CLA-2 CO:R:C:F 089218 ALS
3924.90, 4909.00
Mr. Bruce R. Lang
Specialties Sales Inc.
8940 N.W. 2nd Street
Coral Springs, Florida 33071
RE: "Greeting" Cards Imported from Holland
Dear Mr. Lang:
This is in response to your letter of March 18, 1991, to our
New York Seaport Area Office requesting a binding ruling on
"greeting" cards from Holland which, in addition to the card,
consists of a plastic flower pot approximately 1 1/2 inches high,
a seed or bulb packet, a peat pellet and two clear plastic
blisters which hold the pot to the card. Our New York office
referred your request to us for consideration. Various samples
of the article were provided.
FACTS:
The article under consideration consists of a card which is
folded over on itself and glued. There is a seed or bulb packet
in between the glued sides of the card. The plastic blister,
which holds a flower pot and a peat pellet, fits into a notch in
the card, with the ears of both the front and back halves of the
plastic blister fitting between the glued halves of the card.
The card is illustrated, as appropriate to the seed/bulb, and may
contain a two word greeting on the front. The illustration may
be a snow covered fir tree in the case of the card which
accompanies the fir tree seeds. Other illustrations appear on
other cards. These cards may be imported with all the components
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fully assembled ready for retail sale. These cards may be
imported with all its components present in an unassembled
condition. Such cards with unassembled components will be
assembled prior to being marketed for retail sale. Some of the
cards may be imported incomplete with components to be added
subsequent to importation and assembled before the "card" is put
up for retail sale. One or more components, e.g. seed and/or
peat pellet, may be imported together or separately and assembled
with other components or groups of components subsequent to
importation and before the "card" is ready for retail sale.
ISSUE:
1. What is the classification of "greeting" cards composed
of a card, seeds/bulbs, a small flower pot, a peat pellet and
plasters blisters which serve to hold the pot in place and
attached to the card?
2. Does the fact that the cards are fully assembled or
unassembled when imported or that only some of the components are
present affect the classification?
LAW AND ANALYSIS:
Classification of merchandise under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) is governed by
the General Rules of Interpretation (GRI's) taken in order.
GRI 1 provides that the classification is determined first in
accordance with the terms of the headings and any relative
section and chapter notes. IF GRI 1 fails to classify the goods,
and if the heading and legal notes do not otherwise require, the
remaining GRI's are applied taken in order.
In reviewing the headings eligible for classification of
these goods, we noted that the components are classifiable in 6
different headings. The card in Heading 4909, HTSUSA, the
plastic flower pot in Heading 3924, HTSUSA, the plastic blister
in Heading 3923, HTSUSA, the seeds in Heading 1209, HTSUSA, the
bulbs in Heading 0601, HTSUSA, and the peat in Heading 2703,
HTSUSA. There is no specific heading that refers to the article
in its completed form even when considering GRI 2(a) which
provides that articles which are incomplete or unfinished and
articles which are presented unassembled or disassembled are
generally classified the same as the completed article. We next
considered GRI 2(b) which provides that goods classifiable under
2 or more headings shall be classified according to the
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provisions of GRI 3. Although GRI 3(a) provides that the heading
with the most specific description shall be preferred to other
headings, when 2 or more headings refer to part only of the
materials or substances contained in mixed or composite goods,
the headings are to be considered as equally specific. We found
that to be the case with this article so it could not be
classified under that GRI.
We next referred to GRI 3(b) which covers 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 GRI 3(a). GRI 3(b)
further provides that such goods are to be classified as if they
consisted of the material or component which gives them their
essential character. While the article is a composite insofar as
it is made up of different materials and components, we have been
unable to conclude that any one material/component gives the
article its essential character. Although some of the cards
contain a short greeting, that is not a uniform characteristic of
the cards. It is noted that most of the printing on the card is
related to growing a tree/plant. While the cards do hold the
small flower pot, it does not appear that they were primarily
designed for that purposes. Also, while the pot, seed and peat
pellet will, by following the directions, produce a live
tree/plant, it is not clear that this is the primary purpose of
the article.
