CLA-2 CO:R:C:G 083134 DSN
Ms. L. Ephie Hearne
Sekin Transport International
P.O. Box 655464
Dallas, Texas 75265-5464
RE: Classification of magnetic memo holders
Dear Ms. Hearne:
This is in response to your inquiry of October 4, 1988, on
behalf of Grynnen Barrett Inc., regarding the classification of
magnetic memo holders under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA). A brochure of magnets holders
produced in Taiwan was submitted.
FACTS:
The brochure submitted shows forty different magnetic memo
holders. All of the magnetic memo holders are composed of a
metal magnet attached by glue to hand-painted acrylic plastic.
The plastic caricature depicts the intended design. The memo
holders are designed to be placed on refrigerator doors or other
metal objects in the home.
ISSUE:
Whether the products of the submitted brochure are
classified under heading 8505 or heading 7323, HTSUSA.
LAW AND ANALYSIS:
Heading 8505, HTSUSA, provides for electro-magnets,
permanent magnets and articles intended to become permanent
magnets after magnetisation. The Explanatory Notes which
constitute the official interpretation of the tariff at the
international level, state that heading 8505 does not cover
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"electro-magnets, permanent magnets or magnetic devices of this
heading, when presented with machines, apparatus, toys, games, of
which they are designed to form part (classified with those
machines, apparatus, etc.)." With respect to the instant
samples, they are magnets designed to form part of the article.
Since the magnets are presented with and incorporated into a
plastic caricature, they are precluded from classification in
this heading.
Since the samples are composed of different components,
i.e. metal and plastic, they are classifiable under two different
headings, and therefore, GRI 3 is applicable. Heading 3926,
HTSUSA, provides for other articles of plastics. Heading 7323,
HTSUSA, provides for kitchen and other household articles of iron
or steel. GRI 3(a) states that the heading providing the most
specific description shall be preferred, however when each
heading refers to part only of the materials contained in
composite goods those headings are to be regarded as equally
specific, even if one of them gives a more complete description
of the goods. Each of the headings refers to part only of the
merchandise in this case. Therefore, the headings are regarded
as equally specific, and the classification of the samples at
issue cannot be determined by relative specificity.
GRI 3(b) provides that composite goods made up of different
components which cannot be classified by reference to GRI 3(a)
are classified by the component which gives them their essential
character. The Explanatory Notes to GRI 3(b), state that
essential character may be determined by the nature of the
component, its bulk, quantity, weight or value, or by the role of
a constituent material in relation to the use of the goods.
With respect to the samples at issue, the magnet is
essential for the intended use of the article. If the magnet
were removed, the product would be incapable of functioning as a
magnetic memo holder for refrigerator doors or other metal
objects. The plastic caricatures merely embellishes the
merchandise and acts as a decorative selling feature, but has no
effect on the ability of the magnet to perform its intended
function. Therefore, the essential character is imparted by the
magnet.
Heading 7323, HTSUSA, provides for kitchen or other
household articles of iron or steel. The Explanatory Notes to
heading 7323, state that this group comprises a wide range of
iron or steel articles, not more specifically covered by other
headings of the Nomenclature. With respect to the instant
samples, since they are designed to be used in the kitchen or
around the home and have the essential character of metal, and
are not specifically covered by any other heading, they are
classifiable in this heading.
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We note that in NYRL 829918 of June 10, 1988, a magnetic
memo holder composed of metal with a textile covering was
classified under heading 6307, which provides for other made up
textiles articles. The Explanatory Notes to heading 6307, state
that the heading covers made up articles of any textile material
which are not included more specifically in other headings of
Section XI or elsewhere in the Nomenclature. We believe heading
7323 is a more specific provision for the magnetic memo holder
and the instant samples.
HOLDING:
In view of the foregoing, the merchandise at issue is
classified under subheading 7323.99.9000, HTSUSA, which provides
for kitchen or other household articles of iron or steel, other,
not coated or plated with precious metal, other, other, and
dutiable at the rate of 3.4 percent ad valorem.
NYRL 829918 of June 10, 1988 is hereby revoked in
accordance with this ruling.
Sincerely,
John Durant, Director
Commercial Rulings Division