CLA-2 CO:R:C:G 084086 PR
Harold I. Loring, Esquire
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, New York 10017-1062
RE: Classification of a Man's Overcoat with a Fur Collar
Dear Mr. Loring:
This ruling is in response to your request of March 27,
1989, on behalf of Cardinal Clothes of Canada, Inc., concerning
the tariff status of a man's overcoat.
FACTS:
The submitted sample, made in Canada, is a man's long-
length double breasted overcoat. The outer shell consists of a
woven wool fabric (stated to be a blend of cashmere and wool).
It is fully lined with a woven man-made fiber fabric and has a
raccoon fur collar that extends almost to the waistline. It is
indicated that the fur may also be silver fox, mink, or beaver
and that the value of the fur collar far exceeds the value of the
wool outer shell. Attached as an addendum to this ruling is an
advertisement picturing four coats, each of which is similar to
the submitted sample.
ISSUE:
The issue presented is whether the sample coat is
classifiable as apparel, of fur skin, in Subheading 4303.10.00,
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), with duty at the rate of 5.8 percent ad valorem, or as
a woven wool overcoat, in Subheading 6201.11.0010, HTSUSA, with
duty at the rate of 47.6 cents per kilogram plus 18.9 percent ad
valorem.
LAW AND ANALYSIS:
Subheading 4303.10.00 is in Chapter 43, HTSUSA. Note 4 to
that chapter excepts articles of apparel with fur that is "mere
trimming" from classification in Heading 4303.
The Harmonized Commodity Description and Coding System,
Explanatory Notes, which are the official interpretation of the
HTSUSA at the international level (the 4 and 6 digit headings),
states, at page 620, that Heading 4303 covers all articles of
apparel that are made up of (A) fur skin, (B) other materials
lined with fur skin, or (C) other materials having fur skin on
the outside, except as mere trimming. Since the garment in
question does not meet the requirements of (A) or (B), in order
to be classifiable in Heading 4303, it must meet the criterion in
(C). The Explanatory Notes elaborate on what constitutes mere
trimming, where, on the same page, they state:
Fur on a garment would be regarded as mere trimming if
constituting, for example, the collar and revers (provided
the collar or revers were not so exaggerated as to form
virtually a cape or bolero), cuffs or edging to pockets,
skirts, coats, etc.
Despite counsel's valiant efforts to establish that the fur
portion of the coat amounts to more than mere trimming, it is
clear to us from the Explanatory Notes, and our own observations,
that since the fur does not even approach in size of a cape or
bolero, and that it appears to perform only a minimal functional
purpose, it is "mere trimming" and the garment is not
classifiable in Heading 4303.
Counsel also seeks to establish that the essential character
of the coat is imparted by the fur portion. The issue of
"essential character" is not presented. As in Chapter 43, the
Explanatory Notes for Chapter 62 provide that the classification
of goods in that chapter is not affected by the presence of parts
or accessories.
Where, however, the presence of such materials constitutes
more than mere trimming the articles are classified in
accordance with the relative Chapter Notes (particularly
Note 4 to Chapter 43 and Note 2(b) to Chapter 67, relating
to the presence of furskin [sic] and feathers,
respectively), or failing that, according to the General
Interpretive Rules. (at page 848)
General Rule of Interpretation (GRI) 1, HTSUSA, which
provides that for legal purposes, classification shall be
determined by the terms of the headings and by any relevant
section or chapter notes, governs the classification of this
merchandise. Since the fur on the garment has little or no
utilitarian function and only comprises a small portion of the
garment, it constitutes "mere trimming". As a result, the coat
is not classifiable in Chapter 43 and the fur is not considered
when classifying the garment in Chapter 62.
Even if an essential character determination was pertinent
to the coat's classification, the fur does not impart the
garment's essential character. The garment is essentially a wool
coat with a fur collar. It is the wool fabric that creates the
coat and provides both warmth and protection from the elements.
The contention is made that "the Commission was directed to
avoid tariff rate changes to the extent practicable and to
simplify the tariff where possible." In this regard, we note
that "to the extent practicable" does not constitute a fiat to
maintain the tariff status of all merchandise at the rates then
prevailing. When converting from a national tariff system to an
entirely new international tariff nomenclature, in the absence of
overcomplicating the nomenclature, some changes are bound to
occur. Overall, the HTSUSA is within a few tenths of a
percentage point of being duty neutral. However, numerous
articles have undergone rate changes--both upward and downward.
Many of those changes were anticipated, but not all. It is only
through the use of the new tariff that all the rate changes will
be discovered.
HOLDING:
The instant merchandise is classifiable under the provision
for men's overcoats, of wool, in Subheading 6201.11.0010, HTSUSA,
with duty, as a product of Canada, at the 1989 rate of 47.6 cents
per kilogram plus 18.9 percent ad valorem. Textile and apparel
category 434 is applicable.
The sample may be picked up in room 2217 any time during
normal business hours.
Sincerely,
John Durant, Director
Commercial Rulings Division
Addendum