CLA-2 CO:R:C:M 089258 NLP
James C. Tuttle, Esq.
Kmart Legal Department
3100 West Big Beaver Road
Troy, MI 48084
RE: Potpourri jars; heading 7103; heading 8306; heading 7806;
GRI 3(b); NYRL 860620; NYRL 860950; HRL 086166
Dear Mr. Tuttle:
This is in response to the request for reconsideration
dated April 26, 1991, submitted by the law firm of Sharretts,
Paley, Carter & Blauvelt, on behalf of Kmart Corporation, of New
York Ruling Letters (NYRL) 860950 and 860620, which dealt with
the classification of potpourri jars under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
NYRL 860620 dated March 1, 1991, dealt with the
classification of a glass potpourri jar from Taiwan. The
product, Code No. 32-47-88, is composed of two pieces: a glass
holder and a filigreed designed pewter lid which sits on top of
the bowl. The lid has openings and is available in six different
designs. According to the information submitted by counsel, the
total weight of the bowl is 150 grams. The glass bowl weighs 66
grams and costs $0.40. The pewter lid is composed of antimony
(10 percent), lead (88 percent) and tin (2 percent). The lid
weighs 84 grams and costs $0.70. NYRL 860620 held that the glass
body represented the essential character of the potpourri jar and
classified it in subheading 7013.99.50, HTSUS, which provides for
glassware of a kind used for table, kitchen, toilet, office,
indoor decoration or similar purposes, other glassware, other,
other.
NYRL 860950 dated March 12, 1991, also dealt with the
classification of a glass potpourri jar from Taiwan. The
product, Code No. 32-47-86, is a glass holder with a brass or
copper lid and a brass or copper base. The lid contains an
elaborate design with open areas. The lid is available in six
different designs. The base also contains a filigreed design of
ribbons and roses. According to the information submitted by
counsel, the total weight of the bowl, lid and base is 266 grams.
The glass bowl weighs 66 grams and costs $0.38. The lid and base
are composed of antimony (8 percent), lead (90 percent) and tin
(2 percent). The lid weighs 90 grams and costs $0.49 and the
base weighs 110 grams and costs $0.82. NYRL 860950 held that the
glass body represented the essential character of the potpourri
jar and classified it in subheading 7013.99.50, HTSUS.
It is counsel's position that the potpourri jars are
classified in subheading 8306.29.00, HTSUS, which provides for
statuettes and other ornaments, of base metal, other. In the
alternative, counsel argues that the jars are classified in
subheading 7806.00.00, HTSUS, which provides for other articles
of lead. Counsel contends that, pursuant to General Rule of
Interpretation 3(b), the metal lid represents the essential
character of the jars; not the glass bowls. To support this
claim, counsel argues that the metal lids make up the greatest
cost of the good and the greatest weight of the good.
Furthermore, counsel argues that the lid and/or base serve as the
most important distinguishing characteristic of the jars in the
marketplace and to consumers. As the jars are items of home
decoration, it is the metal component which gives them the
greatest degree of decorative value. The holes and open areas of
the lid are what actually allow the potpourri scent to pass into
the air, whereas the glass bowl merely functions as a holder of
the potpourri.
In the event that Customs disagrees with the above
contention, counsel argues that either of the two subheadings
mentioned above are appropriate due to the application of GRI
3(c); between subheading 7013.99.50, HTSUS, and subheading
8306.29.00, HTSUS, and subheading 7806.00.00, HTSUS, the latter
two appear last in the tariff schedule.
ISSUE:
Are the potpourri jars classified in subheading 7013.99.50,
HTSUS, or in subheading 8306.29.00, HTSUS, or in subheading
7806.00.00, HTSUS.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI'S),
taken in order. GRI 1 provides that classification is determined
according to the terms of the headings and any relevant section
or chapter notes. No one heading specifically describes the
potpourri jars at issue.
The three possible headings for classification of the
potpourri jars are the following:
Heading 7013 Glassware of kind used for table,
kitchen, toilet, office, indoor
decoration or similar purposes.
