H310389

HQ H310389 October 28, 2020 OT:RR:CTF:FTM H310389 PJG CATEGORY: Classification TARIFF NO.: 5603.92.0090 Center Director Apparel, Footwear and Textiles Center Port of Buffalo 726 Exchange Street, Suite 400 Buffalo, New York 14210 Attn: Lindsay Palmisano, Import Specialist RE: Application for Further Review of Protest No. 4601-20-108995; Tariff classification of reusable absorbent textile towels Dear Center Director: This is in reference to the Application for Further Review (“AFR”) of Protest No. 4601-20-108995, timely filed on February 11, 2020, by Crowell and Moring, LLP, on behalf of Nice-Pak International, Ltd (“Nice-Pak” or “Protestant”) and its affiliate, Professional Disposables International, Inc. (“PDI” or “Protestant”). The AFR concerns the tariff classification of reusable absorbent textile towels under the Harmonized Tariff Schedule of the United States (“HTSUS”). Protestant has asked that certain information submitted in connection with this request be treated as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved. The information contained within two of the attachments that Protestant forwarded to our office will not be released to the public and will be withheld from published versions of this decision. Protestant requested, and CBP granted, a teleconference that was held with the Protestant on October 5, 2020. Subsequently, Protestant submitted a supplemental letter in support of its AFR. FACTS: In its protest, the Protestant describes the reusable absorbent textile towels from China as follows: The imported merchandise that are the subject of the instant protest are durable, super-absorbent towels used to wipe and clean surfaces and absorb spilled liquids, for use in the food service industry, including restaurants, cafeterias, supermarkets, or grocery stores. Specifically, the Sani Pro Dry Foodservice Day Towels are capable of absorbing eight times their own weight and are 25 percent more absorbent than their competitors’ foodservice towels. The towels are made of sustainable fibers such as viscose or wood chips and are BPI Certified 100 percent compostable in industrial facilities. Every towel is reusable for up to eight hours during normal commercial use. The towels measures 15 inches wide and come as a compact roll packed in a box designed to easily dispense the towels. The roll is perforated every 7.5 inches to allow the user to easily tear the towels into small sheets. The Protestant also included an additional information sheet regarding the reusable absorbent textile towels as well as a photo. The protestant has also indicated that the subject merchandise is made of 100 percent rayon staple fiber. The decision protested is the tariff classification of reusable absorbent textile towels, which were entered on October 2, 2018, and liquidated on August 30, 2019. The reusable absorbent textile towels were entered under subheading 5603.12.0090, Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”), which provides for “Nonwovens, whether or not impregnated, coated, covered or laminated: Of man-made filaments: Weighing more than 25 g/m2 but not more than 70 g/m2: Other.” Subheading 5603.12.0090, HTSUSA, was also subject to an additional 10 percent ad valorem rate of duty under subheading 9903.88.03, HTSUS. U.S Customs and Border Protection (“CBP”) liquidated the entries for these products as entered. Protestant claims that reusable absorbent textile towels should be classified under heading 6307, HTSUS, and specifically in subheading 6307.10.2030, HTSUSA, which provides for “Other made up articles, including dress patterns: Floorcloths, dishcloths, dusters and similar cleaning cloths: Other: Dish Other.” ISSUE: Whether the subject reusable absorbent textile towels are classified in heading 5603, HTSUS, which provides for “Nonwovens, whether or not impregnated, coated, covered or laminated,” or in heading 6307, HTSUS, which provides for “Other made up articles, including dress patterns.” LAW AND ANALYSIS: Initially, we note that this matter is protestable under 19 U.S.C. § 1514(a)(2) as a decision on classification. The protest was timely filed within 180 days of liquidation. See 19 U.S.C. § 1514(c)(3). Protestant alleges that Further Review of Protest No. 4601-20-108995 should be accorded pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a ruling of the Commissioner of CBP or his designee, or with a decision made by CBP with respect to the same or substantially similar merchandise. We find that Further Review of Protest No. 4601-20-108995 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a). Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). 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 may then be applied. The 2018 HTSUS provisions under consideration are as follows: 5603 Nonwovens, whether or not impregnated, coated, covered or laminated: 6307 Other made up articles, including dress patterns: Note 7 to Section XI, HTSUS, provides as follows: For the purposes of this section, the expression “made up” means: Cut otherwise than into squares or rectangles; Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, tablecloths, scarf squares, blankets); Cut to size and with at least one heat-sealed edge with a visibly tapered or compressed border and the other edges treated as described in any other subparagraph of this note, but excluding fabrics the cut edges of which have been prevented from unraveling by hot cutting or by other simple means; Hemmed or with rolled edges, or with a knotted fringe at any of the edges, but excluding fabrics the cut edges of which have been prevented from unraveling by whipping or by other simple means; Cut to size and having undergone a process of drawn thread work; Assembled by sewing, gumming or otherwise (other than goods consisting of two or more lengths of identical material joined end to end and piece goods composed of two or more textiles assembled in layers, whether or not padded); or Knitted or crocheted to shape, whether presented as separate items or in the form of a number of items in the length. Note 1 to Chapter 63, HTSUS, states that “Subchapter 1 applies only to made up articles, of any textile fabric.” Note 2 to Chapter 63, HTSUS, provides as follows: Subchapter 1 does not cover: Goods of chapters 56 to 62; or Worn clothing or other worn articles of heading 6309. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the “official interpretation of the Harmonized System” at the international level. See 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). While neither legally binding nor dispositive, the ENs “provide a commentary on the scope of each heading” of the HTSUS and are “generally indicative of [the] proper interpretation” of these headings. See id. EN 7 to Section XI states as follows: For the purposes of this Section, the expression “made up” means: (a) Cut otherwise than into squares or rectangles; (b) Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, table cloths, scarf squares, blankets); (c) Cut to size and with at least one heat-sealed edge with a visibly tapered or compressed border and the other edges treated as described in any other subparagraph of this Note, but excludi

Initially, we note that this matter is protestable under 19 U.S.C. § 1514(a)(2) as a decision on classification. The protest was timely filed within 180 days of liquidation. See 19 U.S.C. § 1514(c)(3). Protestant alleges that Further Review of Protest No. 4601-20-108995 should be accorded pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a ruling of the Commissioner of CBP or his designee, or with a decision made by CBP with respect to the same or substantially similar merchandise. We find that Further Review of Protest No. 4601-20-108995 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a).Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). 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 may then be applied. The 2018 HTSUS provisions under consideration are as follows:5603 Nonwovens, whether or not impregnated, coated, covered or laminated:6307 Other made up articles, including dress patterns:Note 7 to Section XI, HTSUS, provides as follows: For the purposes of this section, the expression “made up” means: Cut otherwise than into squares or rectangles; Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, tablecloths, scarf squares, blankets); Cut to size and with at least one heat-sealed edge with a visibly tapered or compressed border and the other edges treated as described in any other subparagraph of this note, but excluding fabrics the cut edges of which have been prevented from unraveling by hot cutting or by other sim