CLA-2-97:OT:RR:NC:N4:433
Amy J. Johannesen
Johannesen Associates, PC
Attorneys at Law
69 Charlton Street
New York, NY 10014
RE: The tariff classification of fashion show items from France.
Dear Ms. Johannesen:
In your letter dated May 21, 2018, on behalf of Chanel, Inc. (Chanel), you requested a tariff classification ruling. A position paper filed by Counsel with various illustrative literature documents was furnished, describing and depicting Coco Chanel and haute couture fashion.
The merchandise concerned as stated by Counsel is Chanel’s, “one of a kind haute couture runway items,” which include fashion apparel, accessories, jewelry and footwear. No specific year or semi-annual timeframe was mentioned for the runway showcases, nor were styles of identification mentioned for the clothing and accessory items paired together to create specific looks. These showcases occur twice yearly, one in January and one in July. Taken from the position paper filed by Counsel on behalf of Chanel, the haute couture runway apparel items are crafted by hand, some pieces require more than 600 hours to create, and use rare and in many cases one-of-a-kind fabrics and decorative elements.
For purposes of this ruling, we will use the January of 2018, Couture Fashion Week, “Chanel spring/summer Haute Couture Paris show” to further elaborate on the nature of the merchandise concerned.
In the “London Evening Standard” published by Emma McCarthy on Tuesday, January 23 of 2018, for the Chanel 2018 spring/summer Haute Couture Paris show, it is stated [“Of course, this being couture – where garments can require weeks of painstaking labour and in excess of £10,000 to purchase this was far from understated. Instead, this was a showcase in which Karl Lagerfeld sought to allow the clothes to be the star of their own show, rather than the second act.”]
In “British Vogue” published by Anders Christian Madsen on Tuesday, January 23, 2018, for the Chanel 2018 spring/summer Haute Couture Paris show, it is stated in part: [“A WALK in the park isn’t normally how you’d describe an haute couture collection. At the Chanel ateliers, petites mains have been toiling away for weeks at the 68 handcrafted looks that made up Karl Lagerfeld’s spring/summer 2018 offering this morning in Paris. 69, if you count his adorable godson Hudson Kroenig’s princeling blouse and tiny white jeans. The very idea of haute couture daywear epitomised in the first half of the collection’s distinctly Chanel-centric sculpted little skirt suits was exactly that: sophisticated, old-world, downplayed glamour. “Runway-side Chanel’s elusive haute couture clients smiled contently. They knew these kinds of clothes, they knew what this was about. And so, the total sum of Lagerfeld’s collection came to old world values: comfort in the familiar, and the sentiment he’s always promoted: learn from the past and look to the future. And try to behave, even if it’s not always easy.”]
Published Article on History of Haute Couture:
In “ae world” published by Lara Mansour on March 20, 2016, an article was written called “The History of Haute Couture.” The article in part stated “Not only is haute couture steeped in history and nostalgia, it is also worth remembering that these collections are the only branch of fashion that work on a short time line, making clothes for the season they are showing in. For fashion fanatics, the couture week will offer the visual pleasure of looking up close at the artistic merit and imagination of fragile techniques juxtaposed against grand sweeping volumes. Modernised haute couture shows are not designed and made to be sold, they are displayed for show and credibility. Instead of being constructed for the purpose of selling and making money, they are made to further the publicity, as well as perception and understanding of brand image. For the fashion houses taking part in couture week, custom clothing is no longer the main source of income, as there are only an estimated 2,000 female customers globally, meaning it often costs much more than it earns through direct sales. It does however raise the profile of the brand and their ventures, together with adding the aura of fashion to their ready-to-wear clothing and related luxury products.”
