[Federal Register Volume 61, Number 52 (Friday, March 15, 1996)]
[Notices]
[Pages 10841-10844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6144]
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DEPARTMENT OF THE TREASURY
Customs Service
[TD 96-24]
Tariff Classification of Headbands and Similar Articles
AGENCY: Customs Service, Department of the Treasury.
ACTION: Final interpretive ruling.
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SUMMARY: This document gives notice of the change in classification of
certain textile headbands, ponytail holders and similar articles under
the Harmonized Tariff Schedule of the United States (HTSUS). In past
rulings, Customs has classified certain textile headbands in heading
9615, HTSUS, which provides for, ``[C]ombs, hair-slides and the like;
hair pins, curling pins, curling grips, hair curlers and the like,
other than those of heading 8516, and parts thereof.'' Classification
within heading 9615, HTSUS, was based on Customs'' erroneous assumption
that all-textile headbands were a form of ``hair-slide'' and therefore
expressly included within this provision of the nomenclature. Customs
has since learned that ``hair-slides'' are semi-circular loops of rigid
construction that are worn on the head. The rigid component of a hair-
slide may or may not be covered with textiles or other materials.
Several events transpired which caused Customs to reexamine its
classification of textile headbands and ponytail holders within heading
9615, HTSUS. First, at its Tenth Session, the Harmonized System
Committee of the World Customs Organization, formerly known as the
Customs Cooperation Council, approved certain amendments to the
``Harmonized Commodity Description and Coding System, Explanatory
Notes,'' one of which excluded textile headbands from heading 9615,
HTSUS. Also, the popularity of all-textile hair accessories led to an
increase in the importation of these types of articles. Customs was
confronted with the classification of assorted types of textile hair
articles, namely ponytail holders and items commercially referred to as
``scrunchies.'' These types of articles were being entered by importers
under both heading 9615 and headings 6117 and 6217, HTSUS. Clearly, a
reexamination of the classification of these articles was in order and
Customs reviewed the language and scope of heading 9615, HTSUS. Customs
concluded that the language of heading 9615, HTSUS, implicitly
contemplates articles of rigid or semi-rigid construction; this is
evidenced by the fact that every article set forth in the heading
language is of rigid or semi-rigid construction. On this basis, Customs
determined that headbands, ponytail holders and similar articles, made
entirely of textile materials, are not classifiable within heading
9615, HTSUS. Moreover, Customs has reviewed numerous newspaper and
magazine articles which persuasively establish that textile headbands,
ponytail holders and similar articles are treated in the trade and
commerce of the United States as ``accessories.'' Based on the
foregoing factors, Customs proposed classifying knitted or woven
textile headbands, ponytail holders and similar articles in headings
6117 or 6217, HTSUS, respectively, as ``other clothing accessories.''
This proposal was published in a Federal Register document on April 20,
1994. After review of the comments, Customs has determined that textile
headbands, ponytail holders and similar holders are classifiable in
heading 6117 or 6217, HTSUS, but that such articles of mixed
construction should be classified in accordance with General Rule of
Interpretation (GRI) 3.
DATES: This decision will be effective as to merchandise entered for
consumption, or withdrawn from warehouse for consumption, after June
13, 1996.
FOR FURTHER INFORMATION CONTACT: Hubbard Volenick, Office of
Regulations and Rulings, U.S. Customs Service, (202) 482-7050.
SUPPLEMENTARY INFORMATION:
Background
Classification of merchandise under the Harmonized Tariff Schedule
of the United States (HTSUS) is in accordance with the General Rules of
Interpretation (GRI's) taken in order. GRI 1 provides that
classification shall be determined
[[Page 10842]]
according to the terms of the headings and any relative section or
chapter notes.
Section XI, HTSUS, provides for textiles and textile articles.
Heading 6117, HTSUS, provides for other made up clothing accessories,
knitted or crocheted. Heading 6217, HTSUS, provides for other made up
clothing accessories, not knitted or crocheted. Heading 9615, HTSUS,
provides for combs, hair-slides and the like, hairpins, curling pins,
curling grips, hair-curlers, and the like, other than those of Heading
8516, and parts thereof.
