Members of international trade community know that harmonized tariff schedule is construed according to the principles of General Rules of Interpretation (GRIs). GRI 1 states that “classification shall be determined according to the terms of the headings and any relative section or chapter notes.” (emphasis supplied). In recent Customs Bulletin, CBP decided to apply “relative” requirement loosely. The departure from “relative” requirement under GRI 1 took place in the context of reclassification of polyurethane coated gloves. Specifically, CBP attempted to reconcile the differences between gloves provided under Chapter 39 and Chapter 61: 3926.20.10 provides for “other articles of plastics …: … clothing accessories (including gloves …): … gloves: … 6116.10.55 provides for “gloves … knitted or crocheted: Impregnated, coated or covered with plastics … Finding that “terms of the heading” do not provide adequate explanation, CBP turned to other legally binding instrument under GRI 1: section and chapter notes. CBP turned to Legal Note 1 to Section XI (the Section for Chapter 61) and Note 2 to Chapter 39. This was a legitimate inquiry because these section and chapter notes are all relative to the headings that were analyzed. But, CBP came across difficulty in reconciling these provisions because one…
Read More CBP Gives a Green Light To Extrajurisdictional Application of HTSUS Chapter Notes
