CLA-2-58:OT:RR:NC:N2:350
Matthew Bock
Bock Trade Law
53 State Street Suite 500 Boston, MA 02109
RE: Articles for the handicapped; Subheading 9817.00.96; Quilted Bonded Fabric
Dear Mr. Bock:
In your letter dated November 20, 2024, you requested a ruling on the eligibility of a quilted bonded fabric referred to as “coated fabric bed-pan materials” under the Nairobi Protocol, on behalf of your client Cooley Group Holdings, Inc. (“Cooley”).
The merchandise at issue will be imported into the United States from Canada and was previously classified in New York ruling letter N325986, dated October 13, 2022. The current issue here is whether the merchandise qualifies under the provisions of the Nairobi Protocol within secondary classification subheading 9817.00.96, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for a free rate of duty.
The fabric in question is constructed of multiple components. The face fabric is woven and bonded to a needle punched nonwoven “soaker” fabric, via stitching. This transforms the material into a quilted fabric. The quilted fabric is then combined to a circular knit backing fabric with an adhesive. The fabric is said to be specifically designed to be manufactured into incontinence pads after it is imported into the United States.
In your submission, you state that at the time of importation the identity of the fabric is fixed with certainty. Moreover, you state the fabric, as imported, is manufactured for a single end-use, and that its design, functionality, and cost, all of which are fixed with certainty at the time of importation, make it not commercially capable of any other use, and the minor finishing operations conducted in the United States post-importation have no appreciable impact on such design, functionality, and cost. The products are sold to a single distributor, and from there exclusively provided to institutional and hospital laundry systems.
The Nairobi Protocol to the Agreement on the Importation of Educational, Scientific and Cultural Materials of 1982, Pub. L. No. 97-446, 96 Stat. 2329, 2346 (1983) established the duty-free treatment for certain articles for the handicapped.
In T.D. 92-77, dated August 3, 1992 (26 Cust. Bull. 35, dated August 26, 1992), U.S. Customs and Border Protection (CBP) set forth its position regarding certain issues arising under the Nairobi Protocol. The first issue concerned the interpretation of the term specially designed or adapted. CBP pointed out that a primary factor to be considered in determining whether an article was specially designed and adapted was whether the article was easily distinguishable, by properties of the design and the corresponding use specific to this unique design, from articles useful to non-handicapped individuals. Therefore, if an article is solely dedicated for use by the handicapped it is CBP’s position that this would be conclusive evidence that the article is specially designed or adapted for the handicapped for purposes of the Nairobi Protocol.
Subheading 9817.00.96, HTSUS, provides for “Articles specifically designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons; parts and accessories (except parts and accessories of braces and artificial limb prosthetics) that are specially designed or adapted for use in the foregoing articles: Other.”
It is Customs’ position that the identity of the roll of fabric as imported is neither fixed with certainty as an article specifically designed or adapted for the use of benefit of physically handicapped persons, nor is it considered a part or accessory thereof.
Specifically, the fabric could conceivably be used for moisture protection in a crib, or even a child’s bed. In these hypothetical situations the person benefitting from the use of the material may not even be considered a handicapped person.
Therefore, it is Customs’ opinion that the “coated fabric bed-pan materials” are ineligible for duty free treatment afforded under the provisions of the Nairobi Protocol, specifically under subheading 9817.00.96, HTSUS.
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/.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (“CFR”), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (“CBP”) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 CFR 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 Michael Capanna at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division