CLA-2 OT:RR:CTF:TCM H161715 TNA
Mr. Paul Fitzpatrick
Managing Director, Global Trade Management
MIQ Logistics
20 Central Street, Suite 108
Salem, MA 01970
RE: Request for Reconsideration of HQ 082167; Tariff Classification of Saddle Blankets
Dear Mr. Fitzpatrick:
This is in response to your request for reconsideration, dated April 11, 2011, made on behalf of Mayatex, Inc. (“Mayatex”), of Headquarters Ruling Letter (“HQ”) 082167, dated March 28, 1990, which pertains to the classification of saddle blankets under the Harmonized Tariff Schedule of the United States (HTSUS). We have reviewed HQ 082167 and found it to be in error. For the reasons set forth below, we hereby revoke HQ 082167.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke HQ 082167 was published in the Customs Bulletin, Vol. 46, No. 8, on February 15, 2012. No comments were received in response to this notice.
FACTS:
HQ 082167 does not pertain to a specific article of merchandise, but rather addresses the general classification of saddle blankets of heading 4201, HTSUS. In your request for reconsideration, however, you have identified three styles of hand-woven blankets: the Doubleweave 1340-3, the Durango 1308B-5, and the Durango 1308-3. The Doubleweave 1340-3 measures 32” x 64” and is made of 85 percent Acrylic and 15 percent polyester. The Durango 1308B-5 measures 36” x 68” and the Durango 1308-B measures 32” x 64”; both are made of 90 percent wool and ten percent polyester. Samples of each style have been received and examined by this office.
In HQ 082167, U.S. Customs and Border Protection “(“CBP”) stated that blankets exceeding 30 inches by 62 inches would be classified in heading 6301, HTSUS, as a textile product. There, we stated that “without the necessary sales information regarding the ‘principal use’ of your merchandise, we cannot expand the guidelines for classification of saddle blankets to include those blankets measuring over 30 inches by 62 inches.” We also stated that, without a sample of the subject merchandise, we could not advise on classification beyond the heading level, because it was possible for the merchandise to be classified “under provisions dealing with floor coverings, bedding, or textile furnishings, depending on the ‘principal use’ of the particular articles imported. The ‘principal use’ will be determined after consideration of, among other things, its thickness, coarseness, tightness or looseness of weave, and the types of yarns used.” See HQ 082167.
ISSUE:
Whether the instant blankets should be classified in heading 4201, HTSUS, as saddle blankets; or in heading 6301, HTSUS, as blankets and traveling rugs?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods 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 may then be applied.
The HTSUS provisions under consideration are as follows:
4201 Saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), of any material:
* * *
6301 Blankets and traveling rugs:
Additional U.S. Rule (1) states, in pertinent part, the following:
In the absence of special language or context which otherwise requires--
(a) a tariff classification controlled by use (other than actual use) is to
be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the controlling use is the principal use.
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 these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The EN to heading 42.01 states, in pertinent part, the following:
This heading covers equipment for all kinds of animals, of leather, composition leather, furskin, textiles or other materials.
These goods include, inter alia, saddles and harness (including reins, bridles, and traces) for saddle, draught and pack animals, knee pads, blinkers and boots for horses, decorated trappings for circus animals, muzzles for any animal, collars, leads and trappings, for dogs or cats, saddle cloths, saddle cushions and saddle bags, horse blankets specially shaped for the purpose, coats for dogs.
The EN to heading 63.01 states, in pertinent part, the following:
Blankets and travelling rugs are usually made of wool, animal hair, cotton or man made fibres, frequently with a raised pile surface, and generally of thick heavy texture material for protection against the cold. The heading also covers rugs and blankets for cots or prams.
Travelling rugs usually have fringes (generally formed by projecting warp or weft threads), but the edges of blankets are normally preserved by blanket stitching or binding.
The heading includes fabrics in the piece which, by the simple process of cutting along defined lines indicated by the absence of weft threads, may be converted into separate articles having the character of finished blankets or travelling rugs….
The heading does not include:
(a) Specially shaped blankets for covering animals (heading 42.01).
In classifying the subject merchandise under heading 6301, HTSUS, HQ 082167 adhered to this office’s established position that saddle blankets of heading 4201, HTSUS, cannot exceed 30 by 62 inches “until it can be determined with a reasonable degree of accuracy that merchandise exceeding those measurements is principally
used as saddle blankets.” See HQ 082167. Upon reconsideration, we note that while saddle blankets might not exceed 30 by 62 inches very often in practice, no maximum size is articulated in the HTSUS or ENs. Accordingly, HQ 082167’s restriction of saddle blankets according to their size is unduly restrictive and therefore incorrect.
We note that the two provisions at issue, headings 4201 and 6301, HTSUS, both describe the subject merchandise. As a result, the analysis moves from GRI 1 to GRI 3, which states, in pertinent part:
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 or to part only of the items in a set put up for retail sale, 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.
Heading 4201, HTSUS, is a use provision, while heading 6301, HTSUS, is an eo nomine provision. The general rule of customs jurisprudence that “in the absence of legislative intent to the contrary, a product described by both a use provision and an eo nomine provision is generally more specifically provided for under the use provision.” Orlando Food Corp. v. United States, 140 F.3d 1437, 1441 (quoting United States v. Siemens Am., Inc., 68 C.C.P.A. 62, 653 F.2d 471, 477 (CCPA 1981)). However, this rule is not obligatory and only provides a “convenient rule of thumb for resolving issues where the competing provisions are in balance [i.e., equally descriptive].” United States v. Carl Zeiss, 195 F.3d at 1380 (1999) (quoting Seimens Am., 653 F.2d at 478 n.6); see also Totes, Inc. v. United States, 69 F.3d 495, 500 (Fed. Cir. 1995). Thus, if the subject merchandise is of the class or kind of product principally used for animals, then it will be classified in heading 4201, HTSUS.
With respect to the application of principal use under Additional U.S. Rule of Interpretation 1(a), the courts have provided several factors to apply when determining whether merchandise falls within a particular class or kind of good. They include: (1) the general physical characteristics of the merchandise; (2) the expectation of the ultimate purchasers; (3) the channels of trade in which the merchandise moves; (4) the
environment of the sale (e.g. the manner in which the merchandise is advertised and displayed); (5) the usage of the merchandise; (6) the economic practicality of so using the import; and (7) the recognition in the trade of this use. See United States v. Carborundum Co., 63 CCPA 98, 102, 536 F.2d 373, 377 (1976), cert denied, 429 U.S. 979 (1976) (“Carborundum”).
Mayatex has submitted evidence to show that the subject merchandise is used as a saddle blanket and is used exclusively in the equine industry, such as for trail riding and rodeo events. Mayatex is a saddle blanket manufacturer with over 60 years in the business of handweaving saddle blankets exclusively for the equine industry. The company has submitted links to its catalogue to show how the merchandise is marketed and sold, and has submitted links to the catalogues of other, unrelated retailers, to show how the industry as a whole promotes these products. Furthermore, Mayatex, citing NY D83889, dated November 3, 1998, and NY K84019, dated March 19, 2004, notes that CBP has classified similar merchandise in heading 4201, HTSUS, as saddle blankets based on comparable evidence of principle use. As such, Mayatex argues that its submitted information is sufficient to establish that its blankets are used as saddle blankets, and that as such, should be classified in heading 4201, HTSUS.
The subject blankets are thick, heavy blankets that could well act as padding between a horse and a rider. The Doubleweave 1340-3, in particular, when folded, provides the same level protection as two independent blankets of thinner construction. Furthermore, Mayatex is a recognized seller of saddle blankets. A search of the subject products in its catalogue and in the catalogues of independent retailers shows that the subject blankets are marketed in the “saddle blankets” and “sports and outdoors” categories, among others. See, e.g., http://www.mayatex.com/store/show/1340_ Ramrod_Double_weave (last accessed July 7, 2011); http://www.amazon.com/ Mayatex-Saddle-Blanket-Durango Royal/dp/B0002CPGGO/ref=sr_1_3?ie= UTF8&qid=1310149267&sr=8-3 (last accessed July 8, 2011).
Furthermore, not only are the subject blankets sold on Mayatex’s website, they are reviewed and sold by retailers that cater to outdoor sports, and to equine sports in particular. See, e.g., http://www.smithbrothers.com/ramrod-double-weave-blanket-by-mayatex/p/X3-1982/cn/860/ (last accessed July 7, 2011); http://www.teamequineusa. com/pads/1308 (last accessed July 8, 2011); http://www.mainlineequine.com//shop/ catalog/index.php?manufacturers_id=12&osCsid=5c586a5a75b965050283201983cb397c (last accessed July 8, 2011). Pictures on these sites show it being used as a saddle blanket or pad, and customers that purchase the subject merchandise expect to use it as such.
As for the economic practicality of using this merchandise, Mayatex’s products appear to sell for approximately the same price as competitor’s products, making it economically practical for them to be used this way. See, e.g., http://www.amazon.com/ s/ref=nb_sb_noss?url=search-alias%3Daps&field-keywords=saddle+blankets (last
accessed July 8, 2011). Furthermore, a search of “saddle blankets” turns up a number of Mayatex’s products, including the subject merchandise, as well as a number of competitor’s products. Id. Thus, the trade recognizes the use of the subject blankets as saddle blankets.
After weighing all of the factors of the Carborundum analysis, we find that the subject blankets are principally used as saddle blankets. As a result, the subject blankets are classified as such in heading 4201, HTSUS, as “Saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), of any material.” Classification in heading 4201, HTSUS, is also consistent with prior CBP rulings. See, e.g., NY D83889; NY K84019.
Lastly, we note that following the issuance of HQ 082167, Mayatex began entering its merchandise under various subheadings of heading 5702, HTSUS, which provides for “Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including “Kelem”, “Schumacks”, “Karamanie” and similar hand-woven rugs.” Heading 5702, HTSUS, was not under consideration in HQ 082167. Furthermore, pursuant to the analysis laid out above, we do not believe that the subject blankets are classified there.
HOLDING:
Under the authority of GRI 3(a), the Doubleweave 1340-3, the Durango 1308B-5, and the Durango 1308-3 are classified in heading 4201, HTSUS. Specifically, they are classified under subheading 4201.00.60, HTSUS, which provides for: “Saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), of any material: Other.” The column one general rate of duty is 2.5% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
HQ 082167, dated March 28, 1990, is REVOKED.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division