Tee Bag with Golf Tees; Not Sports Equipment; Not Specially Shaped or Fitted Case or Container

HQ 952898 April 23, 1993 CLA-2 CO:R:C:F 952898 GGD CATEGORY: Classification TARIFF NO.: 6307.90.9986; 9801.00.10; 9802.00.80 Mr. Chris Nielsen SunRise Innovations 2580 Haversley Avenue Coquitlam, British Columbia V3J 1W5 RE: Tee Bag with Golf Tees; Not Sports Equipment; Not Specially Shaped or Fitted Case or Container Dear Mr. Nielsen: This letter is in response to your inquiries of July 21 and October 23, 1992, concerning the proper classification, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of an article identified as a tee bag (with golf tees), to be imported from Canada. A sample was submitted subsequent to your initial inquiry. FACTS: The sample article is a sack or bag, constructed by joining together 2 pieces of knit, micro-mesh, polyester fabric, each measuring approximately 5 inches by 5 inches. The bag is sewn on its bottom and sides, and has velcro strips sewn into the top for opening and closing. Also at the top, is a small metal grommet and a detachable, metal fastening hook measuring approximately 2- 1/2 inches by 1-1/2 inch, by which the tee bag may be attached to a golf bag. The bag is constructed in Canada from fabric of Canadian origin. The velcro is of U.S. origin, as are the wooden tees that will be imported within the tee bag. The grommet and hook are products of third countries. -2- ISSUES: 1) Whether the article is classifiable as sports equipment under heading 9506, HTSUSA; as a special case or container under heading 4202, HTSUSA; or as an other made up textile article under heading 6307, HTSUSA. 2) Whether the U.S.-origin tees and velcro are entitled to a duty exemption under subheadings 9801.00.10 and 9802.00.80, HTSUSA. LAW AND ANALYSIS: Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI's). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, 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 headings and legal notes do not otherwise require, the remaining GRI's may then be applied. The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI's. This article consists of 2 components, wooden tees for elevating golf balls and a knit polyester bag to hold the tees and attach them to a golf bag. The tees and the bag cannot be classified by reference to GRI 1 because each component is classifiable in a different heading or headings. The tees are classifiable in heading 9506, HTSUSA, as sports equipment. The tee bag is either classifiable in heading 4202, HTSUSA, as a special case or container, or in heading 6307, HTSUSA, as an other made up textile article. In pertinent part, GRI 2(b) states that: [t]he classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3. GRI 3(a) directs that, since the headings each refer to only part of the composite article, the headings are regarded as equally specific. Therefore in determining whether the article will be classified under a provision for the tees or a provision for the tee bag, we next look to GRI 3(b), which states that: -3- [m]ixtures, 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. Explanatory Note VIII to GRI 3(b) provides the following guidance concerning essential character determinations: The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods. The polyester bag not only stores and transports golf tees, but also serves to attach the tees to a golf bag (that may have limited convenient pocket space) at any point deemed appropriate for play or for storage. The bag is clearly more durable than the tees it carries, and is intended to be refilled as tees are worn out, broken, or lost. In light of these factors, we find that the tee bag provides the essential character of the whole article. With respect to the proper classification of the tee bag, and thus, the whole article, we note that heading 4202, HTSUSA, provides for, among other items, cases for spectacles, binoculars, cameras, guns, and similar containers. The heading also covers cases, bags, boxes, and pouches for maps, cigarettes, powder, cutlery, toiletry, and other containers for specific purposes. Although the tee bag may be similar in size and/or durability to some cases and containers of heading 4202, the article does not fit comfortably with the other goods properly classified there. GRI 5(a) states that cases and containers suitable for long term use that are specially shaped or fitted for the specific articles with which they are entered shall be classified with the articles they contain. Even if the tee bag were deemed to be specially shaped or fitted for golf tees, however, the rule is not applicable to containers which give the whole article its essential character. GRI 5(b) similarly states that packing -4- containers and materials are to be classified with the articles entered, but the rule is subject to the provisions of rule 5(a), and is inapplicable to packing containers and materials suitable for repetitive use. Heading 6307, HTSUSA, provides for other made up textile articles. Notes 7(d) and (e) to Section XI, HTSUSA, state in pertinent part that the expression "made up" means "[c]ut to size and having undergone a process of drawn thread work...