Roots and History of Haute Couture:
“Haute Couture began with the English couturier, Charles Frederick Worth in 1858, who coined the term ‘fashion designer’ as opposed to ‘tailor’ or ‘dressmaker’ for the first time, and established the first [haute couture house] in Paris, selling luxury fashion to elite women of the upper classes.” (Source ~ http://aeworld.com/fashion/in-focus/the-history-of-haute-courture/)
“At the origins of the Federation stands the Chambre Syndicale de la Haute Couture. In 1868, the Federation was then known as the Couture, des Confectionneurs et des Tailleurs pour Dame (Chambre Syndicale for Couture, clothing manufacturers and tailors for women), it became the Chambre Syndicale de la Couture Parisienne on December 14th 1910. Following the decision taken on January 23rd 1945 relating to the creation of the legally registered designation of origin « Haute Couture », it became the Chambre Syndicale de la Haute Couture. The only institutions to serve here are the ones that qualify for the designation, which companies approved each year by a dedicated commission held under the aegis of the Ministry for Industry may become eligible for.” (Source ~ https://fhcm.paris/en/the-federation/)
“To earn the right to call itself a couture house and to use the term haute couture in its advertising and any other way, members of the Chambre Syndicale de la Haute Couture must follow specific rules established 1945:
design made-to-order for private clients, with one or more fittings;
have a workshop (atelier) in Paris that employs at least fifteen staff members full-time;
have at least twenty full-time technical people, in at least one workshop (atelier); and
present a collection of at least fifty original designs to the public every fashion season (twice, in January and July of each year), of both day and evening garments.”
(Source ~ https://en.wikipedia.org/wiki/haute_couture)
Over the course of the 1960s the movement of fashion designers who linked forces with the great couturiers emerged. Consequently the Chambre Syndicale du Prêt-à-Porter des Couturiers et des Créateurs de Mode was founded on October 8th 1973. On the same day the Chambre Syndicale de la Mode Masculine came into being. This momentum generated by the three Chambres Syndicales (Syndicales 1: Chambre Syndicale de la Haute Couture; Syndicales 2: Chambre Syndicale du Prêt-à-Porter des Couturiers et des Créateurs de Mode; and Syndicales 3: Chambre Syndicale de la Mode Masculine) led to the creation that same day of the Fédération Française de la Couture, du Prêt-à-Porter des Couturiers et des Créateurs de Mode. On June 29th 2017, it became the Fédération de la Haute Couture et de la Mode.” (Source ~ https://fhcm.paris/en/the-federation/)
Background on Gabrielle Bonheur Chanel and House Chanel:
Gabrielle Bonheur Chanel (Coco Chanel) was born August 19, 1883, Saumur, France and passed away January 10, 1971. She was a French fashion designer who ruled over Parisian haute couture for almost six decades. In 1915 she opened her first “Couture House” in Biarritz, France and in 1918 she open the second “Couture House” at 31 Rue Cambon, Paris, France. [“Chanel closed the doors of her salon in 1939, when France declared war on Germany. Other couturiers left the country, but Chanel endured the war in Paris. Securing new finances and assembling a new staff, Chanel’s comeback collection of couture debuted in 1953. Within three seasons after her comeback, Chanel regained newfound respect as a one of the great couturiers. Following her death, several of her assistants designed the couture and ready-to-wear lines until Karl Lagerfeld took over the “haute couture” design in 1983 and the ready-to-wear lines in 1984. Lagerfeld’s ability to continuously mine the Chanel achieve for inspiration testifies to the importance of Gabrielle Chanel’s contributions to women’s fashion in the twentieth century.”] (Source ~ https://www.metmuseum.org/toah/hd/chnl/hd_chnl.htm)
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). 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 2 through 6 may then be applied in order.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the HTSUS at the international level, may be utilized. The ENs, although not dispositive or legally binding, provides a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg 35127 (August 23, 1989).
The ENs to heading 9705 “Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest” of the HTSUS, state in pertinent part, the following: These articles are very often of little intrinsic value but derive their interest from their rarity, their grouping or their presentation. The heading includes:
(B) Collections and collectors’ pieces of historical, ethnographic, paleontological or archaeological interest, for example:
(1) Articles being the material remains of human activity suitable
for the study of the activities of earlier generations, such as: mummies, sarcophagi, weapons, objects of worship, articles of apparel, articles which have belonged to famous persons.
Goods produced as a commercial undertaking to commemorate, celebrate, illustrate or depict an event or any other matter, whether or not production is limited in quantity or circulation do not fall in this heading as collections or collectors’ pieces of historical or numismatic interest unless the goods themselves have subsequently attained that interest by reason of their age or rarity.
