CLA-2 CO:R:C:G 086838 MBR
Mr. Paul Anderson
Sonnenberg, Anderson, O'Donnell
& Rodriguez
200 West Adams Street, Suite 2625
Chicago, Illinois 60606
RE: "My Talking Storybook" children's book with built-in
integrated circuit and electronic reading tray
Dear Mr. Anderson:
This is in reply to your letter of March 13, 1990, on behalf of
Tiger Electronics, Inc., requesting classification of "My Talking
Storybook," under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA).
FACTS:
A sample was submitted. The merchandise at issue consists of an
electronic book and an electronic reading tray that will be sold
together. The books with electronic components will also be sold
separately. The book is a printed childrens' book with words and
pictures. It also contains an integrated circuit built into the
back cover of the book, which contains the permanent memory of
the book's text in speech digital data. The reading tray has
several buttons which control functions such as: 1) proceed to
next page, 2) repeat a phrase, 3) volume, and 4) select an
answer. When the book is placed correctly on the reading tray,
the digital speech data is transferred from the permanent built-
in circuit in the book, through an electronic connector located
along the lower right back cover of the book, to integrated
circuits located within the reading tray. A speech synthesizer
microprocessor integrated circuit synthesizes the digital speech
signal into an audio analog signal. The audio analog signal then
moves through an audio circuit, first to an audio amplifier, and
then to a speaker and becomes audible to the listener. The tray
is designed to be used with other electronic books produced by
the manufacturer whereas the book is not adaptable to other
applications.
ISSUE:
What is the classification of "My Talking Storybook" book with
built-in integrated circuit and electronic reading tray under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA)?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
You argue that the children's book with built-in integrated
circuit (hereafter "book") is classifiable under 4901.99.00,
HTSUSA, which provides for: "[p]rinted books...: [o]ther:
[o]ther." Alternatively, you argue that the book is classifiable
under 4903.00.00, HTSUSA, which provides for: "[c]hildren's
picture, drawing or coloring books."
General Rule of Interpretation (GRI) 3 delineates the treatment
of goods that are prima facie classifiable under two or more
headings. GRI 3(a) provides that when two or more headings each
refer to part only of the materials or substances contained in
composite goods, those headings are to be regarded as equally
specific in relation to those goods, even if one of them gives a
more complete description of the goods. In the instant case, the
book is prima facie classifiable under three headings; 4901,
HTSUSA, which provides for printed books, 4903, HTSUSA, which
provides for children's picture, drawing or coloring books, and
8542, HTSUSA, which provides for electronic integrated circuits
and microassemblies. GRI 3(b) states that composite goods
consisting of different materials or made up of different
components, which cannot be classified by reference to GRI 3(a),
shall be classified as if they consisted of the material or
component which gives them their essential character.
In a similar case regarding musical greeting cards with a
built-in integrated circuit, HQ 081831 (May 17, 1989), we stated:
It is our opinion that the role of the printed paper in
relation to the use of this merchandise clearly indicates
that the paper portion is indispensable to the functioning
of this product. We believe that the musical aspect is
secondary to the paper portion, because the article would
still function as a greeting card without the integrated
circuit. While the integrated circuit adds an additional
feature to the card by complementing the greeting, it is
nevertheless secondary to the card because the card conveys
the printed message.
Similarly, when imported separately from the reading tray, it
is our opinion that the book's printed matter imparts the
essential character of this book/integrated circuit composite
good.
The Harmonized Description and Coding System Explanatory
Notes (EN) of the HTSUSA, to heading 4903 (children's picture
books), page 694, state:
This heading is restricted to those picture books clearly
compiled for the interest or amusement of children or for
guidance in their first steps of primary education, provided
the pictures form the principal interest and are not
subsidiary to the text (see Note 6 to this chapter).
This category includes, for example, pictorial alphabet
books and books of the kind in which the sense of stories is
conveyed by a series of episodal pictures accompanied by
captions or summary narratives related to the individual
pictures.
