CLA-2 CO:R:C:T 088324 CC

Mr. Jeffrey Meeks
Adduci, Mastriani, Meeks & Schill
330 Madison Avenue
New York, NY 10017

RE: Classification of towels; classifiable as shop towels under subheading 6307.10.2005

Dear Mr. Meeks:

This letter is in response to your inquiry, on behalf of Win-Tex Products, Inc. (Win-Tex), requesting the tariff classification of towels. Samples were submitted for examination.

FACTS:

The merchandise at issue is towels made of coarse osnaburg 100 percent cotton fabric of nonpile construction. They are dyed red and measure approximately 14 inches by 15 inches. You state that 50 towels are packaged together for retail sale. On the package is the trademarked logo "Grease Getters," along with promotional phrases, a store code, a machine-readable bar code, and the description "100% cotton utility towels." You also state that these towels are marketed to retail consumers through two outlets only, Price Club and Sam's Wholesale.

ISSUE:

Whether the merchandise at issue is classifiable as shop towels under subheading 6307.10.2005 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Heading 6307, HTSUSA, provides for other made up articles. Subheading 6307.10.2005, HTSUSA, provides for shop towels dedicated for use in garages, filling stations and machine shops.

You contend that the merchandise at issue is not classifiable as shop towels under subheading 6307.10.2005, HTSUSA. You make two main arguments in support of this contention. First, the merchandise at issue differs in certain material respects from shop towels. Second, you state the merchandise at issue is marketed to the retail consumer; it is not used for industrial purposes and is not dedicated for use in garages, filling stations and machine shops.

You state that the merchandise at issue is more carefully finished and is dyed red, differentiating this merchandise from shop towels. A visual inspection does not reveal to us how this merchandise is more carefully finished than other shop towels. In addition, shop towels can be dyed red. The Guidelines for the Reporting of Imported Products in Various Textile and Apparel Categories, CIE 13/88, November 23, 1988, state, in pertinent part, "Shop towels are usually gray (greige) material, but may be colored, usually dull reds, blues, greens, and yellows."

The merchandise at issue is of plain woven nonpile construction and made of coarse, osnaburg fabric. It is clearly the class or kind of merchandise known as shop towels, used as shop towels, and classifiable as shop towels. We see no physical feature whatsoever that differentiates this merchandise from shop towels.

You state that merchandise must be dedicated for use in garages, filling stations or machine shops, and dedicated solely for use in these named establishments, to be classifiable as shop towels under subheading 6307.10.2005, HTSUSA. In addition, you give several reasons why the merchandise at issue is not for industrial use. You state that the goods are packaged, e.g., in 50-piece packs, and are marketed to the retail consumer. The channels of trade are different from this merchandise than for shop towels, and the cost would be too much to use this merchandise industrially. Instead, you argue, this merchandise is intended for general household use.

The Textile Guidelines state that shop towels are dedicated for use in garages, filling stations, machine shops, etc. (emphasis added); therefore, we do not believe that a towel must be used solely in one of these establishments to be classifiable as a shop towel. In addition, the merchandise at issue is packaged in plastic bags that have the inscription "Grease Getters" and have designs of a car and a truck. This marketing indicates that these towels will be used for something other than just general household use, and we believe that outlets like Price Club have become an important supply source for small garages and shops. Therefore we cannot agree that these towels are not dedicated for use in garages, filling stations, and machine shops.

Finally, Customs has consistently ruled that merchandise similar to that at issue, whether or not used exclusively in garages, filling stations, and machine shops, is of the class or kind of article classifiable as shop towels. See, e.g., Headquarters Ruling Letter (HRL) 084799, dated September 6, 1989, and HRL 087471, dated September 21, 1990. Therefore the merchandise at issue is classified as shop towels.

HOLDING:

The merchandise at issue is classified under subheading 6307.10.2005, HTSUSA, which provides for other made up articles, other, shop towels dedicated for use in garages, filling stations and machine shops, of cotton. The rate of duty is 10.5 percent ad valorem, and the textile category is 369.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.


Sincerely,

John Durant, Director
Commercial Rulings Division