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 > 2002 HQ Rulings > HQ 964558 - HQ 964702 > HQ 964688

Previous Ruling Next Ruling
HQ 964688





May 1, 2001

CLA-2 RR:CR:TE 964688 ASM

CATEGORY: CLASSIFICATION

TARIFF NO.: 6302.60.0020

Mr. Harold Schierholt
President
Cecil Saydah Company
2935 E. 12th Street
Los Angeles, CA 90023

RE: Request for reconsideration of NY G81493: Cotton terry towel blanks

Dear Mr. Schierholt:

This is in response to a letter, dated November 6, 2000, requesting reconsideration of Customs New York Ruling (NY) G81493, dated October 10, 2000, which classified cotton terry towels under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A sample was submitted to this office for examination.

FACTS:

The subject merchandise is described as a “towel blank” which is constructed of 100 percent cotton terry toweling fabric. At the time of importation, the towel will have no design. You have indicated that the design will be printed in the United States. All of the edges have been hemmed and the towel measures approximately 16 inches x 25 inches. The submitted towel bears a label which has been sewn onto the towel and is printed with the words “Kitchen Towel.”

In NY G81493 the subject towels were classified in subheading 6302.60.0020, HTSUSA, which provides for toilet linen and kitchen linen, of terry toweling or similar terry fabrics, of cotton”Other.” This provision is currently dutiable under the general column one rate at 9.5 percent ad valorem and has a corresponding textile quota category of 363. You disagree with this classification and assert that the intended use of the subject “towel blank “is as a kitchen towel which is properly classifiable under subheading 6302.60.0010, HTSUSA, as a “dish” towel of cotton terry toweling. This provision is currently dutiable under the general column one rate at 9.5 percent ad valorem and has a corresponding textile quota category of 369.

ISSUE:

What is the proper classification for the merchandise?

LAW AND ANALYSIS:

Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is made in accordance with the General Rules of Interpretation (GRI). 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 heading and legal notes do not otherwise require, the remaining GRI may then be applied. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the international Harmonized System, although not dispositive facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

On December 28, 1988, Customs published Guidelines for the Reporting of Imported Products in Various Textile and Apparel Categories, 53 Fed Reg. 52563 (Textile Guidelines) which were developed to facilitate classification at the statistical level for various textile and apparel categories as well as to assist in determining the appropriate textile quota category. With respect to the towels now in issue, these Guidelines provide in pertinent part that:

Dish towels (category 369) and hand towels (category 363) fall within the same size range, 15 to 18 inches wide and 24 to 32 inches long, and are sometimes difficult to distinguish from each other. With one exception, dish towels always have a design printed on them or woven or knit into them. The design may be in the form of pictures of fruit, kitchen utensils, chickens, etc., or may be checks, stripes, or similar patterns. The dish
towels that usually do not have a design are light weight, plain woven, nonpile cotton towels that may be similar to, but readily distinguishable from, shop towels which are made from a much coarser fabric. These towels may be longer than the other dish towels.

Hand towels may be plain or patterned (containing decorative work or pictures). When patterned, they are almost always pile constructed. Distinctions between patterned hand towels and dish towels can usually be made based on the type of pattern or design. Kitchen-style motifs obviously would not be printed on bathroom towels. Where a design is susceptible of both kitchen and bathroom uses, the factor that may be determinative is what accompanying articles are in the shipment (e.g. potholders with the same pattern or design will usually cause the articles to be classified as dish towels while bath towels of the same pattern or design will usually result in classification as other towels in category 363). In no instance will a hand towel be classified as a dish towel solely because it is accompanied by matching potholders or other kitchen articles. In the event that no clear distinction based on pattern, design, or otherwise can be made, the article will be classified as an “other” towel in category 363 because it is readily susceptible to more than one use.

In the present case, the towels are being imported as “blanks”, without any printed design. Where no clear distinction can be made based on pattern, design, or otherwise, we are instructed by the Textile Guidelines to classify the article as an “other” towel in category 363 because it is readily susceptible to more than one use. See Headquarters Ruling (HQ) 959583, dated March 20, 1997, in which Customs applied the Textile Guidelines and classified plain cotton terry towels (15 inches x 25 inches) with no woven or printed designs as “other” towels under subheading 6302.60.0020, HTSUSA, stating that they could be used as either dish or hand towels. However, in the subject case, the towels can be distinguished from those in HQ 959583, because they are imported with a sewn-on label which provides a printed indication of “Kitchen Towel.”

