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)

HQ 953595 April 9, 1993 CLA-2 CO:R:C:T 953595 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 15, 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 can be identified by the following entry numbers: 469-00268528 469-00260160 469-00277560 469-00281794 469-00281802 469-00278872 Also affected by this ruling are those entry numbers listed in Exhibits A through C, which have been appended to this ruling letter. In addition, we have made note that entry 469-00282586 is scheduled for a no change liquidation as of January 29, 1993. This action is being taken in accordance with 19 CFR 177.9(d)(3) and 19 CFR 177.9(e)(1), and with the concurrence of 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, John Durant, Director Commercial Rulings Division