CLA-2 CO:R:C:T 089147 KWM

Mr. Nathan Hedaya
Hedaya Brothers Inc.
255-18th Street
Brooklyn, New York 11215

RE: Decorative Christmas Gift Box; Festive articles; decorative items; traditionally associated; furnishing articles; textile furnishings; other made up textile articles.

Dear Mr. Hedaya:

This is in response to your inquiry of April 8, 1991, regarding the tariff classification of merchandise described as "Decorative Christmas Gift Boxes." We find that the merchandise is classified under heading 6403.90.9490, HTSUSA. Our ruling follows.

FACTS:

The sample sent with your letter is made of textile material and paperboard. It is a square tray-like item, measuring approximately 7 1/2 inches by 7 1/2 inches. The sides of the box/tray are approximately 2 inches high. The underlying structure of the box is paperboard, which has been covered with textile material. The textile has been assembled so that the walls are held in an upright position. Your April 8th letter indicates that the article is used as a "gift box."

We believe that the article could be used for a variety of purposes, such as a item for the household during a holiday, for holding food such as cookies, candy, etc., or as a container for gifts. Your letter also suggests that the article should be classified under subheading 9505.10.2500, HTSUSA.

ISSUE:

Is this a festive article of subheading 9505.10.2500, HTSUSA? If not, what is the proper tariff classification?

LAW AND ANALYSIS:

Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is made in accordance with the General Rules of Interpretation (GRI's). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff

schedule and any relevant Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's may be applied, taken in order.

You suggest that subheading 9505.10.2500,HTSUSA, provides for this article. That subheading includes, in pertinent part: "Festive ... articles ...; Articles for Christmas festivities." Customs has determined that this is not a 'festive article' of subheading 9505.10.2500, HTSUSA; the instant articles serve a more utilitarian, rather than decorative, function. Moreover, despite the incorporation of the holly and Christmas bells motif, the article is not an item traditionally affiliated with Christmas to the same degree as those articles noted in the Explanatory Notes to the subheading. Therefore, they are classified elsewhere in the nomenclature.

We have also considered heading 6304, HTSUSA, which provides for "...furnishing articles ..." of cotton. We have determined that this heading does not include the instant goods. The articles classified in heading 6304, HTSUSA, have as their primary or principal function the furnishing of a home, office, etc., as described in the Explanatory Notes. We have classified similarly constructed articles in this subheading, but only after finding that the article was in fact a article for furnishing the home. We cannot find in this case that the principal function of this article is as a furnishing. Its' uses are many and varied; it is described by the provisions of this heading.

Failing to find a heading which describes the instant article, we consider the box/tray to be a composite article of paperboard and textiles. According to the provisions of GRI 3(b), classification will depend on which material provides the product's "essential character." Your letter did not provide a breakdown of the relative costs and weights associated with each material. However, we do not find that information necessary for our decision. Both components contribute to the use and function of the article. Neither is clearly the predominant or 'essential' material. Therefore, we have classified the article under that heading which occurs last in the nomenclature, according to the provisions of GRI 3(c).

HOLDING:

The merchandise at issue, a "Decorative Christmas Gift Box" is classified under heading 6307.90.9490, HTSUSA, as an other made up textile article, other, other, other. The applicable rate of duty is 7 percent ad valorem. There is no textile quota category associated with this classification.

Sincerely,


John A. Durant, Director
Commercial Rulings Division