HQ 952898: Tee Bag with Golf Tees; Not Sports Equipment; Not Specially Shaped or Fitted Case or Container

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 952898

                         April 23, 1993


CLA-2  CO:R:C:F  952898  GGD

CATEGORY:  Classification

TARIFF NO.:  6307.90.9986; 9801.00.10; 9802.00.80

Mr. Chris Nielsen
SunRise Innovations
2580 Haversley Avenue
Coquitlam, British Columbia
V3J 1W5

RE:  Tee Bag with Golf Tees; Not Sports Equipment; Not Specially
     Shaped or Fitted Case or Container

Dear Mr. Nielsen:

     This letter is in response to your inquiries of July 21 and
October 23, 1992, concerning the proper classification, under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), of an article identified as a tee bag (with golf tees),
to be imported from Canada.  A sample was submitted subsequent to
your initial inquiry.

FACTS:

     The sample article is a sack or bag, constructed by joining
together 2 pieces of knit, micro-mesh, polyester fabric, each
measuring approximately 5 inches by 5 inches.  The bag is sewn on
its bottom and sides, and has velcro strips sewn into the top for
opening and closing.  Also at the top, is a small metal grommet
and a detachable, metal fastening hook measuring approximately 2-
1/2 inches by 1-1/2 inch, by which the tee bag may be attached to
a golf bag.  The bag is constructed in Canada from fabric of
Canadian origin.  The velcro is of U.S. origin, as are the wooden
tees that will be imported within the tee bag.  The grommet and
hook are products of third countries.  
                               -2-

ISSUES:

     1) Whether the article is classifiable as sports equipment
under heading 9506, HTSUSA; as a special case or container under
heading 4202, HTSUSA; or as an other made up textile article
under heading 6307, HTSUSA.

     2) Whether the U.S.-origin tees and velcro are entitled to a
duty exemption under subheadings 9801.00.10 and 9802.00.80,
HTSUSA.

LAW AND ANALYSIS:

     Classification under the HTSUSA is made in accordance with
the General Rules of Interpretation (GRI's).  The systematic
detail of the harmonized system is such that virtually all goods
are classified by application of GRI 1, that is, 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 GRI's may
then be applied.  The Explanatory Notes (ENs) to the Harmonized
Commodity Description and Coding System, which represent the
official interpretation of the tariff at the international level,
facilitate classification under the HTSUSA by offering guidance
in understanding the scope of the headings and GRI's.

     This article consists of 2 components, wooden tees for
elevating golf balls and a knit polyester bag to hold the tees
and attach them to a golf bag.  The tees and the bag cannot be
classified by reference to GRI 1 because each component is
classifiable in a different heading or headings.  The tees are
classifiable in heading 9506, HTSUSA, as sports equipment.  The
tee bag is either classifiable in heading 4202, HTSUSA, as a
special case or container, or in heading 6307, HTSUSA, as an
other made up textile article.  In pertinent part, GRI 2(b)
states that:

          [t]he classification of goods consisting of more than
          one material or substance shall be according to the
          principles of Rule 3.    

     GRI 3(a) directs that, since the headings each refer to only
part of the composite article, the headings are regarded as
equally specific.  Therefore in determining whether the article
will be classified under a provision for the tees or a provision
for the tee bag, we next look to GRI 3(b), which states that: 
                               -3-

          [m]ixtures, composite goods consisting of different
          materials or made up of different components, and goods
          put up in sets for retail sale, which cannot be
          classified by reference to 3(a), shall be classified as
          if they consisted of the material or component which
          gives them their essential character, insofar as this
          criterion is applicable.

Explanatory Note VIII to GRI 3(b) provides the following guidance
concerning essential character determinations:

          The factor which determines essential character
          will vary as between different kinds of goods.  It
          may, for example, be determined by the nature of
          the material or component, its bulk, quantity,
          weight or value, or by the role of a constituent
          material in relation to the use of the goods.

     The polyester bag not only stores and transports golf tees,
but also serves to attach the tees to a golf bag (that may have
limited convenient pocket space) at any point deemed appropriate
for play or for storage.  The bag is clearly more durable than
the tees it carries, and is intended to be refilled as tees are
worn out, broken, or lost.  In light of these factors, we find
that the tee bag provides the essential character of the whole
article.  

     With respect to the proper classification of the tee bag,
and thus, the whole article, we note that heading 4202, HTSUSA,
provides for, among other items, cases for spectacles,
binoculars, cameras, guns, and similar containers.  The heading
also covers cases, bags, boxes, and pouches for maps, cigarettes,
powder, cutlery, toiletry, and other containers for specific
purposes.  Although the tee bag may be similar in size and/or
durability to some cases and containers of heading 4202, the
article does not fit comfortably with the other goods properly
classified there.

     GRI 5(a) states that cases and containers suitable for long
term use that are specially shaped or fitted for the specific
articles with which they are entered shall be classified with the
articles they contain.  Even if the tee bag were deemed to be
specially shaped or fitted for golf tees, however, the rule is
not applicable to containers which give the whole article its
essential character.  GRI 5(b) similarly states that packing 
                               -4-

containers and materials are to be classified with the articles
entered, but the rule is subject to the provisions of rule 5(a),
and is inapplicable to packing containers and materials suitable
for repetitive use.

