CLA-2 CO:R:C:T 950792 CC
District Director of Customs
Thomas P. O'Neill, Jr. Federal Building
10 Causeway Street
Boston, MA 02222
RE: Decision on Application for Further Review of Protest No.
0401-91-000103; infants' knit hats
Dear Sir:
This protest was filed against your decision in the
liquidation of an entry involving the importation of infants'
knit hats produced in Taiwan.
FACTS:
The merchandise at issue is infants' hats composed of an
acrylic knit body, acrylic tie straps and ear coverings, and an
acrylic pom-pom. This merchandise contains two braids. One is a
blue elastic braid in the welt, running through the inside of the
hat approximately 1 inch from the bottom; the other is a white
braid tied to the pom-pom which holds it to the hat.
The entry covering the hats was liquidated under subheading
6505.90.6030 of the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), which provides for hats and other
headgear, of man made fibers, knitted or crocheted or made up
from knitted or crocheted fabric, not in part of braid, for
babies. The protestant claims that the hats should be classified
under subheading 6505.90.5030, HTSUSA, which provides for hats
and other headgear, of man made fibers, knitted or crocheted or
made up from knitted or crocheted fabric, wholly or in part of
braid, for babies.
ISSUE:
Whether the hats at issue are classifiable as wholly or in
part of braid in Heading 6505, 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.
General Note 7, HTSUSA, provides in pertinent part the
following concerning the term "in part of":
Definitions. For the purposes of the tariff schedule,
unless the context otherwise requires--
...
(e) The terms "wholly of", "in part of", and "containing",
when used between the description of an article and a
material (e.g., "woven fabrics, wholly of cotton"),
have the following meanings:
...
(ii) "in part of" or "containing" mean that the goods
contain a significant quantity of the named
material.
With regard to the application of the quantitative
concepts specified above, it is intended that the de
minimis rule apply.
The de minimis rule states that an ingredient or component
of an article may be ignored for classification purposes
depending upon "whether or not the amount used has really changed
or affected the nature of the article and, of course, its
salability." Varsity Watch Company v. United States, 34 CCPA
155, C.A.D. 359 (1947). The Customs Service has determined in
application of the de minimis rule to "in part of braid" that if
the quantity of braid in the sample submitted served a useful
purpose or affected the nature of the article or increased the
salability of the article, it would be considered in part of
braid.
There are two pieces of braid on this merchandise: a white
one that attaches the pom-pom to the body and a blue one that is
used in the welt. The amount of braid of both of these pieces is
small. In addition, we do not believe that either braid affects
the nature or salability of this article. For example, the
elastic braid in the welt is concealed, and these hats can be
worn without it; when the hat is worn without the tie straps, the
fabric itself is constructed to stretch and recover its original
shape without the additional elastic braid. Consequently this
merchandise is not considered "wholly or in part of braid" for
tariff classification purposes.
HOLDING:
The merchandise at issue is classified under subheading
6505.90.6030, HTSUSA, which provides for hats and other headgear,
knitted or crocheted, or made up from lace, felt or other textile
fabric, in the piece (but not in strips), whether or not lined or
trimmed, other, of man-made fibers, knitted or crocheted or made
up from knitted or crocheted fabric, not in part of braid, for
babies. The rate of duty is 39.7 cents per kilogram plus 14.1
percent ad valorem.
The protest should be denied. A copy of this decision
should be attached to the Customs Form 19 and provided to the
protestant as part of the notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division