CLA-2-65:OT:RR:NC:N3:358
Ken Park
Amscan Inc. A party City Holdings Co.
1 Celebration Square Woodcliff Lake, NJ 07677
RE: The tariff classification of a novelty hat from China.
Dear Mr. Park:
In your letter dated January 16, 2023, you requested a tariff classification ruling. The submitted sample will be retained for training purposes.
Item 3901861, identified as “Santa Plush Hat,” is a conical shaped hat which you state is constructed of 100 percent red polyester knit fabric. The hat measures approximately 12 inches in length and features a white plush band of 2.5 inches approximately with a white pom-pom at the top.
Although you suggest that this item would be correctly classified as a festive article in 9505.10.2500, Harmonized Tariff Schedule of the United States (HTSUS), recent changes to the Explanatory Notes (EN) of 95.05 now exclude carnival and festive design headgear made of durable material having a utilitarian function. See NY ruling letter N327642 dated August 31, 2022.
The EN to Chapter 65 states “…this Chapter covers hat-shapes, hat-forms, hat bodies and hoods, and hats and other headgear of all kinds, irrespective of the materials of which they are made and of their intended use (daily wear, theatre, disguise, protection, etc.).”
The applicable subheading for item 3901861 will be 6505.00.6090, 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 man-made fibers: Knitted or crocheted or made up from knitted or crocheted fabric: Not in part of braid…Other: Other: Other.” The rate of duty will be 20 cents per kilogram plus 7 percent as valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6505.00.6090, HTSUS, unless specifically excluded, are subject to an 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 6505.00.6090, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 at https://hts.usitc.gov/current
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Katherine Souffront at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division