Footwear; Sneaker, Highlander; Band, foxing-like DD 890452 modified

HQ 956466 August 29 1994 CLA-2 CO:R:C:M 956466 DFC CATEGORY: Classification TARIFF NO.: 6404.11.70 Ms. Martha J. Waldner, Import Supervisor Unitrans International Corporation 709 South Hindry Ave. Inglewood, California 90301 RE: Footwear; Sneaker, Highlander; Band, foxing-like DD 890452 modified Dear Ms. Waldner: This is in reference to District Ruling Letter (DD) 890452 dated October 19, 1993, addressed to you, concerning, in part, the tariff classification of a sneaker produced in Portugal. We have reviewed that ruling and determined that with respect to the sneaker, it is in error. Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625) as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub L. 103-182, 107 Stat. 2057,2186(1993) (hereinafter "section 625"), notice of the proposed modification of DD 890452 was published on July 27, 1994, in the CUSTOMS BULLETIN, Volume 28, Number 30. FACTS: The merchandise, identified as a "Highlander" sneaker, is similar to a training shoe. It has a canvas upper, rubber sole, and a 1.5 centimeter wide rubber foxing-like band molded at the sole and overlapping the upper. In DD 890452 Customs ruled that the "Highlander" sneaker is classifiable under subheading 6404.19.60, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials, other, valued over $3 but not over $6.50/pair, having soles (or midsoles, if any) of rubber or plastics which are affixed to the upper exclusively with an adhesive (any midsoles also being affixed exclusively to one another and to the sole with an adhesive), the foregoing except footwear having a foxing or a foxing-like band applied or molded at the sole and overlapping the upper. . . . The applicable rate of duty for this provision is 37.5% ad valorem. ISSUE: Does the presence of a foxing-like band on the sneaker preclude its classification under subheading 6404.19.60, HTSUS? LAW AND ANAlYSIS: Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided such headings or notes do not otherwise require, according to [the remaining GRI's taken in order]." In other words, classification is governed first by the terms of the headings and any relative section or chapter notes. Classification of the sneaker under subheading 6404.19.60, HTSUS, was in error because, by the terms of this subheading, footwear having a foxing-like band is specifically excluded from classification thereunder. Additional U.S. Note 2, HTSUS, which is relevant here, reads as follows: For the purposes of this chapter, the term 'tennis shoes, basketball shoes, gym shoes, training shoes and the like' covers athletic footwear other than sports footwear (as defined in subheading note 1 above), whether or not principally used for such athletic games or purposes. Inasmuch as the "Highlander" sneaker is a training shoe, it is our opinion that it is classifiable under subheading 6404.11.70, HTSUS, which provides for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials, footwear with outer soles of rubber or plastics, tennis shoes, basketball shoes, gym shoes, training shoes and the like, having a foxing-like band and valued over $3 but not over $6.50/pair. HOLDING: The "Highlander" sneaker is dutiable at the rate of 90 cents per pair plus 37.5% ad valorem under subheading 6404.11.70, HTSUS. Accordingly, DD 890452 is modified to reflect the correct classification of the "Highlander" sneaker. In accordance with section 625, this ruling will become effective 60 days after publication in the CUSTOMS BULLETIN. Publication of rulings or decisions pursuant to section 625 does not constitute a change of practice or position in accordance with section 177.10(c), Customs Regulations (19 CFR 127.10(c)(1)). Sincerely, John Durant, Director