OT:RR:CTF:FTM H307548 MJD
Ms. Haley Pavone
Pashion Footwear
872 Higuera Street
San Luis Obispo, California 93405
RE: Tariff classification of women’s convertible high heel footwear
Dear Ms. Pavone:
This is in response to your request, dated October 25, 2019, for a binding ruling concerning the tariff classification of three different styles of women’s shoes sold by your company, Pashion Footwear, under the Harmonized Tariff Schedule of the United States (“HTSUS”). The names of the three styles of footwear are the following: “Girl Boss,” “Goddess,” and “Pashionista.” All three styles of footwear have removable high heels that allow the shoes to be converted into a flat heel footwear. Your request was forwarded by the National Commodity Specialist Division in New York to this office for a response. We received a sample of the style “Pashionista” with the request. Along with your ruling request and the sample, you provided copies of photos of each style of footwear in their high heel form and their flat heel form.
FACTS:
The merchandise at issue are women’s high heel footwear that can be converted into flat heel footwear. There are three styles of the footwear - “Girl Boss,” “Goddess,” and “Pashionista.” You describe each style of shoe as follows:
Pashionista
An open toed shoe with a removable heel with an ankle strap. The upper and outsole are both made of PU [polyurethane] leather and the footbed is also made of PU [polyurethane] (PU pigskin).
Girl Boss
A closed toed shoe with [a] removable heel and ankle strap. The upper and outsole are both made of PU [polyurethane] leather and the footbed is also made of PU [polyurethane] (PU pigskin).
Goddess
An open toed shoe with [a] removable heel and an ankle tie (unlike the other shoes which have a buckle at the ankle). The upper and outsole are both made of PU [polyurethane] leather and the footbed is also made of PU [polyurethane] (PU pigskin).
Each style of footwear will be imported and sold in individual boxes with the following items: (1) the footwear made of polyurethane leather containing over 90% rubber/plastic with a footbed made of polyurethane pigskin; (2) a pair of high heels; (3) a pair of rubber/plastic “Stelos,” which is the technology that lays on the bottom of the shoe and attaches on one end to the high heel and on the other end to a small metal bar located underneath the shoe. The “Stelos” are what allows the shoe to be converted into a high heel footwear; (4) a pair of rubber/plastic “flat caps” designed to cover and protect the area under the heels while wearing the footwear as flats; and, (5) a small textile drawstring pouch to keep the components of the shoe when they are not in use.
ISSUE:
What is the proper tariff classification of the three styles of Pashion Footwear?
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods 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 may then be applied.
When goods cannot be classified by applying GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs are applied. GRI 2(a) applies to incomplete or unfinished and unassembled or disassembled goods. The classification of goods consisting of more than one material or substance shall be according to the principles of GRI 3.
GRI 3 states that when, by application of GRI 2(b) or for any other reason, goods are prima facie classifiable under two or more headings, classification shall be effected as follows:
The heading which provides the most specific description shall be preferred to headings which provide a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, these headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
When goods cannot be classified according to GRI 3(a), CBP continues its analysis by examining GRI 3(b), which states that:
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), 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 Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to GRI 3(b) state, in pertinent part, that:
(VI) This second method [of classifying goods which, prima facie, fall under two or more headings] relates only to:
Mixtures.
Composite goods consisting of different materials.
Composite goods consisting of different components.
Goods put up in sets for retail sales.
It applies only if Rule 3 (a) fails.
(VII) In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(VIII) The 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 a constituent material in relation to the use of the goods.
(IX) For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.
(X) For the purposes of this Rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which:
consist of at least two different articles which are, prima facie, classifiable in different headings …
consist of products or articles put up together to meet a particular need or carry out a specific activity; and
are put up in a manner suitable for sale directly to end users without repacking (e.g., in boxes or cases or on boards).
The 2020 HTSUS provisions under consideration are the following:
6402 Other footwear with outer soles and uppers of rubber or plastics:
* * *
Other footwear:
6402.99 Other:
Other:
Having uppers of which over 90 percent of the external surface area (including any accessories or reinforcements such as those mentioned in note 4(a) to this chapter) is rubber or plastics (except footwear having a foxing or a foxing-like band applied or molded at the sole and overlapping the upper and except footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather):
Other:
* * *
6402.99.31 Other…
* * *
Other:
* * *
For women:
