CLA-2 CO:R:C:G HQ 082600 WAW
Joel K. Simon
Serko, Simon & Abbey
One World Trade Center
Suite 3371
New York, N.Y. 10048
RE: Classification of a baseball cap with sunshade
Dear Mr. Simon:
This is in reference to your letter dated March 24, 1988,
requesting the tariff classification of a baseball cap with
sunshade under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA). A sample was submitted along with
your request.
FACTS:
The sample merchandise consists of a baseball cap and
attached sunshade. The visor and front panel of the crown are
composed of 100 percent polyester knit fabric and the back panel
of the cap is composed of a nylon mesh. There is a braid of
nylon at the juncture between the peak and the crown of the cap.
On the front panel of the crown the words "Born to be Wild" are
printed. The bottom of the peak is vinyl and has a vinyl slide
clip which holds the sunshade in place. Based on the submitted
component material value breakdown, the component material of
chief value is plastic. The subject merchandise will be imported
from Taiwan.
ISSUE:
(1) Whether the merchandise at issue is classifiable as a
composite good for tariff purposes?
(2) If considered a composite good, which item provides the
essential character for classification purposes; and if not
considered a composite good, how are the item properly
classified?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) set forth the
manner in which merchandise is to be classified under the HTSUSA.
GRI 1 requires that classification be determined first according
to the terms of the headings of the tariff and any relative
section or chapter notes and, unless otherwise required,
according to the remaining GRI's, taken in order.
In the instant case, the first issue to be considered is
whether the baseball cap and sunshade are included under one
heading in the Nomenclature. The baseball cap is classifiable
under subheading 6505.90.6060, HTSUSA, which provides for, inter
alia, hats and other headgear, of man-made fibers. The sunshade
is classifiable under subheading 3926.20.2050, HTSUSA, which
provides for other articles of apparel and clothing accessories
of plastics.
Since no heading, by itself, covers the subject merchandise,
classification cannot be determined by application of GRI 1.
Therefore, reference to the subsequent GRI's is necessary. GRI 2
is not applicable in the case at issue since the subject
merchandise does not concern an incomplete or unfinished article
and is not a mixture or combination of goods.
GRI 3, however, is applicable in this situation. It
provides 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.
Since the baseball cap and the sunshade fall under separate
headings in the HTSUSA which describe only a portion of the
materials in the cap/sunshade unit, the headings are to be
regarded as equally specific under GRI 3(a). Therefore, GRI 3(a)
fails in establishing classification in this case and
classification is determined by application of GRI 3(b) which
provides:
(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.
Explanatory Note 3(b) to the HTSUSA, which constitutes the
official interpretation of the tariff at the international level,
defines composite goods 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 the instant case, the baseball cap and sunshade qualify
as composite goods as defined in Explanatory Note IX to GRI 3(b).
Here, the sunshade is specially designed to clip onto the visor
of the baseball cap. The two items at issue are intended to
function as a single unit. Although the sunshade may be detached
from the visor, together they form a whole which would not
normally be offered for sale in separate parts. Since the
subject merchandise cannot be classified by reference to GRI
3(a), we must determine which component, if any, imparts the
essential character of the item pursuant to the factors set forth
in Explanatory Note VIII to GRI 3(b) which states that:
(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
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 essential character of the baseball cap with attached
sunshade is apparent from the intended use of the item. It is
Customs position that the baseball cap gives the item its
essential character. The item is primarily designed to be used
as a baseball cap and the sunshade is merely an accessory. The
baseball cap comprises the greatest constituent bulk and weight
of the composite good. Moreover, the sunshade cannot be used
without the baseball cap because the only way to attach the
sunshade is to insert it into the specially built-in slide clip
on the peak of the cap. While it is the sunshade which may
attract the consumer's attention to the article, it is clear that
the essential character of the article is the baseball cap, and
the sunshade is merely a marketing feature. Thus, the baseball
cap with attached sunshade is properly classifiable under
subheading 6505.90.6060, HTSUSA, which provides for hats and
other headgear of man-made fibers: not in part of braid: other.
HOLDING:
The sample baseball cap with attached sunshade is
classifiable under subheading 6505.90.6060, HTSUSA. The
applicable rate of duty is 39.7 cents per kilogram plus 14.1% ad
valorem. The item falls within textile category 659 and as a
product of Taiwan is subject to visa and quota restraints.
The designated textile and apparel category may be
subdivided into parts. If so, the 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 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 importation of this merchandise to
determine the current status of any import restraints or
requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division