CLA-2 RR:CR:TE 962184 ASM
Tariff No.: 6204.43.4040
V. James Adduci, II, Esquire
Adduci, Mastriani & Schaumberg, L.L.P.
1140 Connecticut Avenue, N.W.
Washington, D.C. 20036
RE: Tariff classification of child's "Princess Bride" Textile Costumes
Dear Mr. Adduci:
This letter concerns your request of June 30, 1998, for a binding ruling on behalf of your client, Rubie's Costume Company, Inc., regarding the tariff classification of a textile costume identified as the "Princess Bride" under the Harmonized Tariff Schedule of the United States (HTSUSA).
FACTS:
In a ruling issued April 7, 1998, NY C86129, New York Customs determined that a child's costume, "Princess Bride", style # 14034, was properly classified under subheading 6204.43.4040, HTSUSA, which provides for "Women's or girls' suits, ensembles, suit-type jackets, blazers, dresses, skins, divided skins, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Dresses: Of synthetic fibers: Other: Other, Other: Girls'."
In the subject ruling request, the samples submitted for classification consist of the following:
1. "Item A" - Fully finished "Princess Bride" dress which was the subject of NY C86129. The dress is constructed of a metallic gold brocade fabric for the bodice which has a cream colored satin shaped panel insert and satin lining. Decorative gold trim adorns the neckline and front panel. The puffed sleeves have net inserts at the inside shoulder to expand the brocade material. The skin is comprised of satin fabric with voluminous yardage because it has been cut on the bias (or on the diagonal of the fabric). The neckline, cuffs, and skirt have fully finished (folded and sewn) hems. The back has a fully finished zipper closure.
2. "Item B" - Revised "Princess Bride" costume. The dress is constructed of a metallic gold brocade fabric for the bodice with a cream colored satin shaped panel insert. The puffed sleeves have net inserts at the inside shoulder to expand the brocade material. The neck is secured with a bias tape which extends to form the back neck closure. The skirt is comprised of satin fabric with voluminous yardage because it has been cut on the bias (or on the diagonal of the fabric). The cuffs, and skirt edges have been left raw or unfinished. The back has a slash opening that reaches to the waist. The edges of the back opening are unfinished and bias tape ties secure the back at the waist.
3. "Item C" - Cut pieces for "Princess Bride" costume. At the time of importation, all the main component pieces necessary to construct the costumes are present (excluding thread, netting, ornamental braiding, zipper, bias tape). The final assembly, i.e., sewing, etc..., will be performed in the United States.
ISSUE:
What is the proper tariff classification of the subject "Princess Bride" textile costume samples identified as items A, B, and C under the HTSUSA?
LAW AND ANALYSIS:
Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shah be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order. The Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs), which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRIs.
It is well settled that imported merchandise must be classified with reference to its condition as imported. Carrington Co. et al v. United States, 61 CCPA 77, C.A.C. 1126, 496 F.2d 902 (1974); Olympus Corp. Of America v. United States, 72 Cust. Ct. 176, C.D. 4538 (1974). With respect to the classification of "Item A" and "Item B" , the finished "Princess Bride" costumes, two provisions under the HTSUS are relevant. Heading 9505, HTSUSA, includes articles which are for festive, carnival, or other entertainment uses or purposes. It must be noted, however, that Note 1 (e), chapter 95, HTSUSA, excludes articles of "fancy dress, of textiles, of chapter 61 or 62" from chapter 95. The EN's to 9505, state that the heading covers:
(A) Festive, carnival or other entertainment articles, which in view of their intended use are generally made of non-durable material. They include:
(3) Articles of fancy dress, e.g., masks, false ears and noses, wigs, false beards and moustaches (not being articles of postiche heading 67.04), and paper hats. However, the heading excludes fancy dress of textile materials, of chapter 61 or 62.
In interpreting the phrase "fancy dress, of textiles, of chapters 61 or 62," Customs initially took the view that fancy dress included "all" costumes regardless of quality, durability, or the nature of the item. However, Customs reexamined its view regarding the scope of the term "fancy dress" as it relates to costumes. On November 15, 1994, Customs issued Headquarters Ruling Letter (HQ) 957318, which referred to the settlement agreement of October 18, 1994, reached by the United States and Traveler Trading. In HQ 957318, Customs stated that it had agreed to classify as festive articles in subheading 9505.90.6090, HTSUSA, costumes of a flimsy nature and construction, lacking in durability, and generally recognized as not being a normal article of apparel.
The costume identified as "Item A" is a fully finished, lined costume with a zipper closure. All edges have a turned and sewn hem and the trimming and ornamentation is securely sewn to the fabric. A high degree of styling is present due to the shaped front panel of contrasting material in the bodice, puffed sleeves with net inserts at the inside shoulder, and a voluminous bias cut skirt. This costume is comparable to a normal article of apparel in that it has been designed for multiple wear and cleaning. We concur with NY C86129, dated April 7, 1998, that "Item A" is properly classified as wearing apparel under heading 6204, HTSUSA.
