HQ 0953223 - Detrimental Reliance on DD 877853, dated September 25, 1992; original classification of ladies' hooded pullover garment in heading 6202, HTSUSA; reclassification in heading 6211, HTSUSA; effective date of HQ 953251, which revokes DD 877853, delayed; 19 CFR 177.9(d)(3) - United States International Trade Commision Rulings

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HQ 953223

February 8, 1993

CLA-2 CO:R:C:T 953223 jb

CATEGORY: CLASSIFICATION

Ronald W. Gerdes, Esq.
Diane L. Weinberg, Esq.
Sandler, Travis & Rosenberg, P.A.
1341 G Street, N.W.
Washington, D.C. 20005-3105

RE: Detrimental Reliance on DD 877853, dated September 25, 1992; original classification of ladies' hooded pullover garment in heading 6202, HTSUSA; reclassification in heading 6211, HTSUSA; effective date of HQ 953251, which revokes DD 877853, delayed; 19 CFR 177.9(d)(3)

Dear Mr. Gerdes and Ms. Weinberg:

This is in reply to your letter dated January 6, 1993, on behalf of your client, Angelique Imports, Inc. (hereinafter "Angelique"), in which you claim that your client relied to its detriment on District Decision (DD) 877853, dated September 25, 1992.

In Headquarters Ruling (HQ) 953251, of this date, Customs revoked DD 877853 and reclassified a ladies' hooded pullover garment in subheading 6211.42.0050, HTSUSA, which provides for, among other things, women's or girls' shirts, dutiable at a rate of 8.6 percent ad valorem and subject to quota category 341. The articles had previously been classified in DD 877853 in subheading 6202.92.2060, HTSUSA, which provides for, among other things, women's or girls' anoraks, windbreakers and similar articles, of cotton, dutiable at a rate of 9.5 percent ad valorem, and subject to quota category 335.

After receiving DD 877853, Angelique relied upon that ruling to base its current purchases and to place production with certain suppliers, and in particular countries where quota for category 335 is available. The exportation of these goods from the country of origin requires the importer to obtain the required quota for the merchandise. For the garments produced in India and the United Arab Emirates, the problem is the availability of quota for category 341. At this late date it would not be feasible for Angelique to obtain the required quota for the shipments that were manufactured in India and for which it has already contracted, in reliance of DD 877853. Under 19 CFR 177.9(d)(3), the effective date of a ruling letter that revokes an earlier ruling may be delayed for a period of up to ninety days, provided that the party seeking delay can demonstrate to the satisfaction of the Customs Service that reliance of the revoked ruling was reasonable and such reliance was detrimental.

After reviewing the information submitted, it is Customs' opinion that Angelique suffered a detriment in that the ladies' hooded pullovers contracted for prior to the revocation of DD 877853, now require a different quota category. Reliance on the quota category set forth in DD 877853 was reasonable as there had been no subsequent modification or revocation of this ruling until after Angelique had already entered into purchase agreements and committed to resale prices for the goods in the United States. The prerequisite for relief under 19 CFR 177.9(d)(3) has been satisfied, however any relief provided by Customs shall not extend to purchase orders placed after November 2, 1992.

Based upon your submission, the effective date of HQ 953251 is delayed for only those garments referred to as Style 36 series and Style 60 series, entering through New York and described as ladies' hooded pullover garments with elasticized cuffs extending to the hip and featuring a drawstring bottom, with a partial "v-neck" front opening secured by a drawstring and side pockets. These garments are to be granted entry under the classification for women's or girls' anoraks, windbreakers and similar articles, of cotton, in heading 6202, HTSUSA, with an applicable rate of duty of 9.5 percent ad valorem and quota category 335.

The garments affected by this ruling are:

I. Goods currently located in the U.S., either in New York, J.F.K. Airport, or at the Seaport:

A. Warehouse Entries:

1. 469-0029165-2 256 cartons 9,388 garments 2. 469-0029734-5 130 cartons 3,900 garments 3. 469-0029735-2 132 cartons 3,960 garments

B. Duty Paid Entries:

1. 469-0029829-3 118 cartons 4,370 garments 2. 469-0029828-5 71 cartons 2,130 garments 3. 469-0029830-1 200 cartons 6,000 garments 4. 469-0029827-7 120 cartons 3,600 garments 5. 469-0030000-8 145 cartons 4,504 garments 6. 469-0029999-4 200 cartons 6,000 garments 7. 469-0029998-6 129 cartons 3,870 garments 8. 469-0030007-3 50 cartons 1,496 garments 9. 469-0030006-5 70 cartons 2,100 garments 10. 469-0030005-7 200 cartons 6,000 garments 11. 469-0030004-0 200 cartons 6,000 garments 12. 469-0030008-1 600 cartons 18,000 garments 13. 469-0030010-7 600 cartons 18,000 garments 14. 469-0030022-2 290 cartons 8,700 garments

II. Goods currently in transit:

Bill of Lading Numbers: each carton contains approximately 30 pieces:

1. APLU 004138827 291 cartons from India
2. 001432 182 cartons from
Bangladesh

With regard to the garments which are either in transit or ready for shipment, and for which you could not furnish identifying information, these will be the subject of a separate ruling letter, at such time as you are able to provide us with the requisite details.

This action is being taken in accordance with 19 CFR 177.9(d)(3) and 19 CFR 177.9(e)(1), and the Committee for the Implementation of Textile Agreements. Any questions concerning this letter should be directed to the Textile Classification Branch, office of Regulations and Rulings.

Sincerely,

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