CLA-2-64:RR:NC:N4:447
Ms. Melissa Powell Nike USA Inc.
One Bowerman Drive, MS322-D
Beaverton, OR 97005
RE: The tariff classification of a foot wrap “set” from Korea. Dear Ms. Powell: In your letter dated February 25, 2013, you requested a tariff classification ruling for a footwear “set” identified as item 324734, “Nike Studio Pack.” You describe this item consisting of a foot wrap, a slip-on flat, a mesh laundry bag, a sock-liner and an accessory ankle strap. Although these items are marketed and sold at retail as a set, they do not qualify as a “set” for tariff classification purposes. In order to qualify as a set for tariff purposes, the components of the set must meet all of the following criteria as defined in the Explanatory Note X (b) to GRI 3(b): For the purposes of this Rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which: (a) consist of at least two articles which are, prima facie, classifiable in different headings... (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards). In this case, the second criterion is not met since the foot wrap, slip-on flat, mesh laundry bag, sock-liner and accessory ankle strap can be used for different activities. Therefore, the submitted sample identified as item 324734, “Nike Studio Pack” is not classifiable as a set for tariff purposes and each item will be classified separately. You suggest that the set be classified under subheading 4016.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of vulcanized rubber other than hard rubber: of cellular rubber. We disagree with this suggested classification based on General Rules of Interpretation (GRI) 1, which states in pertinent part; ‘For legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes.’
The submitted sample identified as an ankle strap, is approximately forty-two inches long and made of elasticized textile material. This strap, also referred to in marketing material as “The Ribbon,” is to be used with the foot wrap to provide “extra support and custom style.”
The submitted sample identified as a laundry bag for the foot wrap, is made of man-made textile mesh material and is used during the cleaning of the foot wrap. It is approximately 9 and one half inches long and six inches wide and has a drawstring closure at the top.
The applicable subheading for both the ankle strap and the laundry bag will be 6307.90.9889, HTSUS, which provides for other made up textile articles: other. The rate of duty will be 7% ad valorem.
The submitted sample identified as a women’s foot wrap is slip-on footwear designed exclusively for use by exercisers in studio/gym classes (i.e yoga and pilates) in lieu of traditional footwear. It has an elasticized neoprene rubber or plastics strap upper and outer sole. The outer sole features numerous rubber or plastics traction dots of different sizes on its surface. The forefoot portion of the shoe has two openings, one for the big toe and the other for the rest of the toes.
The applicable subheading for the foot wrap will be 6402.99.3165, HTSUS, which provides for footwear with outer soles and uppers of rubber or plastics: other footwear: other: other: having uppers of which over 90 percent of the external surface area (including any accessories or reinforcements) is rubber or plastics; not having a foxing or a foxing-like band and not protective against water, oil, grease or chemicals or cold or inclement weather; other: other: other: for women: other. The rate of duty will be 6 percent ad valorem.
The submitted sample identified as a women’s slip-on flat is a “ballet-type” shoe with a rubber or plastics outer sole and a predominately textile upper. You provided a laboratory report from Customs Laboratory Services, LLC, the results of which state that the outer sole overlaps the upper by the requisite ¼ of an inch around 46.5% of the perimeter of the shoe. We find that this encirclement is not sufficient to constitute a foxing or a foxing-like band.
The applicable subheading for the slip-on flat will be 6404.19.3960, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: footwear with outer soles of rubber or plastics: not sports footwear; footwear not designed to be a protection against cold or inclement weather and not having a foxing or a foxing-like band; footwear of the slip-on type; footwear that is not less than 10 percent by weight of rubber or plastics; other: other: for women. The rate of duty will be 37.5% ad valorem.
The submitted sample identified as a removable sock liner is the insole that fits inside the slip-on flat shoe. You describe the insole consisting of textile covered foam (rubber or plastics). Based on characteristics such as use (for shock absorption, cushioning, arch support, etc.), component weight/bulk and on the presumed greater cost of the rubber or plastics material, it is the rubber or plastics component that provides the essential character of this removable insole.
The applicable subheading for the removable insole will be 6406.90.3060, HTSUS, which provides for parts of footwear, removable insoles, heel cushions and similar articles; of rubber or plastics: other. The rate of duty will be 5.3% 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 World Wide Web at http://www.usitc.gov/tata/hts/. The ankle strap, laundry bag and removable insole are not marked with the country of origin. Therefore, if imported as is, they will not meet the country of origin marking requirements of 19 U.S.C. 1304. Accordingly, the items would be considered not legally marked under the provisions of 19 C.F.R. 134.11 which states, “every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.” This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Stacey Kalkines at 646-733-3042. Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division