CLA-2 CO:R:C:F 088529 SLR
James Chan, Ph.D.
Director of International Operations
Rennoc Corporation
3501 S.E. Boulevard
Vineland, NJ 08360-7789
RE: Revocation of NYRL 842409 of July 6, 1989; Novelty
Christmas Stockings Imported from Thailand and Taiwan;
Festive Articles; Not Christmas Ornaments
Dear Dr. Chan:
This is in regards to your letter of December 21, 1990,
wherein your requested that Customs confirm, in writing, the
particular subheading and accompanying duty rate which applies
to "Hang and Stuff" Christmas stockings earlier classified in
New York Ruling Letter (NYRL) 842409 as Christmas ornaments
other than of glass or wood in subheading 9505.10.2500,
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). Articles classifiable in subheading 9505.10.2500
are eligible for duty free entry, as provided in subheading
9902.95.05, until December 31, 1992.
FACTS:
See NYRL 842409 for a detailed description of the
merchandise at issue.
ISSUE:
Whether the Christmas stockings qualify as Christmas
ornaments of subheading 9505.10.25, HTSUSA.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification is determined
according to the terms of the headings and any relative section
or chapter notes.
-2-
Heading 9505, HTSUSA, provides, in pertinent part, for
"[f]estive, carnival or other entertainment articles." The
Explanatory Notes, which represent the official interpretation
of the tariff at the international level, offer guidance in
understanding the scope of the headings. The Explanatory Note to
heading 9505 indicates 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:
* * *
(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.
* * *
As the Explanatory Note specifically includes Christmas
stockings among those articles deemed exemplars of heading 9505,
the "Hang and Stuff" stockings are classifiable as festive
articles in that provision.
Subheading 9505.10, HTSUSA, provides for articles for
Christmas festivities. The subject stockings are classifiable
within this provision. We must now turn our attention to their
classification at the eight-digit subheading level.
Subheadings 9505.10.10, 9505.10.15, and 9505.10.25 cover
Christmas ornaments of glass, wood, and other, respectively. To
qualify as a Christmas ornament, Customs requires that the
following three criteria be met:
1. that the item is advertised and sold
as a Christmas tree ornament;
2. that there is some method, generally
a loop attached to the top, to 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.
(See Headquarter's Ruling Letter 084606 of July 31, 1989.)
The items at issue fail to meet the above-mentioned
criteria. Consequently, they cannot be considered Christmas
ornaments for tariff purposes.
-3-
Subheading 9505.10.30, HTSUSA, covers nativity scenes
and figures thereof. The items at issue neither qualify as
nativity scenes nor as parts thereof. Subheading 9505.10.40,
HTSUSA, covers other Christmas articles of plastics. Subheading
9505.10.50, HTSUSA, provides for other Christmas articles other
than of plastics. As the subject stockings are made of textile
material, they are classifiable in subheading 9505.10.50.
HOLDING:
The "Hang and Stuff" novelty Christmas stockings are
classifiable in subheading 9505.10.5000, HTSUSA, which provides
for festive, carnival or other entertainment articles: magic
tricks and practical joke articles; parts and accessories
thereof: articles for Christmas festivities and parts and
accessories thereof: other (than Christmas ornaments), other
(than of plastics). The rate of duty under the General column
is 5.8 percent ad valorem.
Articles classifiable under subheading 9505.10.5000 which
are products of Thailand are entitled to duty free entry under
the General System of Preferences on compliance with applicable
regulations.
This notice to you should be considered a revocation of
NYRL 842409 under 19 CFR 177.9(d)(1). It is not to be applied
retroactively to NYRL 842409 (19 CFR 177.9(d)(2)) and will not,
therefore, affect past transactions for the importation of
Rennoc's merchandise under that ruling. However, for the
purposes of future transactions in merchandise of this type,
NYRL 842409 will not be valid precedent. We recognize that
pending transactions may be adversely affected by this
revocation, in that current contracts for importations arriving
at a port subsequent to this decision will be classified pursuant
to it. If such a situation arises, Rennoc may, at its
discretion, notify this office and apply for relief from the
binding effects of this decision as may be warranted by the
circumstances.
Sincerely,
John Durant, Director
Commercial Rulings Division