Reconsideration of New York Ruling Letter N196161; classification of “Johnny Collar” pullover garment

HQ H226262 September 17, 2013 CLA-2 OT:RR:CTF:TCM H226262 CkG CATEGORY: Classification TARIFF NO: 6110.90.90 Mr. John M. Peterson Neville Peterson, LLP 17 State Street 19th Floor New York, NY 10004 RE: Reconsideration of New York Ruling Letter N196161; classification of “Johnny Collar” pullover garment Dear Mr. Peterson: This is in response to your request of June 27, 2012, for the reconsideration of New York Ruling Letter (NY) N196161, issued to Ms. Margaret Polito on behalf of Best Key Textiles on April 13, 2012. This ruling was issued contrary to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), and is hereby revoked. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke NY N196161 was published on April 24, 2013, in Volume 47, Number 18, of the Customs Bulletin. No comments were received in response to this Notice. FACTS: NY N196161 described the subject merchandise as follows: Style JC001 is a men’s pullover garment that features a V-neckline with a rib knit spread collar (Johnny collar); short, hemmed sleeves; and a straight, hemmed bottom. The finely knit fabric measures 30 stitches per 2 centimeters counted in the horizontal direction. The garment at issue is made from a polyester yarn which is manufactured by Best Key by mixing metal powder into a polyester slurry prior to extrusion of the yarn. This yarn was the subject of a prior ruling, NY N187601, dated October 25, 2011. In NY N187601, CBP classified the Best Key yarn in heading 5605, HTSUS, which provides for “Metalized yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal.” NY N187601 described the subject yarn as follows: two spools of…polyester filament yarn, one of which you state is combined with aluminum powder and the other, zinc powder. Both, you state, contain titanium. You state that the aluminum or zinc powder is added to the slurry that is extruded to create the filaments. ISSUE: Whether the instant “Johnny Collar” pullover shirt is classified in subheading 6110.30.30, HTSUS, as a pullover of polyester yarn, or in subheading 6110.90.90, HTSUS, as a pullover of “other” textile material. LAW AND ANALYSIS: Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6. GRI 6, HTSUS, requires that the GRI's be applied at the subheading level on the understanding that only subheadings at the same level are comparable. The GRI's apply in the same manner when comparing subheadings within a heading. The HTSUS provisions under consideration are as follows: 6110: Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: 6110.30: Of man-made fibers: Other: Other: 6110.30.30: Other… 6110.90 Of other textile materials: 6110.90.90: Other…. * * * * In NY N196161, CBP classified the “Johnny Collar” pullover shirt in subheading 6110.30.30, HTSUS, as a (knitted or crocheted) pullover of man-made fibers. You state that this ruling is inconsistent with our conclusion in NY N187601, dated October 25, 2011, that a polyester monofilament yarn produced by Best Key was classified in heading 5605, HTSUS, as a metalized yarn. You argue that because CBP concluded in NY N187601 that the yarn at issue therein was a metalized yarn, then the Best Key “Johnny Collar” shirt, which is made from that yarn, must be considered to be made of metalized yarn and therefore classified in subheading 6110.90.90, HTSUS, as a knitted or crocheted pullover of “other” textile materials (i.e., not of polyester). Pursuant to Headquarters Ruling Letter (HQ) H202560 (revoking NY N187601), we find the “Johnny Collar” pullover is correctly classified in subheading 6110.30.30, HTSUS. In HQ H202560, we conclude that the yarn comprising the pullover is not classified in heading 5605, HTSUS, as a metalized yarn, but rather as a polyester yarn of heading 5402, HTSUS. The pullover garment is therefore correctly classified in subheading 6110.30.30, HTSUS, as a pullover of polyester yarn, and not, as you claim, in subheading 6110.90.90, HTSUS, as a pullover of “other” textile material (i.e., of metalized yarn). However, because NY N187601 was in effect at the time NY N196161 was issued, the classification of the Best Key “Johnny Collar” pullover in subheading 6110.30.30, HTSUS, contrary to NY N187601, was not in compliance with 19 U.S.C. §1625(c)(1). NY N196161 is therefore revoked. So long as NY N187601 is in effect, the Best Key garment remains classified in subheading 6110.90.90, HTSUS, consistent with NY N187601. Entries of the Best Key “Johnny Collar” pullover garment made after the effective date of HQ H202560 will be classified in subheading 6110.30.30, HTSUS, as a pullover of polyester yarn. HOLDING: The instant “Johnny Collar” pullover garment is classified in heading 6110, HTSUS, specifically subheading 6110.30.30, which provides for “Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted: Of man made fibers: Other: Other: Other.” The 2013 general, column one rate of duty is 32% ad valorem. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided online at www.usitc.gov/tata/hts/. EFFECT ON OTHER RULINGS: NY N196161, dated April 13, 2012, is hereby revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the CUSTOMS BULLETIN. Sincerely, Myles B. Harmon, Director, Commercial and Trade Facilitation Division