At its Tenth Session the Harmonized System Committee of the World
Customs Organization, formerly known as the Customs Cooperation
Council, examined the classification of knitted headbands and approved
the following three amendments to the text of the ``Harmonized
Commodity Description and Coding System, Explanatory Notes'':
1. Explanatory Note to Heading 61.17 (page 845, new item (12)):
``Headbands, used as protection against the cold, to hold the hair in
place, etc.''
2. Explanatory Note for exclusions to Heading 63.07 (page 868, last
paragraph, new item (e): ``Knitted headbands (heading 61.17).''
3. Explanatory Note to Heading 96.15 (page 1611, new last
paragraph):
``This heading excludes textile headbands (Section XI).''
The ``Explanatory Notes'' to the Harmonized Commodity Description
and Coding System (Harmonized System) constitute the official
interpretation of the scope and content of the nomenclature at the
international level. They represent the considered views of
classification experts of the Harmonized System Committee. While not
treated as dispositive, the ``Explanatory Notes'' are to be given
considerable weight in Customs interpretation of the HTSUS. It has
therefore been the practice of the Customs Service to consult the terms
of the ``Explanatory Notes'' when interpreting the HTSUS. See T.D. 89-
80, 54 FR 35127 (August 23, 1989).
In the past, Customs has classified headbands wholly of textile
materials in heading 9615, HTSUS, with the exception of headbands made
of terry knit fabric which were classified in heading 6117, HTSUS. The
rationale for these decisions was based on Customs' erroneous
conclusion that textile headbands met the definition of the term
``hair-slides and the like.'' In the course of preparing Headquarters
Ruling Letter (HRL) 089086, dated May 22, 1992, Customs researched the
definition of the term ``hair-slide'' and concluded that such articles
are of rigid or semi-rigid construction. The pre-amendment Explanatory
Notes to heading 9615, HTSUS, supported Customs' interpretation in that
they stated that ``hair-slides and the like are usually made of
plastics, ivory, bone, horn, tortoise-shell, metal, etc.'' In HRL
089086, Customs concluded that as the textile headband at issue was not
of a rigid or semi-rigid material, it was ``incongruous'' with the
articles of heading 9615.
In a document published in the Federal Register (59 FR 18771) on
April 20, 1994, Customs furnished notice that the classification of the
subject merchandise was under review and requested comments from
interested parties.
Seven submissions were received in response to that document. All
seven opposed the change in classification.
Discussion of Comments
Comment: The U.S. tariff breakout under statistical subheading
9615.19.6010, HTSUS, was intended for textile headbands and ponytail
holders.
Response: The HTSUS is a hierarchical system in which articles
first must be classified under the applicable four digit heading, then
at the six and eight digit levels, and finally at the statistical
level. The issue here is whether the subject merchandise is classified
in heading 6117 (or 6217), HTSUS, or in heading 9615, HTSUS. A
classification analysis of the subject merchandise does not begin with
a comparison of headings 6117 or 6217, HTSUS, and a statistical
breakout at the ten digit level. An analysis of the language of heading
9615, HTSUS, reveals that this heading covers hair articles of a rigid
or semi-rigid construction (i.e., combs, hair-slides, assorted types of
curlers and hair pins). The pre-amendment Explanatory Notes to heading
9615, HTSUS, support this interpretation. Accordingly, classification
of a textile headband, ponytail holder or similar article, of a non-
rigid construction, is inappropriate within heading 9615, HTSUS.
Although the commenter correctly notes that subheading 9615.19.6010,
HTSUS, provides for hair-slides and the like made ``of textile
materials,'' this in no way means that headbands, ponytail holders and
similar articles made entirely from textile materials are classifiable
here. As stated supra, hair articles made entirely from textile
materials, of a non-rigid construction, are not classifiable within
heading 9615, HTSUS. Subheading 9615.19.6010, HTSUS, contemplates the
classification of articles which are, at a minimum, made of a rigid or
semi-rigid construction, and which also have textile components. An
example of an article classifiable within subheading 9516.19.6010,
HTSUS, would be a rigid hair-slide which is covered with a textile.
