CLA-2 OT:RR:CTF:TCM H188898 RES
U.S. Customs and Border Protection
Service Port – Pembina
112 W. Stutsman
Pembina, ND 58271
ATTN: Gail Steinke-Hunter, Senior Import Specialist
RE: Internal Advice Request No. 11/027; Tariff classification of a “hydration belt”
Dear Port Director:
You requested internal advice with regard to the tariff classification of a “hydration belt” (“the belt”) under the Harmonized Tariff Schedule of the United States (“HTSUS”). Your request was initiated by a submission, to U.S. Customs and Border Protection’s (“CBP”), dated August 4, 2011, on behalf of Mondetta Clothing Inc. (“Modetta”). This letter responds to your request.
FACTS:
The article at issue in this request for internal advice is called a “hydration belt” or “hydro belt.” An examination of the sample provided reveals that it is a black belt made of neoprene that is two inches wide and about forty-five inches long, with an adjustable Velcro closure, a removable zippered pocket, four bottle holder pouches that are sewn onto the belt, and five 8 ounce plastic bottles with pop-up drinking spouts. The belt is meant to be used by persons engaged in physical activity, such as running, to store and provide water or other liquid during the activity. The removable zippered pocket has the capacity to hold a cell phone and/or other small objects such as keys or wallet.
ISSUE:
Whether the essential character of the hydration belt is imparted by the plastic bottles classified under heading 3923, HTSUS, as articles for the conveyance of goods, or under heading 3926, HTSUS, as other articles of plastic, or by the belt under heading 4202, HTSUS, as a container similar to a travel and sports bag?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings and any relative section or chapter notes.” In the event that the 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 2 through 6 may be applied in order.
The following HTSUS provisions are under consideration:
3923 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics:
3926 Other articles of plastics and articles of other materials of headings 3901 to 3914:
4202 Trunks, suitcases, vanity cases, attaché cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper:
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The ENs to heading 3923 provide in pertinent part:
This heading covers all articles of plastics commonly used for the packing or conveyance of all kinds of products. The articles covered include:
Containers such as boxes, cases, crates, sacks and bags (including cones and refuse sacks), casks, cans, carboys, bottles and flasks.
* * * * *
The hydration belt, which is used to provide hydration during engagement in physical activities, is composed of three different types of parts: a textile belt with four sewn in pouches, plastic water bottles, and a small removable zippered textile pocket. Analyzing the belt first under GRI 1, there is no specific provision in the HTSUS that completely describes this product. Likewise, the hydration belt is not classifiable under GRI 2(a) or 2(b) because the article is not in an unassembled or incomplete state, but is imported as a complete article and is a composite of parts which are classifiable under two or more headings. GRI 2(b) instructs that “[t]he classification of goods consisting of more than one material or substance shall be [determined] according to the principles of rule 3.”
GRI 3(a) does not apply because there is no heading that provides a specific description that clearly identifies a hydration belt that is a composite of a textile belt, plastic water bottles, and a removable textile pocket. Thus, the article at issue is analyzed under GRI 3(b), because it is a composite good consisting of different components each of which, if imported separately, would be classifiable under different headings. According to GRI 3(b), “mixtures, composite goods consisting of different materials or made up of different components . . . shall be classified as if they consisted of the material or component which gives them their essential character . . . .” Thus, to determine under which heading to properly classify the entire hydration belt, we must determine which component gives the article its essential character: the textile belt, the plastic water bottles, or the removable textile pocket.
Although the GRI’s do not provide a definition of “essential character,” the EN (VIII) of GRI 3(b) provides guidance. According to this EN, the essential character may “. . . be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” This is known as the “essential character test” and the application of this test requires a fact-intensive analysis. Home Depot U.S.A., Inc. v. United States, 491 F.3d 1334, 1337 (Fed. Cir. 2007). Many factors should be considered when determining the essential character of an article, including but not limited to those factors enumerated in Explanatory Note (VIII) to GRI 3(b). Id.
