CLA-2 R:C:F 957706 GGD
Donald J. Unger, Esquire
Barnes, Richardson & Colburn
200 East Randolph Drive, Suite 7920
Chicago, Illinois 60601
RE: "Heritage Village Collection" and "Snow Village Collection;"
Festive Articles; Protest No. 3501-90-000048 Distinguished;
HRL 088504 Distinguished; Burden of Proof Regarding
Traditional Use
Dear Mr. Unger:
This letter is in response to your request of March 6, 1995,
that the port of Minneapolis be issued instructions to allow
entry of merchandise identified as the "Heritage Village
Collection" and the "Snow Village Collection," as festive
articles, under heading 9505, Harmonized Tariff Schedule of the
United States (HTSUS). The merchandise comprising the
collections is the same as, or similar to, goods which are the
subject of: Headquarters Ruling Letter (HRL) 088504, issued
February 3, 1992 (relating to Protest No. 3501-90-000048); the
Stipulated Judgment on Agreed Statement of Facts, entered by the
Court of International Trade on August 4, 1994; and various other
entries.
FACTS:
In HRL 088504, the merchandise consisted of two groups of
ornamental ceramic ware depicting buildings, figurines, and
miscellaneous accessories. The first group, composed of
porcelain and identified as the "Heritage Village Collection,"
included the "Dickens Village," "Alpine Village," "New England
Village," "Christmas in the City," and the "Little Town of
Bethlehem Collection." This merchandise was classified in
subheading 6913.10.50, HTSUS, the provision for statuettes and
other ornamental ceramic articles, of porcelain, other, other,
with an applicable duty rate of 9 percent ad valorem. -2-
The second group, composed of earthenware, was identified as
the "Snow Village Collection." This merchandise was classified
in subheading 6913.90.50, HTSUS, the provision for statuettes and
other ornamental articles, other than of porcelain or china,
other, other, with an applicable duty rate of 7 percent ad
valorem.
The basis in HRL 088504 for not including the above articles
in subheading 9505.10.50, was that they were not traditionally
associated with Christmas festivities. Upon further review of
the record available at the time HRL 088504 was issued, we find
that HRL 088504 was correct. The evidence available to Customs
at the time showed the merchandise lacked a traditional
association with a particular festival (i.e., Christmas).
On February 8, 1995, a conference was held with Customs and
Department of Justice personnel and representatives of your
office, at which additional written submissions and oral
arguments were presented by you regarding the factual issue of
traditional use. Based upon the additional oral and written
evidence of traditional use presented at the February 8 meeting,
Customs now believes that you have met your burden of proof and
established the traditional use of the articles covered by this
ruling, with Christmas. It was for this reason that Customs
concurred in the stipulated judgment of the case. Accordingly,
this decision provides a binding ruling, based on the additional
facts provided at the February 8, 1995 meeting, as to the tariff
classification of the "Heritage Village Collection" and the "Snow
Village Collection."
ISSUE:
Whether the porcelain and earthenware items in the "Heritage
Village Collection" and the "Snow Village Collection" are
classified in heading 6913, HTSUS, as statuettes and other
ornamental ceramic articles, or in heading 9505, HTSUS, as
festive articles.
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 -3-
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 9505, HTSUS, provides for, among other items,
festive, carnival, and other entertainment articles. The EN to
9505 indicates 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....
In general, merchandise is classifiable in heading 9505,
HTSUS, 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).
Articles classifiable in heading 9505, HTSUS, tend to serve
no other function than decoration. Further, the motif of an item
is not dispositive of its classification and, consequently, does
not transform an item into a festive article.
Although in general, ornamental ceramic articles are not
traditionally associated or used with a particular festival, we
find that sufficient evidence has been presented to demonstrate
that the items which comprise the "Heritage Village Collection" -4-
and the "Snow Village Collection" are traditionally used during
the festival of Christmas. It is our determination that the
goods meet the criteria for classification as festive articles.
HOLDING:
The merchandise identified as the "Heritage Village
Collection" and the "Snow Village Collection" is classified in
subheading 9505.10.50, HTSUS, the provision for "Festive,
carnival or other entertainment articles...parts and accessories
thereof: Articles for Christmas festivities and parts and
accessories thereof: Other: Other." The applicable duty rate for
entries of this merchandise made through December 31, 1994, was
5.8 percent ad valorem. Under the tariff effective January 1,
1995, the rate has been reduced to free.
This ruling should be provided to Customs at the time the
entry is filed for this merchandise, along with a copy of HRL
088504.
Sincerely,
John Durant, Director
Commercial Rulings Division