Heading 8306 ...statuettes and other ornaments
of base metal
Heading 7806 Other articles of lead
GRI 3 states, in pertinent part:
When by application of Rule 2(b) or for any other reason,
goods are, prima facie, classifiable under two or more
headings, classification shall be affected as follows:
(b) 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 3(a), shall be classified
as if they consisted of the material or component
which gives them their essential character, insofar as
this criterion is applicable.
Explanatory Note VIII to GRI 3(b) of the Harmonized
Commodity Description and Coding System (HCDCS), page 4, states
that:
The factor which determines essential character will
vary as between different kinds of goods. It may, for
example, be determined by the nature of the material or
component, its bulk, quantity, weight or value, or by
the role of a constituent material in relation to the
use of the goods.
Headquarters Ruling Letter (HRL) 086166, dated April 9, 1990,
dealt with the classification of glass curio and trinket boxes
with brass feet and brass on the sides or edges. The importer
argued that the essential character of the boxes was represented
by the brass, since the value of the brass was much greater than
the value of the glass and the quality of workmanship applied to
the brass was greater. Though the brass represented a greater
portion of the product's value than the glass, the body of the
article, (the top, bottom and sides) consisted of glass.
Furthermore, the function of the box, to hold articles, was
represented by the glass, not the brass. Therefore, HRL 086166
held that the essential character of the boxes was found in the
glass body, not the brass feet and edges, as the function of the
box and the greatest portion of the product's surface area were
represented by the glass.
It is our position that the essential character of the
potpourri jars is represented by the glass body, not the metal
lid or base. Though the weight and value of the metal parts are
greater than the glass parts, the glass bowl provides more of the
surface area and the function and use of this merchandise is
clearly represented by the glass holder. The product is marketed
as a potpourri bowl or holder; the portion of the product which
is known as the potpourri bowl or holder consists exclusively of
glass. The item would be a potpourri bowl or holder whether it
has the lid/base or not.
Furthermore, counsel argues that the potpourri jars should
be classified in subheading 8306.29.00, HTSUS. We disagree. The
Explanatory Notes to Heading 8306 provide the following:
This group comprises a wide range of ornaments of base
metal (whether or not incorporating subsidiary non-
metallic parts) of a kind designed essentially for
decoration, e.g., in homes, offices, assembly rooms,
churches, gardens.
* * * *
The group also includes, in the circumstances explained
below, certain goods of the two following categories even
though they have a utility value:
(A) Household or domestic articles whether they are
potentially covered by specific headings for such goods
(i.e., headings 73.23, 74.18 and 76.16) or by the
"other articles" headings (e.g., in the case of
articles of nickel and tin in particular). These
household or domestic articles are generally designed
essentially to serve useful purposes, and any
decoration is usually secondary so as not to impair
the usefulness. If, therefore, such decorated articles
serve a useful purpose no less efficiently than their
plainer counterparts, they are classified as domestic
goods rather than in this group. On the other hand, if
the usefulness of the article is clearly subordinate
to its ornamental or fancy character, it should be
classified in this group, for example, trays so
heavily embossed that their usefulness is virtually
nullified; ornaments incorporating a purely incidental
tray or container usable as a trinket dish or ash-
tray; and miniatures having no genuine utility value
(miniature kitchen utensils).
The potpourri jars are clearly useful as holders. The
decorative lids do not impair the usefulness of the jars.
Therefore, since these jars serve a useful purpose no less
efficiently than their plainer counterparts, they are not
classified as ornaments in subheading 8306.29.00, HTSUS.
HOLDING:
The potpourri jars are classified in subheading 7013.99.50,
HTSUS, which provides for glassware of a kind used for table,
kitchen, toilet, office, indoor decoration or similar purposes,
other glassware, other, other. other, valued over $0.30 but not
over $3 each. The rate of duty is 30 percent ad valorem.
NYRL 860620 and NYRL 860950 are affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division