CLA-2 CO:R:C:F 950758 LPF
Mr. Leslie A. Glick
Porter, Wright, Morris & Arthur
1233 20th Street, N.W.
Washington, D.C. 20036-2935
RE: Modification of Headquarters Ruling Letter (HRL) 555415;
"Mini-Court" Miniature Basketball Game; Heading 9506,
HTSUSA, providing for articles and equipment for gymnastics,
athletics, other sports (including table tennis) or outdoor
games
Dear Mr. Glick:
In HRL 555415, issued February 1, 1991, "Mini-Court," a
miniature basketball game, was classified in subheading
9503.20.0020, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), as "[o]ther toys; reduced-size ("scale")
models and similar recreational models, working or not;...
Reduced-size ("scale") model assembly kits, whether or not
working models..., Assembly kits with construction units
prefabricated to an essentially uniform scale of the actual
article." The general column one rate of duty was 6.8 percent ad
valorem. However, an article in this subheading was eligible
for duty free treatment under the Generalized System of
Preferences (GSP), provided it met the requirements of General
Note 3(c)(ii), HTSUSA. Subsequently, we have reviewed that
ruling and have found it to be partially in error. The correct
classification is as follows.
FACTS:
The article at issue is "Mini-Court", a miniature basketball
game manufactured in Mexico of materials from Indonesia and the
U.S. The article consists of a metal basketball hoop with a mesh
net that is affixed to a wooden backboard. The backboard is
supported by a two-part metal tubular post, approximately six
feet tall, rising vertically from an x-shaped floor stand, also
of tubular construction. The game is a scaled version of
standard basketball equipment and is designed for use with an
undersized basketball, which is not supplied.
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ISSUE:
Whether the miniature basketball game is classifiable in
heading 9503, HTSUSA, as an other toy, reduced size ("scale")
model or similar recreational model, working or not; or rather
in heading 9506, HTSUSA, as an article or equipment for
gymnastics, athletics, other sports (including table-tennis) or
outdoor games.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) taken in their
appropriate order provide a framework for classification of
merchandise under the HTSUSA. The majority of imported 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. The Explanatory Notes (EN's) to the Harmonized
Commodity Description and Coding System, which represent the
official interpretation of the tariff at the international level,
facilitate classification under the HTSUSA by offering guidance
in understanding the scope of the headings and GRI's.
The article at issue is classifiable by applying GRI 1,
that is, according to the terms of the applicable heading. The
headings to consider in this case are 9503 providing for other
toys, reduced size ("scale") models and similar recreational
models, working or not and 9506 providing for articles and
equipment for gymnastics, athletics, other sports (including
table-tennis) or outdoor games.
Although the term "toy" is not specifically defined in the
tariff, the EN's to Chapter 95, HTSUSA, indicate that:
This Chapter covers toys of all kinds whether designed
for the amusement of children or adults. It also
includes equipment for indoor or outdoor games,
appliances and apparatus for sports, gymnastics or
athletics....
As noted above, Chapter 95 divides "toys or models" and "outdoor
games or athletic equipment" into two separate headings, 9503 and
9506, respectively. As a result, a classification problem arises
concerning the question of amusement. Since all game or
athletic equipment provide some amusement, the determination of
whether the article should be classified as "toys or models" or
as "outdoor games or athletic equipment" is not patently clear.
See HRL 088045 classifying utility and playground balls.
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It is Customs position that the amusement requirement means
that toys should be designed and used principally for amusement.
See Additional U.S. Rule of Interpretation 1(a), HTSUSA. Customs
defines principal use as that use which exceeds each other single
use of the article. In this case, the principal use of the
article will not be as a toy.
The miniature basketball game is not flimsily or delicately
constructed as is an article for amusement such as a toy,
particularly a model. Rather, the article stands six feet tall
with a wooden backboard supported by a two-part metal tubular
post rising vertically from a tubular floor stand. The
basketball game, thus, can function as a recreational article
and provide physical activity especially for children. Although
suitable for indoor use, 9506 does not exclude such articles.
This is evinced by its inclusion of articles and equipment for
table tennis. Moreover, the basketball game is also fit for
outdoor use, for instance, in children's playgrounds.
Appropriately, EN (B)(12) to heading 9506 explains that the
heading covers equipment of a kind used in children's
playgrounds. For these reasons, the article is classifiable in
heading 9506. The applicable subheading is 9506.99.6080.
HOLDING:
The "Mini-Court" miniature basketball game is classifiable
in subheading 9506.99.6080, HTSUSA, as "[a]rticles and equipment
for gymnastics, athletics, other sports (including table-tennis)
or outdoor games, not specified or included elsewhere in this
chapter;...parts and accessories thereof: Other: Other: Other,
Other. The general column one rate of duty is 4.64 percent ad
valorem. However, an article in this subheading is eligible for
duty free treatment under the GSP provided it meets the
requirements of General Note 3(c)(ii), HTSUSA.
This notice should be considered a modification of HRL
555415 pursuant to 19 CFR 177.9(d)(1). It is not to be applied
retroactively to HRL 555415 (19 CFR 117.9(d)(2)) and will not,
therefore, affect past transactions for the importation of your
client's merchandise under that ruling. However, for the
purposes of future transactions in merchandise of this type, HRL
555415 will not be valid precedent. We recognize that pending
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transactions may be adversely affected by this modification, in
that current contracts for importations arriving at a port
subsequent to this decision will be classified pursuant to it.
If such a situation arises, you may, at your discretion, notify
this office and apply for relief from the binding effects of this
decision as may be warranted by the circumstance.
Sincerely,
John Durant, Director
Commercial Rulings Division