Lastly, we note that statistical subheadings (10 digit level) are
created for statistical purposes; they have no legal effect and
generally are not relevant to the classification of merchandise. See 19
U.S.C. 1484(f). Consequently, there is no legal basis for classifying
the subject merchandise under subheading 9615.19.6010, HTSUS, based on
the alleged intent of the creation of that statistical subheading.
Comment: The contemplated classification change is contrary to
prior determinations by U.S. Government agencies.
Response: The concern here is that classifying the subject
merchandise in headings 6117 or 6217, HTSUS, would subject the
merchandise to quota, which it is not subject to in heading 9615,
HTSUS. Some commenters stated that the Committee for the Implementation
of Textile Agreements (CITA) had no intention of bringing this
merchandise under quota. Textile categories are assigned to certain
subheadings at the statistical level; therefore, whether an article is
subject to a textile category is dependent on classification of the
merchandise. Goods cannot be classified under the HTSUS based on what
textile category would apply, but instead must be classified in
accordance with the GRI's.
We note that Customs will propose, to the 484(f) Committee, the
creation of statistical breakouts within headings 6117 and 6217, HTSUS,
for merchandise the subject of this notice, so that such articles could
maintain their current treatment concerning quota and visa
requirements.
Comment: Classification of the subject merchandise solely by
reference to the ``Explanatory Notes'' is contrary to law.
Response: As stated supra, classification of the subject
merchandise is not based solely upon the Explanatory Notes.
Classification of textile headbands, ponytail holders and similar
articles within headings 6117 or 6217, HTSUS, is based primarily on
these articles' recognized status as accessories and the fact that they
are not classifiable within heading 9615, HTSUS, inasmuch as they are
not of a rigid or semi-rigid construction. Customs' exclusion of
textile headbands, ponytail holders and similar articles from heading
9615, HTSUS, is supported by the Explanatory
[[Page 10843]]
Notes, both in their pre-amendment format and in the amended version.
As we stated in the Federal Register notice on this issue, we
understand that the ``Explanatory Notes'' are not dispositive, but are
to be given considerable weight and are to be consulted. That position
is consistent with relevant court cases on the issue of the application
of the ``Explanatory Notes.'' (See, e.g., Lynteq, Inc. v. United
States, 976 F.2d 693, 699 (1992) (quoting H.R. Conf. Rep. No. 576, 100
Cong., 2d Sess. 549 (1988), reprinted in 1988 U.S.C.C.A.N. 1547, 1582),
which states ``[although generally indicative of proper interpretation
of the various provisions of the [Harmonized Tariff System], the
Explanatory Notes * * * are not legally binding.]'' (See also, T.D. 89-
80, 54 FR 35127 (August 23, 1989), notice giving guidance for
interpretation of Harmonized System, in which it is stated, ``Customs
will give considerable weight to Explanatory Notes.'')
Comment: Textile headbands and ponytail holders are not clothing
accessories and therefore are not classifiable in headings 6117 and
6217, HTSUS.
Response: The term ``accessory'' is not defined in the tariff
schedule or the ``Explanatory Notes.'' Consequently, Customs and the
courts have relied on standard lexicographical sources for a definition
of the term ``accessory.'' (See Auto-Ordinance Corp. v. U.S., 822 F.2d
1566 (Fed. Cir. 1987), and U.S. v. Liebert, 59 CCPA 43, C.A.D. 1035,
450 F.2d 1405 (1971)) ``Webster's Third New International Dictionary,
Unabridged'' (1986) defines ``accessory'' as ``an object or device that
is not essential in itself but that adds to the beauty, convenience, or
effectiveness of something else * * *. Any of various articles of
apparel (as a scarf, belt, or piece of jewelry) that accent or
otherwise complete one's costume.''
