CLA-2-65:OT:RR:NC:N3:358
Ms. Catherine Morgan
J.America (Vetta Brands)
1200 Mason Court
Webberville, MI 48892
RE: The tariff classification of three hats from China
Dear Ms. Morgan:
In your letter dated May 24, 2019, you requested a tariff classification ruling. You’ve submitted three samples, all baseball style hats, which will be returned to you under separate cover.
Style W13089801BK is an adult size baseball style cap composed of woven fabric. The crown is constructed of six panels. An applique has been sewn onto the two front facing panels of the crown. The woven fabric comprising the crown and peak of the hat is said to be composed of 64 percent cotton and 36 percent polyester. The applique is said to be composed of cowhide leather and woven cotton fabric. The hat features a fabric covered button at the top of the crown, and an adjustable hook and loop strap at the back of the cap.
Style W13089799BK is an adult size baseball style cap composed of knit fabric, woven fabric, and furskin components. The crown is constructed of six panels. The two front facing panels of the crown are said to be constructed of cowhide leather with a woven fabric lining. There is an applique sewn to the two front facing panels of the crown, said to be composed of leather and plastic. The four remaining panels are said to be constructed of 100 percent polyester mesh which has been observed to be a knit fabric. The peak of the cap is constructed of woven 100 percent cotton fabric. The hat features a fabric covered button at the top of the crown and an adjustable plastic strap at the back of the cap. This office has determined that the two front facing panels of the crown are furskin for classification purposes. The value of the hat is said to be $8.10, with the furskin component representing aproximately 43 percent of the value of the cap.
General Rule of Interpretation (GRI) 3(b) of the Harmonized Tariff Schedule of the United States (HTSUS) governs classification of composite goods which cannot be classified according to the descriptions of the headings as referrenced by GRI 3(a), and that in such instances, goods shall be classified as if they consisted of the material or component which gives them their essential character. In regards to Style W13089799BK, it is the opinion of this office that the furskin panels of the crown imparts the essential character of the cap.
Style W13089797BW is an adult size baseball style cap composed of knit fabric and woven fabric. The crown is constructed of six panels. The two front facing panels of the crown are of woven construction and said to be composed of straw made from paper with a woven fabric lining. There is an applique sewn to the two front facing panels of the crown, said to be composed of leather and plastic. The four remaining panels are said to be constructed of 100 percent polyester mesh which has been observed to be a knit fabric. The peak of the cap is constructed of woven 100 percent cotton fabric. The two front facing panels have been determined to be woven with paper yarns. The hat features a fabric covered button at the top of the crown and an adjustable plastic strap at the back of the cap.
General Rule of Interpretation (GRI) 3(c) of the HTSUS governs classification of composite goods. Style W13089797BW is prima facie, classifiable under two subheadings. Neither the polyester knit mesh (6505.00.60, HTSUS) nor the crown panels of woven paper yarns (6505.00.90, HTSUS) imparts the essential character of the caps. Therefore, the caps will be classified in accordance with GRI 3(c) under the subheading that occurs last in numerical order in the HTSUS.
The applicable subheading for Style W13089801BK will be 6505.00.2060, HTSUS, 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; hair-nets of any material, whether or not lined or trimmed: Other: Other: Of cotton, flax or both: Not knitted: Certified hand-loomed and folklore products; and headwear of cotton. The applicable rate of duty will be 7.5 percent ad valorem.
The applicable subheading for Style W13089797BW will be 6505.00.9050, HTSUS, 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; hair-nets of any material, whether or not lined or trimmed: Other: Other: Other… Other: Of paper yarn. The applicable rate of duty will be 20.7 cents per kilogram plus 7.5 percent ad valorem.
The applicable subheading for Style W13089799BK will be 6506.99.3000, HTSUS, which provides for: Other headgear, whether or not lined or trimmed: Other: Of other materials: Of furskin. The applicable rate of duty will be 3.3 percent ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 6505.00.2060, 6505.00.9050 and 6506.99.3000, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03 in addition to subheading 6505.00.2060, 6505.00.9050 and 6506.99.3000 HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 https://hts.usitc.gov/current.
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 Michael Capanna at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division