CLA-2 CO:R:C:G 082739 WAW
Ms. Jane Sheridan
Import Department
Pagoda Trading Company, Inc.
1950 Craig Road
St. Louis, MO 63146
RE: Classification of a woman's athletic shoe
Your Style Number: 90004
Dear Ms. Sheridan:
This ruling is in response to your letter of April 25, 1988,
requesting the tariff classification of a woman's athletic shoe
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). The sample item will be imported from
Taiwan.
FACTS:
The sample merchandise is a woman's athletic shoe with a
nylon upper. The upper has split leather overlays around the
toe, along the sides, around the heel and throat, and along the
eyelets. In addition, there are two Velcro-type closures of
split leather across the instep that are designed to tighten or
loosen the shoe on the foot. The bottom of the shoe consists of
an EVA wedge midsole and a cemented-on rubber outer sole which
overlaps the upper at the toe.
ISSUE:
Whether the Velcro-type closures should be considered part
of the external surface area of the shoe for tariff purposes?
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, we find one heading within the
nomenclature whose terms specifically include the article at
issue. Subheading 6404.11, HTSUSA, provides for footwear with
outer soles of rubber, plastics, leather or composition leather
and uppers of textile materials: Sports footwear; tennis shoes,
basketball shoes, gym shoes, training shoes and the like. Since
the sample article is an athletic shoe with an outer sole of
rubber it is properly classifiable within subheading 6404.11,
HTSUSA.
To determine the constituent material of the upper of a shoe
for tariff purposes Legal Note 4(a) to Chapter 64 provides the
following:
(a) The material of the upper shall be taken to be the
constituent material having the greatest external
surface area, no account being taken of accessories or
reinforcements such as ankle patches, edging,
ornamentation, buckles, tabs, eyelet stays or similar
attachments.
In the subject merchandise, the Velcro-type closures across the
instep of the shoe are attachments designed to tighten or loosen
the shoe on the foot. Thus, it is clear that pursuant to Legal
Note 4(a) the Velcro-type closures are excluded from the
computation of the "external surface" of the upper in determining
the classification of the shoe at the six-digit international
subdivision. The question that we are being asked to address is
whether the Velcro-type straps should be included under the
United States subdivision at the eight-digit level.
Subheading 6404.11.20, HTSUSA, provides for sports footwear;
tennis shoes, basketball shoes, gym shoes, training shoes and the
like: Having uppers of which over 50 percent of the external
surface area (including any leather accessories or reinforcements
such as those mentioned in note 4(a) to this chapter) is leather.
It is clear in this case that the subject merchandise is
properly classifiable under subheading 6404.11.20, HTSUSA, since
even without including the Velcro-type closures, over 50 percent
of the external surface area of the upper is leather. Thus, the
question is whether in cases where the Velcro-type closure will
be a determining factor in the 50 percent leather measurement
they should be included as part of the external surface area
under subheading 6404.11.20, HTSUSA.
Customs has previously ruled that regular shoelaces should
not be included as "accessories or reinforcements" in the
determination of the external surface area of a shoe under
subheading 6404.11.20, HTSUSA. See HRL 081305, dated March 10,
1988. It is Customs position, however, that the Velcro-type
closures which close the shoe more closely resemble buckles,
which are specifically enumerated in Legal Note 4(a), rather than
shoelaces. In addition, subheading 6404.11.20, HTSUSA,
specifically includes rather than excludes any leather
accessories or reinforcements such as those mentioned in Legal
Note 4(a) for purposes of computing the external surface area.
Accordingly, it is the opinion of this office that the surface of
the Velcro-type straps should be included in the computation of
the external surface area of the shoe when "accessories or
reinforcements" are included in the U.S. tariff subdivision of
the international system.
In computing the external surface area of the shoe, Customs
recommends that these Velcro-type straps be measured with the
strap closed in the manner in which they would be by a person
with feet of average width. Furthermore, it is Customs position
that only the outer surface of the straps and not the material
hidden underneath the straps should be counted towards the
"external surface" area under subheading 6404.11.20, HTSUSA.
HOLDING:
The sample article is properly classifiable under subheading
6404.11.2060, HTSUSA, which provides for footwear with outer
soles of rubber, plastics, leather or composition leather and
uppers of textile materials: Footwear with outer soles of rubber
or plastics: Sports footwear; tennis shoes, basketball shoes,
gym shoes, training shoes and the like: Having uppers of which
over 50 percent of the external surface area (including any
leather accessories or reinforcements such as those mentioned in
note 4(a) to this chapter) is leather. The applicable rate of
duty is 10.5 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division