CLA-2 CO:R:C:T 088324 CC
Mr. Jeffrey Meeks
Adduci, Mastriani, Meeks & Schill
330 Madison Avenue
New York, NY 10017
RE: Classification of towels; classifiable as shop towels under
subheading 6307.10.2005
Dear Mr. Meeks:
This letter is in response to your inquiry, on behalf of
Win-Tex Products, Inc. (Win-Tex), requesting the tariff
classification of towels. Samples were submitted for
examination.
FACTS:
The merchandise at issue is towels made of coarse osnaburg
100 percent cotton fabric of nonpile construction. They are dyed
red and measure approximately 14 inches by 15 inches. You state
that 50 towels are packaged together for retail sale. On the
package is the trademarked logo "Grease Getters," along with
promotional phrases, a store code, a machine-readable bar code,
and the description "100% cotton utility towels." You also state
that these towels are marketed to retail consumers through two
outlets only, Price Club and Sam's Wholesale.
ISSUE:
Whether the merchandise at issue is classifiable as shop
towels under subheading 6307.10.2005 of the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA)?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes.
Heading 6307, HTSUSA, provides for other made up articles.
Subheading 6307.10.2005, HTSUSA, provides for shop towels
dedicated for use in garages, filling stations and machine shops.
You contend that the merchandise at issue is not
classifiable as shop towels under subheading 6307.10.2005,
HTSUSA. You make two main arguments in support of this
contention. First, the merchandise at issue differs in certain
material respects from shop towels. Second, you state the
merchandise at issue is marketed to the retail consumer; it is
not used for industrial purposes and is not dedicated for use in
garages, filling stations and machine shops.
You state that the merchandise at issue is more carefully
finished and is dyed red, differentiating this merchandise from
shop towels. A visual inspection does not reveal to us how this
merchandise is more carefully finished than other shop towels.
In addition, shop towels can be dyed red. The Guidelines for the
Reporting of Imported Products in Various Textile and Apparel
Categories, CIE 13/88, November 23, 1988, state, in pertinent
part, "Shop towels are usually gray (greige) material, but may be
colored, usually dull reds, blues, greens, and yellows."
The merchandise at issue is of plain woven nonpile
construction and made of coarse, osnaburg fabric. It is clearly
the class or kind of merchandise known as shop towels, used as
shop towels, and classifiable as shop towels. We see no physical
feature whatsoever that differentiates this merchandise from shop
towels.
You state that merchandise must be dedicated for use in
garages, filling stations or machine shops, and dedicated solely
for use in these named establishments, to be classifiable as shop
towels under subheading 6307.10.2005, HTSUSA. In addition, you
give several reasons why the merchandise at issue is not for
industrial use. You state that the goods are packaged, e.g., in
50-piece packs, and are marketed to the retail consumer. The
channels of trade are different from this merchandise than for
shop towels, and the cost would be too much to use this
merchandise industrially. Instead, you argue, this merchandise
is intended for general household use.
The Textile Guidelines state that shop towels are dedicated
for use in garages, filling stations, machine shops, etc.
(emphasis added); therefore, we do not believe that a towel must
be used solely in one of these establishments to be classifiable
as a shop towel. In addition, the merchandise at issue is
packaged in plastic bags that have the inscription "Grease
Getters" and have designs of a car and a truck. This marketing
indicates that these towels will be used for something other than
just general household use, and we believe that outlets like
Price Club have become an important supply source for small
garages and shops. Therefore we cannot agree that these towels
are not dedicated for use in garages, filling stations, and
machine shops.
Finally, Customs has consistently ruled that merchandise
similar to that at issue, whether or not used exclusively in
garages, filling stations, and machine shops, is of the class or
kind of article classifiable as shop towels. See, e.g.,
Headquarters Ruling Letter (HRL) 084799, dated September 6,
1989, and HRL 087471, dated September 21, 1990. Therefore the
merchandise at issue is classified as shop towels.
HOLDING:
The merchandise at issue is classified under subheading
6307.10.2005, HTSUSA, which provides for other made up articles,
other, shop towels dedicated for use in garages, filling
stations and machine shops, of cotton. The rate of duty is 10.5
percent ad valorem, and the textile category is 369.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements.
The designated textile and apparel category may be
subdivided into parts. If so, 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 that you check, close to the time of shipment, the Status
Report On Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service, which is available for
inspection at your local Customs office.
Sincerely,
John Durant, Director
Commercial Rulings Division