Modification of NY N313474; Tariff classification of certain footwear from China

HQ H314252 October 15, 2020 OT:RR:CTF:FTM H314252 TSM CATEGORY: Classification TARIFF NO.: 6404.19.39 Mr. Scott Tucker Smaller Footprint LLC 1217 SE 50th Ave Portland, Oregon 97215 Re: Modification of NY N313474; Tariff classification of certain footwear from China Dear Mr. Tucker: On August 20, 2020, U.S. Customs and Border Protection (“CBP”) issued New York Ruling Letter (“NY”) N313474 to Smaller Footprint LLC, regarding the tariff classification and country of origin of certain footwear. It has come to our attention that NY N313474 contained an error pertaining to the tariff classification of the footwear style at issue, identified as the “Rhamani sport sandal.” This ruling serves to modify NY N313474 with regard to tariff classification. U.S. Customs and Border Protection’s (“CBP”) determination with respect to the country of origin of certain footwear in NY N313474 is not affected by this action. As this modification decision is being issued within 60 days of the issuance of NY N313474, pursuant to 19 U.S.C. § 1625(c)(1) and 19 CFR § 177.12(b), this modification is effective immediately. FACTS: In NY N313474, the footwear at issue was described as follows: The photographs of the “Rhamani sport sandal” show a unisex, open-toe/open-heel, below the ankle, sandal. The upper consists of two separate straps made of woven polyester textile webbing material. The removable straps are laced through the holes and channels of the molded EVA rubber/plastic outer sole unit. They are secured to the foot via plastic connector buckles and a hook and loop closure located on the lateral side of the ankle. You provided an F.O.B. value of $15.71 per pair. ISSUE: What is the tariff classification of the “Rhamani sport sandal” footwear style? LAW AND ANALYSIS: Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRIs”).  GRI 1 provides that the classification of goods shall be determined 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 GRIs 2 through 6 may then be applied in order.  The 2020 HTSUS provisions under consideration are as follows: 6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: Footwear with outer soles of rubber or plastics: 6404.19 Other: Footwear with open toes or open heels; footwear of the slip-on type, that is held to the foot without the use of laces or buckles or other fasteners, the foregoing except footwear of subheading 6404.19.20 and except footwear having a foxing or foxing-like band wholly or almost wholly of rubber or plastics applied or molded at the sole and overlapping the upper: Other: * * * 6404.19.39 Other * * * Other: * * * 6404.19.90 Valued over $12/pair * * * Note 3 to Chapter 64 provides in pertinent part: For the purposes of this chapter: The terms “rubber” and “plastics” include woven fabrics or other textile products with an external layer of rubber or plastics being visible to the naked eye; for the purpose of this provision, no account should be taken of any resulting change of color. * * * Note 4 to Chapter 64 provides in pertinent part: Subject to note 3 to this chapter: The material of the upper shall be taken to be the constituent material having the greatest external surface area, no account being taken of accessories or reinforcements such as ankle patches, edging, ornamentation, buckles, tabs, eyelet stays or similar attachments. The constituent material of the outer sole shall be taken to be the material having the greatest surface area in contact with the ground, no account being taken of accessories or reinforcements such as spikes, bars, nails, protectors or similar attachments. * * * Additional U.S. Note 5 to Chapter 64 provides as follows: For the purposes of determining the constituent material of the outer sole pursuant to note 4(b) of this chapter, no account shall be taken of textile materials which do not possess the characteristics usually required for normal use of an outer sole, including durability and strength. * * * In NY N313474, CBP classified the “Rhamani sport sandal” under subheading 6404.19.90, 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: Other: Other: Valued over $12/pair.” Upon further consideration, we have found this classification to be incorrect. “Rhamani sport sandal” is a unisex, open-toe/open-heel, below the ankle sandal, with a textile upper and a molded EVA rubber/plastic outer sole. Upon review, we find that this style meets the characteristics of footwear of subheading 6404.19.39, 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: Other: Footwear with open toes or open heels; footwear of the slip-on type, that is held to the foot without the use of laces or buckles or other fasteners, the foregoing except footwear of subheading 6404.19.20 and except footwear having a foxing or foxing-like band wholly or almost wholly of rubber or plastics applied or molded at the sole and overlapping the upper: Other: Other.” Specifically, we note that subheading 6404.19.39, HTSUS, covers open toe or open heel footwear or slip-on type footwear not having a foxing or foxing-like band almost wholly of rubber or plastics. Accordingly, we conclude that the “Rhamani sport sandal” footwear style is classified in subheading 6404.19.39, HTSUS, by virtue of being open-toe, open-heel footwear (as a result, we do not reach the issue of whether the footwear contains a foxing-like band). Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6404.19.39, HTSUS, unless specifically excluded, are subject to an additional 7.5% ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6404.19.39, HTSUS, listed above. HOLDING: By application of GRIs 1 and 6 the “Rhamani sport sandal” footwear style is classified under heading 6404, HTSUS, and specifically under subheading 6404.19.39, 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: Other: Footwear with open toes or open heels; footwear of the slip-on type, that is held to the foot without the use of laces or buckles or other fasteners, the foregoing except footwear of subheading 6404.19.20 and except footwear having a foxing or foxing-like band wholly or almost wholly of rubber or plastics applied or molded at the sole and overlapping the upper: Other: Other.” The 2020 column one, general rate of duty is 37.5% ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6404.19.39, HTSUS, unless specifically excluded, are subject to an additional 7.5% ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6404.19.39, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. EFFECT ON OTHER RULINGS: NY N313474, dated August 20, 2020, is hereby MODIFIED. Sincerely, For Craig T. Clark, Director Commercial and Trade Facilitation Division