CLA-2 CO:R:C:G 085770 WAW
Mr. Barry Waterhouse
New Concept Marketing
2510 Pacific Ave. #2
Venice, CA 90291
RE: Belt with digital timepiece
Dear Mr. Waterhouse:
This letter is in response to your letter of October 8,
1989, requesting the tariff classification of a leather belt with
digital timepiece under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA). A sample was submitted with
your request.
FACTS:
The sample article is a leather belt with PVC backing. The
buckle is designed so that the upper portion flips open
revealing an electronic timepiece that is visible to whoever is
wearing the belt.
ISSUE:
(1) Whether the merchandise at issue is classifiable as a
composite good for tariff purposes?
(2) If considered a composite good, which item provides the
essential character for classification purposes; and if not
considered a composite good, how are the items properly
classifiable?
LAW AND ANALYSIS:
In the instant case, the first issue to be addressed is
whether the leather belt and electronic timepiece are included
under one particular heading or subheading in the nomenclature.
The relevant subheadings at issue in this case are set forth
below. The leather belt is classifiable under subheading
4203.30.0000, HTSUSA, which provides for articles of apparel and
clothing accessories, of leather or of composition leather: belts
and bandoliers with or without buckles. The digital timepiece
is properly classifiable under subheading 9102.91.2000, HTSUSA,
which provides for wrist watches, pocket watches and other
watches, including stop watches, other than those of heading
9101: Other: Battery powered: With opto-electronic display only.
The Explantory Notes to Chapter 91, which constitutes the
official interpretation of the tariff at the international level,
states that "[t]he classification of clocks and watches combined
with some other object is governed by the Rules for the
Interpretation of the Nomenclature."
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.
Since no heading, by itself, covers the subject merchandise,
classification cannot be determined by applying GRI 1.
Therefore, reference to the subsequent GRI's is necessary. GRI 2
is not applicable here because the item in question is not an
incomplete or unfinished article and is not a mixture or
combination of goods.
GRI 3, however, is applicable in this situation. It
provides in pertinent part:
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.
Since the leather belt and electronic timepiece fall under
separate headings in the tariff schedule which describe only a
portion of the materials in the belt and timepiece unit, the
headings are to be regarded as equally specific under GRI 3(a).
Therefore, GRI 3(a) fails in establishing classification, and GRI
3(b) becomes applicable.
GRI 3(b) states in pertinent part:
* * * * *
(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.
Explanatory Note IX to GRI 3(b) provides, in pertinent part:
* * * * *
(IX) For the 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 the instant case, the leather belt and timepiece qualify
as composite goods as defined in GRI 3(b). The timepiece is
designed so that it fits into the buckle of the belt in such a
way that it cannot be used separately without the belt.
Moreover, the two items that make up the subject merchandise are
not normally offered for sale in separate parts. Since the
subject merchandise cannot be classified by reference to GRI
3(a), we must determine which component, if any, imparts the
essential character of the item pursuant to the factors set out
in the applicable Explanatory Note.
Explanatory Note VIII to GRI 3(b) states that:
* * * * *
(VIII) The factor which determines essential character
will vary as between different kinds of goods. It may,
for example, be determined by the nature of the
material of 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 essential
character of the subject merchandise is readily apparent. It is
the position of this office that the leather belt gives the
article its essential character. The leather belt comprises the
bulk of the composite article, whereas the electronic timepiece
is simply incorporated into the buckle of the belt. Moreover,
the article is primarily designed to function as a belt while the
electronic timepiece is merely an accessory. Although it is the
timepiece which may attract a consumer's attention to the
article, it is clear that the essential character of the article
is the belt and the timepiece is merely a marketing feature.
Accordingly, it is Customs position that the leather belt and not
the electronic timepiece gives the article its essential
character. Therefore, the subject article is properly
classifiable under the heading which includes leather belts.
HOLDING:
The submitted leather belt with electronic timepiece is
classifiable under subheading 4203.30.0000, HTSUSA, which
provides for articles of apparel and clothing accessories, of
leather or of composition leather: belts and bandoliers with or
without buckles. The applicable rate of duty is 5.3 percent ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division