CLA-2 OT:RR:CTF:TCM H082736 CkG
TARIFF NO: 4202.92.30
Tracey Topper Gonzalez
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt, LLP
399 Park Avenue 25th Floor
New York, NY 10022-4877
RE: Reconsideration of NY N070096; classification of unfinished golf bags
Dear Ms. Gonzales:
This is in response to your letter of October 23, 2009, requesting the reconsideration of New York Ruling Letter (NY) N070096, issued on August 26, 2009. CBP ruled in this decision that unfinished golf bags imported by Zonson Company, LLC, were classified in heading 4202, HTSUS, as finished sports bags. You request classification in heading 6307, HTSUS, as other made up textile articles, as well as application of the special duty-free provision of subheading 9902.23.24, HTSUS.
FACTS:
The merchandise was described in NY N070096 as follows:
You submitted two samples, style numbers BG0218 and BG0220. You state that these are representative of a number of similar styles and you attached a list of them. This ruling covers only the two samples we received. Both samples are unfinished golf bags. They are constructed with an outer surface of man-made textile material. Each bag is designed and fitted to contain golf clubs and accessories. Each has a molded plastic top collar which in each case also serves as a club separator. Each features a carrying handle and several exterior zippered pockets. Each bag is completely assembled except that they lack the bottom component.
To this description we add that the bags possess a stiff internal frame and bottom collar which allow them to stand upright and be carried with ease.
ISSUE:
Whether the instant unfinished golf bag bodies are classified pursuant to GRI 2(a) as sports bags of heading 4202, HTSUS, or as other, made up textile articles of heading 6307, and whether they are described by the terms of subheading 9902.23.24, HTSUS.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative 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 GRIs 2 through 6 may then be applied in order.
GRI 2 provides, in pertinent part, as follows:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
The HTSUS provisions at issue are as follows:
4202: Trunks, suitcases, vanity cases, attache cases, briefcases, school
satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper:
Other:
4202.92: With outer surface of sheeting of plastic or of textile
materials:
Travel, sports and similar bags:
With outer surface of textile materials:
4202.92.30: Other . . .
* * * * * *
6307: Other made up articles, including dress patterns:
6307.90: Other:
6307.90.98: Other………..
* * * * * *
9902.23.24: Golf bag bodies made of woven fabrics of nylon or polyester,
sewn together with rainhoods, pockets, dividers, and graphite shaft protection (provided for in subheading 6307.90.98)
* * * * * *
The Harmonized Commodity Description and Coding System Explanatory
Notes (ENs), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
GRI 2(a) provides that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
The Explanatory Note to GRI 2 provides, in pertinent part, as follows:
The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term " blank " means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part (e.g., bottle preforms of plastics being intermediate products having tubular shape, with one closed end and one open end threaded to secure a screw type closure, the portion below the threaded end being intended to be expanded to a desired size and shape).
Semi manufactures not yet having the essential shape of the finished articles (such as is generally the case with bars, discs, tubes, etc.) are not regarded as " blanks ".
* * * * * *
The issue to be addressed is whether unfinished golf bags imported by Zonson company have the “essential character” of completed or finished products and should, therefore, be classified pursuant to GRI 2(a) as if they were goods in their completed or finished state. The GRIs do not define the phrase “essential character.” The meaning of this term in the context of GRI 2(a) may, however, be understood from an examination of the EN to GRI 2(a).
The ENs to GRI 2 (a) draw a distinction between a “blank” which possesses the essential character of an article and a “semi-manufacture[d]” item that does not have the essential character of an article. A “blank,” as defined in the EN, is an article “not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part.” “Semi-manufactures”, on the other hand, are items that do not yet have the essential shape or character of the finished articles. Examples of semi-manufactures set forth in the EN’s are: “bars, discs, tubes, etc.” Semi-manufactures are specifically not regarded as “blanks.”
Completed golf bags are classified in heading 4202, HTSUS, as ejusdem
generis to travel and sports bags specifically enumerated in that heading. Additional U.S. Note 1 of Chapter 42 defines “sports bags” as follows: “The expression “travel, sports and similar bags” means “goods…of a kind designed for carrying clothing and other personal effects during travel.” The instant articles are designed to carry golf clubs and other personal effects. CBP has previously held that bags and other containers must be usable for their intended purpose (i.e., to store, organize or protect various items) in order to be classified pursuant to GRI 2(a) in heading 4202, HTSUS. See e.g., Headquarters Ruling Letter (HQ) 963486 (April 24, 2000); HQ 966894 (March 29, 2004). While a “blank” does not have to be ready for direct use in order to be classified as the completed article, in their condition as imported, the instant golf bag bodies are in fact fully capable of direct use as sports bags. In contrast to similar merchandise classified by CBP as unfinished golf bags in heading 6307, there is no risk of the golf clubs falling out of the bottom of the bag, as the top organizer assembly and the dividers sewn into the interior of the bag hold the golf clubs in place. Furthermore, the lack of the bottom component does not affect the bags’ ability to stand upright, nor the ability of the front and side pockets to store personal effects. The instant bags are thus almost entirely complete, are directly usable as golf bags, are clearly recognizable as golf bags, and are so far processed towards their ultimate completed form as to be dedicated to the making of golf bags alone. Pursuant to the EN to GRI 2(a), the instant golf bag bodies thus possess the essential character of sports bags of heading 4202, HTSUS.
As the instant golf bags are classified as sports bags of heading 4202, HTSUS, they do not qualify for duty-free treatment under subheading 9902.23.24, HTSUS, which covers only unfinished golf bag bodies classified in heading 6307, HTSUS.
HOLDING:
By application of GRIs 1 and 2, the Zonson golf bag bodies are classified in heading 4202, HTSUS, specifically in subheading 4202.92.30, HTSUS, which provides for: “Trunks, suitcases… sports bags…and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper: Other: With outer surface of plastics or of textile materials: Travel, sports and similar bags: With outer surface of textile materials: Other.” The 2011 column one, general rate of duty is 17.6% ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N070096, dated August 26, 2009, is hereby affirmed.
Sincerely,
Myles B. Harmon, Director,
Commercial and Trade Facilitation Division