft portion of a child's cold weather plastic
boot upper which has a textile fleece liner without a closed
bottom. Each style is about 7-1/2 inches in height with the
plastic faced shaft portion present as an extra layer for about
the top 5 inches of it. Each style has a lace cinch inserted
through the top line.
The sample, identified as style 4030111 OT, is the lining
(without a bottom) of a "rubber ducky" foot portion attached to a
1 inch external collar, eyelet stay and tongue. A shoe lace is
laced into the three pairs of eyelets.
ISSUES:
Do the styles involved qualify as "composite goods" within
the purview of GRI 3(b), HTSUSA?
Are the styles involved classifiable under subheading
6406.10.6000, HTSUSA, as parts of unformed uppers of rubber or
plastics or are they classifiable under subheading 6406.10.9040,
HTSUSA, as parts of unformed uppers of textile materials (assumed
to be of man-made fibers)?
Are the laces separately classified?
LAW AND ANALYSIS:
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
"classification shall be determined according to the terms of the
headings and any relative section or chapter notes, and, provided
such headings or notes do not otherwise require, according to
[the remaining GRI's taken in order]." In other words
classification is governed first by the terms of the headings of
the tariff and any relative section or chapter notes.
Inasmuch as each style is "more than" an upper which will be
visible externally when the completed footwear is worn, the
external surface area test of note 4(a) to chapter 64, HTSUS, is
not applicable. The essential character test of GRI 3(b),
HTSUSA, is controlling in determining if it is "of rubber or
plastics" or "of textile materials."
STYLES 7000-ST-01 AND 7000-ST-04
GRI 2(b), HTSUSA, provides in part that '[t]he
classification of goods consisting of more than one material or
substance shall be according to the principles of Rule 3."
GRI 3, HTSUSA, reads in pertinent part as follows:
3. When by application of Rule 2(b) or for any other
reason, goods are prima facie classifiable under two or
more headings, classification shall be effected as
follows:
(a) The heading which provides the most specific
description shall be preferred to headings
providing a more general description. However,
when two or more headings each refer to part only
of the materials or substances contained in mixed
or composite goods. . . those headings are to be
regarded as equally specific in relation to those
goods, even if one of them gives a more complete
or precise description of the goods.
(b) Mixtures, composite goods consisting of different
materials or made up of different components, and
goods put up in sets for retail sale which cannot
be classified by reference to 3(a), shall be
classified as if they consisted of the material or
component which gives them their essential
character, insofar as this criterion is
applicable.
(c) When goods cannot be classified by reference to
3(a) or 3(b), they shall be classified under the
heading which occurs last in numerical order among
those which equally merit consideration.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) to the HTSUSA, although not dispositive
should be looked to for the proper interpretation of the HTSUS.
See, 54 FR 35128 (August 23, 1989). EN (IX) to GRI 3(b), at page
4, reads as follows:
(IX) 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 inseparable 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.
In Headquarters Ruling Letter (HRL) 085178 dated October 20,
1989, Customs held that when separate components including a
partial plastic boot shaft upper and a removable textile boot
liner were imported together, they did not qualify as "composite
goods" because it is doubtful that the shaft and liner "form a
whole which would not normally be offered for sale in separate
parts." Liners for boots are often imported separately by makers
and some types are sold separately to consumers as replacements
for liners that have worn out. In this case the liner and boot
shaft were separately classified under their appropriate HTSUSA
subheadings.
With respect to the instant samples, a plastic boot upper
shaft and textile liner without a bottom are permanently stitched
together to form a unit. Further, the liner without a bottom is
not of a type that is normally sold separately to consumers as a
replacement liner. However, the lace presents a problem in that
it is separable from the samples and could be classified as a
separate item. Nevertheless, it is our position that the lace,
while separable, would be very difficult to insert once the upper
shaft and textile liner is attached to the finished shoe.
Therefore, it is our opinion that the lace, the plastic shaft and
the textile lining constitute a "composite good" within the
purview of GRI 3(b), HTSUSA.
The lace, the plastic boot upper shaft and the textile liner
without a bottom are prima facie classifiable under separate
subheadings of the tariff schedule which describe only a portion
of the materials in the article as a whole. Following GRI 3(a),
HTSUSA, subheadings 5609.00.1000, 5609.00.3000, 6406.10.60,
HTSUSA, and 6406.10.9040, HTSUSA, are regarded as equally
specific which requires application of GRI 3(b), HTSUSA,
governing the classification of composite goods.