We considered the information supplied by the inquirer, as
later supplemented by telephone, the value of the components
materials is as follows:
Card-
With silver foil printing - - - .1655
with colored in printing - - - .0993
Blisters - - - - - - - - - - - - - - .0867
Seeds/bulbs- - - - - - - - - - - - - .0818
Small pot - - - - - - - - - - - - - -.0576
Peat pellet - - - - - - - - - - - - -.0364
There is some slight variance, less than 1/10 of one cent,
for components separately imported.
This information shows that the various components were of
comparable value and none was predominant. Thus, as previously
noted, one material/component did not the product its essential
character.
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In considering whether the subject articles are sets for
retail sale in accord with GRI 3(b), we evaluated the article
against the specified requirements which a product must meet to
qualify for classification thereunder. The assembled articles
must:
(a) consist of at least 2 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 retail sale
directly to user without repacking.
In considering whether the article would qualify as goods
put up in sets for retail sale, we noted that the article does
consist of components classifiable in different headings. We,
however, were unable to confirm that the articles were put up
together to meet a particular need or carry out a specific
activity. Also, since some of the items must be completed after
importation, they are not suitable for retail sale at the time of
importation and do not meet the requirements of GRI 3(b).
We also concluded that GRI 3(c) did not apply since the
headings each referred to only part of the materials or
substances contained in mixed or composite goods. We found that
to be the case with this article so it could not be classified
under that GRI.
We have concluded that the article under consideration is
merely a group of separate components which are packaged together
as a novelty item. Based thereon, we have concluded that the
components are separately dutiable in accordance with GRI 1
whether they are fully or partially assembled, unassembled,
whether or not imported together and regardless of the effort
subsequent to importation needed to place them in condition ready
for retail sale. In this regard, we noted Headquarters Ruling
Letter (HRL) 084135 of July 14, 1989, where we held that the
components of an article composed of a greeting card with a baby
bib attached thereto, were separately dutiable
HOLDING:
The cards, which are illustrated and may or may not have a
greeting are classifiable under subheading 4909.00, HTSUSA, and
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are dutiable at a general rate of 4.9 per cent ad valorem.
The plastic blisters are classifiable under the provision
for boxes, cases, crates and similar articles, of plastic, for
the packing of goods, under subheading 3923.20, HTSUSA, and are
dutiable at a general rate of 3 per cent ad valorem.
The flower pot is classifiable under the provision for other
articles of plastic under subheading 3924.90, HTSUSA, and is
dutiable at a general rate of 3.4 per cent ad valorem.
The peat pellet is classifiable under subheading 2703.00,
HTSUSA, which covers peat, whether or not agglomerated. It is
subject to a free general rate of duty.
The seeds are classifiable under Chapter 12 of the HTSUSA
with the exact classification depending on the type of seed being
imported. If the seeds are for fir or spruce trees (picea
pungens), they are classifiable under subheading 1209.99, HTSUSA,
and subject to a free general rate of duty. Egg plant seeds
(solanum melongena) are classifiable under subheading 1209.91,
HTSUSA, and subject to a free general rate of duty. Clover seeds
(oxalis deppia) of an unspecified type would be classifiable
under subheading 1209.22, HTSUSA, and subject to a free general
rate of duty. Radish seeds are classifiable under subheading
1209.91, HTSUSA, and subject to a general rate of duty of
3.3/kg.
Bulbs are general classifiable under subheading 0601,10,
HTSUSA. Bulbs for which there is no specific provision would be
classifiable under the provision for other bulbs in subheading
0601.10, HTSUSA, and would be dutiable at a general rate of duty
of 5.5 per cent ad valorem
Sincerely,
John Durant, Director
Commercial Rulings Division