CLA-2 CO:R:C:M 955845 RFA
Mr. Paul S. Anderson
Sonnenberg, Anderson & Rodriguez
200 South Wacker Drive, 33rd Floor
Chicago, IL 60606
RE: "Quiz Wiz" Educational Electronic Module with Question
Booklet and Answer Cartridge; Separate Booklet/Cartridge
Combinations; "Goods Put Up in Sets for Retail Sale";
Essential Character; GRI 3(b); Heading 9504; EN to Chapter
94; HQs 088494, 088694, 086577 and 088044; NY 891428,
revoked
Dear Mr. Anderson:
This is in response to your letter dated January 28, 1994,
on behalf of Tiger Electronics, Inc., requesting reconsideration
of NY 891428, dated November 3, 1993, involving the tariff
classification of the "Quiz Wiz" question booklet and answer
cartridge accessory set under the Harmonized Tariff Schedule of
the United States (HTSUS). Pursuant to section 625, Tariff Act
of 1930 (19 U.S.C. 1625), as amended by section 623 of Title VI
(Customs Modernization) of the North American Free Trade
Agreement Implementation Act, Pub. L. No. 103-182, 107 Stat.
2057, 2186 (1993)(hereinafter, "section 625"), notice of the
proposed revocation of NY 891428 was published on July 20, 1994,
in the Customs Bulletin, Volume 28, Number 29. No comments were
received. Our decision in this matter is set forth below.
FACTS:
The three-component version of "Quiz Wiz" consists of an
electronic module, one question booklet and an answer cartridge,
which are imported into the United States packaged together for
sale as a set. The electronic module operates on three "AA"
batteries and is not designed for use with an A/C adapter. The
user enters a question number and an answer choice (from the
booklet) on the keyboard. The module (with cartridge inserted)
indicates whether the answer is correct by a red or green
flashing light, or by a simulated vocal response of "yes/no" or
"right/wrong."
The question booklet/answer cartridge combination, which was
the subject of NY 891428, will also be imported packaged together
for sale as an accessory to the "Quiz Wiz". Each version of the
booklet/cartridge combination covers one of twenty-four separate
topics, including nature, animals, science sports, famous people,
geography, travel, language, television, and movies. Each
booklet contains 1001 questions, and corresponding answer choices
for each question. Because the module does not keep score, score
sheets are included in the booklets for manual score keeping.
Each cartridge, which is a printed circuit board, relates to the
subject matter of its corresponding booklet, and must be inserted
in the electronic module for the module to provide responses to
the user's booklet-guided input.
ISSUE:
Which component imparts the essential character of the two
"Quiz Wiz" sets under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes.
In NY 891428, dated November 3, 1993, the Area Director of
Customs, New York Seaport, determined that the question
booklet/answer cartridge combination for the "Quiz Wiz" module
was an accessory to a game machine classifiable under subheading
9504.90.40, HTSUS.
The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the HTSUS. While not
legally binding, the ENs provide a commentary on the scope of
each heading of the HTSUS and are generally indicative of the
proper interpretation of these headings. See T.D. 89-80, 54
Fed.Reg. 35127, 35128 (August 23, 1989). The ENs to Chapter 95,
page 1585, states as follows: "This chapter covers toys of all
kinds whether designed for the amusement of children or adults."
(emphasis added). Therefore, to be classifiable in chapter 95,
the merchandise must have the essential character of an article
designed for the amusement of children or adults.
Customs has previously determined that electronic modules
which teach functions such as spelling, math, picture
identification, colors, shapes, matching and other basic academic
skills, even if for the amusement of children and adults, fulfill
an educational or learning function. Customs concluded that this
type of merchandise was not covered within chapter 95, HTSUS.
Because there is no provision in the HTSUS for "educational
articles" per se, Customs would classify the electronic module
under heading 8543, HTSUS, which provides for: "[e]lectrical
machines and apparatus, having individual functions, not
specified or included elsewhere. . . ." See HQ 088694 (July 10,
1991); HQ 088494 (April 19, 1991); HQ 086577 (May 4, 1990), for
rulings involving similar articles.
The "Quiz Wiz" is intended for use by children as well as
adults to test and increase knowledge of facts and other
information in an entertaining manner. Based upon the previous
rulings listed above, we conclude that the "Quiz Wiz" is an
"educational article" and therefore not classifiable under
chapter 95, HTSUS.
Because there is no "educational articles" provision within
the HTSUS, classification must be determined by application of
the GRI's. However, neither version of the "Quiz Wiz" may be
classified by reference to GRI 1 because each contains components
that are classifiable in different headings. The electronic
module is classifiable in heading 8543, HTSUS, as "[e]lectrical
machines and apparatus, having individual functions, not
specified or included elsewhere in this chapter; parts thereof."
The answer cartridge, which is a printed circuit board in a
plastic housing, is classifiable in heading 8534, HTSUS, as
"[p]rinted circuits". The question booklet is classifiable in
heading 4901, HTSUS, as "[p]rinted books, brochures, leaflets and
similar printed matter, whether or not in single sheets."
