CLA-2 CO:R:C:M 088044 MBR
Mr. Jerrold E. Anderson
Katten, Muchin & Zavis
525 West Monroe St., Suite 1600
Chicago, Illinois 60606-3693
RE: "Talking Magical Storytime" Children's Book; Electronic
Reading Tray; Read Only Memory Cartridge; GRI 3(b); Set
Dear Mr. Anderson:
This is in reply to your letter of October 8, 1990, on
behalf of Video Technology Industries, Inc., requesting
classification of "Talking Magical Storytime," imported from Hong
Kong, under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA).
FACTS:
The "Magical Talking Storytime" ("Storytime") consists of a
children's book, an electronic "reading tray," and a read only
memory ("ROM") cartridge. These items will be packaged together
and sold as a set. However, additional books will be imported
and sold separately with an accompanying ROM cartridge. Reading
trays may also be imported separately.
The books are made of durable laminated cardboard stock and
contain colorful illustrations which correspond to the narrative
text on each page. Four books will be available, based upon the
following children's stories: Little Red Riding Hood, Snow White,
Jack and the Bean Stalk, and Cinderella. Storytime contains two
alternative endings to every story, and thus allows the child to
choose the ending.
The reading tray is battery powered and contains a
microprocessor with a human voice simulator which also produces
sound effects. The stories themselves are contained on the ROM
cartridges which are included with each book. Verbal
instructions provided by the electronic voice and written
instructions on the pages of the books direct the reader through
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the stories. The reading tray has several buttons which control
functions such as: 1) proceed to next page, 2) story line, 3)
flash words, 4) new story, 5) sounds, and 6) repeat.
ISSUE:
What is the classification of the "Talking Magical
Storytime" set which includes a children's book, a ROM cartridge,
and an 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 accompanying ROM
cartridge is classifiable under 4901.99.00, HTSUSA, which
provides for: "[p]rinted books...: [o]ther: [o]ther." We agree.
In the instant case, the book and ROM cartridge are 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.
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 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 description of the goods."
GRI 3(b) states that: "...goods put up in sets for retail
sale, 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, insofar as this
criterion is applicable."
The EN for GRI 3(b), page 4, states:
(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
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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 children's book with ROM cartridge meet the EN
definition of "goods put up in sets for retail sale" because
they: (1) consist of at least two different articles; (2) which
are classifiable in different headings; (3) consist of articles
put up together to carry out a specific activity; and (4) the
articles are put up in a manner suitable for sale directly to
users without repacking.
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 it is the children's book which imparts
the essential character of a set consisting of a book and a ROM
cartridge. See HQ 086838, dated July 3, 1990, which held a
children's book combined with an integrated circuit to have the
essential character of the book.
The Harmonized Commodity 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
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conveyed by a series of episodal pictures accompanied by
captions or summary narratives related to the individual
pictures.
It does not include books, even profusely illustrated,
written in the form of continuous narratives with
illustrations of selected episodes. These fall in heading
49.01.
In the sample provided, "Little Red Riding Hood," the text
forms the principal interest and is not subsidiary to the
pictures. This book is written in the form of continuous
narrative with illustrations of selected episodes. Therefore,
the book imported with the ROM cartridge is properly classifiable
under heading 4901, HTSUSA, which provides for: "[p]rinted books,
brochures, leaflets and similar printed matter, whether or not in
single sheets."
You assert that when the reading tray is separately
imported, it 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." We agree. 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)."
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."
When the children's book, ROM cartridge, and reading tray
are packaged and imported together, they also meet the above
cited criteria for goods put up in sets for retail sale, since
they are classifiable under different headings, are designed to
carry out a specific activity, and are put up in a manner
suitable for sale directly to users without repacking.
Therefore, pursuant to GRI 3(b), it is necessary to
determine the essential character (if discernable) of the book,
ROM cartridge, 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
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constituent material in relation to the use of the goods.
The reading tray has greater bulk and weighs more than the
book or the cartridge. 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 different books and ROM
cartridges 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.
Therefore, 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, book, and ROM cartridge 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 "Talking Magical Storytime" reading tray, book, and
ROM Cartridge 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.
When the book and ROM cartridge are imported together, but
separately from the reading tray, this set is classifiable under
4901.99.00, HTSUSA, which provides for: "[p]rinted books,
brochures, leaflets and similar printed matter, whether or not in
single sheets." 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
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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