HQ 0953362 - 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 953362

February 17, 1993

CLA-2 CO:R:C:T 953362 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 ruling incorporates by reference HQ 953223, and 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 February 8, 1993, 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 goods in transit, coming from Bangladesh or India, with the following identifying information:

Bill of Lading Numbers

1. APLU 004138827 291 cartons 8,705 garments 2. APLU 004916640 17 cartons 816 garments 3. MOLU 416044169 182 cartons 8,736 garments 4. MOLU 416046766 41 cartons 1,968 garments 5. MOLU 416046017 83 cartons 3,984 garments

Airway Bills

1. 229-3117-3704 482 cartons 14,942 garments 2. 229-3117-3833 520 cartons 16,120 garments 3. 229-3117-3822 214 cartons 6,634 garments 4. 229-3117-3903 67 cartons 2,077 garments

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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