There exists no strict standard or enumerated criteria for articles which are classified in heading 9705, HTSUS. The word “historic” is not defined by the tariff, nor by the ENs, and the dictionary definition is quite broad. The Oxford English Dictionary states it is, “A historical work or subject; a history. Now rare”, and “relating to history; concerned with past events”. “historic, n. and adj.” OED Online. Oxford University Press, December 2014. Web. 23 February 2015.
In light of this, we turn to the ENs to inform and shape our understanding of the scope of the heading, but with the caveat that the ENs are used for guidance only in interpretation of the HTSUS. The ENs explain the scope of headings, often by means of exemplars, of which these examples are not necessarily all inclusive or all restrictive. The ENs should not restrict or expand the scope of headings, rather, they should describe and elaborate on the nature of goods falling within those headings, as well as the nature of goods falling outside of those headings. Thus, items must be examined on a case-by-case basis, considering all the relevant factors involved.
Pursuant to the ENs, articles of “historical interest” may include items that by virtue of their age, rarity, connection to a specific historical event, or era, or point in time, may be classified in heading 9705, HTSUS, so long as they are the remains of human activity suitable for the study of earlier generations. Restated with regard to the aforementioned sentence, noting goods obtain the level of collectors’ pieces by reason of their age or rarity, we also note that goods obtain the level of collectors’ pieces by their (1) placement along the time spectrum as recorded in the annals of historical accountings, (2) recognized accomplishments as documented and recorded in the pages of historical facts, and (3) association to famous persons with or without a nexus to an historical time.
For purposes of entitlement to duty-free status under heading 9705, HTSUS, goods need only show they reach the level of being a collectors’ pieces as set by one of the three “parameters” as listed in the last paragraph, last sentence above. The same three parameters as listed in the last paragraph, last sentence above apply also to a collection or collections of historical interest. If goods, or a collection or collections, qualify by their placement in time to be of historical interest, then there is no requirement that those same goods, or collection or collections, be deed-worthy or belong to famous persons.
It is clear from the historical records that “House Chanel” has continued to live on past the lifespan of founder Coco Chanel and the near 6-decades that she ruled over the Parisian haute couture scene, with fashion designer Karl Lagerfeld stepping in to continue her work and vision of traditional and modern haute couture excellence. This is well documented in the recordings of historical accounts by the Chambre Syndicale de la Haute Couture designating “House Chanel” year-after-year a couture house, and continues today with that same designation listing “House Chanel” as a couture house by the current Fédération de la Haute Couture et de la Mode.
With case in point, this office is satisfied that the collection of “House Chanel” couture items, which includes fashion apparel, accessories, jewelry and footwear is of historical interest that showcases twice yearly, during the January Couture Fashion week and the July Couture Fashion week. These bi-yearly couture fashion events, occurring year-after-year, and representing couture apparel with associated accessories, jewelry and footwear are not commercial undertakings nor mass produced items, but rather are for ‘show and credibility’ of the Chanel brand, and more importantly for ‘high-profile’ of the Chanel brand within the fashion world. The fact that “House Chanel” couture collection items are catalogued by experts and enthusiasts, are showcased and displayed in museums throughout the world, are rare and changing twice every year, are priced reflective of their rarity, and are used frequently in photoshoots in France and abroad after these events, is indicative of the historical influence and impact that “House Chanel” has over the couture fashion world.
For CBP purposes it would be prudent to have a Chanel inventory listing of the couture fashion apparel, accessories, jewelry and footwear items pertaining to an associated Couture Fashion Week event to establish that the merchandise concerned has an historical nexus to a particular fashion event of historical interest. Thereby, establishing the claim for duty-free status under heading 9705, HTSUS. This inventory should be available for inspection by CBP personnel.
The applicable subheading for the “House Chanel” couture collection or items of the couture collection, resulting from the bi-yearly Couture Fashion Week events, will be 9705.00.0070, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest: Archaeological, historical, or ethnographic pieces.” The rate of duty will be free.
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 the World Wide Web at https://hts.usitc.gov/current.
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 the ruling, contact National Import Specialist Neil H. Levy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division