(1) & (2) Bulk and Weight of the Components. Upon close examination of the physical sample provided, the four plastic water bottles, in comparison to the textile belt, appear to comprise a larger part of the bulk of the composite article, but there is no discernable difference between the weight of the components when held in one’s hand. However, the plastic water bottles are the predominant and noticeable part of the composite article as it is sold in its retail packaging. Thus, these factors weigh in favor of the plastic water bottles.
(3) Quantity of Components. There are four plastic bottles which fit into the pouches sewn in on a single textile belt. The fact that there are multiple plastic bottles is a clear indicator that the function of the overall article is to store and dispense liquids. This factor weighs in favor of the plastic water bottles providing the essential character of this function.
(4) Value of the Components. There is no break down of the individual costs of each component. Thus, this factor is not helpful in determining essential character.
(5) Roles of the Components. Although each component contributes to the overall functions of the article, the plastic water bottles directly store, transport, and dispense fluids. The belt only transports the bottles. Without the textile belt, the plastic water bottles can still store and dispense water, although they would be not as conveniently transportable. However, the reverse is not true. The textile belt, on its own without the plastic water bottles (or any bottle) can neither dispense nor store a liquid without some sort of container storing and supplying the liquid. Furthermore, the name of a composite article can be persuasive indicia of essential character. Home Depot U.S.A., Inc. v. United States, 30 C.I.T. 446, 461 (C.I.T 2007). The retail name, “hydration belt,” shows that the primary function of the article is to provide hydration rather than simply transport bottles. Thus, this factor weighs in favor of the plastic bottles.
(6) Nature of the Components. Bottles, made of whatever material and with a spout, are by their very nature, used to store and dispense liquids. A belt, which holds other objects such as bottles, is an article that provides a carry and transport function for convenience. In comparing the two components, it is the nature of the plastic bottles that contributes most to the overall function and primary purpose of the hydration belt article.
Thus, the hydration belt is classified according to the classification of the plastic water bottles under the HTSUS.
A plastic water bottle is considered a sports bottle, and is classifiable under heading 3926, HTSUS, if it has a fitted carrying case, a spout that permits drinking without removing the cap, and is designed for use primarily away from the home. See HQ 960373, dated February 8, 1999; HQ 967178, dated August 24, 2004; NY D83619, dated November 12, 1998; NY E83239, dated July 15, 1999; NY G84130, dated November 20, 2000; NY H82253, dated June 18, 2001; NY R03926, dated May 18, 2006; N110378, dated July 15, 2010; and NY N120856, dated September 24, 2010. The plastic bottles that come with the hydration belt meet these requirements as they are custom made to fit in the belt pouches, they have spouts that are easy to drink from while engaged in an activity, and are meant to be used away from the household while running or engaged in some other physical activity. See NY R03382, dated March 16, 2006 (classifying a hydration belt under heading 3926, HTSUS); and NY M83383, May 18, 2006 (classifying a hydration belt with six water bottles under heading 3926, HTSUS).
The importer asserts that the hydration belt is classified under heading 3923, HTSUS, however, as EN 39.23 instructs, this heading only covers articles used as containers for the packing or conveyance of products or goods, which would then be sold to consumers. The plastic water bottles are not used for packing or the conveyance of products or goods. Rather, the plastic water bottles are used by a consumer for storing and dispensing liquid, wherein a consumer refills the bottles after every use.
Therefore, the hydration belt is classifiable under heading 3926, HTSUS, as “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914.”
HOLDING:
Pursuant to GRI 3(b), the hydration belt is classified under subheading 3926.90.9980, HTSUSA, as “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [o]ther: [o]ther.” The column one, rate of duty, is 5.3 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov/tata/hts/.
You are to mail this decision to the internal advice requestor no later than sixty days from the date of the decision. At that time, Regulations and Rulings of the Office of International Trade will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division