CLA-2 CO:R:C:T 954937 ch
Kevin T. Lee
4340 McLaughlin Avenue
#5
Los Angeles, California 90066
Re: Revocation of NYRL 887632; classification wood photo
frames and wood boxes decorated with shell imported
into the United States from the Philippines.
Dear Mr. Lee:
New York Ruling Letter (NYRL) 887632, dated June 29, 1993,
concerned the classification of certain photograph frames and
decorative boxes under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA). We have had occasion to review
this ruling and find that the classification of these items under
subheading 9601.90.2000, HTSUSA, is in error.
FACTS:
Five samples have been submitted to this office for
inspection:
1. Item A: A 4" x 6" photograph frame with a wood
foundation which has been decoratively covered on the surface
with a thin layer of young pen shell.
2. Item B: A small decorative box with a wood foundation,
covered with young pen shell.
3. Item C: A 3" x 5" wood photograph frame with easel
made of brown lip shell with brass and black pen shell inlay.
4. Item D: A small decorative wood box covered on the
surface with brown lip shell.
5. Item F: A small decorative wood box covered on the
surface with white chamber nautilus shell.
In NYRL 887632, we classified these items under subheading
9601.90.2000, HTSUSA, which provides, inter alia, for worked
shell and articles thereof.
ISSUE:
Whether the instant photograph frames and decorative boxes
are classifiable as articles of shell, pursuant to subheading
9601.90.2000, HTSUSA; or as articles of wood, pursuant to Chapter
44, HTSUSA?
LAW AND ANALYSIS:
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRI). GRI 1 provides that
classification is determined first in accordance with the terms
of the headings of the tariff and any relative section or chapter
notes. Where goods cannot be classified on the basis of GRI 1,
the remaining GRI will be applied in order.
GRI 1 states that "for legal purposes, classification shall
be determined according to the terms of the headings and any
relative section or chapter notes." Each of the submitted
samples are surface covered with decorative shell. Hence, they
are described by subheading 9601.90.2000, HTSUSA, as articles of
shell and are prima facie classifiable therein.
However, these items also feature sturdy foundations or
frames of wood which merit consideration. Chapter 44, HTSUSA,
which provides for wood and articles of wood, contain provisions
which describe the instant merchandise. Specifically, the
photograph frames are prima facie classifiable under heading
4414, HTSUSA, which provides for wooden frames for photographs;
the boxes are prima facie classifiable under subheading 4420.90,
HTSUSA, which provides, inter alia, for jewelry boxes, cigar and
cigarette boxes, tool or utensil cases and similar boxes of wood.
GRI 2(b) states that:
Any reference in a heading to a material or substance
shall be taken to include a reference to mixtures or
combinations of that material or substance with other
materials or substances. Any reference to goods of a
given material or substance shall be taken to include a
reference to goods consisting wholly or partly of such
material or substance. The classification of goods
consisting of more than one material or substance shall
be according to the principles of rule 3.
Under the terms of GRI 2(b), the wood and shell headings which
describe each item are both applicable despite the fact that they
are only partially composed of these materials. The principles
set forth in GRI 3 are to be utilized to render a final
classification determination.
GRI 3(a) reads as follows:
When, by application of rule 2(b) or for any other
reason, goods are, prima facie, classifiable under two
or more headings, classification shall be effected as
follows:
(a) The heading which provides the most specific
description shall be preferred to headings providing a
more general description. However, when two or more
headings each refer to part only of the materials or
substances contained in mixed or composite goods or 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 or precise description of the goods.
(Emphasis added).
Generally, GRI 3(a) provides that the heading which most
specifically describes the merchandise shall prevail over other
applicable provisions. However, classification cannot be
resolved on the basis of specificity when competing headings each
refer to only part of the finished article. Here, the shell
provision describes the decorative portions of the photograph
frames and boxes. On the other hand, the applicable wood
headings describe only the frame or structural component of these
goods. Therefore, we cannot resort to GRI 3(a) in this instance.
GRI 3(b) states that:
Mixtures, composite goods consisting of different
materials or made up of different components, and goods
put up in sets for retail sale, 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. (Emphasis added).
Thus, GRI 3(b) provides that goods consisting of two or materials
shall be classified as if they were composed entirely of the
material which lends them their "essential character."
The Explanatory Notes (EN) to GRI 3(b), at page 4, state in
part:
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 constituent material in relation to the
use of the goods.
In NYRL 887632, we concluded that the shell materials imparted
the essential character to the subject merchandise. However, we
have reviewed this determination and find that it is not
consistent with our current administrative rulings.
On numerous occasions we have determined that wood imparts
the essential character to decorated photograph frames and boxes
possessing sturdy wood frames or foundations. See NYRL 851014,
dated April 13, 1990 (wood picture frame decorated with wood
beads); NYRL 854727, dated August 8, 1990 (textile covered
plywood box); NYRL 848673, dated February 1, 1990 (leather
covered wooden boxes); District Ruling 843346 (paper covered
card-holder box constructed of wood); NYRL 834690, dated January
25, 1989 (plywood picture frames decorated with papers or shell).
Photograph frames and boxes are primarily functional articles.
In these decisions, the wood provided the form and structure
which allowed the articles to be used. Where the wood plays such
an important role in relation to the goods, we have concluded
that their classification should not vary on the basis of how
they have been decorated. (But Cf. Headquarters Ruling Letter
(HRL) 085101, dated September 25, 1989; HRL 085102, dated
September 25, 1989; chipwood and plywood boxes covered and lined
with textile materials are classified as articles of textile
when their primary function is decorative).
In this instance, the wood imparts the structural integrity
to the articles. Although the shell materials add visual appeal
and value to the frames and boxes, we consider the decorative
aspects of the instant merchandise to be of secondary importance.
Accordingly, as wood imparts the essential character to these
items they are classifiable as articles of wood.
HOLDING:
Items A and C are classifiable under subheading
4414.00.0000, HTSUSA, which provides for wooden frames for
paintings, photographs, mirrors or similar objects. The
applicable rate of duty for GSP eligible countries is Free.
Items B, D and F are classifiable under subheading
4420.90.6500, HTSUSA, which provides for wood marquetry and
inlaid wood; caskets and cases for jewelry or cutlery and similar
articles, of wood; statuettes and other ornaments, of wood;
wooden articles of furniture not falling within chapter 94:
other: jewelry boxes, silverware chests, cigar and cigarette
boxes, microscope cases, tool or utensil cases and similar boxes,
cases and chests, all the foregoing of wood: other: lined with
textile fabrics. The applicable rate of duty is 2.2
cents/kilogram + 2.9 percent ad valorem. Items classified under
this provision are not GSP eligible.
This notice to you should be considered a revocation of NYRL
887632 under 19 CFR 177.9(d)(1). We recognize that pending
transactions may be adversely affected by this modification, 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, your client 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.
However, please be advised that in some instances involving
import restraints, such relief may require separate approvals
from other government agencies.
Sincerely,
John Durant, Director