CBP Issues Proposed Interpretive Rule on Classification of Baseball-Style Caps with Ornamental Braid
U.S. Customs and Border Protection (CBP) has issued a proposed interpretive rule regarding the classification of baseball-style caps with ornamental braid. Comments on this proposed interpretive rule are due by October 26, 2004.
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CBP Proposes that Braid Width Would Determine Cap's Classification
CBP is proposing that ornamental braid on a baseball-style cap, located between peak and crown, in a width of 1/8 of an inch or greater will render the cap classifiable as "wholly or in part of braid." Conversely, CBP is proposing that such braid in a width of less than 1/8 of an inch will result in a cap being classifiable as "not in part of braid."
(According to the Harmonized Tariff Schedule (HTS), only man-made fiber(MMF) baseball-style caps distinguish those that are "wholly or in part of braid" from those that are not in part of braid.
MMF baseball-style caps "wholly or in part of braid" are classified in HTS 6505.90.50 (6.8%) or HTS 6505.90.70 (6.8%), while MMF baseball-style caps not in part of braid are classified in HTS 6505.90.60 (20/kg 7%) or HTS 6505.90.80 (18.7/kg 6.8%) .)
Since 1991 CBP Has Issued Inconsistent Classification Rulings
Since publication of a proposed interpretive rule in 1991 that was never made final, CBP states that it has issued inconsistent classification rulings on merchandise featuring ornamental braid of various widths.
However, several of these rulings adopted a 1/8 of an inch standard for purposes of the de minimis rule.
(CBP notes that General Note 3(h)(v)(B) in the 2004 HTS provides that "in part of" or "containing" means that the goods contain a significant quantity of the named material and that with regard to the application of these quantitative concepts, it is intended that the de minimis rule apply.
CBP explains that the de minimis rule stands for the proposition that certain amounts of an ingredient, although substantial, may be ignored for classification purposes, depending upon many different circumstances, including the purpose which Congress sought to bring about by the language used and whether or not the amount used has really changed or affected the nature of the article, and of course, its salability.)
Therefore, CBP is proposing this same standard as a means of ensuring the uniform application of the de minimis rule and providing consistency in the classification of baseball-style caps with braid trim. CBP believes that braid trim in widths of less than 1/8 of an inch will not appreciably affect a cap's salability or utility.
(See ITT's 09/10/91 news, (Ref:91090901), for BP summary of the 1991 proposed interpretive rule.)
- comments must be received on or before October 26, 2004.
CBP contact - Teresa Frazier (202) 572-8821
CBP notice (FR Pub 08/27/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-19581.pdf