CLA-2 RR:CTF:TCM H257790 EGJ
Felicia L. Nowels, Esq.
Akerman, LLP
106 East College Ave., Suite 1200
Tallahassee, FL 323201
Re: Revocation of NY N022480 and Modification of NY N059109; Classification of Textile and Plastic Necklaces
Dear Ms. Nowels:
This is in reference to New York Ruling Letter (NY) N022480, dated February 13, 2008, which was issued to your client, Eagles Wings, concerning the tariff classification of a plastic and textile necklace under the Harmonized Tariff Schedule of the United States (HTSUS).
We have reviewed NY N022480 and find it to be in error. For the reasons set forth below, we hereby revoke NY N022480 and modify NY N059109, dated May 29, 2009, which concerned the tariff classification of a substantially similar necklace.
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 of the proposed action was published on July 29, 2015, in the Customs Bulletin, Vol. 49, No. 30. No comments were received in response to this notice.
FACTS:
In NY N022480, the subject necklace was described as follows:
The submitted sample Style 6903 Georgia Titan Necklace is a textile necklace made of woven nylon fabric surrounding a silicone/plastic core with a plastic clasp and two silicone stations with the letter G. The necklace is used to show support of the Georgia Titans Team.
According to additional documentation which you provided under separate cover
dated March 22, 2012, the plastic components weigh substantially more than the textile component. The plastic components also cost substantially more than the textile component. The plastic components are both decorative and functional, because the plastic forms the structure of the necklace and the two plastic Georgia Titans beads add to the visual appeal. The textile component, however, has a much greater visible surface area because it completely covers the plastic core. The textile component is also highly decorative because it is covered in Georgia Titans logos. A picture of the subject necklace is provided below:
ISSUE:
Is the necklace classified under heading 6217, HTSUS, as a textile accessory, or under heading 7117, HTSUS, as imitation jewelry?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 2 through 6 may then be applied in order. Under GRI 6, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to GRIs 1 through 5.
The HTSUS provisions at issue are as follows:
6217 Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading 6212:
6217.10 Accessories:
Other:
6217.10.95 Other:
* * *
7117 Imitation jewelry:
7117.90 Other:
Other:
Valued over twenty cents per dozen pieces or parts:
Other:
7117.90.75 Of plastics:
7117.90.90 Other:
* * *
Note 1 to Chapter 62 states as follows:
This chapter applies only to made up articles of any textile fabric other than wadding, excluding knitted or crocheted articles (other than those of heading 6212).
* * *
Note 3(g) to Chapter 71 states as follows:
3. This Chapter does not cover:
(g) Goods of section XI (textiles and textile articles)
* * *
Note 9 to Chapter 71 states as follows:
9. For the purposes of heading 7113, the expression "articles of jewelry" means:
(a) Any small objects of personal adornment (for example, rings, bracelets, necklaces, brooches, earrings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia); and
(b) Articles of personal use of a kind normally carried in the pocket, in the handbag or on the person (for example, cigar or cigarette cases, snuff boxes, cachou or pill boxes, powder boxes, chain purses or prayer beads).
These articles may be combined or set, for example, with natural or cultured pearls, precious or semiprecious stones, synthetic or reconstructed precious or semiprecious stones, tortoise shell, mother-of-pearl, ivory, natural or reconstituted amber, jet or coral.
* * *
Note 11 to Chapter 71 states as follows:
11. For the purposes of heading 7117, the expression "imitation jewelry" means articles of jewelry within the meaning of paragraph (a) of note 9 above (but not including buttons or other articles of heading 9606, or dress combs, hair slides or the like, or hairpins, of heading 9615), not incorporating natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed) nor (except as plating or as minor constituents) precious metal or metal clad with precious metal.
* * *
GRI 3 provides as follows:
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.
(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 Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff 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 at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to GRI 3(b) provide, in pertinent part, that:
In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
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 material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
* * *
EN 62.17 provides, in pertinent part, as follows:
This heading covers made up textile clothing accessories, other than knitted or crocheted, not specified or included in other headings of this Chapter or elsewhere in the Nomenclature. The heading also covers parts of garments or of clothing accessories, not knitted or crocheted, other than parts of articles of heading 62.12.
The heading covers, inter alia :
(1) Dress shields, usually of rubberized fabric or of rubber covered with textile material. Dress shields wholly of plastics or of rubber are excluded (headings 39.26 and 40.15 respectively).