* * *
6402.99.3165 Other....
* * *
6406 Parts of footwear (including uppers whether or not attached to soles other than outer soles); removable insoles, heel cushions and similar articles; gaiters,
leggings and similar articles, and parts thereof:
* * *
6406.20.0000 Outer soles and heels, of rubber or plastics…
* * *
6406.90 Other:
* * *
Of other materials:
* * *
6406.90.30 Of rubber or plastics…
* * *
6406.90.3060 Other…
Note 4 to Chapter 64, HTSUS, states in pertinent part, as follows:
Subject to note 3 to this chapter:
The material of the upper shall be taken to be the constituent material having the greatest external surface area, no account being taken of accessories or reinforcements such as ankle patches, edging, ornamentation, buckles, tabs, eyelet stays or similar attachments;
In the present case, the three styles of Pashion footwear all consist of four main components: (1) the footwear which is made of polyurethane leather (over 90% rubber/plastic) and has a footbed made of polyurethane pigskin classified in subheading 6402.99.31, HTSUS; (2) the rubber/plastic “flat caps” classified in subheading 6406.20.00, HTSUS; (3) the high heels classified in subheading 6406.20.00, HTSUS; and, (4) the rubber/plastic “Stelos” classified in subheading 6406.90.30. As a result, classification of the subject merchandise cannot be classified by GRI 1 because no single heading provides for all of the aforementioned components. GRI 2(a) is also inapplicable because the footwear is neither incomplete nor unfinished. However, GRI 2(b) is applicable because it provides that goods consisting of more than one material should be classified according to GRI 3.
When goods are prima facie classifiable under two or more headings, GRI 3 applies. Specifically, GRI 3(b) is pertinent because it provides for mixtures, composite goods, and goods put up in sets for retail sale. Here, the footwear, the “flat caps,” and the “Stelos” are composite goods because they are uniquely created and adapted to one another, making them mutually complementary, and when put together form a completed imported product which would not normally be offered for sale in separate parts. All of these parts could only be used specifically for this product. Therefore, the combination of either the footwear and “flat caps” or the footwear, “Stelos,” and heels are composite goods for GRI 3(b) purposes. See Headquarters Ruling Letter (“HQ”) H008845, dated October 3, 2008; HQ 956048, dated July 7, 1994; and H047562, dated November 2, 2009.
As composite goods, GRI 3(b) requires the classification of the merchandise to be according to the material or component that imparts the good’s essential character. In order to identify a composite good’s essential character, the U.S. Court of International Trade (“CIT”) has stated that 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) also provides guidance on the meaning of “essential character.” 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.” Several court decisions on the essential character for GRI 3(b) purposes have looked primarily to the role of the constituent material in relation to the use of the goods. See Estee Lauder, Inc. v. United States, 815 F. Supp. 2d 1287, 1296 (Ct. Int'l Trade 2012); 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).
Here, the essential character of Pashion footwear is the shoe. The footwear predominates in weight and bulk over the other parts of the product. The “Stelos” and heel are needed to convert the shoe into a high heel footwear, and the “flat caps” are necessary to convert the shoe into a flat heel footwear, and this is presumably why a consumer would buy the shoe i.e. its dual capability as a footwear, but it is the shoe itself that is the most essential part of the product. The footwear is the only component of the merchandise that is required to be worn at all times for the shoe to function as either a high heel footwear or flat heel footwear, it is indispensable to the shoe and therefore the essential character of the three styles of Pashion footwear.
Accordingly, all of the aforementioned components, when imported together (with or without any of the components attached to the footwear), will be classifiable in subheading 6402.99.3165, HTSUSA (Annotated), which provides for “Other footwear with outer soles and uppers of rubber or plastics: Other footwear: Other: Other: Having uppers of which over 90 percent of the external surface area (including any accessories or reinforcements such as those mentioned in note 4(a) to this chapter) is rubber or plastics (except footwear having a foxing or a foxing-like band applied or molded at the sole and overlapping the upper and except footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather): Other: Other: Other: For women: Other.”
HOLDING:
By application of GRI 3(b), the subject merchandise is classified under subheading 6402.99.3165, HTSUSA, which provides for “Other footwear with outer soles and uppers of rubber or plastics: Other footwear: Other: Other: Having uppers of which over 90 percent of the external surface area (including any accessories or reinforcements such as those mentioned in note 4(a) to this chapter) is rubber or plastics (except footwear having a foxing or a foxing-like band applied or molded at the sole and overlapping the upper and except footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather): Other: Other: Other: For women: Other.” The 2020 column one, general rate of duty is 6 % ad valorem.
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 www.usitc.gov/tata/hts/.
A copy of this ruling letter should be attached to the entry documents filed at the time the merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Yuliya A. Gulis, Chief
Food, Textiles, and Marking Branch