CLA-2 CO:R:C:F 088601 SLR
James Chan, Ph.D.
Director of International Operations
Rennoc Corporation
3501 S.E. Boulevard
Vineland, NJ 08360-7789
RE: Modification of NYRL 840672 of May 31, 1989; Festive
Articles; Christmas Articles; Not Christmas Ornaments
Dear Dr. Chan:
This is in regards to your letter of December 27, 1990,
wherein you requested that Customs confirm, in writing, the
particular tariff subheadings and accompanying duty rates which
apply to three products earlier classified in New York Ruling
Letter (NYRL) 840672 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:
The products at issue are:
1. flannel back tree skirts, style 15538
2. knit Christmas stockings, style 13357
3. plastic stocking hangers, style 83105
The tree skirts and Christmas stockings are imported from
Thailand. However, from time to time, they are imported from
Taiwan. The stocking hangers are imported from the People's
Republic of China.
ISSUE:
Whether the above-mentioned products qualify as Christmas
ornaments of subheading 9505.10.25, HTSUSA.
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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.
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 that the heading includes:
(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.
* * *
The products at issue are classifiable as festive articles
in heading 9505. The Explanatory Note makes specific mention of
Christmas stockings. Moreover, stocking hangers and tree skirts
are traditionally used at Christmas. Neither is the type of
article available year-round in a wide variety of motifs.
Subheading 9505.10, HTSUSA, provides for articles for
Christmas festivities. The subject products are classifiable
within this provision. We must now turn our attention to their
proper 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
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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 products at issue fail to meet the above-mentioned
criteria. Hence, they cannot be considered Christmas ornaments
for tariff purposes.
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. This provision
describes the stocking hangers. Subheading 9505.10.50, HTSUSA,
provides for Christmas articles other than of plastics. This
provision describes the knit Christmas stockings and the flannel
back tree skirts.
HOLDING:
The plastic stocking hangers, style 83105, are classifiable
in subheading 9505.10.4000, HTSUSA, which provides for 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 (than Christmas ornaments), of plastics. The rate
of duty under the General column is 8.4 percent ad valorem.
The flannel back tree skirts, style 15538, and the knit
Christmas stockings, style 13357, are classifiable in subheading
9505.10.5000, HTSUSA, which provides for 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 (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 modification
of NYRL 840672 under 19 CFR 177.9(d)(1). It is not to be
applied retroactively to NYRL 840672 (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 840672 will not be valid precedent.
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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