CLA-2 CO:R:C:M 952168 KCC
Ms. Judy Campbell
W.Y. Moberly, Inc.
Box 164
Sweetgrass, Montana 59484
RE: Porcelain bag vases/pots; porcelain vases/pots with dried
flowers; GRI 1; 0603.90.00; composite good; essential
character; GRI 3(c)
Dear Ms. Campbell:
This is in reference to your letters dated May 25, and 27,
1992, to Customs in New York, on behalf of The Potter's Bag,
requesting the tariff classification of porcelain vases/pots and
porcelain vases/pots with dried flowers under the Harmonized
Tariff Schedule of the United States (HTSUS). Two samples, the
vases in the shape of a bag and folded napkin, both filled with
dried flowers, were submitted for examination.
FACTS:
The articles under consideration are porcelain vases/pots
and dried flowers. The first type of articles are empty
porcelain bag vases/pots called the "Functional Bag Line." The
second type of articles are porcelain vases/pots in the shape of
bags, napkins, fans and bouquets, which are either free standing
or designed to hang on the wall. This line of articles contains
an arrangement of dried flowers.
ISSUE:
What is the proper classification of the porcelain bag
vases/pots in the "Functional Bag Line" and the porcelain
vases/pots (bags, napkins, fans and bouquets) which contain dried
flowers under the HTSUS?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes and...according...to the
following provisions."
The empty porcelain bag vases/pots in the "Functional Bag
Line" are properly classified under subheading 6913.10.50, HTSUS,
which provides for "Statuettes and other ornamental ceramic
articles...Of porcelain or china...Other..Other."
However, the porcelain vases/pots (bags, napkins, fans and
bouquets) which contain dried flowers are classified under two
different headings in the HTSUS. The dried flowers are
classified under subheading 0603.90.00, HTSUS, which provides for
"Cut flowers and flower buds of a kind suitable for bouquets or
for ornamental purposes, fresh, dried, dyed, bleached,
impregnated or otherwise prepared...Other." The porcelain
vases/pots are classified under subheading 6913.10.50, HTSUS,
which provides for "Statuettes and other ornamental ceramic
articles...Of porcelain or china...Other..Other."
No single heading covers the porcelain vases/pots with dried
flowers in its entirety and, accordingly, classification cannot
be accomplished by application of GRI 1, HTSUS, alone. When
goods are prima facie classifiable under two or more headings GRI
3 is applicable. In this case GRI 3(b) is applicable and
provides:
Mixtures, composite goods consisting of different materials
or made up of different components...which cannot be
classified by reference to 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.
In general, essential character has been construed to mean
the attribute which strongly marks or serves to distinguish what
an article is; that which is indispensable to the structure, core
or condition of the article. In addition, Explanatory Note (EN)
Rule 3(b) of the Harmonized Commodity Description and Coding
System (HCDCS) provides further factors which help determine the
essential character of goods. Factors such as bulk, quantity,
weight or value, or the role of a constituent material in
relation to the use of the goods are to be utilized, though the
importance of certain factors will vary between different kinds
of goods. HCDCS, Vol. 1. p. 4.
The issue in this case is whether the essential character of
the article is imparted by the porcelain vase/pot or the dried
flowers. With respect to the aesthetic value of this article, it
can be argued that the attractive display of dried flowers is the
significant factor in marketing and the most attractive selling
point for the consumer. However, the porcelain vase is somewhat
decorative with its unique configuration and serves the primary
utilitarian function of holding and displaying the flowers.
Moreover, based on the cost data submitted, the dried flower
arrangement is the more expensive component of the two. Whereas,
the porcelain vase portion weighs more than the dried flowers.
It is impossible to ascertain which of the two components
determines the article's essential character.
GRI 3(c), HTSUS, sets forth that the goods which cannot be
classified by reference to GRI 3(a) or 3(b), HTSUS, shall be
classified under the heading which occurs last in numerical order
among those which equally merit consideration. Therefore, the
articles at issue are properly classified under subheading
6913.10.50, HTSUS, as "Statuettes and other ornamental ceramic
articles...Of porcelain or china...Other...Other."
HOLDING:
The empty porcelain bag vases/pots in the "Functional Bag
Line" are properly classified under subheading 6913.10.50, HTSUS,
which provides for "Statuettes and other ornamental ceramic
articles...Of porcelain or china...Other...Other", which is
dutiable at the rate of 9 percent ad valorem.
The porcelain vases/pots (bags, napkins, fans and bouquets)
which contain dried flowers are properly classified pursuant to
GRI 3(c), HTSUS, under subheading 6913.10.50, HTSUS, which
provides for "Statuettes and other ornamental ceramic
articles...Of porcelain or china...Other...Other", which is
dutiable at the rate of 9 percent ad valorem.
Subheading 6913.10.50, HTSUS, is an eligible tariff
provision for preferential treatment under the United States-
Canada Free Trade Agreement (CFTA). If the articles are deemed
to be goods originating in the territory of Canada, pursuant to
General Note 3(c)(vii), HTSUS, they will be eligible for
preferential duty treatment at the rate of 5.4 percent ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division