Because classification in a single heading cannot be
determined by applying GRI 1, we must apply the other GRI's. GRI
2(a) is not applicable here because the merchandise is not
incomplete or unfinished. GRI 2(b) states that if a product is a
mixture or combination of materials or substances that are, prima
facie, classifiable in two or more headings, then GRI 3 applies.
GRI 3(a) provides in pertinent part:
[t]he 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 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.
Because the electronic module, the answer cartridge, and the
question booklet fall under separate headings in the tariff
schedule which describe only a portion of the "Quiz Wiz", the
headings are to be regarded as equally specific under GRI 3(a).
Therefore, GRI 3(a) fails in establishing classification, and GRI
3(b) becomes applicable. GRI 3(b) provides as follows:
[m]ixtures, composite goods . . . made up of different
components, and goods put up in sets for retail sale,
. . . shall be classified as if they consisted of the
material or component which gives them their essential
character.
EN X to GRI 3(b), page 4, provides a three-part test for
"goods put up in sets for retail sale":
[f]or the purposes of this Rule, the term "goods put up
in sets for retail sale" shall be taken to mean goods
which:
(a) consist of at least two different articles which
are, prima facie, classifiable in different
headings. Therefore, for example, six fondue
forks cannot be regarded as a set within the
meaning of this Rule;
(b) consist of products or articles put up together to
meet a particular need or carry out a specific
activity; and
(c) are put up in a manner suitable for sale directly
to users without repacking (e.g., in boxes or
cases or on boards).
In the present situation, the merchandise consists of two or
three different articles, which are prima facie classifiable
under different headings. The merchandise is put up together to
meet a particular need or carry out a specific activity; to test
and increase knowledge of facts and other information. Both
versions of the "Quiz Wiz" are packaged together for sale
directly to the consumer without repacking. Therefore, both
versions of the "Quiz Wiz" are a set for tariff purposes. To
determine the proper classification, the essential character of
the "Quiz Wiz" sets needs to be determined.
EN VIII to GRI 3(b) provides the following guidance
concerning the essential character determination:
[t]he 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.
With respect to the two-component version of "Quiz Wiz," we
note that the question booklet not only contains 1001 questions,
but also reveals all the answer choices. The booklet has
educational value even standing alone. The answer cartridge, on
the other hand, must function with the module to pair answers
with questions and express whether the user's choice is correct.
We thus find that the question booklet provides the booklet/
cartridge set with its essential character. See HQ 088044 (April
4, 1991), and HQ 086838 (July 3, 1990), for similar findings
concerning the essential character of comparable, multiple
component articles. Therefore, the question booklet and answer
cartridge set is classifiable under subheading 4901.99.0093,
HTSUS, which provides for: "[p]rinted books, brochures, leaflets
and similar printed matter, whether or not in single sheets:
[o]ther: [o]ther, [o]ther: [o]ther: [o]ther: [c]ontaining 49 or
more pages each (excluding covers)."
Looking to the three-component version of "Quiz Wiz," we
find that the electronic keyboard module is the essential
component of the retail set due to its greater bulk, size and its
relation to the question booklet and answer cartridge. The
electronic module is the focus of the user's "hands on"
interaction with the whole article, and the component which
provides the light or sound indication of a right or wrong
answer. As evidenced by the availability of other cartridges and
books as an accessory, the user would buy the "Quiz Wiz" for the
electronic module with the option of purchasing additional
question and answer accessories. Therefore, the three-component
version of "Quiz Wiz" is properly classified in subheading
8543.80.95, HTSUS, which provides for: "[e]lectrical machines and
apparatus, having individual functions, not specified or included
elsewhere in this chapter. . . : [o]ther machines and apparatus:
[o]ther: [o]ther. . . ." Therefore, NY 891428 is revoked.
HOLDING:
The two-component version of "Quiz Wiz," which consists of a
question booklet and an answer cartridge, is properly classified
in subheading 4901.99.0093, HTSUS, which provides for: "[p]rinted
books, brochures, leaflets and similar printed matter, whether or
not in single sheets: [o]ther: [o]ther, [o]ther: [o]ther:
[o]ther: [c]ontaining 49 or more pages each (excluding covers)."
The general, column one rate of duty is free.
The three-component version of "Quiz Wiz," which consists of
an electronic keyboard module, a question booklet, and an answer
cartridge, is properly classified in subheading 8543.80.95,
HTSUS, which provides for: "[e]lectrical machines and apparatus,
having individual functions, not specified or included elsewhere
in this chapter. . . : [o]ther machines and apparatus: [o]ther:
[o]ther. . . ." The applicable duty rate is 3.9 percent ad
valorem.
In accordance with section 625, this ruling will become
effective 60 days after publication in the Customs Bulletin.
Publication of rulings or decisions pursuant to section 625 does
not constitute a change of practice or position in accordance
with section 177.10(c)(1), Customs Regulations [19 CFR
177.10(c)(1)].
Sincerely,
John Durant, Director
Commercial Rulings Division