CIT Rules that Certain Imitation Leather "Stadium Jackets" are Not Classifiable as Rainwear
In Essex Manufacturing v. U.S., the Court of International Trade (CIT) ruled that certain imitation leather jackets, referred to as "stadium jackets", which have an outer shell of polyvinyl chloride (PVC) plastic are classified under HTS 3926.20.90 (5%) as other articles of plastics and articles of other materials of HTS 3901 to 3914: articles of apparel or clothing accessories: other, rather than HTS 3920.20.60 (duty-free), which provides for plastic rainwear, including jackets, coats, etc. featuring a outer shell of PVC plastic with or without attached hoods, valued not over $10 per unit.
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The CIT explains that HTS 3926.20.60 is a principal use provision and Essex must demonstrate that the jackets' use as rainwear exceeds any other single use. The CIT customarily employs the following factors first referenced in U.S. v. Carboraundum Co. to decide whether an article is included in a particular class or kind of merchandise: (1) the general characteristics of the merchandise, (2) the expectation of the ultimate purchasers, (3) the channels, class or kind of trade in which the merchandise moves, (4) the environment of the sale, (5) the use, if any, in the same manner as merchandise which defines the class, (6) the economic practicality of so using the import, (7) the recognition in the trade of this use.
With respect to the jackets' general characteristics, the CIT notes that the jackets do not protect the lower half of the body and do not have such features as under-arm vents, proper outside pocket closures/covers, fabric flaps over zippers which are typical of rainwear. In addition, the outer-lining of PVC plastic is non-breathable and the jackets feature an inner-lining intended to provide warmth-features that would cause a wearer to perspire should the jacket be worn in the rain. The CIT concludes that it is apparent that the general characteristics of the jackets indicate they are not of the class or kind of merchandise whose principal use is as rainwear.
The CIT examined the other Carboraundum factors, i.e., the expectations of the ultimate consumer, the channel of trade in which the jackets move, the environment of sale, as well as use, economic practicality, and recognition in the trade, and also determined that the jackets are not principally rainwear. As such, the CIT rejects Essex's arguments and rules in favor of Customs' classification under HTS 3920.20.90. (Slip Op. 06-1, dated 01/03/06, available at http://www.cit.uscourts.gov/slip_op/06-1.pdf)