CLA-2 CO:R:C:F 950201 STB

Ms. Betsy N. Wolkens
Hayes Specialties Corporation
1761 East Genesee
Saginaw, Michigan 48601

RE: Pre-programmed Chip, Musical, with Velcro Detachable Wrist Band

Dear Ms. Wolkens:

This letter is in response to your inquiry of June 5, 1991, requesting a tariff classification of a "Wrist Worn Lambada Musical Device." A sample was submitted with your inquiry.

FACTS:

The sample is a wrist worn musical device attached to the wrist by a velcro strap. The musical device is a detachable battery operated device containing a pre-programmed chip, which plays a "Lambada" tune. The sample musical device and wrist band are both bright pink in color.

ISSUE:

What is the proper classification of the wrist worn "lambada" musical device?

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 relative 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 then be applied.

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First, we note that the lambada musical device cannot be classified by reference to GRI 1 because the musical device and the wrist band are classifiable in two different headings. The musical device would ordinarily be classifiable in heading 8543, HTSUSA, which provides for "Electrical machines and apparatus, having individual functions not specified or included elsewhere" in chapter 85. The wristband would probably be classified in heading 6217, HTSUSA, the provision for "other made up clothing accessories...other than those of heading 6212."

Since this merchandise is not classifiable under GRI 1, we must proceed to the subsequent GRI's. GRI 2 is not applicable here because the item in question is not an incomplete or unfinished article and is not a mixture or combination of goods.

GRI 3, however, is applicable in this situation. It provides 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 effected as follows:

(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

Because the musical device and wrist band fall under separate headings in the tariff schedule which describe only a portion of the wrist worn lambada musical unit, the headings are to be regarded as equally specific under GRI 3(a). Therefore, GRI 3(a) fails in establishing classification, and GRI 3(b) becomes applicable. GRI 3(b) states in pertinent part:

* * * * *

(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. -3-

The Explanatory Notes, which represent the official interpretation of the tariff at the international level, offer guidance in applying the GRIs and in understanding the scope of the headings. Explanatory Note IX to GRI 3(b) provides, in pertinent part:

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(IX) For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.

In the instant case, the musical device and wrist band qualifies as a composite good as defined in GRI 3(b). The musical device and wrist band are separable components which attach and detach by use of velcro which covers almost the entire outer surface of the wrist band. They are adapted to each other in that the pink band serves as a convenient method to transport and utilize the pink musical device. It is highly unlikely that either the wrist band or musical device would ever be offered for sale alone.

Since the item is a composite good, we must determine which component provides the essential character. Explanatory Note VIII to GRI 3(b) states that:

* * * * *

(VIII) 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.

In this instance, it is readily apparent that the essential character of the subject merchandise is imparted by the musical device. The wrist band is barely more than a means of conveniently transporting and displaying this device.

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Therefore, this merchandise must be classified according to the musical device. Explanatory Note 85.43 (13) provides that heading 8543, HTSUSA, includes, inter alia, the following:

(13) Electronic musical modules for incorporation in a wide variety of utilitarian or other goods, e.g., wrist watches, cups and greeting cards. These modules usually consist of an electronic integrated circuit, a resistor, a loudspeaker and a mercury cell. They contain fixed musical programmes.

This explanatory note accurately describes the musical device at issue; the merchandise is properly classified in heading 8543, HTSUSA, and, particularly in subheading 8543.80.9080, HTSUSA, which provides for other electrical machines and apparatus. This ruling is in accord with Headquarters Ruling Letters (HRLs) 088646, dated May 3, 1991 and 089996, dated October 23, 1991, which also discussed electronic modules.

HOLDING:

The musical device and wrist band are classified in subheading 8543.80.9080, HTSUSA, the provision for electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other, Other. The applicable duty rate is 3.9% ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division