[a]ssembled by sewing...." Subheading 6307.90.9986, covers other made up textile articles, and is the proper classification for this made up article. Subheading 9801.00.10, HTSUSA, provides for the duty-free entry of products of the U.S. that are returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, provided there has been compliance with the documentary requirements of section 10.1, Customs Regulations (19 CFR 10.1). In this case, because the U.S.-origin tees are merely placed inside the bag, they are not advanced in value or improved in condition while abroad. Therefore, when imported inside the bag, the tees will be entitled to duty-free treatment under subheading 9801.00.10, HTSUSA, assuming compliance with the documentation requirements of 19 CFR 10.1. Subheading 9802.00.80, HTSUSA, provides a partial duty exemption for: articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting. An article entered under subheading 9802.00.80, HTSUSA, is subject to duty upon the full value of the imported assembled article, less the cost or value of such U.S. components, upon compliance with the documentation requirements of section 10.24, Customs Regulations (19 CFR 10.24). -5- Section 10.16(a), Customs Regulations (19 CFR 10.16(a)), provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fasteners. Operations incidental to the assembly process are not considered further fabrication operations, as they are of a minor nature and cannot always be provided for in advance of the assembly operations. However, any significant process, operation or treatment whose primary purpose is the fabrication, completion, physical or chemical improvement of a component precludes the application of the exemption under HTSUSA subheading 9802.00.80 to that component. See, 19 CFR 10.16(c). We understand that the velcro of U.S. origin will be imported into Canada in rolls where it will be cut to 5-inch lengths prior to being sewn into the tops of the bags. Sewing the velcro into the bags is an acceptable assembly operation pursuant to 19 CFR 10.16(a), and cutting the velcro to length prior to assembly is an operation incidental to the assembly process pursuant to 19 CFR 10.16(c)(6). Therefore, an allowance in duty may be made under subheading 9802.00.80, HTSUSA, for the cost or value of the U.S.-origin velcro when the tee bags are imported into the U.S. This assumes compliance with the documentation requirements of 19 CFR 10.24. HOLDING: The tee bag is classified in subheading 6307.90.9986, HTSUSA, the provision for "Other made up [textile] articles,...: Other: Other: Other: Other: Other." The general column one rate of duty is 7 percent ad valorem. If the article is a qualifying good from Canada, that is, wholly obtained or produced in the territory of Canada and/or the United States, which meets the requirements of General Note 3(c)(vii)(B), it will enjoy preferences under the United States-Canada Free Trade Agreement (CFTA). The rate of duty under the CFTA for this subheading is 3.5 percent ad valorem. The U.S.-origin tees are entitled to a duty exemption under subheading 9801.00.10, HTSUSA, and the U.S.-manufactured velcro is entitled to a duty allowance under 9802.00.80, HTSUSA, assuming compliance with the documentation requirements for these two tariff provisions. -6- Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification), you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements. Your question as to the country of origin/marking issue has been referred to the Value and Marking Branch, and a response will be provided to you under separate cover. Sincerely, John Durant, Director Commercial Rulings Division DATE: FILE: CLA-2 CO:R:C:F 952898 GGD TO : Chief, Value and Marking Branch FROM : Chief, Food and Chemicals Classification Branch SUBJECT: Separate Response to Inquirer Concerning Marking Issue Attached is our file and a copy of this branch's response to an inquiry concerning the tariff classification of an article identified as a "tee bag" with golf tees. The inquirer requests information as to the proper country of origin marking to be placed on the imported goods. The importer has been advised that he will receive a separate response from your staff as to the marking issue. John E. Elkins Attachment