CLA-2 CO:R:C:F 955897 GGD
Mr. Andrew G. Halpern
Strasburger & Price, L.L.P.
901 Main Street, Suite 4300
Dallas, Texas 75202
RE: "Radio Control Apache;" Radio Remote Control Toy Vehicle
with Battery, Battery Pack, and Battery Charger; GRI 3(b)
Set
Dear Mr. Halpern:
This letter is in response to your inquiry of January 17,
1994, on behalf of your client, Nikko America, Inc., concerning
the classification under the Harmonized Tariff Schedule of the
United States (HTSUS), of a toy vehicle and accessories,
identified as a "Radio Control Apache," to be imported from
Malaysia. A sample was submitted with your inquiry.
FACTS:
The sample article to be imported, identified by item no.
RDC-16845, consists of a toy vehicle; a hand-held, radio remote
control transmitter; a 4.8 volt, rechargeable, nickel-cadmium
battery pack (for insertion in the toy vehicle); a 9 volt battery
(for insertion in the remote control); and a battery charger, all
packaged together for retail sale. The toy vehicle and remote
transmitter are made in Malaysia. The battery pack is a product
of Japan. The charger is a product of Thailand. The 9 volt
battery is of U.S. origin.
ISSUE:
Whether the article should be classified as a set, or as
individual, separately classifiable components.
-2-
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRIs). The systematic
detail of the harmonized system is such that virtually all goods
are classified by application of GRI 1, that is, according to the
terms of the headings of the tariff schedule and any relative
Section or Chapter Notes. In the event that the goods cannot be
classified solely on the basis of GRI 1, and if the headings and
legal notes do not otherwise require, the remaining GRIs may then
be applied. The Explanatory Notes (ENs) to the Harmonized
Commodity Description and Coding System, which represent the
official interpretation of the tariff at the international level,
facilitate classification under the HTSUS by offering guidance in
understanding the scope of the headings and GRIs.
As noted above, the article consists of five individual
components. The article cannot be classified by reference to GRI
1 because several of the components are classifiable in different
headings. The toy vehicle is classifiable in heading 9503,
HTSUS, as an other toy. The remote control transmitter is
classifiable in heading 8526, HTSUS, as a radio remote control
apparatus. The battery pack and battery are classifiable in
heading 8507, HTSUS, as electric storage batteries. The battery
charger is classifiable in heading 8504, HTSUS, as an electrical
transformer.
In pertinent part, GRI 2(b) states that:
[t]he classification of goods consisting of more than
one material or substance shall be according to the
principles of rule 3.
GRI 3(a) directs that the headings are regarded as equally
specific when each heading refers to part only of the items in a
set put up for retail sale. Therefore, to determine under which
provision the article will be classified, we look to GRI 3(b),
which states in pertinent part that:
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.
-3-
With respect, initially, to whether the "Radio Control
Apache" article comprises goods put up in sets, we look to
Explanatory Note X to GRI 3(b), which indicates that for purposes
of the rule, the term "goods put up in sets for retail sale"
means goods which:
(a) consist of at least two different articles which are
prima facie, classifiable in different headings;
(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).
As previously noted, the subject goods meet criteria (a) and
(c). With regard to criterion (b), we must determine whether the
products are put up together to carry out a specific activity,
i.e., the providing of amusement. Of the five components, all
but the battery charger play a direct part in the operation of
the toy. However, since the toy vehicle is designed to operate
only on the power of a rechargeable battery pack, the toy is
inoperable once the charge is depleted.
In Headquarters Ruling Letter 955055, issued October 5,
1993, this office held that a broadcast receiver and accessories
including a rechargeable battery pack and battery charger, were
put up together to receive broadcast bands, and that the
components comprised a set for classification purposes. We
similarly find in this case, that the battery charger meets the
particular need for which the goods are put up together, and that
the "Radio Control Apache" article is a set.
In order to determine the essential character of the set, we
next view Explanatory Note VIII to GRI 3(b), which provides the
following guidance:
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.
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Having found that each of the components plays a role in the
toy vehicle's operation, it is clear that the vehicle is the
component which provides the set with its essential character.
Therefore, the "Radio Control Apache" is classified in heading
9503. The proper subheading for the article is 9503.80.20,
HTSUS.
HOLDING:
The "Radio Control Apache," article, identified by item no.
RDC-16845, is classified in subheading 9503.80.20, HTSUS, the
provision for "Other toys...and accessories thereof: Other toys
and models, incorporating a motor, and parts and accessories
thereof: Toys (except models): Incorporating an electric motor."
The applicable duty rate is 6.8 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division