     Heading 6307, HTSUSA, provides for other made up textile
articles.  Notes 7(d) and (e) to Section XI, HTSUSA, state in
pertinent part that the expression "made up" means "[c]ut to size
and having undergone a process of drawn thread work...[a]ssembled
by sewing...."  Subheading 6307.90.9986, covers other made up
textile articles, and is the proper classification for this made
up article. 

     Subheading 9801.00.10, HTSUSA, provides for the duty-free
entry of products of the U.S. that are returned after having been
exported, without having been advanced in value or improved in
condition by any process of manufacture or other means while
abroad, provided there has been compliance with the documentary
requirements of section 10.1, Customs Regulations (19 CFR 10.1).

     In this case, because the U.S.-origin tees are merely placed
inside the bag, they are not advanced in value or improved in
condition while abroad.  Therefore, when imported inside the bag,
the tees will be entitled to duty-free treatment under subheading
9801.00.10, HTSUSA, assuming compliance with the documentation
requirements of 19 CFR 10.1.

     Subheading 9802.00.80, HTSUSA, provides a partial duty
exemption for:

          articles assembled abroad in whole or in part of
          fabricated components, the product of the United
          States, which (a) were exported in condition ready for
          assembly without further fabrication, (b) have not lost
          their physical identity in such articles by change in
          form, shape or otherwise, and (c) have not been
          advanced in value or improved in condition abroad
          except by being assembled and except by operations
          incidental to the assembly process such as cleaning,
          lubricating and painting.

     An article entered under subheading 9802.00.80, HTSUSA, is
subject to duty upon the full value of the imported assembled
article, less the cost or value of such U.S. components, upon
compliance with the documentation requirements of section 10.24,
Customs Regulations (19 CFR 10.24). 
                               -5-

     Section 10.16(a), Customs Regulations (19 CFR 10.16(a)),
provides that the assembly operation performed abroad may consist
of any method used to join or fit together solid components, such
as welding, soldering, riveting, force fitting, gluing,
laminating, sewing, or the use of fasteners.

     Operations incidental to the assembly process are not
considered further fabrication operations, as they are of a minor
nature and cannot always be provided for in advance of the
assembly operations.  However, any significant process, operation
or treatment whose primary purpose is the fabrication,
completion, physical or chemical improvement of a component
precludes the application of the exemption under HTSUSA
subheading 9802.00.80 to that component.  See, 19 CFR 10.16(c).

     We understand that the velcro of U.S. origin will be
imported into Canada in rolls where it will be cut to 5-inch
lengths prior to being sewn into the tops of the bags.  Sewing
the velcro into the bags is an acceptable assembly operation
pursuant to 19 CFR 10.16(a), and cutting the velcro to length
prior to assembly is an operation incidental to the assembly
process pursuant to 19 CFR 10.16(c)(6).  Therefore, an allowance
in duty may be made under subheading 9802.00.80, HTSUSA, for the
cost or value of the U.S.-origin velcro when the tee bags are
imported into the U.S.  This assumes compliance with the
documentation requirements of 19 CFR 10.24.

HOLDING:

     The tee bag is classified in subheading 6307.90.9986,
HTSUSA, the provision for "Other made up [textile] articles,...:
Other: Other: Other: Other: Other."  The general column one rate
of duty is 7 percent ad valorem.  If the article is a qualifying
good from Canada, that is, wholly obtained or produced in the
territory of Canada and/or the United States, which meets the
requirements of General Note 3(c)(vii)(B), it will enjoy
preferences under the United States-Canada Free Trade Agreement
(CFTA).  The rate of duty under the CFTA for this subheading is
3.5 percent ad valorem.

     The U.S.-origin tees are entitled to a duty exemption under
subheading 9801.00.10, HTSUSA, and the U.S.-manufactured velcro
is entitled to a duty allowance under 9802.00.80, HTSUSA,
assuming compliance with the documentation requirements for these
two tariff provisions. 
                               -6-
          
     Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification), you should
contact your local Customs office prior to importation of this
merchandise to determine the current status of any import
restraints or requirements.

     Your question as to the country of origin/marking issue has
been referred to the Value and Marking Branch, and a response
will be provided to you under separate cover.


                               Sincerely,




                               John Durant, Director
                               Commercial Rulings Division 





                                        DATE:

                                        FILE:  CLA-2 CO:R:C:F
                                                     952898 GGD



TO     :  Chief, Value and Marking Branch

FROM   :  Chief, Food and Chemicals Classification Branch

SUBJECT:  Separate Response to Inquirer Concerning Marking Issue


     Attached is our file and a copy of this branch's response to
an inquiry concerning the tariff classification of an article
identified as a "tee bag" with golf tees.  The inquirer requests
information as to the proper country of origin marking to be
placed on the imported goods.  The importer has been advised that
he will receive a separate response from your staff as to the
marking issue.



                               John E. Elkins 

Attachment