CLA-2 CO:R:C:F 956534 GGD
Mr. Warren E. Coe
Amway Corporation
7575 Fulton Street, East
Ada, Michigan 49355-0001
RE: Modification of Cleveland District Ruling Letter (DD)
885222; Toy Walkie-Talkies; Not Transmission Apparatus
Incorporating Reception Apparatus
Dear Mr. Coe:
In DD 885222, issued May 12, 1993, five separate articles
were classified. One of the products, identified as a toy
walkie-talkie (but which was actually a pair), was classified in
subheading 8525.20.20, Harmonized Tariff Schedule of the United
States (HTSUS), which provides for "Transmission apparatus for
radiotelephony...: Transmission apparatus incorporating reception
apparatus: Transceivers: Low-power radiotelephonic transceivers
operating on frequencies from 49.82 to 49.90 MHz." We have
reviewed that ruling and, with respect to the toy walkie-talkies,
have found it to be partially in error. Therefore, this ruling
modifies DD 885222. Pursuant to section 625, Tariff Act of 1930
(19 U.S.C. 1625), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993)
(hereinafter section 625), notice of the proposed revocation of
DD 885222 was published on August 31, 1994, in the Customs
Bulletin, Volume 28, Number 35.
FACTS:
The article at issue, identified by SKU No. Z9581, and by
Vendor No. SOUNDESIGN PS-180, consists of a pair of 49.86 MHz,
battery-powered walkie-talkies that allow children to talk to
each other while they play. -2-
ISSUE:
Whether the article is properly classified as a
transmission/reception apparatus in subheading 8525.20.20, HTSUS,
or as other toys put up in sets in subheading 9503.70.80, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRIs). 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 GRIs may then
be applied. The Explanatory Notes (ENs) to the Harmonized
Commodity Description and Coding System, which represent the
official interpretation of the tariff at the international level,
facilitate classification under the HTSUS by offering guidance in
understanding the scope of the headings and GRIs.
Heading 8525, HTSUS, provides for, among other items,
transmission apparatus for radiotelephony, whether or not
incorporating reception apparatus. Heading 8525 falls within
Section XVI, HTSUS. Note 1(p) to Section XVI, states that the
section does not cover articles of chapter 95. Thus, if the
walkie-talkie set is described in both Section XVI and Chapter
95, it is classified in Chapter 95.
Heading 9503, HTSUS, applies to "other toys," i.e., all toys
not specifically provided for in the other headings of chapter
95. Although the term "toy" is not defined in the tariff, the EN
to chapter 95 indicates that a toy is an article designed for the
amusement of children or adults. The ENs to heading 9503
indicate that certain toys, including toy arms, tools, gardening
sets, tin soldiers, etc., are often put up in sets. The ENs also
state that certain toys (e.g., electric irons, sewing machines,
musical instruments, etc.) may be capable of a limited "use," but
they are generally distinguishable by their size and limited
capacity from real sewing machines, etc.
Mindful of the toy walkie-talkies' low value, limited range,
and durability relative to real walkie-talkies, we find that the
article is designed principally for amusement, and is properly
classified in subheading 9503.70.80, HTSUS, the provision for
other toys put up in sets. -3-
HOLDING:
The toy walkie-talkie set, identified by SKU No. Z9581, and
by Vendor No. SOUNDESIGN PS-180, is classified in subheading
9503.70.80, HTSUS, the provision for "Other toys...and
accessories thereof: Other toys, put up in sets or outfits, and
parts and accessories thereof: Other: Other." The applicable
duty rate is 6.8 percent ad valorem.
DD 885222, dated May 12, 1993, is hereby modified.
In accordance with section 625, this ruling will become
effective 60 days from its publication in the Customs Bulletin.
Publication of rulings or decisions pursuant to section 625 does
not constitute a change of practice or position in accordance
with section 177.10(c)(1), Customs Regulations (19 CFR
177.10(c)(1).
Sincerely,
John Durant, Director
Commercial Rulings Division