Composite goods are classifiable as if they consisted of the
component which gives them their essential character. EN VIII to
GRI 3(b), at page 4, reads as follows:
(VIII) 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 materials or component, its bulk, quantity.
weight or value, or by the role of a constituent
material in relation to the use of the goods.
In HRL 953600, dated March 29, 1993, Customs held that the
textile liner imparted the essential character to a partial boot
upper with a permanently stitched-on textile bottom [similar to
the samples in issue]. The rationale for that finding was that
the textile liner provided both comfort and warmth due to the
fleece which is essential in a child's winter boot. Further, the
textile liner predominated in terms of 'bulk, quantity, weight or
value.'
HRL 953600 also considered the classification of a partial
boot upper with a permanently stitched-on textile liner without a
stitched-on textile bottom. In that case as here, we would not
consider the textile liner without a stitched-on textile bottom
as giving the samples their essential character. Application of
the essential character test in this situation results in the
conclusion that neither the plastic shaft, nor the textile liner
imparts the essential character to the samples. Consequently,
following GRI 3(c), classification under subheading 6406.10.9040,
HTSUSA, is appropriate as " . . . the heading which occurs last
in numerical order among those which equally merit
consideration."
STYLE 4030111 OT
Inasmuch as this style is "more than" an upper which will be
visible externally when the completed footwear is worn, the
external surface area test of note 4(a) to chapter 64, HTSUSA, is
not applicable. The essential character test of GRI 3(b), HTSUSA,
is controlling in determining if it is "of rubber or plastics" or
"of textile materials."
A half inch wide edging, the eyelet stays, and the tongue
plus the foam padding inside the collar are made of plastic (with
a woven fabric backing). The outside collar is a woven textile,
and the much larger lining is a tricot/foam laminated to fabric
glued to a fleecy fabric. It is our opinion that the essential
character of the sample is imparted by its textile portion. Our
rationale for this position is that the textile lining provides
both comfort and, due to the fleecy fabric warmth which is
essential in a winter boot. Also, the textile portions of the
article predominate in terms of "bulk, quantity, weight . . . ."
In view of the foregoing, style 4030111 0T is a "composite
good" and should be classified as a part of an unformed upper of
textile material under subheading 6406.10.9040, HTSUSA.
The shoe lace laced into the three pairs of eyelets does
present a problem. Unlike the lace in the other two styles, it
can be easily removed and replaced. Unlike the other two
samples, uppers like this which use standard shoe lacing are
often imported without the laces inserted (the laces are inserted
into the finished shoe): they are also often imported with them
inserted. Standard shoe laces like this one are certainly
imported separately in large quantities. The partial upper and
lace cannot be a "set" because they are not packaged for retail
sale. They are not composite goods because they are not
specially adapted to each other (even the color is not a close
match). The most natural description for this import is "an
upper with a shoelace in it."
The shoe lace is separately classifiable under subheading
5609.00.1000, HTSUSA, if of cotton , or under subheading
5609.00.3000, HTSUS, if of man-made fibers.
HOLDING:
Styles 7000-ST-01, 7000-ST-04, and 4030111 OT (minus the
lace) are composite goods classifiable under subheading
6406.10.9040, HTSUSA, which provides for parts of footwear,
uppers and parts thereof, other than stiffeners, other, other, of
textile materials other than cotton, of man-made fibers. The
applicable rate of duty for this provision is 9% ad valorem. The
applicable textile category is 669.
The shoe lace attached to style 4030111 OT is separately
classifiable under subheading 5609.00.1000, HTSUSA, which
provides for articles of yarn, strip or the like of heading 5404
or 5405, twine, cordage, rope or cables, not elsewhere specified
or included, of cotton, with duty at the rate of 5.8% ad valorem,
or at the rate of 9% ad valorem under subheading 5609.003000,
HTSUSA, if of man-made fibers.
The designated textile and apparel category may be
subdivided into parts. If so, the visa and quota category
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 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.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to the importation of this merchandise to
determine the current status of any import restraints or
requirements.
Sincerely,
John Durant, Director