CLA-2 CO:RC:F 088067 STB
Ms. Rosalie Althoff
Midwest Importers of Cannon Falls, Inc.
P.O. Box 20, HWY 52 SO.
Cannon Falls, MN 55009
RE: Request for reconsideration of New York Ruling Letter
853080 concerning the classification of water globes
Dear Ms. Althoff:
This letter is in response to your request, dated July 31,
1990, for a reconsideration of New York Ruling Letter (NYRL)
853080 regarding the classification of two water globes from
Taiwan. Samples were submitted with your request.
FACTS:
Both water globes in question are approximately 2-1/2 inches
in height. The item identified as style no. 7057 has an inner
figure of a brown teddy bear, with a red scarf around the neck.
The bear is holding a miniature green tree that resembles the
shape of a Christmas tree, and is sitting behind a drum. The
base of the item resembles a red bag, with gold ribbon and stars,
giving the appearance that the bear and other items are sitting
in the bag. The item identified as style no. 7058 has an inner
figure of a Santa Claus; the base resembles a chimney, giving the
appearance that the Santa figure is in the process of going up,
or down, the chimney. The inner figures of both items are
enclosed in glass water domes which, when shaken, scatter small
white particles which then fall slowly on the figures in order
to depict a snowfall. The base and figure of the snowscenes are
each made of a resin material. The resin represents the
component material in chief weight.
ISSUE:
Whether the subject water globes should be classified as
decorative glassware or as festive articles?
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LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) set forth the
legal framework in which merchandise is to be classified under
the Harmonized Tariff Schedule of the United States Annotated
(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.
Heading 9505, HTSUSA, provides, in pertinent part, for
"[f]estive, carnival or other entertainment articles." The
Explanatory Notes offer guidance in the interpretation of the
headings. The Explanatory Note to heading 9505 indicates 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:
(1) Decorations such as festoons, garlands,
Chinese lanterns, etc., as well as various
decorative articles made of paper, metal foil,
glass fibre, etc., for Christmas trees (e.g.,
tinsel, stars, icicles), artificial snow, coloured
balls, bells, lanterns, etc. Cake and other
decorations (e.g., animals, flags) which are
traditionally associated with a particular
festival are also classified here.
(2) Articles traditionally used at Christmas
festivities, e.g., artificial Christmas trees
(these are sometimes of the folding type),
nativity scenes, Christmas crackers, Christmas
stockings, imitation yule logs.
* * *
Articles classifiable in heading 9505, HTSUSA, tend to have no
function other than decoration. While utilitarian and various
decorative articles may be classifiable in heading 9505, HTSUSA,
they must, as a class, be holiday related.
Heading 9505 is generally regarded as a use provision.
Consequently, Additional U.S. Rule of Interpretation 1(a) must be
reviewed. That rule indicates that:
In the absence of special language or context which
otherwise requires--
(a) a tariff classification controlled by use (other
than actual use) is to be determined in accordance with
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the use in the United States at, or immediately prior
to the date of importation, of goods of that class or
kind to which the imported goods belong, and the
controlling use is the principal use.
While the instant merchandise displays Christmas motifs,
they are basically water globes. Water globes, as a class or
kind of merchandise are not specifically holiday related; they
are sold year-round in a wide variety of motifs. Additionally,
water globes sometimes serve a utilitarian purpose as
paperweights and have often become collectors items. Thus, the
subject water globes are not classifiable in heading 9505,
HTSUSA. This conclusion is consistent with Headquarters Ruling
Letter (HRL) 087363, dated August 14, 1990, HRL 086153, dated
March 19, 1990, and HRL 085539, dated November 17, 1989.
As a composite good, the merchandise may not be classified
under GRI 1 or 2, so reference must be made GRI 3. GRI 3(b)
provides that composite goods constructed of different components
shall be classified as if they consisted of the component which
gives them their essential character. The Explanatory Notes to
GRI 3(b) indicate that essential character may be determined by
considering "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 role that the glass domes or globes play in relation
to the use of these articles (they are clearly marketed as
globes) strongly suggests that these globes impart the essential
character of the merchandise. Additionally, although the globes
do not provide as much weight as do the resin portions, the
globes do provide a substantial amount of the bulk of the items
as well as a considerable amount of the weight. Thus, the water
globes are classifiable in Heading 7013, HTSUSA, the provision
for glassware used for indoor decoration.
HOLDING:
The water globes at issue are properly classifiable under
subheading 7013.99.80, HTSUSA, which provides for glassware of a
kind used for...indoor decoration or similar purposes, other
glassware, other, other, other, valued over $3.00 each, other
valued over $3.00 but not over $5.00 each. The applicable duty
rate is 15% ad valorem. New York Ruling Letter 853080 is
affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division