IA 23/93; Footwear; Detrimental Reliance; 19 CFR 177.9(b)(1); 6403.91.90

HQ 954118 June 14, 1993 CLA-2 CO:R:C:M 954118 DWS CATEGORY: Classification TARIFF NO.: 6404.19.20 District Director U.S. Customs Service 300 Second Avenue, South Great Falls, MT 59401 RE: IA 23/93; Footwear; Detrimental Reliance; 19 CFR 177.9(b)(1); 6403.91.90 Dear District Director: This is in response to your letter of March 11, 1993 (CLA-1:FM), relating to a request for internal advice initiated by Kuehne & Nagel, Inc., on behalf of Redwing Shoe Company, Inc., concerning whether the importer detrimentally relied on the holding in NY 867871, dated November 5, 1991. FACTS: The merchandise consists of lace-up, over-the-ankle hiking boots with rubber soles (style nos. 7566/67 and 7533/34). In requesting a binding ruling concerning the merchandise, the importer stated that the uppers of the boots, disregarding accessories and reinforcements, were composed of over 50 percent leather. Based upon this information, in NY 867871 the boots were classified under subheading 6403.91.90, HTSUS, which provides for: [f]ootwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather: [o]ther footwear: [c]overing the ankle: [o]ther: [f]or other persons. The general, column one rate of duty is 10 percent ad valorem. In pertinent part, the ruling to the importer stated that: [y]our letter claims that the external surface area of the two shoes, disregarding accessories and reinforcements, is 59.8 percent and 56.9 percent leather, respectively. (emphasis supplied). Several months after NY 867871 was issued, your office sent a sample of style no. 7566/67 to the Customs Laboratory in San Francisco, California. The laboratory report, dated May 19, 1992 (8-92-10535-001), stated that, disregarding accessories and reinforcements, the upper actually was composed of 53 percent textile and 47 percent leather. Through the use of a CF-6431, the National Import Specialist for footwear was made aware of the new measurement findings, and told your office that, with regard to style nos. 7566/67, entries were to be classified under subheading 6404.19.20, HTSUS, which provides for: [f]ootwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: [f]ootwear with outer soles of rubber or plastics: [o]ther: [f]ootwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather. The general, column one rate of duty is 37 percent ad valorem. Kuehne & Nagel, Inc., on behalf of the importer, argues that the importer detrimentally relied on the holding in NY 867871 with regard to style nos. 7566/67, and it should not have to pay the higher duty on its open entries. ISSUE: Whether the importer is due relief based upon detrimental reliance? LAW AND ANALYSIS: The effect of a ruling letter is stated in section 177.9(b)(1), Customs Regulations [19 CFR 177.9(b)(1)]: [e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter whether directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based. In this instance, the information furnished by the importer (the uppers of style nos. 7566/67, disregarding accessories and reinforcements, were composed of over 50 percent leather), upon which the ruling was issued, and incorporated into NY 867871, was not "accurate and complete in every material respect". After inspection by the Customs Laboratory, it was determined that the uppers of the boots, disregarding accessories and reinforcements, were actually composed of over 50 percent textile. The importer cannot detrimentally rely on the holding in NY 867871 with regard to style nos. 7566/67, because the right to rely depends on coincident facts. HOLDING: Based upon 19 CFR 177.9(b)(1), the importer is not due relief based upon detrimental reliance. All open entries of style nos. 7566/67, regardless of date, are to be liquidated under subheading 6404.19.20, HTSUS. You should advise the internal advice applicant of this decision. Sincerely, John Durant, Director