CLA-2 CO:R:C:T 950656 SK

Jno. G. McGiffin
4101 Airtrade Street
Orlando, Florida 32827

RE: Classification of a plastic sequin cap; 6506, HTSUSA; GRI 1; GRI 3(c)

Dear Mr. McGiffin:

This is in response to your inquiry of September 27, 1991, on behalf of Far Away Imports, in which you requested classification of a sequin cap. A sample was submitted to Customs for examination. FACTS:

The submitted sample is a plastic sequin and bead cap comprised of six panels, a peak, and an elastic sizer. The textile portion of the cap is made from 100% cotton woven fabric. The outer shell is entirely covered with overlapping green plastic sequins and beads applied to the cap in such a manner so that the textile component of the hat is not visible when worn. The article will be imported from Indonesia.

ISSUE:

Whether the merchandise at issue is classifiable under heading 6505, HTSUSA, which provides for hats and other headgear made up in the piece, or under heading 6506, HTSUSA, which provides for other headgear, whether or not lined or trimmed?

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

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relative section or chapter notes. Where goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's may be applied in order of their appearance.

Heading 6505, HTSUSA, provides for hats and other headgear, knitted or crocheted... in the piece. The hat at issue is not made from fabric in the piece, but rather is constructed from separate panels which have been sewn together and then affixed with beads and plastic sequins to create the finished product. Because this hat is not made from fabric in the piece, heading 6505, HTSUSA, is excluded from consideration.

Heading 6506, HTSUSA, provides for other headgear, whether or not lined or trimmed, and the article at issue is prima facie classifiable under this provision.

At the six digit level of heading 6506, HTSUSA, two subheadings equally govern the classification of this hat: subheadings 6506.91 and 6506.99, HTSUSA, which respectively provide for other headgear of rubber and plastics and other headgear of other materials including textile. Where two provisions in the Nomenclature equally provide for an article, GRI 3 provides the relevant analysis:

(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 contained in mixed or composite goods, 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) ... composite goods consisting of different materials or made up of different components ... 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.

Explanatory Note VIII to GRI 3(b) states:

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

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or value, or by the role of a constituent material in relation to the use of the goods.

With regard to the article at issue, it is impossible to determine which of its components determines this article's essential character: the cotton cap which supports the applique and lends the distinctive shape of a hat to the item, or the outer shell of the cap which is heavily encrusted with plastic sequins and beads to such an extent that the cotton underneath is not visible. Without the underlying cotton fabric there would be no hat. Conversely, the sequins and beads are more than an accessory or trim by virtue of the fact that they are so extensive and clearly constitute a significant portion of this garment's character.

GRI 3(c) sets forth that when goods cannot be classified by reference to GRI 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. Accordingly, the article at issue is properly classified under subheading 6506.99 of the HTSUSA as that is the heading which occurs last in numerical order as between the two relevant headings set forth above.

HOLDING:

The plastic sequin and bead cap is classifiable under subheading 6506.91.0060, HTSUSA, which provides for other headgear, whether or not lined or trimmed: other: of rubber or plastics ... other, dutiable at a rate of 2.4% ad valorem.

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