Citations
- 534 F. Supp. 818
Full opinion text
LANDIS, Judge:
This action, tried before me in New York, involves the classification of two types of clothes hangers, an all plastic hanger referred to as a K-10 type hanger (plastic hanger), and a color coded hanger made of wire and covered with plastic (wire hanger).
Customs officials classified the hangers under TSUS items 382.78 and 382.81 as various articles of wearing apparel. Plaintiff claims that the hangers are imported articles and should be classified under TSUS item 774.60 as modified by T.D. 68-9, as articles of rubber or plastic not specially provided for and under TSUS item 658.00, as modified by T.D. 68-9, as articles of base metals and plastics.
The issue presented is whether the hangers are part of the value of the articles they hold thereby dutiable at the same ad valorem rate as are their contents or whether they are imported articles thereby classifiable as separate articles of commerce.
The pertinent tariff schedule provisions are as follows:
General Headnotes and Rules of Interpretation
6. Containers or Holders for Imported Merchandise. For the purposes of the tariff schedules, containers or holders are subject to tariff treatment as follows:
(b) Not Imported Empty: Containers or holders if imported containing or holding articles are subject to tariff treatment as follows:
(i) The usual or ordinary types of shipping or transportation containers or holders, if not designed for, or capable of, reuse, and containers of usual types ordinarily sold at retail with their contents, are not subject to treatment as imported articles. Their cost, however, is, under section 402 or section 402a of the tariff act, a part of the value of their contents and if their contents are subject to an ad valorem rate of duty such containers or holders are, in effect, dutiable at the same rate as their contents, except that their cost is deductible from dutiable value upon submission of satisfactory proof that they are products of the United States which are being returned without having been advanced in value or improved in condition by any means while abroad.
(ii) The usual or ordinary types of shipping or transportation containers or holders, if designed for, or capable of, reuse, are subject to treatment as imported articles separate and distinct from their contents. Such holders or containers are not part of the dutiable value of their contents and are separately subject to duty upon each and every importation into the customs territory of the United States unless within the scope of a provision specifically exempting them from duty.
(iii) In the absence of context which requires otherwise, all other containers or holders are subject to the same treatment as specified in (ii) above for usual or ordinary types of shipping or transportation containers or holders designed for, or capable of, reuse.
Classified under:
SCHEDULE 3. - TEXTILE FIBERS AND TEXTILE PRODUCTS
Part 6. - Wearing Apparel and Accessories
Other women’s, girls’, or infants’ wearing apparel, not ornamented:
Of man-made fibers:
382.78 Knit ............25