CLA-2 CO:R:C:G 085801 HP
Mr. Murray Shulman
Vice President, Operations
AMAV Industries Ltd.
2345 Lapierre St.
Lasalle, Quebec
CANADA HBN 1B7
RE: String art kit for ages 6 to adult is a toy where any
decorative or functional effect is secondary to its being put up
in a form clearly indicating its use as a toy. CITA;visa;FTA;
Canada;U.S. goods exported and returned;9801;9802
Dear Mr. Shulman:
This is in reply to your letter of September 20, 1989,
concerning the tariff classification of a string art kit,
imported
from Canada, under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA).
FACTS:
The merchandise at issue consists of a string art kit,
labeled
product Code 4671. It includes twelve spools of colored sewing
thread, two sheets of black flocked paper, two sheets of
corrugated
cardboard, one sheet of thirty double sided sticky dots, eighty
metal-plated pins, and four printed paper pages of instructions
and patterns for creating "beautiful results suitable for framing
."
The box containing the aforementioned components displays
pictures with the finished products, and recommends ages "6 years
to adult." From this, we assume that the instant merchandise is
principally designed for children. The sewing thread is produced
in Taiwan, while the remaining components are made in Canada or
the
United States. The container also states that the kit is
packaged
in either Canada or the United States; for the purposes of this
ruling, we will assume the former.
ISSUE:
Whether the instant merchandise is a toy under HTSUSA?
LAW AND ANALYSIS:
Subheading 9503.70, HTSUSA, provides for toys, put up in
sets
or outfits, and parts and accessories thereof.
The Explanatory Notes (EN) to the HTSUSA constitute the
official interpretation of the tariff at the international level.
EN (A) to this heading states that:
Collections of articles, the individual
items of which if presented separately would
be classified in other headings of the Nomen
clature, are classified in this Chapter when
they are put up in a form clearly indicating
their use as toys (e.g., instructional toys
such as chemistry, sewing, etc., sets).
It is clear that, imported separately, the diverse
components
of the String Art kit are classifiable separably in the HTSUSA.
Therefore, we must determine whether the kit is put up in a form
clearly indicating its use as a toy.
In HRL 084895 of October 12, 1989 (Cast & Color plaster
molding kit), we stated:
EN 9503 ...state[s], in pertinent part:
This heading also excludes:
(a)Paints put up for
children's use (hea
ding 32.13).
(b)Modelling pastes put
up for children's
amusement (heading
34.07).
(c)Children's picture,
drawing or colouring
books of heading
49.03.
* * *
(h)Crayons and pastels
for children's use,
of heading 96.09.
* * *
Although the exclusionary language of EN
9503, supra, might lend one to believe that
art sets or kits are not within the scope of
Chapter 95, HTSUSA, the exclusions are merely
statements that ... individual articles are
more specifically provided for elsewhere in
the Nomenclature. * * * When combined in a
[String Art kit], this set is a toy in the
same manner as "instructional" chemistry and
sewing kits are classified as toys.
It has been argued that since the func
tion of the [String Art kit] is to create
decorative/functional items, classification as
a toy is precluded. However, certain articles
are classifiable as toys, e.g., electric
irons, sewing machines, musical instruments,
etc., even though they may be capable of a
function distinct from the amusement of child
ren and adults. With respect to the instant
merchandise, the finished products displayed
on the box are clearly meant to be made by
children for their use[, noting both the
recommended ages and the emphasis on "fun and
easy]. Any other use, i.e., as a [tapestry],
is clearly secondary to the principal use of
the []2 projects included therein: the amuse
ment of children.
HOLDING:
As a result of the foregoing, the instant merchandise is
classified under subheading 9503.70.8000, HTSUSA, as other toys;
reduced-size ("scale") models and similar recreational models,
working or not; puzzles of all kinds; and accessories thereof,
other toys, put up in sets or outfits, and parts and accessories
thereof, other, other.
Articles which meet the definition of "goods originating in
the territory of Canada" are subject to reduced rates of duty under
the United States-Canada Free Trade Agreement Implementation Act
of 1988 ("FTA"). General Note 3(c)(vii), HTSUSA. Goods are
considered "originating in the territory of Canada" if:
* * *
(2)they have been transformed in the ter
ritory of Canada and/or the United
States, so as to be subject--
(I)to a change in the tariff clas
sification in Canada as des
cribed in the rules of sub
division (c)(vii)(R) ....
Id. at 3(c)(vii)(B).
Subdivision (c)(vii)(R), supra, provides, in pertinent part,
that for Section XX, HTSUSA (Chapters 94 through 96), "[a] change
from one chapter to another ..." is a sufficient transformation
under the FTA for the instant merchandise to be considered as
originating in Canada. As we stated above, when imported separ
ately, whether into Canada or the United States, several com
ponents of the String Art kit are classifiable in different chap
ters within the HTSUSA. It would therefore appear that the in
stant merchandise is considered a product of Canada for clas
sification purposes.
General Note 3(c)(vii)(C), HTSUSA, is inapplicable here,
since the components of the String Art kit are not merely packaged
in Canada. Rather, several of the key components are made in
Canada. See HRL 084935 of August 23, 1989. Consequently, if all
other applicable conditions under the FTA are met, the String Art
kit is eligible for a reduced duty rate of 5.4 percent ad valorem;
otherwise, the General rate of duty is 6.8 percent ad valorem.
Headings 9801 and 9802, HTSUSA, provide for products of the
United States exported and returned. The question has been raised
as to whether these headings would impact on the rate of duty
being applied under the FTA. Section 10.303, Customs Regulations
(19 C.F.R. 10.303), states that goods may be eligible for a
preference under the FTA if "[t]he goods are wholly obtained or
produced in Canada or in the United States, or both." Emphasis
added. It is our opinion that this language does not require a
further reduction in the duty rate; headings 9801 and 9802, there
fore, do not apply.
Pursuant to the Directive of December 23, 1988 to the Commis
sioner of Customs from the Chairman, Committee for the Implementa
tion of Textile Agreements, Department of Commerce, as amended
August 24, 1989, all textile items which normally require a visa,
if imported separately, would require a visa if imported as part
of a set as defined under General Rule of Interpretation 3. The
instant merchandise, however, is not such a set. The language of
subheading 9503, "toys, put up in sets or outfits," is put forth
only as a description of various ways the toys can be put to
gether. A visa, therefore, would not be required.
Sincerely,
John Durant, Director
Commercial Rulings Division