HQ 0087060 - Classification and country of origin of baseball-style caps; polyester cap with braid between the peak and crown is classifiable as not in part of braid - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1990 HQ Rulings > HQ 0087041 - HQ 0087142 > HQ 0087060

HQ 087060

August 17, 1990

CLA-2 CO:R:C:G 087060 CC

CATEGORY: CLASSIFICATION

TARIFF NO.: 6505.90.2500, 6505.90.8060

Mr. Steve Hill
General Manager
Four Seasons
1111 Western Row Road
Mason, OH 45040

RE: Classification and country of origin of baseball-style caps; polyester cap with braid between the peak and crown is classifiable as not in part of braid

Dear Mr. Hill:

This letter is in response to your inquiry of April 18, 1990, requesting tariff classification and country of origin determinations for baseball-style caps.

FACTS:

Two samples were submitted for classification. The first sample is a baseball-style cap made of 100 percent cotton twill fabric. There is a braid, which measures approximately 9 inches long and 3/16 inch wide and is the same color as the cap, between the peak and the crown of the cap. In addition, a plastic adjustable closure is at the back of the cap. The second sample is identical to the first, except that it is made of 65 percent polyester and 35 percent cotton fabric.

You present two different scenarios for manufacture of the caps. In the first, Chinese fabric is cut into unassembled cap components in China and shipped to the United States for assembly into completed caps. In the second scenario, Chinese fabric is shipped to Korea for cutting into unassembled cap components and shipped to the United States for assembly into completed caps.

ISSUE:

What is the classification of the submitted merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

Whether the cap that is 65 percent polyester is classifiable as "in part of braid" in Heading 6505, HTSUSA?

What is the country of origin of the submitted merchandise?

LAW AND ANALYSIS:

Classification

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Both samples are classifiable in Heading 6505, HTSUSA, 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. The applicable subheading for the cap made of 100 percent cotton fabric is 6505.90.2500, HTSUSA, which provides for other, of cotton, flax or both, not knitted, other.

The applicable subheadings for the cap made of 65 percent polyester and 35 percent cotton fabric are 6505.90.70, HTSUSA, which provides for other, of man-made fibers, other, wholly or in part of braid, and 6505.90.80, HTSUSA, which provides for other, of man-made fibers, other, not in part of braid. Thus the issue for this cap is whether it is in part of braid.

General Note 7 provides in pertinent part the following:

Definitions. For the purposes of the tariff schedule, unless the context otherwise requires--

...

(e) The terms "wholly of", "in part of", and "containing", when used between the description of an article and a material (e.g., "woven fabrics, wholly of cotton"), have the following meanings:

...

(ii) "in part of" or "containing" mean that the goods contain a significant quantity of the named material.

With regard to the application of the quantitative concepts specified above, it is intended that the de minimis rule apply.

The de minimis rule states that an ingredient or component of an article may be ignored for classification purposes depending upon "whether or not the amount used has really changed or affected the nature of the article and, of course, its salability." Varsity Watch Company v. United States, 34 CCPA 155, C.A.D. 359 (1947). The Customs Service has determined in application of the de minimis rule to "in part of braid" that if the quantity of braid in the sample submitted served a useful purpose or affected the nature of the article or increased the salability of the article, it would be considered in part of braid. See HRL 084340, dated August 9, 1989. Also see HRL 083632, dated April 27, 1989; HRL 084083, dated July 14, 1989; and HRL 084075, dated July 14, 1989.

We do not believe that the subject cap is classifiable as in part of braid in application of the de minimis rule and the above-cited cases. The subject merchandise is a baseball-style cap, with or without the braid. We do not see how the amount of braid has affected the nature of the cap or has served any useful purpose. In addition, we have no evidence that shows that the braid increases the salability of the cap. Thus the subject cap is classifiable as not in part of braid under subheading 6505.90.80, HTSUSA.

Country of Origin

Section 12.130 of the Customs Regulations (19 CFR 12.130) provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

Section 12.130(d)(2) of the Customs Regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

Since we do not have sufficient information concerning the factors listed above, we are unable to issue a ruling concerning the country of origin for the merchandise at issue at this time. We would also need more detailed information concerning the manufacturing and processing operations done to create each article.

If you still wish to receive a ruling concerning the country of origin of the submitted caps, please submit a new request, containing the additional information requested, to the following address:

Mr. John Durant
Director
Commercial Rulings Division
U.S. Customs Service
1301 Constitution Avenue, N.W.
Washington, D.C. 20229

HOLDING:

The cap made of 100 percent cotton fabric is classified under subheading 6505.90.2500, HTSUSA, 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, other, of cotton, flax or both, not knitted, other. The rate of duty is 8 percent ad valorem, and the textile category is 859.

The cap made of 65 percent polyester and 35 percent cotton fabric is classified under subheading 6505.90.8060, HTSUSA, 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, other, of man-made fibers, other, not in part of braid, other, other. The rate of duty is 22/kg plus 8 percent ad valorem and the textile category is 659.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

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 Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: