CLA-2 CO:R:C:F 951352 LPF
Mr. David Smith
Rennoc Corporation
3501 S.E. Boulevard
Vineland, NJ 08360-7789
RE: Modification of HRL 088529; Hang and stuff puppet stocking
in 9503.49.0020, HTSUSA; Other toys, toys representing
animals or non-human creatures.
Dear Mr. Smith:
In Headquarters Ruling Letter (HRL) 088529 issued April 22,
1991, bear, elf and reindeer Christmas stockings and a puppet
stocking of a dog, imported from Thailand and Taiwan, were
classified in subheading 9505.10.5000, Harmonized Tariff Schedule
of the United States Annotated (HTSUSA), as "Festive, carnival or
other entertainment articles,...: Articles for Christmas
festivities and parts and accessories thereof: Other (than
Christmas ornaments): Other (than of plastics)." We have
reviewed that ruling and have found it to be partially in error.
The bear, elf and reindeer stockings were properly classified.
The correct classification of the puppet stocking of a dog is as
follows.
FACTS:
The article at issue, item #10666, is a "hang and stuff"
puppet stocking of a dog, which measures approximately 18 inches
long. The dog is wearing a red suit with three simulated gold
buttons and a red and white cap adorned with two holly leaves and
one berry. Its shirt and top slipper portions include an imprint
of holly-type leaves and berries. The article includes an open
pouch for the insertion of candy and little gifts, a textile loop
for hanging and a bottom opening permitting insertion of a hand.
You stated, telephonically, on March 27, 1992, that the article
is distinguishable (e.g, primarily functions) as a puppet.
The other articles include: item #10710, a stuffed bear
stocking; item #10730, an elf stocking; item #10760, a reindeer
stocking; and item #10732, a reindeer, with suspenders and
necktie, stocking. Although these articles all possess open
pouches for the insertion of candy and little gifts, as well as
textile loops for hanging, they do not include a bottom opening
permitting insertion of a hand.
-2-
ISSUE:
Whether the "hang and stuff" puppet stocking is classifiable
in subheading 9503 as an other toy or is classifiable in 9505 as
a festive article.
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. Most 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. 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.
Upon review of the various HTSUSA headings, it appears the
puppet stocking is potentially classified in either heading 9503
or 9505. Heading 9505, HTSUSA, provides for, inter alia,
festive, carnival and other entertainment articles. The EN's to
9505 indicate that the heading covers:
(A) Festive, carnival or other entertainment articles,
which in view of their intended use are generally
made of non-durable material. They include:
(1) Decorations such as festoons, garlands,
Chinese lanterns, etc., as well as various
decorative articles made of paper, metal foil,
glass fibre, etc., for Christmas trees (e.g.,
tinsel, stars, icicles), artificial snow, coloured
balls, bells, lanterns, etc. Cake and other
decorations (e.g., animals, flags) which
are traditionally associated with a particular
festival are also classified here.
(2) Articles traditionally used at Christmas
festivities, e.g., artificial Christmas trees
(these are sometimes of the folding type),
nativity scenes, Christmas crackers, Christmas
stockings, imitation yule logs....
* * *
-3-
In general, merchandise is classifiable in heading 9505,
HTSUSA, as a festive article when the article, as a whole:
1. is of non-durable material or, generally, is not
purchased because of its extreme worth, or intrinsic
value (e.g., paper, cardboard, metal foil, glass fiber,
plastic, wood);
2. functions primarily as a decoration (e.g., its primary
function is not utilitarian); and
3. is traditionally associated or used with a particular
festival (e.g., stockings and tree ornaments for
Christmas, decorative eggs for Easter).
An article's satisfaction of these three criteria is
indicative of classification as a festive article. The motif of
an article is not dispositive of its classification and,
consequently, does not transform an item into a festive article.
In this case, the puppet stocking's primary function is not
as a decoration, but instead it is primarily designed to amuse a
child who would play with the article. In addition, when
examining the puppet stocking, as a whole, it is evident that the
article is not traditionally associated or used with the
particular festival of Christmas. As a puppet, it is likely to
be used throughout the year. It is not akin to those articles
cited in the EN's to 9505, as exemplars of traditional, festive
articles. The article must be classified elsewhere.
Heading 9503, HTSUSA, provides for, inter alia, other toys.
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 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, since the puppet will be principally use as a toy, it
is classifiable in 9503. The appropriate subheading is
9503.49.0020.
-4-
HOLDING:
The "hang and stuff" puppet stocking of a dog is
classifiable in subheading 9503.49.0020, HTSUSA, as "Other
toys;...: Toys representing animals or non-human creatures (for
example, robots and monsters) and parts and accessories thereof:
Other, Toys not having a spring mechanism: Other." The general
column one rate of duty is 6.8 percent ad valorem. We note that
the ruling being modified indicated a general column one rate of
duty of 5.8 percent ad valorem. However, an article classified
in 9503.49.0020, which is a product of Thailand, is eligible for
duty free treatment under the Generalized System of Preferences
(GSP), provided it meets the requirements of General Note
3(c)(ii), HTSUSA.
This notice should be considered a modification of HRL
088529 pursuant to 19 CFR 177.9(d)(1). It is not to be applied
retroactively to HRL 088529 (19 CFR 177.9(d)(2)) and will not,
therefore, affect past transactions for the importation of your
merchandise under that ruling. However, for the purposes of
future transactions in merchandise of this type, HRL 088529 will
not be valid precedent. We recognize that pending 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 notify this office and apply for relief from the
binding effects of this decision as may be warranted by the
circumstances.
Sincerely,
John Durant, Director
Commercial Rulings Division