CLA-2 CO:R:C:G 087293 STB
Mr. Christopher L. Thayer
Hallmark Cards, Inc.
2501 McGee-Mail Drop #376
P.O. Box 419580
Kansas City, Missouri 64141-6580
RE: Christmas Wreath and Miniature Ornaments
Dear Mr. Thayer:
This is in response to your inquiry of April 27, 1990,
concerning the tariff classification of the Little Frosty Friends
Wreath, display stand and four figurines, all of which are made
in China. A sample of each item was submitted with your inquiry.
FACTS:
The Little Frosty Friends Memory Wreath is imported,
packaged and sold with the plastic display stand. The figurines
are sold separately. The wreath, (620XPR9724), is a "miniature"
wreath in that the diameter is approximately 5 inches. It is
constructed primarily of green colored PVC sheeting and may be
displayed on the K-Resin stand. It is decorated with imitation
red holly berries and red and gold ribbon. The ribbon is tied
into a bow at the top of the wreath which is held in place by a
gold metal medallion imprinted with "Little Frosty Friends 1990."
The wreath may also by hung from a Christmas tree by means of a
loop attached to the back. Hallmark, Inc. has informed Customs
that the principal use of the Christmas Wreath will be for
display on the plastic stand. The wreath, composed of plastic
strip measuring less than 5 mm, is regarded as textile. The
plastic stand is approximately 5 inches high; the base is
approximately 5 inches wide but it becomes gradually more narrow
as the top of the stand is reached.
The miniature ornaments, which are made of high impact
styrene, consist of Little Husky (620XPR9722), Little Frosty
(620XPR9720), Little Bear (620XPR9723) and Little Seal
(620XPR9721). Little Husky is the figure of a "Husky" type dog,
white in color. He has a red package tied to his back with a
piece of green string; the string looks like rope on the figure.
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The miniature package is imprinted with "1990." The figure is
approximately one inch high. Little Frosty is the figure of an
Eskimo ringing two gold bells. The figure is primarily gray in
color and is approximately 1-1/2 inches high. Little Bear is a
figure of a white bear holding a red and green stocking. The
stocking is imprinted with "1990." The figure is approximately
one inch high. Little Seal is a figure of a white seal with a
gold star attached; "1990" is imprinted on the star. The figure
is approximately one inch high and has a red ribbon tied around
the neck.
The figures are all designed to be hung on the wreath by
means of a loop on the top of each ornament. Four gold metal
clasps on the wreath facilitate the attaching of the ornaments to
the wreath. The ornaments may also be attached directly to a
Christmas tree by means of the small gold loop, capable of
accepting a hook, on the top of each ornament. In addition, the
figures have plastic stands which would allow them to stand on
their own; they would, however, appear rather odd displayed in
this manner as a result of the gold loop on the top of each
figure. According to the importer, the figures are intended to
either be hung on the wreath or directly from a Christmas tree.
ISSUE:
What is the proper classification of the instant
merchandise?
LAW AND ANALYSIS:
The classification of the wreath and stand under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA) is determined by General Rule of Interpretation (GRI)
3(b). The Explanatory Notes for this GRI define goods put up in
sets for retail sale 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).
The instant merchandise meets all these requirements. The
wreath and stand are different articles classifiable under
different headings. The items are packaged together for the
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purpose of displaying the wreath on the stand. It is important
to note here that the wreath is a complete item without the
stand; it is also designed for other methods of display, such as
on a Christmas tree. The items are packaged together in a manner
suitable for sale without the need for repacking.
The instant merchandise thus meets all the requirements of
a set. Once the existence of a set is established, GRI 3(b)
indicates that the goods are to be classified according to the
material or component which gives them their essential character.
The Explanatory Notes state that factors such as bulk, quantity,
weight and value may be considered in determining the essential
character.
The wreath provides the essential character of this set.
The wreath is the raison d'etre of the set: the only purpose of
the stand is to help display the wreath. The wreath provides the
primary bulk, weight and value of the set. As mentioned, the
primary purpose of this wreath will be for display on the stand
rather than on a tree. Therefore, this set is properly
classifiable as other festive articles under subheading
9505.10.5000, HTSUSA.
The four figurines can be classified by reference to GRI 1.
GRI 1 provides that classification is determined first in
accordance with the terms of the heading together with any
relevant Section or Chapter notes.
It is Customs position that an article which, by its shape,
design and ornamentation is appropriately used in connection with
a recognized festive holiday, is an article that falls under
Heading 9505, HTSUSA; thus the classification of the wreath.
There is a separate subheading, however, which distinguishes
"Christmas ornaments" from other festive articles. To qualify as
a Christmas ornament, Customs requires that the following three
criteria be met: (1) that the item is marketed and sold as a
Christmas tree ornament; (2) that there is some method, generally
a loop attached to the top, to secure or hang the item on a tree
and (3) that the item is not too big or too heavy to be hung or
attached to a tree. It is not necessary that items which conform
to the above criteria demonstrate a singularly Christmas motif.
The subject merchandise satisfies all three of the criteria
described above. The only variation between these items and
traditional Christmas tree ornaments is that these items may be
hung on the wreath (which may or may not be suspended from a tree
itself), in addition to utilization as separate tree ornaments.
It is our determination that this merchandise is clearly of the
same class or kind as Christmas tree ornaments. The marketing of
the items indicates that they may be used on trees as well as the
wreath.
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HOLDING:
The wreath and stand are classifiable as a set under
subheading 9505.10.5000, HTSUSA, as Festive, carnival or other
entertainment articles, including magic tricks and practical joke
articles, parts and accessories thereof, Articles for Christmas
festivities and parts and accessories thereof, other, other. The
applicable duty rate is 5.8% ad valorem. The four figurines are
properly classifiable in subheading 9505.10.2500, which provides,
in part, for articles for Christmas festivities and parts and
accessories thereof, Christmas ornaments, other, other. The rate
of duty is 5% ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division