HQ 077195, dated February 12, 1986, addressed the classification of plain white terry towels (15 ¾ inches x 27 inches) under the Tariff Schedules of the United States Annotated (TSUSA), which was the predecessor to the HTSUSA. In noting that “dish towels”, item 366.2420, TSUSA, with a textile category designation of 369 , is a use provision, it was reasoned that even with a “dish towel” notation on the label, the plain white terry towel would belong to a class or kind of merchandise chiefly used as hand towels. Such towels would be
classifiable as “other towels” in item 366.2460, TSUSA, with a textile category designation of 363, unless the words “Kitchen Towel” or printing with kitchen motif appeared across the face of the towel. See also HQ 077826, dated March 25, 1986, which followed the precedent set in HQ 077195 by classifying plain cotton terry towels bearing a “Dish Towel” label as “other towels” in item 366.2460, TSUSA, under category 363.

More recently, in HQ 962455, dated June 30, 1999, Customs declined to reconsider HQ 077195 because the ruling had been decided under the TSUSA and the individual requesting reconsideration was not the party in interest named in the original ruling. Specifically, HQ 962455 involved the classification of plain white/ecru cotton velour towels, measuring 16 inches x 25 inches, and having a full terry loop on the back. In classifying this merchandise as “dish towels” under subheading 6302.60.0010, HTSUSA (textile category 369), Customs, in part placed emphasis on the marketing of the towels and stated: “we are persuaded that the towels you import will be sold exclusively to kitchen textile manufacturers and will be sold and marketed as kitchen towels.” In addition, it was determined that in lieu of printing the words “kitchen towel” onto the towel itself, as had previously been required in HQ 077195 and HQ 077826, it would be sufficient for the towels to possess both a hang-loop sewn into two seams of the towel with the words “Kitchen Towel” printed on it, as well as printing “Kitchen Towel” onto the country of origin marking label.

In the instant case, we have reviewed documentary evidence relating to your company’s business in the production, marketing, and distribution of kitchen textiles and accessories. We further acknowledge that the subject towel blanks will be imported with the words “Kitchen Towel” on the sewn-on permanent label. However, Customs has already determined in HQ 962455, that in addition to proof that the import will be sold and marketed as kitchen towels, two elements are required in lieu of printing the words “kitchen towel” onto the towel itself, i.e., “a hang-loop sewn into two seams of the towel with the words ‘Kitchen Towel’ printed on it, as well as printing ‘Kitchen Towel’ onto the country of origin marking label.” As such, the subject towel blanks still fall short of satisfying the necessary requirements because you are only proposing to have the words “Kitchen Towel” printed on the country of origin label . It is our understanding that you do not intend to have a hang-loop sewn into two seams of the towel with the words “Kitchen Towel.”

It is also important to note that Customs has established specific criteria for the printed words, “Kitchen Towel”, holding that where the letters are not distinctive (the words must be at least 3/8 inch high), if the letters are not printed in indelible ink, or if the words only appear on a sewn label, the towel will be classified as an “other” towel under subheading 6302.60.0020, HTSUSA. See the following New York Rulings: B85105, dated May 23, 1997; B87964, dated August 27, 1997; C84942, dated May 11, 1998; C85607, dated March 27, 1998; C86062, dated April 14, 1998; D88236, dated March 12, 1999; C88294, dated June 17, 1998; D87375, dated February 5, 1999; D87512, dated February 9, 1999; B89257, dated September 26, 1997; B89742, dated October 21, 1997; C80491, October 29, 1997; C89150, dated July 8, 1998; D89080, dated April 1, 1999; E88988, dated December 14, 1999.

In view of the foregoing, we believe that NY G81493 was correct in classifying the subject merchandise as an “other” towel under subheading 6302.60.0020, HTSUSA. As such, NY G81493, dated October 10, 2000, is affirmed.

HOLDING:

The subject merchandise is correctly classified in subheading 6302.60.0020,HTSUSA, which provides for, “Bed linen, table linen, toilet linen: Toilet linen and kitchen linen, of terry toweling or similar terry fabrics, of cotton, Towels: Other.” The general column one duty rate under the 2001 HTSUSA is 9.5 percent ad valorem. The textile category is 363.

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.

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.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: