CLA-2 RR:CR:TE 961243 ASM
Tariff No.: 6307.10.1000
Port Director
U.S. Customs Service
2350 North Sam Houston Parkway East Suite 1000
Houston, Texas 77032
RE: Protest and Application for Further Review; Cotton Terry Towels
Dear Port Director:
This letter concerns protest (5301-97-100329) and an application for further review filed by Graham & James LLP on behalf of Best Manufacturing, Inc., regarding the tariff classification of cotton terry towels under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).
FACTS:
The subject articles are 100 percent cotton bleached terry towels ranging in size from approximately 15" to 18" (width) by 17" to 20" (length) which have been hemmed on all four sides. The towels are primarily sold by the protestant to commercial laundries which rent the articles to such U.S. institutional users as restaurants and hotels for use in cleaning and mopping-up spills in food and beverage preparation and service areas.
Customs has classified the subject towels under subheading 6307.10.2020, HTSUSA, which is the provision for "Other made-up articles including dress patterns: Floorcloths, dishcloths, dusters and similar cleaning cloths: Other: Bar mops (measuring 46 to 57 centimeters in length and 38 to 43 centimeters in width) of cotton terry fabric." The protestant believes that the subject merchandise is properly classifiable within subheading 6307.10.1000, HTSUSA, which is the provision for "Other made up articles, including dress patterns: Floorcloths, dishcloths, dusters and similar cleaning cloths: Dustcloths, mop cloths and polishing cloths, of cotton."
ISSUE:
Whether the subject cotton terry towels are properly classified as "bar mops" under subheading 6307.10.2020, HTSUSA, or "mop cloths" under subheading 6307.10.1000, HTSUSA.
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. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN’s), which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI's.
Heading 6307, HTSUSA, is a residual provision for made up textile articles not provided for elsewhere in the tariff. Note 7, Section XI, HTSUSA, states in pertinent part:
For the purposes of this section, the expression "made up" means:
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(c) Hemmed or with rolled edges, or with a knotted fringe at any of the edges, but excluding fabrics the cut edges of which have been prevented from unraveling by whipping or by other simple means;
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In accordance with Note 7(c), Section XI, HTSUSA, the instant cloth has been hemmed on all four sides; therefore, for tariff classification purposes, it is "made up." The article is also not otherwise specifically provided for elsewhere in the tariff, thus, classification under Heading 6307, HTSUSA, is required.
In the subject case, Customs ports have identified dimensions and features in the subject towels which have caused them to be classified within the class or kind of goods commonly known as "bar mops" under 6307.10.2020, HTSUSA. This provision provides for "Bar mops (measuring 38 to 43 centimeters in width and 46 to 57 centimeters in length) of cotton terry fabric." In inches, the size range for "bar mops" under this provision is: 15-17" wide x 18-22" long. Based on our review of the samples submitted, almost all the towel samples provided to us fall squarely within the size range for "bar mops". Although some of the towels have measurements which may cause them to fall short of the "bar mop" towel size specifications, we consider this discrepancy to be not relevant in determining whether or not there is merit to the protestant's legal argument discussed below.
The protestant has asserted that by classifying the subject towels under subheading 6307.10.2020, HTSUSA, Customs has improperly classified the towels in a "basket" or residual provision (providing for "other"), and that the merchandise may not be properly classified therein unless disqualified from the preceding eight-digit subheading (which covers "dustcloths, mop cloths and polishing cloths, of cotton"). The protestant reasons that since the merchandise consists of cloths. which are designed for mopping, the most fundamental principles of tariff classification mandate that the articles be classified as "mop cloths", within subheading 6307.10.1000, HTSUSA, and the subject entries should be reliquidated accordingly.
In reviewing the protestant's argument, Customs recognizes the validity of the assertion that the provision for "mop cloths" contained at 6307.10.10, HTSUSA, precedes the "bar mop" provision under subheading 6307.10.20, HTSUSA, which encompasses bar mops. In HQ 952926, dated March 9, 1993, Customs recognized that the HTSUSA is a hierarchical system and stated that with respect to certain cotton towels "...if this merchandise is specifically provided for as a dustcloth, mop cloth or polishing cloth of 6307.10.10, it could not be classifiable as a bar mop," under the other provision of subheading 6307.10.20 HTSUSA.
Accordingly, the protest should be allowed.
For your information, a request has been submitted to the 484(f) committee, which was established under the provision of 19 U.S.C. 1484(f). This provision authorizes the Secretary of the Treasury, the Secretary of Commerce and the U.S. International Trade Commission to revise the statistical breakouts under the HTSUS. Pursuant to this request, action has been taken to modify the statistical breakout under heading 6307 so that the more specifically worded "bar mop" statistical breakout, contained at subheading 6307.10.20, HTSUSA, would fall under the subheading for "mop cloths" which is provided for under 6307.10, HTSUSA. The committee has taken final action on this proposal.
HOLDING:
In view of the foregoing, the subject towels are classifiable under subheading 6307.10.10, HTSUSA, which is the provision for "Other made up articles, including dress patterns: Floorcloths, dishcloths, dusters and similar cleaning cloths: Dustcloths, mop cloths and polishing cloths, of cotton." The textile restraint category is 369.
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 internal issuance of the U.S. Customs Service, which is available for inspection 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 importation of this merchandise to determine the current status of any import restraints or requirements.
The protest should be ALLOWED. In accordance with Section 3A(11)Co) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division