"Item B" has numerous styling features that include an inset shaped panel of contrasting fabric on the bodice, puffed sleeves with netting at the inside shoulder, a voluminous skirt cut on the bias. The neckline has been secured with a durable bias tape. The cuffs and skirt edge are raw, however, the bias cut of the skirt creates a diagonal tension that may inhibit the fraying process. Although the back has a raw and open edge, overall, the costume has numerous styling features and sufficient durability to accommodate multiple wear and cleaning. Thus, it is our determination that "Item B" is properly classified as wearing apparel under heading 6204, HTSUSA.
As GRI 1 states that "classification shall be determined according to the terms of the headings and any relative section or chapter notes... "; the primary consideration in the classification of goods is the terms of the heading itself which must be read in conjunction with relative notes. However, " Item C" is an unfinished and/or unassembled article. Although headings 9505 and 6204 (the relevant provision for girl's dresses), both contain the word "parts" of articles, we can not classify these items pursuant to GRI 1 because we must assess the finished article to determine whether or not it is classifiable under Chapter 95 as a "festive article" or under Chapter 62 as wearing apparel.
Inasmuch as "Item C" is to be imported as unassembled components of costumes, it is necessary to examine GRI 2(a) which states:
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.
With respect to "incomplete or unfinished articles", the ENs to GRI 2(a) state, in relevant part, that" ...Rule 2(a) extends the scope of any heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished, provided that, as presented, it has the essential character of the complete or finished article." The ENs to GRI 2(a) separately address articles which are presented "unassembled or disassembled" as follows:
(V) The second part of Rule 2(a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.
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(VII) For the purposes of this Rule, "articles presented unassembled or disassembled" means articles the components of which are to be assembled either by means of fixing devices (screws, nuts, bolts, etc. ) or by riveting or welding, for example, provided only assembly operations are involved.
No account is to be taken in that regard of the complexity of the assembly method. However, the components shall not be subjected to any further working operation for completion into the finished state.
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In a recent Customs ruling, HQ 960839, dated January 13, 1998, it was stated that GRI 2(a) established a "two pronged rule" for classification purposes. Specifically, HQ 960839 stated that prior to making a classification determination for cut pieces of men's and women's bathrobes, the following is required as per GRI 2 (a):
1 ) the incomplete or unfinished garment must have the essential character of the completed or finished garment based on some assembly operation that has been done to the garment; or
2) a sufficient number or type of elements should be present to constitute a substantially complete but unfinished product at the lime of importation.
Thus, it was determined in HQ 960839, that in order to apply an essential character analysis to the robe components under the "first prong" of GRI 2(a), there must be a joining together of some of the components pieces. In HQ 960839, at the lime of importation, the robes had no assembly operations performed on them and an essential character determination under the "first prong" of GRI 2(a) was not warranted. However, the "second prong" allowed an essential character analysis of the cut robe pieces because sufficient parts, i.e. , all the pieces necessary to construct the finished robe, were present at importation. According to HQ 960839, under the "second prong" of GRI 2(a), it is not necessary to have any joining of the component parts to apply an essential character analysis.
In applying the principles set forth in HQ 960839 to the subject unassembled sample, "Item C", it is our understanding that at the lime of importation there is no assembly on the costume and the pieces of fabric have not been joined in any way that would reveal the essential character under the "first prong" of a GRI 2(a) analysis. Still, "Item C" is properly classified under the "second prong" of GRI 2(a) because we have nearly all the component pieces necessary to construct the finished costume, albeit without any joining of these pieces at the time of importation.
Pursuant to a "second prong" GRI 2(a) analysis, Customs must now evaluate the finished article as evidence of the proper classification of this unassembled costume as either a "festive article" under Chapter 95 or wearing apparel under Chapter 62. This can be accomplished by separately identifying characteristics in the finished costume that would determine whether or not it is of a flimsy nature and construction, lacking in durability, and generally recognized as a normal article of apparel.
Assuming that the component pans of "Item C" are to be finished as either an "Item A" or "Item B" costume, we have already determined that the finished costumes should be classified as a girl's dress under heading 6204, HTSUSA.
HOLDING:
The subject articles identified as "Item A" and "Item B" are classifiable under subheading 6204.43.4040, HTSUSA, the provision for "Women's or girls' suits, ensembles, suit-type .jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Dresses: Of Synthetic fibers: Other: Other: Other: Girls'." Under the general column one rate, the duty is 16.6 percent ad valorem. The textile restraint category is 636.
By application of GRI 2(a), and assuming that the component parts identified as "Item C" are to be finished as either an "Item A" or "Item B" costume, these articles are properly classifiable under subheading 6204.43.4040, HTSUSA, the provision for "Women's or girls' suits, ensembles, suit-type jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear): Dresses: Of Synthetic fibers: Other: Other: Other: Girls'." Under the general column one rate, the duty is 16.6 percent ad valorem. The textile restraint category is 636.
Customs classification of the component parts, identified as "Item C" , has been based on our findings as to the construction of the final products identified as "Item A" or "Item B." As such, the holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a rifling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, which includes the construction of the finished costumes, this may affect the classification determination. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.
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 Levers), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.
Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division