CLA-2 RR:TC:TE 958718 GGD
Ms. Barbara Klausman
James J. Boyle & Co.
7505 Northeast Ambassador Pl., #B
Portland, Oregon 97220
RE: Reconsideration of NYRL 813200; Stereo Earphones with Denim Wrist Pouch; Not Composite Good or Set; Not GRI 5(a)
Container
Dear Ms. Klausman:
This letter is in response to your request of November 21,
1995, on behalf of your client, Labtec Enterprises, Inc., for
reconsideration of New York Ruling Letter (NYRL) 813200, issued
August 18, 1995, concerning the classification under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA) of a denim wrist pouch and stereo earphones, imported in
a blister package from China. A sample was submitted with the
request.
FACTS:
In NYRL 813200, Customs individually classified the wrist
pouch in subheading 4202.32.4000, HTSUSA, textile category 369,
the provision for "Articles of a kind normally carried in the
pocket or in the handbag: With outer surface of sheeting of
plastic or of textile materials: With outer surface of textile
materials: Of vegetable fibers and not of pile or tufted
construction: Of cotton," with an applicable duty rate of 7.1
(now 7) percent ad valorem.
The sample, identified by item no. LT-225, is a retail
package containing 1 pair of stereo earphones and a cotton denim,
zippered, wrist pouch. The pouch is of a generic type, -2-
measuring approximately 4-1/2 inches in length by 2 inches in
width. Two strips of hook and loop fastening material extend
from the ends of the pouch and, when joined, form a strap which
attaches the pouch to the wrist. The pouch is similar in design
to wrist pouches used by joggers, cyclists, etc., to hold money
and/or other small items normally carried in the pockets. The
complete article is imported suitable for direct retail sale
without repacking.
ISSUE:
Whether the merchandise is properly classified as a
composite article, as a set, or as individual, separately
classified components.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRI). GRI 1 provides that
the classification of goods shall be determined 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 GRI may then
be applied. The Explanatory Notes (EN) 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 GRI.
The complete article cannot be classified by reference to
GRI 1 because it consists of two individual components that are
classifiable in different headings, i.e., 4202 and 8518, HTSUS.
In pertinent part, GRI 2(b) states that:
[t]he classification of goods consisting of more than
one material or substance shall be according to the
principles of rule 3.
GRI 3(a) directs that the headings are regarded as equally
specific when each of the separate headings refers to part only
of the materials contained in composite goods or of the items in -3-
a set put up for retail sale. Whether the separate headings in
this case are regarded as equally specific depends upon whether
the pouch and earphones constitute a composite good or a set put
up for retail sale.
We look to GRI 3(b), which states in part that:
goods...which cannot be classified by reference to
3(a), shall be classified as if they consisted of the
material or component which gives them their essential
character, insofar as this criterion is applicable.
As with GRI 3(a) above, the applicability of GRI 3(b) is
dependent upon whether the pouch and earphones are deemed to
comprise a composite good or a set. In pertinent part,
Explanatory Note IX to GRI 3(b) indicates that:
[f]or 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.
In this case, the earphones and pouch are separable but not
mutually complementary nor adapted to be used together. The
pouch is designed to carry, protect, and/or store any of a
variety of small items. The earphones are designed to produce
sound when used with equipment such as a radio receiver, CD or
cassette player, etc. Each component is also of a kind normally
offered for sale separately. Thus the pouch and earphones do not
make up a composite good.
With respect to whether the article may be classified as a
set, Explanatory Note X(b) to GRI 3(b) provides, in part, the
following guidance:
For the purposes of this Rule, the term "goods put up in
sets for retail sale" shall be taken to mean goods which:
consist of products or articles put up together to meet
a particular need or carry out a specific activity....
(emphasis added) -4-
As noted above, the earphones are designed to produce sound when
used in conjunction with another device. The wrist pouch is
designed to carry, protect, and/or store small items. In light
of these divergent designs and uses, we find that the individual
components are not put up to meet a particular need or carry out
a specific activity. Thus, the goods do not comprise a set.
We next note that certain cases or containers may be
classified with the articles they are designed to hold if the
requirements of GRI 5(a) are met. In pertinent part, GRI 5(a)
states that:
Camera cases, musical instrument cases, gun cases,
drawing instrument cases, necklace cases and similar
containers, specially shaped or fitted to contain a
specific article or set of articles, suitable for long-term use and entered with the articles for which they
are intended, shall be classified with such articles
when of a kind normally sold therewith.
Although in this instance, a denim wrist pouch is imported
to be sold at retail with an article it is able to contain, it is
not specially shaped or fitted to contain earphones, nor are such
pouches normally sold with earphones. Therefore, GRI 5(a) does
not operate to render the wrist pouch classifiable with the
earphones.
You cite to Headquarters Ruling Letter (HRL) 956661, issued
October 7, 1994, as support for your contention that the pouch
should be classified under heading 8518, HTSUS, asserting that
the earphones provide the essential character of a composite
article. In HRL 956661, this office held that a mirror and a
drawstring pouch comprised a composite article that was
classified in a glass mirror provision. Unlike the earphones,
which are useless without additional equipment not included in
the retail package, the mirror was a functional component in its
own right, designed to reflect a clear image. The pouch
component served to enhance and prolong the usefulness of the
mirror by providing needed protection from scratches and breakage
during transportation and storage of the glass. Thus, although
pouches and mirrors may be offered for sale in separate parts,
those components were found to be adapted one to the other and to
comprise a composite good. For the reasons stated above, the
earphones and the wrist pouch must be classified separately. -5-
HOLDING:
The individual components packaged together for retail sale
and identified by item no. LT-225, are separately classified as
follows:
The cotton denim wrist pouch is classified in subheading
4202.32.4000, HTSUSA, textile category 369, the provision
for "Trunks, suitcases, vanity cases...wallets, purses...:
Articles of a kind normally carried in the pocket or in the
handbag: With outer surface of sheeting of plastic or of
textile materials: With outer surface of textile materials:
Of vegetable fibers and not of pile or tufted construction:
Of cotton." The applicable duty rate is 7 percent ad
valorem (7.1 percent ad valorem in 1995).
The stereo earphones are classified in subheading
8518.30.2000, HTSUSA, the provision for "Microphones...
headphones, earphones and...parts thereof: Headphones,
earphones and combined microphone/speaker sets: Other." The
applicable duty rate is 4.9 percent ad valorem.
NYRL 813200, issued August 18, 1995, is hereby affirmed.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report On Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service, which is available for
inspection at your local Customs office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements.
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division