CLA-2-95:S:N:N3D:225 873318

Mr. Fermin Cuza
Mattel Toys, Inc.
333 Continental Boulevard
El Segundo, CA 90245-5012

RE: The tariff classification of a doll from China and/or Mexico

Dear Mr. Cuza:

In your letter dated April 2, 1992, you requested a tariff classification ruling.

A picture and complete description of the "My Size Barbie" doll was included with your inquiry. The doll stands three feet high. Her feet are flat, thus, enabling the doll to stand on her own. Barbie's torso, legs and feet will be injection molded of ABS plastic. Her head and arms will be roto-cast in plastisol, and she will have rooted hair made of kanekelon.

Barbie will be imported fully dressed in a three-piece costume with ballerina slippers. The outfit may be transformed into three dress-up costumes (princess, ballerina and beach fun). The princess skirt is made of pink nylon tulle with polyester glitter and silver metallic thread. The ballerina tutu is made of pink nylon tulle with polyester glitter and silver metallic thread with the slippers being constructed of pink nylon knit interlock with a pink satin finished ribbon. The swim suit is made of pink poly cotton lycra with sequins. Each outfit is capable of being worn by a child aged 3-7. The intent of these specially designed clothes is for a child to pretend she is Barbie and/or to draw the child into Barbie's fantasy world of fashion and glamour.

In addition, the following accessories will be included with Barbie: a necklace for the doll which transforms into a small tiara for the little girl, a pair of snap-on earrings, nail polish and lip gloss for the doll and/or child to wear. "My Size Barbie" will be imported packaged in a closed cardboard box ready for retail sale. The contents of the box will be: a three foot high Barbie doll dressed in a three piece costume, a pair of earrings, a necklace, nail polish and lip gloss. Barbie is designed for the amusement of children and is a representation of a human being. She meets the definition of a doll. Classification is based upon the General Rules of Inter- pretation. Specifically GRI 3(b) states "goods 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". In the case of "My Size Barbie" the Barbie doll imparts the essential character of the set.

Additionally, you indicate in your letter that Barbie's head and arms will be manufactured in China and her legs and torso will be from Mexico. The tiara and earrings will be dual sourced in China and Mexico. The cosmetics will be manufactured in the United States and exported to Mexico for repackaging with "Barbie".

The Generalized System of Preferences allows eligible articles which are the growth, product or manufacture of a designated beneficiary developing country (BDC) which are imported directly into the customs territory of the U.S. from the BDC to receive duty-free treatment if the sum of (1) the cost or value of materials produced in the BDC, plus (2) the direct costs of the processing operation in the BDC, is equivalent to at least 35% of the appraised value of the article at the time of entry. See 19 U.S.C. 2463(b).

Effective August 20, 1990, in section 226 of the Customs and Trade Act of 1990 (Public Law 101-382), an amendment was issued to the GSP statute requiring an article to be a "product of" a GSP country for it to receive duty-free treatment. This requirement means that to receive duty-free treatment, an article either must be made entirely of materials originating in the beneficiary country or, if made of materials from a non- beneficiary country, those materials must be substantially transformed in the beneficiary country into a new or different article of commerce.

In T.D. 91-7, Customs held that as a general rule, a collection classifiable in one subheading pursuant to the GRI's will receive GSP treatment only if all of the items or components in the collection are considered "products of" the beneficiary country. Additionally, in cases where the entire imported set is not the "product of" a BDC, as required by the GSP statute, neither the set nor any part thereof would be entitled to duty- free treatment under this program.

Mexico is a designated BDC as listed in General Note 3(c)(ii)(A), Harmonized Tariff Schedule of the United States Annotated (HTSUSA) and the classification for dolls is a GSP eligible provision. Therefore, "My Size Barbie" will be entitled to duty-free treatment if the entire set is considered to be a "product of" Mexico and the 35% value-content requirement is met.

As previously stated, Barbie's head and arms are made in China (a none BDC) and her legs and torso are made in Mexico. The assembly operation performed in Mexico may consititute a substantial transformation. However, Barbie's necklace and earrings will be dual sourced from China and Mexico. Further, the cosmetics are U.S. sourced. Therefore, the set is not a "Product of" Mexico. The applicable subheading for the "My Size Barbie" will be 9502.10.8000, Harmonized Tariff Schedule of the United States (HTS), which provides for dolls representing only human beings: whether or not dressed: other: other: other. The duty rate will be 12 percent ad valorem. HTSUS subheading 9801.00.10 provides for the duty-free entry of products of the U.S. that are returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, provided there has been compliance with the documentary requirements of section 10.1, Customs Regulations (19 CFR10.1).

On basis of the information provided, the cosmetics of U.S. origin, will not be advanced in value or improved in condition as a result of the various packaging operations abroad, will be eligible for the duty exemption available under HTSUS subheading 9801.00.10 when returned to the U.S., provided the documentary requirements of 19 CFR 10.1 are satisfied.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Sincerely,

Jean F. Maguire
Area Director
New York Seaport