CLA-2 CO:R:C:M 952238 KCC
Gail T. Cumins, Esq.
Sharrets, Paley, Carter & Blauvelt, P.C.
67 Broad Street
New York, New York 10004
RE: Mugs and Placemats; set; GRI 3(b); EN X to GRI 3(b); EN VIII
to GRI 3(b); essential character; GRI 3(c)
Dear Ms. Cumins:
This is in response to your letter dated June 10, 1992, to
Customs in New York, on behalf of Town and Country Linen
Corporation, regarding the tariff classification of packaged
stoneware mugs and vinyl placemats under the Harmonized Tariff
Schedule of the United States (HTSUS). A sample of an unmatched
mug and placemat were submitted for examination. The comments
expressed by counsel in a September 10, 1992, meeting with
members of my staff were taken under consideration.
FACTS:
The article under consideration is a package of four
stoneware mugs and four vinyl placemats imported together in
retail packaging from Taiwan or China. The mugs and placemats
are matched with the same Town and Country decorative pattern.
ISSUE:
Are the mugs and placemats classified as a set pursuant to
GRI 3(b), HTSUS, or are they properly classified under separate
tariff provisions in the HTSUS?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes...." When goods are prima
facie classifiable under two or more headings GRI 3 is
applicable. In this case, classification is determined by
application of GRI 3(b) which provides:
Goods put up in sets for retail sale shall be classified as
if they consisted of the component which gives them their
essential character.
To determine what is a "set put up for retail sale" the
Explanatory Notes (EN) of the Harmonized Commodity Description
and Coding System (HCDCS) may be utilized. EN X to GRI 3(b)
provides a three part test for "goods put up in sets for retail
sale":
For the purposes of this Rule, the term 'goods put up in
sets for retail sale' shall be taken to mean goods which:
(a) consist of at least two different articles which are
prima facie, classifiable in different headings;
(b) consist of products or articles put up together to meet
a particular need or carry out a specific activity; and
(c) are put up in a manner suitable for sale directly to
users without repackaging (e.g., in boxes or cases or
on boards).
HCDCS, Vol. 1, p. 4. The Explanatory Notes, although not
dispositive, are looked to for the proper interpretation of the
HTSUS. 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
In the present situation, the merchandise consists of two
different articles, each having its own classification. The mugs
are classified under heading 6912, HTSUS, and the placemats are
classified under heading 3924, HTSUS. The mugs and placemats are
packaged together for sale directly to the consumer without
repackaging. Therefore, the merchandise at issue meets two
requirements of the three part test.
The third requirement to be met is whether the merchandise
consists of "articles put up together to meet a particular need
or carry out a specific activity." While it is unclear whether
or not the components are put up together to meet a particular
need, they do appear to be used for the same "specific activity",
namely the serving of food or light snacks with decorative
accessory pieces for use by the consumer with previously
purchased tableware. Although it is true that mugs and placemats
may not always be used together, we do not believe that this fact
serves as a bar to classification of this particular importation
as a set. As imported and as put up for retail sale, the
merchandise is a set obviously intended to be used together which
has the particular purpose of serving as decorative kitchenware
accessories for the service of light meals and snacks and as such
should be classified as a set.
In general, essential character has been construed to mean
the attribute which strongly marks or serves to distinguish what
an article is; that which is indispensable to the structure, core
or condition of the article. In addition, EN VIII to GRI 3(b)
provides further factors which determine the essential character
of goods. Factors such as bulk, quantity, weight or value, or
the role of a constituent material in relation to the use of the
goods are to be utilized, though the importance of certain
factors will vary between different kinds of goods. HCDCS, Vol.
1, p. 4.
As each article is equally important to the set, we are
unable to determine which article imparts the essential character
to the mug and placemat set. In this situation, GRI 3(c) obliges
us to classify the merchandise under the heading which occurs
last in numerical order among those which equally merit
consideration. Therefore, the mug and placemat set is classified
under subheading 6912.00.44, HTSUS, which provides for "Ceramic
tableware, kitchenware, other household articles and toilet
articles, other than of porcelain or china...Tableware and
kitchenware...Other...Other...Other...Mugs and other steins"
HOLDING:
The mugs and placemats are properly classified as a set
pursuant to GRI 3(b), HTSUS. As neither article imparts the
essential character of the set, it is classified by the tariff
provision occurring last in numerical order. Therefore, the set
is classified under subheading 6912.00.44, HTSUS, which provides
for "Ceramic tableware, kitchenware, other household articles and
toilet articles, other than of porcelain or china...Tableware and
kitchenware...Other...Other...Other...Mugs and other steins",
which is dutiable at the rate of 13.5 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division