Textile headbands and ponytail holders accent or otherwise complete
one's costume. In addition, these articles can be decorative and add to
the beauty of one's costume or function to hold the hair in place and
add to the effectiveness of one's costume. We believe textile headbands
and ponytail holders meet the definition of ``accessory.'' This
position is supported by the manner in which certain textile hair
accessories, commercially identified as ``scrunchies,'' are treated in
the trade and commerce of the United States. Customs has reviewed
numerous newspaper and magazine articles describing ``scrunchy''
ponytail holders and similar items as accessories.
Some commenters argue that clothing accessories are made to be used
with a particular item, or are attached or are parts of garments. These
commenters argue, therefore, that textile headbands and ponytail
holders are not clothing accessories. Many articles are not made to be
used with a particular item and are classified as clothing accessories.
For example, socks (heading 6115, HTSUS); gloves (headings 6116 and
6216, HTSUS); and scarves (headings 6117 and 6214, HTSUS). In addition,
Customs has classified articles as other clothing accessories which are
not made to be used with particular articles, e.g., earmuffs, and
textile wrist bracelets. Therefore, we do not believe it inconsistent
with the classification of other articles as accessories to classify
textile headbands and ponytail holders as accessories.
Comment: Since ponytail holders were not excluded from heading
9615, HTSUS, in the amendments to the ``Explanatory Notes,'' they
should be classified in heading 9615, HTSUS.
Response: Ponytail holders, both in function and decorative effect,
are substantially similar to textile headbands. It would create an
artificial distinction to treat these two types of articles differently
for tariff classification purposes unless expressly directed to do so
by the terms of the tariff schedule. As stated above, we are not
classifying textile headbands and ponytail holders within headings 6117
or 6217, HTSUS, based solely on amendments to the ``Explanatory
Notes.'' We believe both textile headbands and ponytail holders meet
the definition of ``clothing accessories'' and, as discussed in some
detail above, they are not classifiable within heading 9615, HTSUS.
Consequently, we believe that textile ponytail holders are not
classifiable in heading 9615, HTSUS, despite not being specifically
excluded from that heading by the ``Explanatory Notes.''
Comment: The knit woolen headband under consideration by the
Harmonized System Committee which led to the amendments to the
``Explanatory Notes'' has a different function from many textile
headbands.
Response: The language of the amendments to the ``Explanatory
Notes'' states that textile headbands are excluded from heading 9615,
HTSUS. This exclusionary language is fairly broad and does not indicate
that only knit woolen headbands should be excluded from heading 9615,
HTSUS. In addition, when the issue of textile headbands was considered
by the Harmonized System Committee, comments made by the Secretariat
supported this position. For example, the Secretariat stated, ``* * *
the articles specifically cited in the text of heading 9615 do not seem
in any way related to products of textile materials.'' Thus, we cannot
agree that the exclusionary amendment to heading 9615 for textile
headbands is in any way limited to knit woolen headbands.
Comment: Heading 9615, HTSUS, is a use provision that encompasses
hair ornaments, including headbands and ponytail holders.
Response: Heading 9615, HTSUS, provides for combs, hair-slides and
the like, hairpins, curling pins, curling grips, hair curlers, and the
like. There is nothing in the language of this heading that indicates
that classification is controlled by use. Some commenters have relied
on the language of the ``Explanatory Notes,'' which states that heading
9615 covers ``hair slides and the like for holding the hair in place or
for ornamental purposes.'' We cannot agree that this language shows
that heading 9615, HTSUS, is a use provision. To conclude that all
articles used to hold the hair in place or for ornamental purposes are
classifiable as hair-slides of heading 9615, HTSUS, would result in
many articles erroneously being classified in this heading. For
example, such articles as scarves, hats, visors, and other headwear,
would be classifiable in heading 9615, HTSUS, when they are clearly
classified elsewhere. Consequently, we cannot agree with those
commenters who argue that heading 9615, HTSUS, is a use provision.
Comment: The subject merchandise should not be classified on the
basis of whether it is of rigid or semi-rigid construction or primarily
of textile materials since such language is not contained in the HTSUS
or the ``Explanatory Notes.''
