CLA-2 TC:RR:FC 959874 MMC
Mr. Stephen J. Leahy
Leahy & Ward, Attorneys at Law
63 Commercial Wharf
Boston, Massachusetts 02110
RE: Reconsideration of NYRL A84550; plastic CD trays and inserts;
Components Shipped in Bulk Form; GRI 2(a); Unfinished Articles;
Articles Presented Unassembled; HRLs 088891, 089204, 950431,
088595 and 087888.
Dear Mr. Leahy:
This is in reply to your August 15, 1996, letter on behalf
Viva Magnetics requesting reconsideration of New York Ruling
Letter (NYRL) A84550, dated June 14, 1996. NYRL A84550 held that
bulk shipments of molded plastic CD trays and their cases were
classifiable separately: the trays under 3923.90.00, and the
covers under 3923.10.00 of the Harmonized Tariff Schedule of the
United States Annotated (HTSUS).
FACTS:
The article, when completed, is know as a "CD Jewel Box".
The CD Jewel Box consists of two components, a plastic tray
insert which is molded to form a protective compartment in the
shape of a compact disc and a plastic case which holds the
insert. The cases are produced in Canada and the tray inserts
are produced in China. In its completed form the CD Jewel Box
is used to package and store compact discs.
However, for shipping purposes the components would be
shipped unassembled, with an equal amount of cases and trays
imported together. Therefore, for the boxes to be used as
intended, they must be assembled after importation.
ISSUE:
Can a shipment of the above components be considered an
unassembled CD Jewel box having the essential character of a
complete or finished CD Jewel Box under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA)?
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.
You assert that when shipped as described these components
make up unassembled CD Jewel Boxes. Therefore, if the shipment
consists of the correct components and equal quantities the
components should be classified together as a jewel box and not
as separate components.
General Rule of Interpretation (GRI) 2(a), HTSUSA, states in
part that a heading which provides for a particular article will
cover that article incomplete or unfinished provided that, as
imported, the unfinished article has the essential character of
the complete or finished article. The rule also applies to
incomplete or unfinished articles imported unassembled or
disassembled provided that they are to be treated as complete or
finished articles by virtue of the first part of GRI 2(a). The
articles in this case are unassembled.
The relevant ENs, page 2, provide some guidance on the
application of GRI 2(a) to unassembled goods by stating that
"when goods are so presented it is usually for reasons such as
requirements or convenience of packing, handling or transport."
The ENs provide further that for purposes of Rule 2(a) the
expression "articles presented unassembled or disassembled" means
articles the components of which are to be assembled either by
means of simple fixing devices (screws, nuts, bolts, etc.) or by
riveting or welding, for example, provided only simple assembly
operations are involved.
You have made no statements or offered any evidence that
these proposed shipments would be anything more than bulk
shipments of equal numbers of components. This is not the type
of "convenience of packing, handling or transport" that the ENs
contemplate. Also, no evidence has been provided as to whether
simple assembly operations are involved in creating CD Jewel
Boxes from the components or whether they are assembled
immediately or become a part of an inventory. Therefore, the
volume shipments of these components would not be considered as
having the essential character of complete CD Jewel Boxes because
they are apparently nothing more than disparate components
shipped in bulk form.
For a further discussion of shipments in bulk form, please
see Headquarters Ruling Letters (HRL) 088891 dated June 21,
1991, holding that equal numbers of alarm system parts and
accessories shipped in bulk form did not meet GRI 2(a)
requirements. See also HRL 089204, dated November 22, 1991, HRL
950431 dated December 5, 1991, and HRL 088595, and HRL 087888,
dated December 3, 1990, where we held that, without evidence that
components shipped in bulk were packed that way for the
convenience of packing, handling or transport as well as not
dedicated to use as inventory prior to being assembled, such
components would not be considered "unassembled" articles for GRI
2(a) purposes.
The plastic cases are classifiable separately under
3923.10.00, HTSUS, which provides for, "Articles for the
conveyance or packing of goods, of plastics; stoppers, lids, caps
and other closures, of plastics: Boxes, cases, crates and similar
articles." The plastic tray inserts are classifiable separately
under 3923.90.00, HTSUS, which provides for "Articles for the
conveyance or packing of goods, of plastics; stoppers, lids, caps
and other closures, of plastics: Other."
HOLDING:
The plastic cases are classifiable separately under
3923.10.00, HTSUS, which provides for, "Articles for the
conveyance or packing of goods, of plastics; stoppers, lids, caps
and other closures, of plastics:boxes, cases, crates and similar
articles," with a 1997 column one general rate of duty of 3
percent ad valorem. The plastic tray inserts are classifiable
separately under 3923.90.00, HTSUS, which provides for "Articles
for the conveyance or packing of goods, of plastics; stoppers,
lids, caps and other closures, of plastics: Other," with a 1997
column one general rate of duty of 3 percent ad valorem.
A84550 is affirmed.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division