CLA-2-65:OT:RR:NC:N3:358
Mr. David Prata
CVS Pharmacy Inc.
Mail Code 5055, 1 CVS Drive
Woonsocket, RH 02895
RE: The tariff classification of a glove, scarf and hat set from China
Dear Mr. Prata:
In your letter dated July 9, 2019, you requested a tariff classification ruling. The samples will be returned to you under separate cover.
Item 366662 is a knit glove, scarf and hat set constructed of 100 percent acrylic. The glove is full fingered. The scarf measures approximately 60 inches in length and 9 inches in width. The beanie-style hat features a 2.5 inch cuff within which elastic yarns have been knitted. Neither the gloves, scarf nor the hat impart the essential character of the set.
Item 366736 is a knit glove, scarf and hat set constructed of 100 percent acrylic. The glove is full fingered. The scarf measures approximately 72 inches in length and 10 inches in width and features a single faux fur pom pom at each end. The beanie-style hat features a faux fur pom pom and a cuff within which elastic yarns have been knitted. Neither the gloves, scarf nor the hat impart the essential character of the set.
Items 366662 and 366736 are considered to be goods within the scope of General Rule of Interpretation (GRI) 3 whereby application of GRI 2(b) or otherwise, the goods are, prima facie, classifiable under two or more headings. GRI 3(a) directs us to classify good based on the heading which provides the most specific description. However, when two or more headings each refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods. GRI 3(b) indicates that 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.
It is the opinion of this office that no one good imparts the essential character of Items 366662 or 366736. The scarf, gloves, and hat all equally merit consideration.
GRI 3(c) states:
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numberical order among those which equally merit consideration.
In your letter, you suggest that this set should be classified under 6117.10.2030, Harmonized Tariff Schedule of the United States (HTSUS), as a scarf, based on its relative value to the other goods comprising the set. Further you suggest that because the value of the scarf, GRI 3(b) is applicable, and the scarf provides the sets with its essential character. We disagree. In this case, the difference in the value of the scarf compared to that of the hat and gloves is neglibible when also taking into account the role each component plays within the set. Classification according to GRI 3(b), based on essential character, is inapplicable.
You also suggest the secondary HTSUS classification of 9902.14.64 for hats exceeding $5.00 in value. Specifically, this secondary HTSUS classification requires that “Hats and other headgear…each [emphasis added] valued at $5.00 or more…” This classification does not apply. You indicate that each hat’s value is $1.30.
The applicable subheading for Items 366662 and 366736 will be 6505.00.6090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips) whether or not lined or trimmed; hair nets of any material, whether or not lined or trimmed: Other: Other: Of man-made fibers: Knitted or crocheted or made up from knitted or crocheted fabric: Not in part of braid… Other: Other: Other. The rate of duty will be 20 cents per kilogram plus 7 percent ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 6505.00.6090, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03 in addition to subheading 6505.00.6090 HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 Michael Capanna at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division