CLA-2 CO:R:C:M 953264 RFA
L. Klestadt, President
Trans-World Shipping Corp.
53 Park Place
New York, NY 10007
RE: Magnets; household ceramic magnets; permanent magnets; EN
85.05; GRI 3(b); essential character; household plastic goods;
hook magnets; ENs VIII and IX to GRI 3(b)
Dear Mr. Klestadt:
This is in response to your letter dated January 12, 1993, on
behalf of Hoan Products, Ltd., inquiring as to the tariff
classification of household magnets under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
The merchandise consist of magnets of barium ferrite attached
to various plastic articles. One magnet is attached to the back
of a plastic decoration which depicts the "Pillsbury Doughboy" and
the statement "Nothin' says lovin' like somethin' from the oven"
("Pillsbury Memo Magnet"). The other magnet is attached to the
back of a plastic hook ("hook magnet") from which to hang other
small, light articles. Both articles use the magnet to attach to
a refrigerator, oven, or other metallic surface.
ISSUE:
Are magnets attached to other articles for household use
classifiable in chapter 85 as magnets under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification shall be determined according
to the terms of the headings and any relative section or chapter
notes.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation Council's
official interpretation of the HTSUS. While not legally binding,
the ENs provide a commentary on the scope of each heading of the
HTSUS and are generally indicative of the proper interpretation of
these headings. See T.D. 89-90, 54 Fed.Reg. 35127, 35128 (August
23, 1989). EN 85.05, page 1340-1341, states in pertinent part:
Permanent magnets consist of pieces of hard steel,
special alloys or other materials (e.g., barium ferrite
agglomerated with plastics or synthetic rubber) which
have been rendered permanently magnetic. Their shape
varies according to the use for which they are designed.
. . . Permanent magnets remain classified here whatever
their use, including small magnets used, inter alia, as
toys.
Articles intended to become permanent magnets after
magnetisation are recognisable as such by their shape and
composition, generally being cubes or discs (tags) of
metal or of agglomerated ferrite (e.g., barium ferrite).
The Pillsbury Memo Magnet and the hook magnet are to be
considered composite goods, because they each consist of a magnet
and a plastic component. The subject goods are prima facie
classifiable in heading 8505, HTSUS, as a magnet and in heading
3924, HTSUS, as an article of plastic. Because classification in
a single heading cannot be determined by applying GRI 1, we must
apply the other GRI's. GRI 2(a) is not applicable here because
the merchandise is not incomplete or unfinished. GRI 2(b) states
that if a product is a mixture or combination of materials or
substances that are, prima facie, classifiable in two or more
headings, then GRI 3 applies.
GRI 3(a) states in pertinent part:
. . .when two or more headings each refer to part only
of the materials or substances contained in mixed or
composite goods . . ., 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 magnet and the plastic "housing" fall under
separate headings in the tariff schedule which describe only a
portion of the goods, 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) provides
that composite goods consisting of different materials or made up of different components, shall be classified
as if they consisted of the material or component which gives them
their essential character.
EN IX to GRI 3(b), page 4, states as follows:
[f]or 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. (emphasis
in original)
Because the subject articles are composite goods, we must
determine which component provides the essential character. EN
VIII to GRI 3(b), page 4, states as follows:
[t]he 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 the case of the Pillsbury Memo Magnet and the hook magnet,
we find that the essential character is imparted by the permanent
magnet. Removal of the magnet from the article would leave the
product totally incapable of functioning as a magnetic memo holder
for metallic surfaces. The plastic portion merely embellishes the
product and acts as a decorative selling feature, but has no effect
on the ability of the magnet to perform its intended function.
Based upon the GRI 3(b) and the above reasoning, we find that the
Pillsbury Memo Magnet and the hook magnet are provided for in
heading 8505, HTSUS, as a permanent magnet.
HOLDING:
The Pillsbury Memo Magnet and the hook magnet are classifiable
under subheading 8505.19.00, HTSUS, which provides for:
"[e]lectromagnets; permanent magnets and articles intended to
become permanent magnets after magnetization. . .: [p]ermanent magnets and articles intended to become permanent magnets after
magnetization: [o]ther. . . ." The general, column one rate of
duty is 4.9 percent ad valorem.
Sincerely,
John Durant, Director