CLA-2-98:OT:RR:NC:N4:433
Jena L. Cauley, Esq.
First Coast Legal Group, LLC
Tri-State Legal and International Consultants
554 Lomax Street
Jacksonville, FL 32204
RE: The tariff classification of SNAG Golf Sets.
Dear Ms. Cauley:
In your letter dated August 28, 2013, on behalf of World Golf Foundation, Inc. (WGF), d/b/a The First Tee, you requested a tariff classification ruling. In addition to the position paper and photos filed by you, supplemental information was obtained via the website of www.snaggolf.com and other sources.
SNAG® is an acronym for Starting New At Golf. SNAG is a first touch program that effectively teaches the game of golf to people of all ages with varying abilities. SNAG is recognized by industry leaders around the world as the superior method of teaching fundamentals of golf in a fun and easy way. SNAG provides cutting edge learning techniques never before seen in the world of golf. SNAG is designed for both children and adults and contains all the elements of golf but in a modified form. SNAG allows for full shots, pitching, chipping, and putting. The key is in simplifying the instruction so that it can be an effective transition into the game of golf. SNAG is all about having fun while learning the basics. SNAG incorporates developmentally appropriate equipment that will allow golf to be learned and played in non-traditional venues, such as on a soccer field, in a gym, or on the beach. It is a program that builds on the fundamentals of different strokes and swings and develops playing ability quickly and effectively. This program keeps new learners wanting to be further involved with golf.
Different to real golf which contains fourteen clubs, SNAG has only two types of clubs composed of fiberglass shafts and high impact plastic heads. These two clubs are identified as the Launcher™ which is used to launch, pitch, and chip the ball like a putter and the Roller™ which is used to roll the ball towards the target. All shots other than rolling (putting) are played off of a mat and tee called the Launch Pad™. This ensures that the player will have an optimal lie every time. The target, called a Flagsticky™, also differs from anything else in golf, as it is not a hole with a cup inside but rather an above-ground weighted cylinder covered with a hook material. The SNAG Ball™ is slightly smaller than a tennis ball and is covered with a loop material. Unlike real golf, where you finish by putting the ball into the cup, in SNAG, you finish by sticking the ball to the Flagsticky™. Because of the mobile Launch Pad™ and Flagsticky™, SNAG is portable and playable just about anywhere.
Each SNAG Golf Set consists of nine SNAG clubs of different heights and colors for various aged players, three launchers with oversized tees, colored fuzzy SNAG balls, a roller rectangular target, a bull’s eye target, a Flagsticky, and a zippered duffel bag to store and transport all of the aforementioned items.
You state that SNAG Golf Set is a game but is not intended for competitive “win/lose” purposes. However, the “General Information & Instruction” booklet downloaded from the SNAG Golf website suggests otherwise.
While SNAG Golf is used as an introduction to the sport of golf and shares some of the same basic elements and terminology, it is a separate game which involves an element of skill, chance, endurance or any combination of these elements (accurately hitting the SNAG ball on the Flagsticky in the least amount of tries), and is played by its own set of rules with the object of winning. In fact, this booklet contains a section labeled “Scorecard Instruction” and “Scoring Games” which provides for five different games or methods of play with the objective of the player or team with the lowest number of points winning (similar to determining a winner in actual golf). Mastering or practicing these skills are intended to prepare one to transition into playing the actual game of golf. Accordingly, unless covered by another classification provision, the SNAG Golf Set will be classified under heading 9506, HTSUS, which provides for “other sports or outdoor games, not specified or included elsewhere in this chapter.”
It is stated in the position paper that WGF, d/b/a The First Tee, is seeking a ruling which affirmatively proclaims that the tariff classification of the SNAG Golf Sets falls under Special Classification Provision 9810.00.3500 of the Harmonized Tariff Schedule of the United States (HTSUS), having a free rate of duty. In support of this classification the WGF or The First Tee will furnish with each entry affidavits verifying the restricted distribution to educational public or nonprofit institutions. WGF itself is a non-profit charity based out of St. Augustine, Florida, of which, The First Tee program is an educational initiative “impacting the lives of young people by building character, installing life-enhancing values, and promoting healthy choices through the game of golf.”
Subheading 9810.00.3500, HTSUS, is restricted to the enumerated articles as listed in the provision. The provision reads: Articles imported for the use of any public library, any other public institution or any nonprofit institution established for educational, scientific, literary or philosophical purposes, or for the encouragement of the fine arts:
Letters, numbers, and other symbols; number cards and other arithmetical materials; printed matter; blocks and other dimensional shapes; geometrical figures, plane or solid; geographical globes; tuned bells and basic materials for understanding music; model articles and figures of animate object; puzzles and games; flags; dressing frames; dummy clocks; bottles, boxes, and other containers or holders; all the foregoing, whether or not in sets, fabricated to specification and designed for the classroom instructions of children; and containers or holders fabricated to specification and designed for the storage of such instructional articles when not in use.
U.S. Note 1 to Subchapter X, Chapter 98, HTSUS, provides in pertinent part:
Except as provided in subheading 9810.00.20 …, or as otherwise provided for in this U.S. Note, the articles covered by this subchapter must be exclusively for the use of the institutions involved, and not for distribution, sale or other commercial use within five years after being entered. Articles admitted under any provision in this subchapter may be transferred from an institution specified with respect to such articles to another such institution, or may be exported or destroyed under customs supervision, without duty liability being incurred. However, if any such article (other than an article provided for in subheading 9810.00.20 or subheading 9810.00.70) is transferred other than as provided by the preceding sentence, or is used for commercial purposes, within 5 years after being entered, the institution for which such article was entered shall promptly notify customs officers at the port of entry and shall be liable for the payment of duty on such article in an amount determined on the basis of its condition as imported and the rate applicable to it (determined without regard to this subchapter) when entered.
It is indicated on the website of snaggolf.com that SNAG is the skills-acquisition program used in the national school golf program headed by the WGF’s First Tee Program, and that more than 5000 schools are successfully introducing children to golf in the United States and over 8000 worldwide. We have no dispute that the sale of SNAG Golf Sets to the WGF or The First Tee, both as one nonprofit entity, who in turn transfers these sets to public or nonprofit institution for the education of children to the game of golf, whether used in an inside classroom such as a gym or an outside environment such as a track & field, qualifies for duty-free treatment in subheading 9810.00.3500, HTSUS. Further, as WGF or The First Tee is a nonprofit institution, there is no requirement to furnish affidavits at time of entry certifying that such sales or preexisting sales are made on behalf of qualifying institutions.
Unlike your position which suggests that SNAG Golf Sets by themselves are indisputably classified in subheading 9810.00.3500, HTSUS, we find this statement not to be true when imported by those for commercial purposes. It is a longstanding practice that 9810.00.3500, HTSUS, cannot be used when imported by commercial entities for warehouse and distribution of articles for future sales, even if those sales are to public or nonprofit institutions, as well as to consumers. An exception to this practice is where the commercial entities act as agents’ on behalf of the public or nonprofit institutions based upon pre-existing sales. See HQ 555483 dated April 11, 1990. Also, public and nonprofit institutions cannot resell articles to commercial entities for purposes of receiving duty-free treatment under subheading 9810.00.3500, HTSUS. Lastly, SNAG is not marketed nor advertised for sale solely for purposes of educating children in a classroom environment, and in those cases the duty-free provision is not permissible.
The applicable subheading for the SNAG Golf Sets, when imported in compliance with U.S. Note 1 to Subchapter X, Chapter 98, HTSUS, will be 9810.00.3500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles imported for the use of any public library, any other public institution or any nonprofit institution established for educational, scientific, literary or philosophical purposes, or for the encouragement of the fine arts: Letters, numbers, and other symbols … puzzles and games … all the foregoing, whether or not in sets, fabricated to specification and designed for the classroom instructions of children; and containers or holders fabricated to specification and designed for the storage of such instructional articles when not in use.” The rate of duty will be free.
The applicable subheading for the SNAG Golf Sets, when not imported in compliance with U.S. Note 1 to Subchapter X, Chapter 98, HTSUS, regardless of whether entered by public or nonprofit or commercial entities, will be 9506.99.6080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles and equipment for general physical exercise, gymnastics, athletics, other sports…or outdoor games…; swimming pools and wading pools; parts and accessories thereof: Other: Other: Other...Other.” The rate of duty will be 4% 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 on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding classification 9810.00.3500, contact National Import Specialist Neil H. Levy at (646) 733-3036 or for classification 9506.99.6080 contact National Import Specialist James Forkan at (646) 733-3025.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division