Classification of Pumpkin Bonnet; Reconsideration of HRL087321

HQ 951087 April 8, 1992 CLA-2 CO:R:C:T 951087 CAB CATEGORY: Classification TARIFF NO.: 6505.90.6030 Christopher L. Thayer Hallmark Cards, Inc. Kansas City, MO 64141 RE: Classification of Pumpkin Bonnet; Reconsideration of HRL 087321 Dear Mr. Thayer: This ruling is in response to your letter of December 19, 1991, requesting reconsideration of HRL 087321. The ruling classified two infant's bonnets, a pumpkin bonnet and a bunny bonnet, in subheading 6505.90.6080, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as hats and other headgear, of man-made fibers, knitted or crocheted. FACTS: The merchandise at issue is the pumpkin bonnet for infants. The outer shell of the pumpkin bonnet, style number KJR4076, is made of 65% polyester and 35% cotton knitted fabric. The bonnet is designed and advertised for use as part of Hallmark's Halloween Baby Boo promotion and will be sold separately at retail stores. The product will be manufactured in China. A sample was submitted for examination. Hallmark has reduced the size of the original pumpkin bonnet to the size of the submitted sample in order to change the textile category from 659 to 239. Hallmark also contends that the sample merchandise is classifiable in Chapter 95 instead of Chapter 65. ISSUE: Whether the merchandise in question is classifiable as a festive article of Chapter 95, HTSUSA, or as headgear of Chapter 65, HTSUSA? LAW AND ANALYSIS: Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that "classification shall be determined according to the terms of the heading and any relative Section or Chapter notes." Merchandise that cannot be classified in accordance with GRI 1 are to be classified in accordance with subsequent GRI's, taken in order. Hats and headgear are generally classified in Chapter 65 of the HTSUSA. However, Note 1(c), Chapter 65, states that doll's hats, other toy hats or carnival articles of Chapter 95 are excluded from that chapter. You assert that as a result of Headquarters Ruling Letter (HRL) 088410 of April 18, 1991, which determined that certain children's Halloween costumes, including a pumpkin costume, were classified in Heading 9505 as festive or carnival articles, the instant article should also be classified in Heading 9505. However, the articles classified in HRL 088410 were constructed of 100% polyester tricot, and there was no mention of lining or padding as in the instant article. Since the instant article contains this additional lining and padding, it has a much more utilitarian value than the merchandise in HRL 088410. The instant article could be utilized for warmth, whereas the article in HRL 088410 would likely be used only as fancy dress. You also state that HRL 085696 of November 30, 1989, classified an article similar to the instant merchandise in Heading 9505. However, the articles are not similar because the instant article does have substantial practical value as protection for the head, while, the hat in HRL 085696 was part of a Halloween costume that was traditionally associated with festive occasions. HOLDING: Accordingly, the merchandise in question is properly classifiable in Chapter 65 rather than Chapter 95. Due to the smaller size of the sample, it is classifiable in subheading 6505.90.6030, HTSUSA, as hats and other headgear, knitted or crocheted...of man-made fibers, not in part of braid, for babies. This item falls in textile category 239, and it is dutiable at 39.7 cents per kilogram plus 14.1 percent ad valorem. The submitted sample will be returned under separate cover. The designated textile and apparel category may be subdivided into parts. If so, the 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 available, we suggest 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 updated weekly and 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, 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 Commercial Rulings Division