(2) Shoulder or other pads. These are usually made of wadding, felt, or textile waste covered with textile fabric. Shoulder and other pads consisting of rubber (usually cellular rubber) not covered with textile material are excluded (heading 40.15).
(3) Belts of all kinds (including bandoliers) and sashes (e.g., military or ecclesiastical), of textile fabric, whether or not elastic or rubberized, or of woven metal thread. These articles are included here even if they incorporate buckles or other fittings of precious metal, or are decorated with pearls, precious or semi precious stones (natural, synthetic or reconstructed).
(4) Muffs, including muffs with mere trimmings of furskin or artificial fur on the outside …
* * *
Note 3(g) to Chapter 71 states that goods of Section XI (Chapters 50 – 63) are excluded from classification in Chapter 71. If the necklace is classifiable as a textile accessory of heading 6217, HTSUS, then it is excluded from classification as imitation jewelry of heading 7117, HTSUS. Therefore, we will first examine the subject necklace in the context of heading 6217, HTSUS.
Note 2 to Chapter 62 states that the Chapter only applies to articles made up of textile fabrics, other than knitted or crocheted fabrics. According to the ENs to heading 62.17, a textile accessory may still be classified in the heading if it has minor components of a different constituent material. For example, EN 62.17 states that if a belt has a clasp or fittings of metal, it remains classified in Chapter 62. As such, the necklace could still be classified in heading 6217, HTSUS, even if it has a clasp or fitting of a material other than textile.
While the necklace has a plastic clasp, it also has a plastic core underneath of the fabric, as well as two large plastic beads. The plastic core gives the necklace its shape. As opposed to a metal clasp or fitting for a textile belt, the plastic components play too great a role to be covered by a heading for articles made up of textiles. As such, the necklace is not classifiable in heading 6217, HTSUS.
Heading 7117, HTSUS, provides for imitation jewelry. Note 11 to Chapter 71 defines imitation jewelry as articles of jewelry which do not incorporate natural or cultured pearls, precious or semiprecious stones, precious metal, or metal clad with precious metal. Note 9(a) to Chapter 71 states that “articles of jewelry” means small objects of personal adornment, such as necklaces, bracelets and rings. As the instant merchandise is a necklace which does not incorporate pearls, precious stones or precious metal, it is classifiable as imitation jewelry of heading 7117, HTSUS.
The subheadings to heading 7117, HTSUS, are broken out according to the constituent material. We note that the instant necklace consists of both textile and plastics. As such, the necklace is a composite good, and we must apply GRI 3(b) to determine which subheading covers the necklace.
According to GRI 3(b), a composite good is classified according to the constituent material which imparts the good’s essential character. In order to identify a composite good’s essential character, the U.S. Court of International Trade (CIT) has applied the factors listed in EN VIII to GRI 3(b) which are “the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” The Home Depot v. United States, 427 F. Supp. 2d 1278, 1293 (Ct. Int’l Trade 2006). With regard to the component which imparts the essential character, the CIT has stated it is “that which is indispensable to the structure, core or condition of the article, i.e. what it is.” Id. citing A.N. Deringer, Inc. v. United States, 66 Cust. Ct. 378, 383 (1971).
Turning to the instant necklace, we note that the plastic components weigh more and cost more than the textile components. The plastic components provide shape and structure to the necklace. The plastic components are both decorative and functional, while the textile component is only decorative. However, the textile component covers more of the visible surface area than the plastic components.
Based upon all of these factors, we find that the plastic components impart the essential character to the instant necklace. As such, the instant necklace is classified under subheading 7117.90.75, HTSUS, as imitation jewelry of plastics.
HOLDING:
By application of GRI 1 (Note 9 and Note 11 to Chapter 71), GRI 3(b) and GRI 6, the necklace is classified under subheading 7117.90.75, HTSUS, as “Imitation jewelry: Other: Other: Valued over twenty cents per dozen pieces or parts: Other: Of plastics.” The 2015 column one, general rate of duty is free.
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 World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N022480, dated February 13, 2008, is hereby revoked.
NY N059109, dated May 29, 2009, is hereby modified with regard to the plastic and textile necklace.
In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Joanne Roman Stump, Acting Director
Commercial and Trade Facilitation Division