CAFC Rules that Certain Hockey Pants Are Ice-Hockey Equipment (Rather than Sports Clothing)
In Bauer Nike Hockey USA, Inc. v. U.S., the Court of Appeals for the Federal Circuit (CAFC) ruled that certain imported hockey pants are classified as ice-hockey equipment under HTS 9506.99.25 rather than as sports clothing under HTS 6211.33.00, reversing an earlier Court of International Trade (CIT) decision which had classified the items under the latter heading.
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The CAFC explains that the hockey pants at issue are constructed of an exterior nylon or polyester textile "shell" and an interior assembly of hard nylon plastic guards and soft polyurethane, polyethylene, or polyester foam padding attached to a belt. In addition to providing comfort, fit, and ventilation to the wearer, the hockey pants help protect against injury by absorbing and deflecting blows, collisions, and flying objects. The CAFC states that it is undisputed that these pants were specially designed and intended for use only while playing ice hockey.
Among other reasoning for its decision, the CAFC stated that pursuant to General Rule of Interpretation (GRI) 3(a) when goods are prima facie classifiable under two or more headings, the heading which provides the most specific description is preferred to headings providing a more general description. The CAFC states that HTS 6211.33.00 refers to other garments of "man-made fibers" whereas HTS 9506.99.25 refers to "ice-hockey and field hockey articles and equipment, except balls and skates, and parts and accessories thereof." As a result, the CAFC concludes that HTS 9506.99.25 gives a much more specific description of Bauer's hockey pants.
(According to the CAFC, HTS 9506.99.25 was duty-free during the years the subject merchandise was imported, whereas HTS 6211.33.00 carried duty rates of slightly above 16% from 1998 through 2000.)
(CIT Decision, Slip Op. 03-142, dated 10/27/03, available at http://www.cit.uscourts.gov/slip_op/Slip_op03/slip-Op03-142.pdf. CAFC Decision, Court No. 04-1158, dated 12/20/04, available at http://fedcir.gov/opinions/04-1158.pdf)
BP Note 1
In February 2005, CBP issued a letter in regard to a draft preliminary International Trade Commission (ITC) report which sets forth proposed changes in the HTS that would be needed to maintain conformity between the HTS and the International Harmonized System (HS). The majority of the proposed changes are the result of work by the World Customs Organization (WCO) and its Harmonized System Committee (HSC) to update and clarify the HS nomenclature. The changes recommended by the WCO are due to become effective internationally in January 2007.
In its comments, CBP notes that certain concerns have been expressed with regard to proposed new Note 1(v) to Chapter 95 which sets forth that chapter's exclusions as follows:
Tableware, kitchenware, toilet articles, carpets and other textile floor coverings, apparel, bed linen, table linen, toilet linen, kitchen linen, and similar articles having a utilitarian function (classified according to their constituent material).
CBP notes that counsel for Bauer submitted a comment advocating that Note 1(v) be clarified to preclude the possibility of all "apparelhaving a utilitarian function" such as hockey pants, from falling within the Note's scope, thereby directing classification to HTS Chapters 61 and 62. CBP states that it considers hockey pants like those at issue in the above-described case to constitute hockey equipment, not "apparel." Therefore, these pants will not be covered by Note 1(v) and will remain classified as hockey equipment. (See future issue of ITT for BP summary of the ITC's preliminary report on proposed HTS modifications to be effective in January 2007. See ITT's Online Archives or 09/15/04 and 09/23/04 news, 04091520 and 04092315, for BP summaries of ITC's investigation on these proposed HTS modifications.)
CBP's comments (dated 02/25/05) available at https://edis.usitc.gov/hvwebex/hvweb.dll?DisplaySecList&225688&%5bNULL%5d&View{1{Results%5e2005%2d03%2d08{00%3a00%3a00&98&0&0&View{1{Results
BP Note 2
In its January 6, 2005 Customs Overview, the U.S. Association of Importers of Textiles and Apparel (USA-ITA) noted that the CAFC's decision does not apply to apparel articles, such as ski gloves, and swim suits, specifically provided for in the apparel chapters of the HTS. (www.usaita.com )