CLA-2 OT:RR:CTF:CPMMA H212596 MAB
Toys “R” Us, Inc.
One Geoffrey Way
Wayne, NJ 07470
ATTN: Legal and Risk Management Department
Re: Revocation of NY N012532; Classification of JumpSmart Trampoline
To Whom It May Concern:
This is in reference to New York Ruling Letter (NY) N012532 dated June 29, 2007, issued to legal counsel of Etoys Direct, Inc., a company acquired by Toys “R” Us, Inc., in 2009 concerning the tariff classification of a musical trampoline for children identified as the “JumpSmart Trampoline” under the Harmonized Tariff Schedule of the United States (HTSUS). In that ruling, U.S. Customs and Border Protection (CBP) classified the merchandise as a toy under heading 9503, HTSUS. More specifically, the instant merchandise was classified in subheading 9503.00.0080, HTSUSA (Annotated). We have reviewed NY N012532 and find it to be in error with respect to the tariff classification. For the reasons set forth below, we hereby revoke NY N012532.
Pursuant to Section 6125(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), 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), this notice advises interested parties that CBP is revoking the above noted ruling concerning the classification of Jump Smart Trampoline, under the HTSUS. Similarly, CBP is revoking any treatment previously accorded by it to substantially identical transactions. Notice of the proposed revocation was published on February 21, 2018, in Volume 52, Number 8, of the Customs Bulletin. No comments were received in response to the proposed notice.
FACTS:
The subject merchandise at issue in NY N012532 is a musical trampoline for children called the JumpSmart Trampoline (item number 4849). It measures approximately 42 inches by 36 inches and is designed for children ages three to eight years of age, weighing up to 80 pounds. The trampoline has accompanying music and learning games when children are jumping on it.
In addition to the original descriptive information set forth in NY N012532, we have reviewed representative product specific literature that is available on the Internet and watched several YouTube videos. JumpSmart Trampoline is triangular-shaped with a trampoline mat secured to a metal frame by bungee cording. The mat appears to be composed of either polyvinyl chloride (PVC) or other fabric material. The bungee cording provides the trampoline mat its bounce. There is a second piece of cascading fabric that covers the bungees and the edges of the triangular metal frame. The JumpSmart Trampoline also has two waist-high handles that are similar to bicycle handles for children to hold onto, providing balance while jumping. There is a piece of what appears to be heavy-duty plastic connecting the two handlebars with a row of buttons that control the music, learning games, and volume. The instant merchandise requires three AA batteries that are not included.
JumpSmart Trampoline as seen on Amazon.com
ISSUE:
Whether the JumpSmart Trampoline is a toy of heading 9503, HTSUS, or an article for general physical exercise of heading 9506, HTSUS.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context, which requires otherwise, by the Additional U.S. Rules of Interpretation. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in their appropriate order. The HTSUS provisions under consideration are the following:
9503 Tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages; dolls, other toys; reduced-size (“scale”) models and similar recreational models, working or not; puzzles of all kinds; parts and accessories thereof
9503.00.0090 Other:
* * * * *
9506 Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this chapter; swimming pools and wading pools; parts and accessories thereof:
Other:
9506.91.00 Articles and equipment for general physical exercise, gymnastics or athletics; parts and accessories thereof
9506.91.0030 Other
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System (HS) at the international level. While not legally binding, the ENs provide a commentary on the scope of each heading of the HS and are thus useful in ascertaining the proper classification of merchandise. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
Although the term "toy" is not specifically defined in the tariff, the ENs to chapter 95, HTSUS, state the following:
This Chapter covers toys of all kinds whether designed for the amusement of children or adults. It also includes equipment for indoor or outdoor games, appliances and apparatus for sports, gymnastics or athletics, certain requisites for fishing, hunting or shooting, and roundabouts and other fairground amusements.
The ENs to heading 9503 provide, in relevant part, as follows:
(D) Other toys.
This group covers toys intended essentially for the amusement of persons (children or adults)….This groups includes:
* * * * *
(ix) Toy sports equipment, whether or not in sets (e.g., gold sets, tennis sets, archery sets, billiard sets; baseball bats, cricket bats, hockey
sticks).
The EN to heading 9506 states, in pertinent part, the following:
(A) Articles and equipment for general physical exercise, gymnastics or athletics, e.g., :
Trapeze bars and rings; horizontal and parallel bars; balance beams, vaulting horses; pommel horses; spring boards; climbing ropes and ladders; wall bars; Indian clubs; dumb bells and bar bells; medicine balls; rowing, cycling and other exercising apparatus; chest expanders; hand grips; starting blocks; hurdles; jumping stands and standards; vaulting poles; landing pit pads; javelins, discuses, throwing hammers and putting shots; punch balls (speed bags) and punch bags (punching bags); boxing or wrestling rings; assault course climbing walls.
As noted above, Chapter 95 divides “toys” and "equipment for general physical exercise" into two separate headings - 9503, HTSUS, for toys and 9506, HTSUS, for exercise equipment. In order to be considered a toy, an article must be principally designed for amusement and not practicality. See, e.g., Streetsurfing LLC v. United States, 11 F. Supp. 3d 1287, 1298 (CIT 2014); Minnetonka Brands, Inc. v. United States, 110 F. Supp. 2d 1020, 1026 (CIT 2000)). Furthermore, if the article consists of a utilitarian feature, it must be incidental to any amusement the item may provide. See Ideal Toy Corp. v. United States, 78 Cust. Ct. 28, 33, C.D. 4688 (1977).
