CLA-2 CO:R:C:G 082060 NLP
Louis Shoichet, Esquire
Siegel, Mandell & Davidson, P.C.
One Whitehall Street
New York, NY 10004
Re: Magnetic memo holders
Dear Mr. Shoichet:
This is in response to your letter dated March 30, 1988, on
behalf of Avon Products, Inc., requesting a tariff classification
ruling for magnetic memo holders under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA).
FACTS:
Each article is composed of a circular metal magnet that
measures approximately 3/4 inches in diameter. The magnets are
sewn to the inside rear surfaces of decorative textile figures
that are approximately 5 inches long. The textile portion of
both figures is composed of a woven polyester outer shell with a
polyester filling. One sample, model PP No. 45992, consists of a
textile figure that resembles a Christmas tree ball ornament.
The second sample, model PP. No. 45993, consists of a textile
figure that resembles a holiday wreath. Both samples are
printed with caricatures of stylized human faces. Attached to
the textile portions of each sample are two legs with jester-like
shoes that have a bell sewn to the toe.
The magnets are designed to attach paper memos to
refrigerator doors or other metal objects in the home.
ISSUE:
Whether the sample merchandise is classified as magnets in
Heading 8505, HTSUSA, as festive articles in Heading 9505,
HTSUSA, or as kitchen or other household articles and parts
thereof, of iron or steel in Heading 7323, HTSUSA.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) set forth the
manner in which merchandise is to be classified under the HTSUSA.
GRI 1 requires that classification be determined first according
to the terms of the headings of the tariff and any relative
section or chapter notes and, unless otherwise required,
according to the remaining GRI's, taken in order.
The first issue to be determined is whether the instant
samples are classifiable as festive articles in Heading 9505,
HTSUSA, which provides for festive, carnival or other
entertainment articles, including magic tricks practical joke
articles, as well as parts and accessories for these articles.
The Explanatory Notes to Heading 9505, HTSUSA, state that this
heading covers the following:
(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.
Articles classifiable in Heading 9505, HTSUSA, tend to have
no other function than decoration.
Although an article may have the design or ornamentation
appropriate for use during a specific holiday, it may still not
qualify for classification in the festive article provision. In
the instant case, while the design of the samples suggest a
Christmas motif, they are, nonetheless, common utilitarian
household articles, not decorative articles associated with any
particular holiday. In addition, magnets, as a class or kind of
merchandise, are not specifically holiday-related; they are used
year-round and may have a wide variety of motifs, many of which
would not be considered festive. Consequently, the magnets are
not classifiable in Heading 9505, HTSUSA.
In your papers you allege that the magnets should be
classified under Heading 8505, HTSUSA. We disagree. Heading
8505, HTSUSA, provides for electro-magnets, permanent magnets and
articles intended to become magnets after magnetization. The
Explanatory Notes to Heading 8505, HTSUSA, state that this
heading does not cover "electro-magnets, permanent magnets or
magnetic devices of this heading, when presented with machines,
apparatus, toys, games, of which they are designed to form part
(classified with those machines, apparatus, etc.)." With respect
to the instant samples, they are magnets designed to form part of
the article. Since the magnets are presented with and
incorporated into a textile caricature, they are precluded from
classification in Heading 8505, HTSUSA.
Since the samples are composed of different components,
i.e., metal and textiles, they are classifiable under two or more
headings pursuant to GRI 3. Heading 6307, HTSUSA, provides for
other made up articles of textile materials. Heading 7323,
HTSUSA, provides for kitchen or other household articles of iron
or steel. GRI 3(a) states that the heading providing the most
specific description shall be preferred: however, when each
heading refers to part only of the materials contained in
composite goods those headings are to be regarded as equally
specific, even if one of them gives a more complete description
of the goods. Each of the headings refers to part only of the
merchandise here. Therefore, the headings are regarded as
equally specific, and the classification of the samples at issue
cannot be determined by relative specificity.
GRI 3(b) provides that composite goods made up of different
materials or components which cannot be classified by reference
to GRI 3(a), are classified as if they consisted of the material
or component which gives them their essential character.
According to Explanatory Note VIII for GRI 3, essential character
may 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."
With respect to the merchandise at issue, the magnet is
essential for the intended use of the product. Removal of the
magnet would leave the product totally incapable of functioning
as a magnetic memo holder for refrigerator doors or other metal
objects. The textile 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.
Heading 7323, HTSUSA, provides for kitchen or other
household articles and parts thereof, of iron or steel. The
Explanatory Notes to this heading state that this group comprises
a wide range of iron or steel articles, not more specifically
covered by other headings of the Nomenclature. With respect to
the instant samples, since they are designed to be used in the
kitchen or around the home and have the essential character of
metal, and are not specifically covered by any other heading,
they are classifiable in Heading 7323, HTSUSA.
HOLDING:
The samples are classified under subheading 7323.99.9000,
HTSUSA, which provides for kitchen or other household articles,
of iron or steel, other, not coated or plated with precious
metal, other, other. The rate of duty is 3.4 percent ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division