CLA-2 CO:R:C:G: 084760 DPS
Mr. Richard G. Seley
Rudolph Miles & Sons, Inc.
4950 Gateway East
P.O. Box 144
El Paso, Texas 79942
RE: Christmas Stocking for Dogs
Dear Mr. Seley:
Your letter of June 6, 1989, on behalf of your client, The
Reward Company, Inc., requested a tariff classification ruling
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), of a Christmas stocking for dogs. The
contents of the stocking contain items of mixed countries of
origin, including the United States. A representative sample of
the merchandise was furnished.
FACTS:
The merchandise at issue is a Christmas stocking for dogs,
made of textile netting and plastic red and white striped
trimming, imported from Japan. At the top of the stocking is a
Header Card which serves as a product label and contains product
information concerning the contents of the stocking. The card,
which is stated to originate in the United States, also includes
an illustration of a dog wearing antlers and holding a stocking
in its mouth. The following items are contained in the stocking
which is sold as a package: (1) Alpo Snaps, a food product for
canines, made and packaged in a labelled carton in the United
States; (2) Beef Bit Treats, a food product for canines, made and
packaged in a labelled foil bag in the United States; (3) Jerky
Bits, a food product for canines, made and packaged in a
labelled foil bag in the United States; (4) Jerky Strips, a food
product for canines, made in the United States and currently
being packaged in Mexico; the importer states that this product
is currently being imported through the port of El Paso, Texas,
and is being classified as United States products exported and
returned, under subheading 9801.00.1035, HTSUSA, entitled to duty
free treatment; and (5) Reindeer Antlers, which can be attached
to a dog's head with an elastic strap which is part of the antler
headpiece; the antlers are made in China from man-made textile
material.
The inquirer believes the subject merchandise is a "set put
up for retail sale," comprised of components of "mixed" countries
of origin.
ISSUES:
(1) Whether the subject Christmas stocking for dogs is
considered to be a set for tariff purposes under GRI 3(b).
(2) If considered to be a set, and assuming that the canine food
products (dog treats) are what gives the set its essential
character, whether the entire set can be imported as United
States products exported and returned, under subheading
9801.00.1035, HTSUSA.
(3) If not considered to be a set, how are the items properly
classified.
(4) Whether any of the items, as classified, are entitled to
duty free treatment as United States products exported and
returned, under subheading 9801.00.1035, HTSUSA.
LAW & ANALYSIS:
The General Rules for the Interpretation of the Harmonized
System (GRI's) govern classification under the Harmonized Tariff
Schedule. According to GRI 1, the primary consideration in
determining whether merchandise should be classified in a heading
should be given to the language of the heading and any relevant
chapter or section notes, and, provided such headings or notes do
not otherwise require, according to the remaining GRI's, taken in
order.
Here, the first question to be considered is whether a
single heading exists which covers the subject Christmas
stocking. Because no heading, by itself, covers the subject
merchandise, classification cannot be determined by applying GRI
1 alone. Therefore, reference to the subsequent GRI's is
necessary. GRI 2 is not applicable here. GRI 3, however, is
relevant. It provides, in pertinent part:
3. When, by application of Rule 2(b) or for any other
reason, goods are, prima facie, classifiable under
two or more headings, classification shall be
effected as follows:
(a) The heading which provides the most
specific description shall be preferred to
headings providing a more general
description. However, when two or more
headings each refer to part only of the
materials or substances contained in mixed or
composite goods or to part only of the items
in a set put up for retail sale, those
headings are to be regarded as equally
specific in relation to those goods, even if
one of them gives a more complete or precise
description of the goods.
(b) Mixtures, composite goods consisting of
different materials or made up of different
components, and goods put up in sets for retail
sale, 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.
The Explanatory Notes to the HTSUSA constitute the official
interpretation of the tariff at the international level. The
Explanatory Notes to GRI 3(b) provide further guidance in
determining what constitutes a "set". The relevant note states,
in part:
(X) For the purposes of this Rule, the term
"goods put up in sets for retail sale" shall
be taken to mean goods which:
(a) consist of at least two different articles
which are, prima facie, classifiable in
different headings;
(b) consist of products or articles put up
together to meet a particular need or carry
out a specific activity; and
(c) are put up in a manner suitable for sale
directly to users without repacking (e.g., in
boxes or cases or on boards).
In this case, at least two of the above "set" criteria are
satisfied. First, the subject merchandise consists of at least
two different articles which are prima facie classifiable in
different headings. Secondly, the items are put up in a manner
suitable for sale directly to consumers without repacking.
The third criterion, that the goods consist of articles put up
together to meet a particular need or carry out a specific
activity, does not appear to be satisfied. Although packaged
together in a sealed stocking, the items are not dedicated to a
specific function or a particular need. The dog food, reindeer
antlers and the Christmas stocking perform diverse functions.
The function of the dog food, feeding canines, is unrelated to
the novelty function of the reindeer antlers. Accordingly, the
subject merchandise is not properly classifiable as a set under
GRI 3(b). Each item is classifiable separately under GRI 1.
United States manufactured products which are merely
packaged abroad without any further processing are entitled to
enter free of duty as American goods returned, upon compliance
with Section 10.1, Customs Regulations (19 CFR 10.1). Heading
9801 allows products of the United States when returned after
having been exported, without having been advanced in value or
improved in condition by any process of manufacture or other
means while abroad, to be entered free of duty. The United
States origin dog treats, which include the Alpo Snaps, Beef Bit
Treats, Jerky Bits, and Jerky Strips, along with the United
States origin Header Card, are classifiable as United States
products returned after being exported, under subheading
9801.00.1035, HTSUSA.
The applicable subheading for the reindeer antlers, which
are made in China, is 6307.90.9050, HTSUSA, which provides for
other made up articles of textile materials.
The Christmas stocking, which also serves as packaging, is
manufactured in Japan. It appears to be classifiable under
subheading 9505.10.5000, HTSUSA, which provides for articles for
Christmas festivities, other. The Explanatory Notes to Heading
9505 support this position. They provide, in pertinent part, at
page 1590, 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:
(2) Articles traditionally used at Christmas
festivities, e.g., artificial Christmas
trees, nativity scenes, Christmas crackers,
Christmas stockings, imitation yule logs.
(Emphasis added).
Accordingly, the subject Christmas stocking is properly
classifiable under subheading 9505.10.5000, HTSUSA, as an article
for Christmas festivities.
HOLDING:
The Alpo Snaps, Beef Bit Treats, Jerky Bits, Jerky Strips
and Header Card, all of which are manufactured in the United
States, are classifiable as United States products exported and
returned, classifiable under subheading 9801.00.1035, HTSUSA.
These items are entitled to duty free treatment upon compliance
with all applicable regulations.
The reindeer antlers are properly classifiable under
subheading 6307.90.9050, HTSUSA, the provision for other made up
articles of textile materials. Items classified under this
subheading are subject to a duty rate of 7 percent ad valorem.
The Christmas stocking is properly classifiable under
subheading 9505.10.5000, HTSUSA, the provision for articles for
Christmas festivities, other. Items classified under this
subheading are subject to a duty rate of 5.8 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division