CLA-2 CO:R:C:G 082788 WAW
Mr. John B. Baker
Progressive International Corp.
8300 Military Road South
Seattle, WA 98108-3901
RE: Plastic cooler with a built-in radio
Dear Mr. Baker:
Your letter of May 26, 1988, to our New York office, has
been referred to this office for reply concerning the tariff
classification of a plastic cooler with a built-in radio under
the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). A sample of the above referenced item was submitted
with your letter.
FACTS:
The submitted article is a moulded plastic insulated cooler,
referred to as the "Chill Cask." The item is rectangular and
measures approximately 9-1/2 inches by 9 inches by 7 inches. The
cooler contains one central compartment with a circular-shaped
side opening designed to hold a container with a pour spout.
Inside the cooler there is a plastic bottle-like canteen that can
be filled with water and frozen in order to keep food or
beverages cool. In addition, there is a small transistor radio
built into the lid of the cooler. The lid can be secured by
properly aligning it over two plastic clips on either side of the
cooler.
ISSUE:
(1) Whether the merchandise at issue is classifiable as a
composite good for tariff purposes?
(2) If considered a composite good, which item provides the
essential character for classification purposes; and if not
considered a composite good, how are the items properly
classified?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) set forth the
manner in which merchandise is to be classified under the HTSUSA.
GRI 1 requires that classification be determined first according
to the terms of the headings of the tariff and any relative
section or chapter notes and, unless otherwise required,
according to the remaining GRI's, taken in order.
In the instant case, the first issue to be considered is
whether the plastic cooler and the transistor radio are all
included under one heading in the Nomenclature. The relevant
subheadings at issue in this case are set forth below. The
plastic cooler alone is classifiable under subheading
3923.10.0000, HTSUSA, which provides for articles for the
conveyance or packing of goods, of plastics; boxes, cases, crates
and similar articles. Subheading 8527.19.0030, HTSUSA, which
provides for, inter alia, reception apparatus for radiotelephony,
whether or not combined, in the same housing, with sound
recording or reproducing apparatus or a clock: other, properly
classifies the transistor radio at issue.
Since no heading, by itself, covers the subject merchandise,
classification cannot be determined by applying GRI 1.
Therefore, reference to the subsequent GRI's is necessary. GRI 2
is not applicable here because the item in question is not an
incomplete or unfinished article and is not a mixture or
combination of goods.
GRI 3, however, is applicable in this situation. It
provides in pertinent part:
When, by application of Rule 2(b) or for any other
reason, goods are, prima facie, classifiable under two
or more headings, classification shall be effected as
follows:
(a) The heading which provides the most
specific description shall be preferred to
headings providing a more general
description. However, when two or more
headings each refer to part only of the
materials or substances contained in mixed or
composite goods or to part only of the items
in a set put up for retail sale, those
headings are to be regarded as equally
specific in relation to those goods, even if
one of them gives a more complete or precise
description of the goods.
Since the plastic cooler and the radio fall under separate
headings in the HTSUSA, the headings are to be regarded as
equally specific under GRI 3(a). Therefore, GRI 3(a) fails in
establishing classification, and GRI 3(b) becomes applicable.
GRI 3(b) provides:
(b) Mixtures, 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 IX to GRI 3(b) to the HTSUSA, which
constitutes the official interpretation of the tariff at the
international level, provides, in part:
(IX) For the purposes of this Rule, composite goods
made up of different components shall be taken to mean
not only those in which the components are attached to
each other to form a practically inseparable whole but
also those with separable components, provided these
components are adapted one to the other and are
mutually complementary and that together they form a
whole which would not normally be offered for sale in
separate parts.
* * * * * * * *
As a general rule, the components of these composite
goods are put in a common packing.
In the instant case, the plastic cooler and the radio qualify as
composite goods as defined in GRI 3(b). They are two components
adapted one to the other, mutually complementary, and together
form a whole which would not normally be offered for sale in
separate parts. Since the subject merchandise cannot be
classified by reference to GRI 3(a), we must determine which
component, if any, imparts the essential character of the item
pursuant to the factors set out in the applicable Explanatory
Note.
Explanatory Note VIII to GRI 3(b) states that:
(VIII) 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.
In this case, the essential character of the subject
merchandise is readily apparent. It is the position of this
office that the plastic cooler gives the article its essential
character. The cooler comprises the bulk of the article, whereas
the radio is merely incorporated into the lid of the cooler.
The article is a container primarily designed for the convenience
of the user while traveling. Its function is not only to store
and preserve food and beverages, but also to hold beverages in
containers that have pour spouts. Moreover, a consumer is more
likely to purchase the article for use as a container to
preserve food and beverages while traveling, rather than as a
transistor radio. Accordingly, it is Customs position that the
plastic cooler and not the radio gives this article its
essential character. Therefore, the subject article is properly
classifiable under heading 3923, HTSUSA, which provides for
articles for the conveyance or packing of goods, of plastics.
HOLDING:
The submitted plastic cooler and radio is classifiable under
subheading 3923.10.0000, HTSUSA, which provides for articles for
the conveyance or packing of goods, of plastics, boxes, cases,
crates, and similar articles. The rate of duty is three percent
ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division