Response: The ``Explanatory Notes'' to heading 9615 exclude
``textile headbands,'' but include ``hair-slides and the like'' and
note that these articles are usually made of plastics, ivory, bone,
horn, tortoise-shell, metal, etc. The language to which the commenters
object represents Customs'' interpretation of the scope of the
pertinent headings in light of the ``Explanatory Notes'' and absent any
lexicographic definitions for ``hair slides and the like.''
Some commenters have suggested that those articles of mixed
construction, e.g., textiles and plastics, are prima facie,
classifiable in two headings, either heading 6117 or 6217, HTSUS,
(depending on whether of knit or other textile, e.g., woven
construction), and heading 9615, HTSUS. In those cases, the commenters
argued that the
[[Page 10844]]
remaining GRI's should be applied, specifically GRI 3.
GRI 3 states that when, by application of rule 2(b) or for any
other reason, goods are, prima facie, classifiable under two or more
headings, classification shall be effected as follows:
(a) The heading which provides the most specific description
shall be preferred to headings providing a more general description.
However, when two or more headings each refer to part only of the
materials or substances contained in mixed or composite goods or to
part only of the items in a set put up for retail sale, those
headings are to be regarded as equally specific in relation to those
goods, even if one of them gives a more complete or precise
description of the goods.
(b) Mixtures, composite goods consisting of different materials
or made up of different components, and goods put up in sets for
retail sale, which cannot be classified by reference to 3(a), shall
be classified as if they consisted of the material or component
which gives them their essential character, insofar as this
criterion is applicable.
(c) When goods cannot be classified by reference to 3(a) or
3(b), they shall be classified under the heading which occurs last
in numerical order among those which equally merit consideration.
After careful consideration of these comments, we believe they have
merit. By application of GRI 1, headbands, ponytail holders and similar
articles, of mixed construction, are classifiable in heading 6117 or
6217, HTSUS, and heading 9615, HTSUS, and therefore GRI 3 provides the
relevant analysis.
GRI 3(a) does not apply when two or more headings each refer to
part only of the materials in a good. Note 1 to Chapter 61, HTSUS,
states that this chapter applies only to made up knitted or crocheted
articles. Similarly, Note 1 to Chapter 62, HTSUS, states that this
chapter applies only to made up articles of any textile fabric other
than wadding, excluding knitted or crocheted articles. Thus, articles
of headings 6117 and 6217, HTSUS, are textiles. These headings refer to
only part of the good when it is made of mixed construction, e.g.,
textiles and plastics. Similarly, heading 9615, HTSUS, which according
to the ``Explanatory Notes'' normally refers to goods made of plastics,
ivory, bone, horn, tortoise-shell, metal, etc., refers to only part of
the good when it is made of mixed construction, e.g., plastic and
textiles. Thus, GRI 3(a) is inapplicable.
The subject goods of mixed construction, therefore, would be
classifiable in accordance with GRI 3(b), and an essential character
determination must be made. This would be done on a case by case basis.
In many cases, we believe that articles of mixed construction would
remain classifiable in heading 9615, HTSUS. For example, a barrette or
clasp of plastic or metal decorated or covered with textile material
normally would be classified in heading 9615, HTSUS, since the
essential character of the article is imparted by the base, which
functions to hold the hair in place. There may be circumstances where
neither the textile nor non-textile component imparts the essential
character, in which case classification would be in accordance with GRI
3(c).
Conclusion
After careful analysis of the comments submitted and further study
of this matter, Customs finds that textile headbands, ponytail holders
and similar articles are classified as other clothing accessories of
heading 6117 or 6217, HTSUS. Those articles of mixed construction,
textiles and another material, e.g., plastics, will be classified in
accordance with GRI 3.
To allow sufficient time for interested parties to be aware of this
change and to make necessary arrangements, this change in
classification is being delayed 90 days from the date of publication in
the Federal Register.
George J. Weise,
Commissioner of Customs.
Approved: February 16, 1996.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 96-6144 Filed 3-14-96; 8:45 am]
BILLING CODE 4820-02-P