CLA-2 CO:R:C:M 955932 KCC
Mr. Michael Skidmore
Tower Group International, Inc.
115 Broad Street
P.O. Box 192
Boston, Massachusetts 02101
RE: Beehive Honey Pot; glass dish with silver-plated lid; silver-
plated plate and spoon; set; GRI 3(b); EN Rule 3(b)(X);
essential character; EN Rule 3(b); EN 70.13; HRL 954414
Dear Mr. Skidmore:
This is in response to your letter dated February 16, 1994,
on behalf of Newton Buying Corporation, regarding the tariff
classification of the "Beehive Honey Pot" under the Harmonized
Tariff Schedule of the United States (HTSUS). A sample was
submitted for our examination.
FACTS:
The article under consideration is the "Beehive Honey Pot"
which consists of a lead crystal glass dish with silver-plated lid,
silver-plated plate and spoon. The "Beehive Honey Pot" is boxed
and sold as a set. It is marketed as a "Queen Anne Beehive Honey
Pot, Silver plated tableware." You state that as the items are
never sold individually, the only value breakdown available is as
follows:
Silver-plated plate, spoon and lid $2.50
Glass dish $4.30
You contend that the "Beehive Honey Pot" is classified under
subheading 7114.20.00, HTSUS, as other tableware of metal clad with
precious metal, or under subheading 7013.31.50, HTSUS, as tableware
of lead crystal. The competing subheadings are as follows:
7013 Glassware of a kind used for table, kitchen, toilet,
office, indoor decoration or similar purposes (other than
that of heading 7010 or 7018)...
7013.31 Glassware of a kind used for table (other than
drinking glasses) or kitchen purposes other than
that of glass-ceramics...Of lead crystal....
7013.39 Glassware of a kind used for table (other than
drinking glasses) or kitchen purposes other than
that of glass-ceramics...Other....
7114.20.00 Articles of goldsmiths' or silversmiths; wares and
parts thereof, of precious metal or of metal clad
with precious metal...Of base metal clad with
precious metal.
ISSUE:
What is the tariff classification of the "Beehive Honey Pot"
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...."
When, by application of GRI 2, HTSUS, goods are prima facie
classifiable under two or more headings, GRI 3, HTSUS, is
applicable. In this case, classification is determined by
application of GRI 3(b), HTSUS, which provides:
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.
To determine what is a "set put up for retail sale" the
Explanatory Notes (ENs) of the Harmonized Commodity Description
and Coding System (HCDCS) may be utilized. EN Rule 3(b)(X) (pg.
4), provides a three-part test for "goods put up in sets for retail
sale":
For 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 facia, 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 repackaging (e.g., in boxes or cases or on
boards).
The ENs, although not dispositive, are to be looked to for the
proper interpretation of the HTSUS. See, T.D. 89-80, 54 Fed. Reg.
35127, 35128 (Aug. 23, 1989).
In the present situation, the merchandise consists of three
different articles, which are classified under different headings.
The glass dish with silver-plated lid is classified under heading
7013, HTSUS. The silver-plated spoon is classified under heading
8215, HTSUS, and the silver-plated plate is classified under the
heading of the metal from which it is made. All three articles are
packaged together for sale directly to the consumer without
repackaging. Additionally, the components are put up together to
meet a particular need or carry out a specific activity; to serve
honey. Therefore, the "Beehive Honey Pot" is a set for tariff
purposes. To determine the proper classification, the essential
character of the "Beehive Honey Pot" set needs to be determined.
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, EN Rule 3(b) (pg. 4),
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.
We are of the opinion that the essential character of the
"Beehive Honey Pot" set is imparted by the glass dish with silver-
plated lid. The glass dish with silver-plated lid is valued higher
than the other components. The glass dish with silver-plated lid
performs the principal function of the "Beehive Honey Pot" set; the
glass dish actually holds the honey. The glass dish with silver-
plated lid is the central piece and the focus of the set when the
merchandise is being used to serve honey.
As stated previously, the glass dish with silver-plated lid
is classified under heading 7013, HTSUS. EN 70.13 (pgs. 936-
936a) states that:
Articles of glass combined with other materials (base metal,
wood, etc.) are classified in this heading only if the glass
gives the whole the character of glass articles. Precious
metal or metal clad with precious metal may be present, as
minor trimmings only; article in which such metals constitute
more than mere trimmings are excluded (heading 71.14)
(emphasis in original).
In this case, we are of the opinion that the glass dish gives
the whole article (glass dish with silver-plated lid) the character
of glass article. We note that EN 70.13 indicates that articles
containing precious metal or metal clad with precious metal,
constituting more than mere trimmings, would not be classified
under heading 7013, HTSUS. However, the silver-plating found in
the "Beehive Honey Pot" set is neither precious metal nor metal
clad with precious metal. Therefore, the glass dish and silver-
plated lid are classified under heading 7013, HTSUS.
Inasmuch as the essential character of the set is imparted by
the glass dish with the silver-plated lid, the entire set is,
therefore, classified under the tariff classification subheading
of the glass dish with silver-plated lid. GRI 3(b), HTSUS, states
that "...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...." See, Headquarters Ruling Letter
(HRL) 954414 dated March 25, 1994.
You state that the glass dish is made out of lead crystal and
is valued at $4.30 and that you are unable to provide the exact
value of the silver-plated lid. Lead crystal is defined as
"...glass having a minimum lead monoxide (PbO) content by weight
of 24 percent." Subheading Note 1, Chapter 70, HTSUS. If the
glass dish meets the definition of lead crystal as stated in
Subheading Note 1, Chapter 70, HTSUS, it is classified under
subheading 7013.31, HTSUS, as glassware of a kind used for table
or kitchen purposes, of lead crystal. If the glass dish with the
silver-plated lid is not lead crystal, it is classified under
subheading 7013.39, HTSUS, as other cut or engraved glassware of
a kind used for table or kitchen purposes. Therefore, depending
on the lead content of the glass dish, the entire "Beehive Honey
Pot" set will be classified under either subheading 7013.31, or
7013.39, HTSUS. Classification to the eight digit level is
dependent on the exact value of both the glass dish and silver-
plated lid. The value of the silver-plated lid must be ascertained
for a correct classification of the "Beehive Honey Pot" set.
HOLDING:
The "Beehive Honey Pot" is classified as a set pursuant to
GRI 3(b), HTSUS. The essential character of the set is imparted
by the glass dish with silver-plated lid. Therefore, depending on
the lead content of the glass dish, the entire "Beehive Honey Pot"
set will be classified under subheading 7013.31, HTSUS, as
glassware of a kind used for table or kitchen purposes, of lead
crystal, or under subheading 7013.39, HTSUS, as other cut or
engraved glassware of a kind used for table or kitchen purposes.
Classification to the eight digit level is dependent upon the exact
value calculation of the glass dish and the silver-plated lid.
Sincerely,
John Durant, Director