The term trampoline is undefined in the tariff. The courts and CBP construe statutorily undefined terms in accordance with their common and commercial meaning, which is presumed to be the same. See E.M. Chems. v. United States, 920 F.3d 910, 913 (Fed. Cir. 1990). The Oxford Dictionary defines trampolines as: “[a] strong fabric sheet connected by springs to a frame, used as a springboard and landing area in doing acrobatic or gymnastic exercises.” Miriam-Webster defines them as: “[a] resilient sheet or web (as of nylon) supported by springs in a metal frame and used as a springboard and landing area in tumbling” and Wikipedia states: “[a] trampoline is a device consisting of a piece of taut, strong fabric stretched over a steel frame using many coiled springs.”
Mini-trampolines, however, do not have springs, but use a number of tension resistance bands to provide the bounce. They are depicted below:
Like the resistant bands found in these mini-trampolines, the JumpSmart Trampoline’s bungee cords provide the same bouncing and jumping experience, thereby providing exercise.
In NY R01614 (dated March 22, 2005), CBP considered the issue of whether a child-sized “Mini Trampoline” that was circular in shape and measuring 37.4 inches in circumference, should be classified as a toy of heading 9503, HTSUS, or an article of exercise equipment of heading 9506, HTSUS. The trampoline’s frame was constructed of steel and the trampoline mat, as well as the material covering the edges, was made of PVC. CBP classified the item in subheading 9506.91.0030, noting the following: “[f]or tariff purposes, we believe that the provision for exercise equipment specifically describes this item while the toy provision does not do so.”
CBP has classified other more traditional-style recreational trampolines with galvanized steel frames, safety pads constructed of PVC, metal springs to provide bounce, and ranging in size from 11’ – 14’, in heading 9506, HTSUS, as exercise equipment. See NY N144678 (dated February 14, 2011). More recently, in HQ H270403 (dated October 31, 2017), CBP classified the Skywalker Trampolines, for outdoor use, measuring 16’ x 14’ in size with 96 springs and including the “Triple Toss Game” as exercise equipment in heading 9506, HTSUS.
The JumpSmart Trampoline also incorporates games into its smaller trampoline.
In HQ 963284 (dated June 21, 2001), Customs cited HQ 950758 which ruled that a “Mini-Court” miniature basketball game was a scaled version of standard basketball equipment, consisting of a metal basketball hoop with a net attached to a wooden backboard supported by a two-part metal tubular post approximately six feet tall. It was determined that it could function as a recreational article and provide physical activity, especially for children.
HQ 963284 went on to state that an item does not have to be a regulation or “official” size to be considered sports equipment, provided that it is sufficiently sturdy and challenging to qualify as a “junior edition” of more expensive, larger portable basketball systems. Following the decision in New York Merchandise Co. v. United States, 62 Cust. Ct. 38, C.D. 3671, 294 F.Supp. 971 (1969), appeal dismissed 56 C.C.P.A. 133 (1969), Customs explained:
…a junior edition of a larger, more expensive article will be classified under the provision of the more expensive article if the cheaper, smaller article performs the same function on a smaller scale. Therefore, sports equipment reduced in size and material quality for use by children is classified in heading 9506, HTSUS, as long as the equipment is of a character suitable for use in the serious organized play or practice of games or sports or athletic recreation.
The instant JumpSmart Trampoline is constructed of a sturdy metal frame and is capable of holding weight up to 80 pounds. Jumping on a child-sized trampoline provides physical recreation and athletic coordination similar to jumping on a larger one.
The same Triple Toss Game on the outdoor trampoline is included in this miniature version. Outdoor games are classified in heading 9506, HTSUS.
In HQ 965431 (dated July 15, 2002), when discussing whether a one-wheeled skate was properly classified in the same provision as roller skates, Customs stated the following:
To hold the term ‘roller skate’ in marketing and sporting circles is restricted to the traditional concept of pairs of wheels, is to ignore an important function of the tariff schedule, namely to provide eo nomine classification for most of the articles in international trade. HQ 086626, dated January 15, 1991. ‘Tariff provisions should be open to the invention of new and different products.’ Id. ‘Congress could not have intended to foreclose future innovations in [goods] from classification under the [eo nomine] provisions.’ Simmon Omega, Inc. v. United States, 83 Cust.Ct. 14, C.D. 4815 (1979). ‘To hold otherwise would result in the classification of any and every new product in the basket provisions of the nomenclature.’ HQ 086626.
We note, too, that the instant trampoline being sold in some toy stores does not automatically qualify it as a toy for tariff purposes. See HQ 963284 (June 12, 2001) (Customs notes that well-known toy stores such as Toys R Us sell toys, sporting and recreational equipment, and other things directed at a young consumer, but the appearance of the product in a toy store does not automatically make it a toy for tariff purposes).
Therefore, the Jump Start Trampoline, functioning the same as larger trampolines, while constructed without springs, should not be excluded from classification as a trampoline so long as it provides exercise via jumping. Trampolines are “other exercising apparatus,” making the junior versions classifiable under the same provision. The proper heading for the JumpSmart Trampoline should be in subheading 9606.91.0030, HTSUSA (Annotated), which references articles and equipment for general physical exercise.
HOLDING:
By application of GRIs 1 and 6, the JumpSmart Trampoline is classified under subheading 9506.91.0030, HTSUS, which provides for “Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this chapter; swimming pools and wading pools; parts and accessories thereof: … Other: Articles and equipment for general physical exercise, gymnastics or athletics; parts and accessories thereof … Other.” The 2017 column one, general rate of duty is 4.6 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at http://www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N012532, dated June 29, 2007, is hereby revoked.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division