Customs Proposes to Modify Classification Ruling for Certain Rainwear, Resulting in Substantial Increase in Import Duty

In Binding Ruling Letter NY N247420, of November 26, 2013, U.S. Customs and Border Protection ("CBP") classified rainwear consisting of an unlined jacket and a pair of trousers in heading 3926, Harmonized Tariff Schedule of the United States ("HTSUS"), specifically in subheading 3926.20.60, HTSUS, which provides for “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: Articles of apparel and clothing accessories (including gloves, mittens and mitts): Other: Plastic rainwear, including jackets, coats, ponchos, parkas and slickers, featuring an outer shell of polyvinyl chloride plastic with or without attached hoods, valued not over $10 per unit.” The rate of duty for that classification is zero. CBP has reviewed NY N247420 and has determined the ruling letter to be in error. It is now CBP’s position that the unlined jacket and trousers are properly classified, by operation of General Rule of Interpretation 1, in heading 6210, HTSUS, specifically in subheading 6210.10.90, HTSUS, which provides for “[g]arments, made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907: Of fabrics of heading 5602 or 5603: Other: Other: Other.” The rate of duty for that classification is 16%.

Pursuant to 19 U.S.C. §1625(c)(1), CBP is proposing to revoke NY N247420 and to revoke or modify any other ruling not specifically identified to reflect the analysis contained in the proposed HQ H268945, set forth as Attachment B to this notice. Additionally, pursuant to 19 U.S.C. §1625(c)(2), CBP is proposing to revoke any treatment previously accorded by CBP to substantially identical transactions.

Before taking this action, consideration will be given to any written comments timely received. Comments must be received on or before July 22, 2016.

For more information see Customs Bulletin and Decisions, VOL. 50, NO. 25, JUNE 22, 2016.