CLA-2 OT:RR:CTF:TCM H218097 CkG
Port Director
Customs and Border Protection
Port of Seattle
1000 Second Ave., Suite 2100 Seattle, WA 98104
Attn: Frank McCracken
RE: Application for Further Review of Protest Number 3001-12-100060;
classification of unfinished golf bags
Dear Port Director:
This is in response to the Application for Further Review of Protest Number 3001-12-100060, filed on behalf of the importer, Sun Mountain Sports, Inc. (“Protestant”), contesting CBP’s classification under the Harmonized Tariff Schedule of the United States (HTSUS), of unfinished golf bag bodies in heading 6307, HTSUS.
FACTS:
The protest covers unfinished golf bags, entered on October 04, 2012, in subheading 6307.90.98, HTSUS. CBP liquidated the entries in heading 6307, HTSUS, on August 19, 2011. The instant merchandise consists of unfinished golf bag bodies of woven nylon and polyester with internal dividers, and a plastic top and bottom. The unfinished bags do not contain pockets or internal support rods. The plastic components are stated to weigh 1.05 lbs., and the nylon/polyester body 0.8 lbs. The value of the components as a percentage of the total value of the product as imported is 53% for the plastic components and 47% for the textile material.
ISSUE:
Whether the instant unfinished golf bag bodies are classified as other articles of plastic of heading 3926, HTSUS, or as other made up textile articles of heading 6307.
LAW AND ANALYSIS:
The matter protested is protestable under 19 U.S.C. §1514(a) (2) as a decision on classification. The protest was timely filed on February 14, 2012, within 180 days of liquidation of the first entry for entries made on or after December 18, 2004. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006)).
Further Review of Protest No. 3001-2012-100060 was properly accorded to Protestant pursuant to 19 C.F.R. § 174.24 because the decision against which the protest was filed involves specific factual and legal questions that have not been the subject of a Headquarters ruling or court decision. Specifically, the issue is whether the subject article is classified in heading 6307, HTSUS, or in heading 3926, HTSUS.
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions at issue are as follows:
3926: Other articles of plastics and articles of other materials of headings 3901 to 3914
3926.90: Other:
3926.90.99 Other . . .
* * * * * *
4202: Trunks, suitcases, vanity cases, attache cases, briefcases, school
satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper:
Other:
4202.92: With outer surface of sheeting of plastic or of textile
materials:
Travel, sports and similar bags:
With outer surface of textile materials:
4202.92.30: Other . . .
* * * * * *
6307: Other made up articles, including dress patterns:
6307.90: Other:
6307.90.98: Other………..
* * * * * *
9902.23.24 1/ Golf bag bodies made of woven fabrics of nylon or polyester sewn
together with pockets, and dividers or graphite protectors, accompanied with rainhoods (provided for in subheading 6307.90.98)
* * * * * *
GRI 2(a) provides that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
The Explanatory Note to GRI 2 provides, in pertinent part, as follows:
The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term " blank " means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part (e.g., bottle preforms of plastics being intermediate products having tubular shape, with one closed end and one open end threaded to secure a screw type closure, the portion below the threaded end being intended to be expanded to a desired size and shape).
Semi manufactures not yet having the essential shape of the finished articles (such as is generally the case with bars, discs, tubes, etc.) are not regarded as " blanks ".
* * * * * *
The issue to be addressed is whether unfinished golf bag bodies imported by Sun Mountain Sports have the “essential character” of completed or finished products and should, therefore, be classified pursuant to GRI 2(a) as if they were goods in their completed or finished state.
After reviewing Protestant’s request, we find that the classification of substantially similar merchandise has been extensively addressed by CBP in prior rulings. See, e.g., HQ H154360, dated June 09, 2011; HQ H082736, dated May 11, 2011; HQ H125076, dated March 21, 2011; HQ H131975, dated March 21, 2011; HQ H048380, dated September 10, 2009; HQ 965041, dated May 07, 2002; HQ 964538, November 19, 2001; HQ 962313, dated March 4, 1999; HQ 960883, dated April 27, 1998; and HQ 959178, dated June 24, 1996.
As discussed at length in the rulings above, completed golf bags and incomplete golf bags having the essential character of golf bags (e.g., having internal support, a carrying handle, pockets, top and/or bottom) are classified in heading 4202, HTSUS, as ejusdem generis to travel and sports bags specifically enumerated in that heading. The instant bags, which lack outer sides, pockets, internal support, and a carrying handle, do not have the essential character of finished golf bags of heading 4202, HTSUS. However, this does not preclude the classification of the instant bags in heading 6307, HTSUS; to the contrary, unfinished golf bags are classified in heading 6307, HTSUS, precisely when they do not meet the terms of GRI 2(a) (i.e., when they lack the essential character of the finished article). To the extent that Protestant argues otherwise, it mistakenly applies the “essential character” test of GRI 2.
In addition, Protestant argues that the instant golf bags, as composite goods of textile and plastic, should be classified pursuant to GRI 3(b) in heading 3926, HTSUS, because the plastic components (the top and bottom) are of a greater weight and value than the textile body, and thus impart the essential character to the bag.
GRI 3(b) provides that composite goods consisting of different materials or made up of different components, shall be classified as if they consisted of the material or component which gives them their essential character. The “essential character” of an article is “that which is indispensable to the structure, core or condition of the article, i.e., what it is.” Structural Industries v. United States, 360 F. Supp. 2d 1330, 1336 (Ct. Int’l Trade 2005). EN VIII to GRI 3(b) explains that "[t]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods." Recent court decisions on the essential character for GRI 3(b) purposes have looked primarily to the role of the each material or component in relation to the use of the goods. See Structural Industries, 360 F. Supp. 2d 1330; Conair Corp. v. United States, 29 C.I.T. 888 (2005); Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278 (Ct. Int’l Trade 2006), aff’d 491 F.3d 1334 (Fed. Cir. 2007).
In this case, the plastic components are said to constitute a greater share of the weight and value of the product. However, the difference in weight and value between the plastic and textile components is relatively small. Furthermore, the textile material is present in the greatest quantity and comprises the bulk of the bag. The textile body also plays the more important role in relation to the use of the golf bag, as it provides the shape of the bag and contributes the most towards its appearance. The textile body thus imparts the essential character to the instant merchandise.
As with the golf bag bodies at issue in the above rulings, the Sun Mountain Sports bags are classified in heading 6307, HTSUS, as other made up textile articles.
Although the instant golf bag bodies are provided for in subheading 6307.90.98, HTSUS, they do not meet the terms of subheading 9902.23.24, which provides a temporary duty reduction for “Golf bag bodies made of woven fabrics of nylon or polyester sewn together with pockets, and dividers or graphite protectors, accompanied with rainhoods (provided for in subheading 6307.90.98).” The instant golf bag bodies do not have pockets, rainhoods or internal graphite shaft protection and are therefore not eligible for treatment according to subheading 9902.23.24, HTSUS.
HOLDING:
By application of GRIs 1 and 3, the subject unfinished golf bag bodies are classified in heading 6307, HTSUS, and are specifically provided for in subheading 6307.90.98, HTSUS, which provides for “Other made up articles, including dress patterns: Other: Other.” The 2012 general, column one rate of duty is 7% ad valorem.
You are instructed to deny the protest in full. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division