The sample provided, "Percy's Perfect Pancakes," is clearly
compiled for the interest and amusement of children. Half of the
pages of the book (alternating) contain a full page picture with
a maximum of two sentences at the bottom, usually consisting of 5
or 6 words each (summary narrative related to the individual
picture). The alternating pages contain three pictures each
(answer choices) and have no text. Therefore, clearly, the book
itself is properly classifiable under 4903, HTSUSA, which
provides for: "[c]hildren's picture, drawing or coloring books."
You argue that the reading tray is classifiable under heading
8519, HTSUSA, which provides for: "[t]urntables, record players,
cassette players and other sound reproducing apparatus, not
incorporating a sound recording device." The EN to 8519, page
1366, states:
This heading covers all sound reproducing apparatus,
whatever the purpose for which it is intended (for example,
educational purposes, conferences, radio broadcasting,
cinema, dictating mail)."
Clearly, the reading tray's sole function is that of sound
reproducing apparatus. The various buttons on the reading tray
simply direct what text is audibly reproduced. Therefore, we
agree that the reading tray is properly classifiable under
subheading 8519.99.00, HTSUSA, which provides for: "[o]ther sound
reproducing apparatus: [o]ther."
GRI 3(b) governs the classification of goods put up in sets for
retail sale:
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 EN, page 4, Roman numeral X, states:
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.
The book and reading tray, when packaged and imported together,
meet these three criteria since they are prima facie classifiable
under different headings and are designed to carry out a specific
activity together.
Therefore, pursuant to GRI 3(b), it is necessary to determine
the essential character (if discernable) of the book and reading
tray set. The EN to GRI 3(b), page 4, Roman numeral VIII,
states:
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 or component, its
bulk, quantity, weight or value, or by the role of a
constituent material in relation to the use of the goods.
The reading tray weighs more than the book, however, the
reading tray is less expensive to produce than the book. The
majority of the electronics are in the reading tray, including;
the power source (batteries), speech synthesizer microprocessor,
audio amplifier and speaker. Additionally, what distinguishes
this set from a regular children's book is its ability to "read"
the text aloud. However, the reading tray only reproduces the
text in an audio form. The book provides the story and imagery
that is the framework of the audio text. It is the book and its
pictures which will be the focus of the child's attention.
However, again, the reading tray has greater utility because it
will presumably be used with a number of electronic books in the
future, whereas, the book remains static in its use.
In the instant case, it is Customs position that there is no
single essential character to these goods when put up in sets for
retail sale.
GRI 3(c) dictates that; "[w]hen goods cannot be classified by
reference to 3(a) or 3(b), they shall be classified under the
heading which occurs last in numerical order among those which
equally merit consideration." Thus, when the reading tray and
book are imported together as goods put up in a set for retail
sale, they are classifiable under 8519.99.00, HTSUSA, which
provides for: "[t]urntables, record players, cassette players and
other sound reproducing apparatus, not incorporating a sound
recording device: [o]ther sound reproducing apparatus: [o]ther."
HOLDING:
When the book is imported separately, it is classifiable under
4903.00.00, HTSUSA, which provides for: "[c]hildren's picture,
drawing or coloring books." The rate of duty is Free.
When the reading tray is imported separately, it is
classifiable under 8519.99.00, HTSUSA, which provides for:
"[t]urntables, record players, cassette players and other sound
reproducing apparatus, not incorporating a sound recording
device: [o]ther sound reproducing apparatus: [o]ther." The rate
of duty is 3.9% ad valorem.
When the reading tray and book are imported together, as goods
put up in a set for retail sale, they are classifiable under
8519.99.00, HTSUSA, which provides for: "[t]urntables, record
players, cassette players and other sound reproducing apparatus,
not incorporating a sound recording device: [o]ther sound
reproducing apparatus: [o]ther." The rate of duty is 3.9% ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division