CLA-2 CO:R:C:T 088555 HP
Mr. Tommy Lai
Second Secretary
Hong Kong Economic & Trade Affairs
Hong Kong Economic & Trade Office
British Embassy
1233 20TH Street, N.W.
Suite 504
Washington, DC 20036
RE: Ties have essential character imparted by outer shell.
Lining and interlining determine classification where terms of
subheadings require. GRI 1;GRI 6;statistical;annotation;silk
Dear Mr. Lai:
This is in reply to your letter of January 24, 1991,
concerning the tariff classification of men's silk neckties,
produced in Hong Kong, under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA). Please reference your
case number HK225/90, Manufacturing Modes, Inc.
FACTS:
The merchandise at issue consists of men's neckties. The
outer shell is constructed of 100% silk. The woven
interlining is constructed of 100% acetate. The woven lining
is of 100% nylon. You state that the overall percentages by
weight of the tie, including lining and interlining, are 37%
silk, 55% acetate, and 8% nylon (63% man-made).
ISSUE:
Whether the interlining and lining of neckties are taken
into account in determining classification of neckties under
the HTSUSA?
LAW AND ANALYSIS:
Subheading 6215.10, HTSUSA, provides for, inter alia,
ties of silk or silk waste. Subheading 6215.20, HTSUSA,
provides for similar articles of man-made fibers. The General
Rules of Interpretation (GRIs) to the HTSUSA govern the class-
ification of goods in the tariff schedule. GRI 1 states, in
pertinent part, that:
... classification shall be determined according to
the terms of the headings and any relative section
or chapter notes ...
Goods which cannot be classified in accordance with GRI 1 are
to be classified in accordance with subsequent GRIs, taken in
order. Subheading Note 2 to Section XI, HTSUSA, provides, in
pertinent part:
(A) Products of chapters 56 to 63
containing two or more textile materials
are to be regarded as consisting wholly of
that textile material which would be
selected under note 2 to this section for
the classification of a product of
chapters 50 to 55 consisting of the same
textile materials.
(B) For the application of this rule:
(a) Where appropriate, only the
part which determines the
classification under general
interpretative rule 3 shall be
taken into account.
Note 2(A), Section XI, to which Subheading Note 2(A)
refers, provides:
Goods classifiable in chapters 50 to 55 or
in heading 5809 or 5902 and of a mixture
of two or more textile materials are to be
classified as if consisting wholly of that
one textile material which predominates by
weight over each other textile material.
In applying the Section Note, we have stated that:
Subheading Note 2(A) is dependent on
the application of Section XI Note 2(A).
The subheading note states that the
classification of textile garments and
articles will be governed by the textile
material selected under the section note.
* * *
[T]he mixture of textile materials
contemplated in the section note is not a
mixture of two or more separate fabrics.
Before the subheading note, which is
predicated on the section note, can be
utilized, it must first be determined to
which of the fabrics comprising the
article the section note (and, therefore,
the subheading note) applies. The [ties]
in question [are] made of [several]
fabrics. If those fabrics were imported
together in fabric form, Section XI Note
2(A) would not require that the weights of
their components be compared and that
classification be according to the textile
material which predominates. Rather, they
would be classifiable as separate fabrics.
Therefore, where separate fabrics are
combined to form a textile garment or
article [as in the instant matter], GRI 3
is utilized first to select which fabric
[(and which part of the garment that
fabric comprises)] will determine
classification.
HRL 084012 PR of June 12, 1989.
Accordingly, where the instant ties contain parts that
materially contribute to their character or usefulness, those
parts or accessories must be considered along with the outer
shell in determining the applicable classification. Following
Subheading Note 2(B)(a) to Section XI, GRI 3 is consulted to
determine which portions of the garment are to be considered
in applying Subheading Note 2(A).
GRI 3 states, in pertinent part:
When by application of Rule 2(b) [goods of
more than one material or substance] or
for any other reason, goods are, prima
facie, classifiable under two or more
headings, classification shall be effected
as follows:
* * *
(b) Mixtures, composite goods
consisting of different materi-
als or made up of different
components, and goods put up in
sets for retail sale, which
cannot be classified by
reference to 3(a) [which
requires that goods be classi-
fied, if possible, under the
more specific of the competing
provisions], shall be classified
as if they consisted of the
material or component which
gives them their essential
character, insofar as this
criterion is applicable.
The factors which determine essential character of an
article will vary from case to case. It may be the nature of
the materials or the components, its bulk, quantity, weight,
value, or the role a material plays in relation to the use of
the goods. In general, essential character has been construed
to mean the attribute which strongly marks or serves to
distinguish what an article is; that which is indispensable to
the structure or condition of an article.
It is clear that the silk outer shell imparts the
essential character of these ties. The silk shell provides
not only the smooth feel and look, but the entire decorative
effect of the tie. Therefore, classification under subheading
6215.10, HTSUSA, is appropriate.
Subheading 6215.10.00.25, HTSUSA, provides for ties of
silk or silk waste, containing 50 percent by more by weight
(including any linings and interlinings) of other textile
products. You state that this subheading should not apply to
the instant merchandise, because, inter alia, "the silk
outershell imparts the essential character to the product."
We disagree.
First, it must be recognized that the application of the
GRIs to the statistical annotations is not required under the
HTS. GRI 6, which incorporates GRIs 1 to 5 in classifying
goods at the subheading level, is limited to the determination
of the legal classification of the merchandise. By contrast,
the determination of the appropriate statistical annotation is
a matter committed to the authority of Committee for the
Statistical Annotation of Tariff Schedules, established by
484(e), Tariff Act of 1930, rather than the legal
classification of the goods. Accordingly, there is no legal
requirements that GRI 6 apply to the determination of the
appropriate statistical annotation.
It is our opinion, however, that GRI 6 can apply at the
ten digit level. This will occur only where there is an
existing question as to which statistical annotation applies
and where no other rule will resolve the matter.
As we stated above, GRI 1 mandates that, wherever
possible, classification shall be determined first according
to the terms of the headings, and then, if necessary,
according to GRIs 2 through 4. Before the instant
classification analysis even reaches a GRI 3(b) essential
character determination, the terms of subheading
6215.10.00.25, HTSUSA (including any linings and interlinings)
are controlling. The weight of the linings and interlinings
are therefore taken into account.
You have also stated that, separate and apart from any
essential character analysis as undertaken above, "Attachment
III to the agreed minute date 9.12.87" requires only the
weight and fiber content of the outer shell of textile product
to be taken into consideration. This argument is
appropriately presented to the Committee for the
Implementation of Textile Agreements.
HOLDING:
As a result of the foregoing, the instant merchandise is
classified under subheading 6215.10.0025, HTSUSA, textile
category 659, as ties, bow ties and cravats, of silk or silk
waste, containing 50 percent or more by weight (including any
linings or interlinings) of textile materials other than silk
or silk waste. The applicable rate of duty is 8 percent ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division