CLA-2 CO:R:C:G 082954 JLJ
Mr. John B. Pellegrini
Ross & Hardies
529 Fifth Avenue
New York, New York 10017-4608
RE: Champagne imported with two champagne flute glasses
Dear Mr. Pellegrini:
On behalf of a client, you requested a tariff classifica-
tion for vintage champagne imported from France with two
champagne flute glasses. You submitted a sample to our New
York office, but the sample was not received in this office.
FACTS:
The instant merchandise consists of a bottle of vintage
French champagne imported with two champagne flute glasses and
packaged together in a cardboard gift box.
The champagne bottle is made of glass, with a capacity of
750 milliliters. The champagne flutes are made of glass. Both
the bottle and the glasses have a flower design on them.
The gift box is a rectangular cardboard package. The
inside of the box has a satin type material which covers
hollowed shapes designed to hold the champagne bottle and flute
glasses. A flower design appears on the top, front and sides
of the box.
ISSUE:
Are the champagne flute glasses classified separately or
as a set with the champagne?
-2-
LAW AND ANALYSIS:
The classification of the instant merchandise under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA) is determined by General Rule of Interpretation (GRI)
3(b). The Explanatory Notes for the GRI define goods put up in
sets for retail sale to mean goods which:
(a) consist of at least two different
articles which are prima facie
classifiable in different headings,
(b) consist of products or articles put
up together to meet a particular
need or carry out a specific activity,
and
(c) are put up in a manner suitable for
sale directly to users without repacking
(e.g., in boxes or cases or on boards).
The champagne and the flute glasses are classifiable in
two different headings. The champagne is classifiable as a
sparkling wine in subheading 2204.10.00, HTSUSA, and the
glasses are classifiable as such in subheading 7013.39.30,
HTSUSA.
The champagne and the glasses are put up together for the
specific purpose of drinking champagne.
The gift pack will be sold in its imported condition to
retail consumers. The merchandise will not be repacked. The
instant merchandise thus meets all three requirements of a set.
Once it has been established that the instant merchandise
is a set, GRI 3(b) indicates that the goods are to be
classified according to the material or component which gives
them their essential character. The Explanatory Notes state
that factors such as bulk, quantity, weight and value may be
considered in determining the essential character.
You state that the price of the champagne is 116 French
francs, while the glasses are valued at 25 French francs each.
The suggested retail price of the champagne is $55, while the
price of the champagne plus the glasses is $65. The price of
these products indicates that the purchaser is buying the gift
set for the champagne, not the glasses.
-3-
The marketing of the set also indicates that the champagne
is the selling point of the gift box. The outside of the gift
box describes the product as champagne, with no mention of the
glasses.
Based on the foregoing facts, we find that the essential
character of the champagne/glasses gift package is the
champagne.
HOLDING:
The instant gift set is classified as a set under the
provision for sparkling wine in subheading 2204.10.00, HTSUSA,
provided that the champagne meets the requirements of Chapter
22, Subheading Note 1, which states that "For the purposes of
subheading 2204.10 the expression 'sparkling wine' means wine
which, when kept at a temperature of 20`C in closed containers,
has an excess pressure of not less than 3 bars." The duty rate
for this subheading is 30.9 cents per liter. Wines classified
under heading 2204 may also be subject to Federal Excise Tax
(26 U.S.C. 5001, 5041) upon importation.
Sincerely,
John Durant, Director
Commercial Rulings Division
1 cc: D.D., Baltimore, Md.
6 cc: A.D., N.Y. Seaport (NIS-232)
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082954JLJ