CLA-2 RR:CR:GC 962953ptl
Ms. Jeanne Clark
Fritz Companies, Inc.
9800 La Cienega Boulevard
Inglewood, CA 90301-9901
RE: Thera:P™ Magnetic Therapy System; HQ 963460, 963450
Dear Ms. Clark:
This is in response to our letter, dated May 24, 1999, to the Customs National Import Specialist Division, in New York, on behalf of Montgomery Ward & Co., Inc. requesting a classification ruling under the Harmonized Tariff Schedule of the United States (HTSUS) of a product identified as the HoMEDICS® Thera:P™ Magnetic Therapy System. Your request and sample were forwarded to this office for a reply. We regret the delay.
FACTS:
The Thera:P™ Magnetic Therapy System (Model # MTP-1000) is described as a “total body system for easy application of magnets to virtually any area of the body.” The system is stated to be “A Non-Medical Method for the Treatment of Pain™”. The product is described as being a “10 piece magnetic therapy system with 29 gold standard magnets.”
The following components are packaged together for sale and make up the “System:”
1 Broad Area Magnet Wrap (15” x 5½”) Neoprene, Nylon and polyester wrap containing 15 “Magnetic Wave” magnets.
1 Large Strap (24” x 3”)
1 Medium Strap (16” x 3”)
1 Small Strap (10” x 3”)
2 Small Magnetic-patches (Each patch contains one magnet) (Round, 2” diameter)
2 Medium Magnetic-patches (Each patch contains two magnets) (Oval, 3½ “ x 2”)
2 Large Magnetic-patches (Each patch contains four magnets) (Round, 3½” diameter)
The straps are slightly stretchable fabric articles with a VELCRO-like hook and loop fastener system enabling the user to place the magnet wrap or various magnetic patches against different areas of the body. The wrap has a similar hook and loop component. The “outside” portion of the wrap and the entire surface area of the straps are made so that it can serve as the “loop” element of the fastener. Each magnet measures approximately 1” in diameter and ¼” thick. A fabric mesh covers the “inside” portion of the patches and wrap and has been sewn so that each magnet retains its position in either the patch or wrap. The remaining “inside” surface of the patches consists of “hook” fasteners which allow the patches to be placed anywhere along the straps or the wrap. All the straps and patches of the Magnetic Therapy System are designed so that they can be used individually or in combination with one another.
ISSUE:
What is the classification of a Magnetic Therapy System consisting of textile straps, wrap, and patches which contain magnets?
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS 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 in order.
In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes (ENs), although not dispositive or legally binding, 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 HTSUS headings under consideration are as follows:
Other made up articles, including dress patterns:
* * *
Other:
Other:
* * *
Other.
* * *
Other.
* * * * *
8505 Electromagnets; permanent magnets and articles
intended to become permanent magnets after
magnetization; electromagnetic or permanent
magnet chucks, clamps and similar holding
devices; electromagnetic couplings, clutches
and brakes; electromagnetic lifting heads;
parts thereof:
Permanent magnets and articles intended to
become permanent magnets after magnetization:
* * *
8505.19.0000 Other.
A review of the HTSUS indicates that there is no single heading which describes the goods being classified. The Magnetic Therapy System consists of both textile articles and articles that have both textile and magnet components. Both the heading which describes other made up textile articles (heading 6307, HTSUS) and the heading which provides for magnets (heading 8505, HTSUS),
are considered equally descriptive of a part of the components which make up the System.
GRI 2(b) states that the classification of goods consisting of more than one material or substance shall be according to the principles of GRI 3. Since the Magnetic Therapy System consists of both textile fabric straps and components consisting of textile materials and magnets, i.e., the patches and the wrap, the article must be classified according to the principles of GRI 3.
GRI 3 states:
(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.
(b). 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.
The EN to GRI 3(b) state:
(VII). In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(VIII). The factor which determines the 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.
* * *
(X). 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 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
are put up in a manner suitable for sale directly to users without repacking.
As stated above, the Magnetic Therapy System consists of two groups of articles. The first is the magnet wrap and three fabric patches consisting of a combination of textile and magnetic components (composite goods). The second is the three knit textile material straps, which if imported alone and not as part of this set, would be classified in heading 6307, HTSUS.
Before we can determine whether these articles meet the criteria for “goods put up in sets for retail sale”, we must first determine the essential character for the group of articles consisting of both textile and magnetic components. If we determine that the essential character of the magnetic and textile group of articles is in fact, imparted by the magnets, these articles will be classified in heading 8505, HTSUS. In that case, we will have items classifiable in different headings (headings 8505 (the textile and magnet components), and 6307 (the textile straps), HTSUS), meeting a particular need or carrying out a specific activity and put up in a manner suitable for sale directly to users without repacking, and therefore qualifying for consideration as a set. If, however, we determine that the textile component of the textile/magnet articles provides the essential character of these articles, we will not have a set for classification purposes as they will be classified in heading 6307, HTSUS, which is also where the textile straps are classified.
Recently, there have been several Court decisions on "essential character" for purposes of GRI 3(b). These cases have looked primarily to the role of the constituent materials or components in relation to the use of the goods to determine essential character. See, Better Home Plastics Corp. v. United States, 916 F. Supp. 1265 (CIT 1996), affirmed 119 F.3d 969 (Fed. Cir. 1997); Mita Copystar America, Inc. v. United States, 966 F. Supp. 1245 (CIT 1997), motion for rehearing and reconsideration denied, 994 F. Supp. 393 (CIT 1998), and Vista International Packaging Co., v. United States, 19 CIT 868, 890 F. Supp. 1095 (1995). See also, Pillowtex Corp. v. United States, 983 F. Supp. 188 (CIT 1997), affirmed CAFC No. 98-1227 (March 16, 1999).
Based on the foregoing, we conclude that in an essential character analysis for purposes of GRI 3(b), the role of the constituent materials or components in relation to the use of the goods is generally of primary importance, but the other factors listed in EN Rule 3(b)(VIII) should also be considered, as applicable. Here, we must now examine the role each of the components plays in determining the essential character of the composite articles. In the case of the magnet wrap, although the knit textile portion does provide minimal pressure and support to the area it wraps, it principally provides a means by which the magnets will be held in place. The remaining composite textile articles, the fabric patches, do not provide any support function, but are necessary in order to hold the magnets in place. The magnets, on the other hand, supposedly enable the patches to function as “magnetic therapy.” Additionally, it is the magnets which provide the salability to these articles, that is, the reason for which consumers will purchase this System.
In HQ 963460, dated February 16, 2000, Customs addressed the classification of a magnetic therapy article with dual functions, determining that the textile component imparted the essential character to the good as a whole. That ruling provides an extended discussion of the type of analysis used by Customs to determine the function of textile components of multi-component articles when making essential character determinations.
To arrive at a proper classification determination with respect to textile articles which serve dual functions, a critical question is whether or not the textile components function in the ordinary manner of textiles or whether they only provide a medium through which another component is able to perform its intended function. In this case, we find that the articles serve two roles: the magnets are alleged to provide pain relief and the textile portions provide a means by which the magnets are held in place. Upon examination of the Magnetic Therapy System it is our belief that the textile components do not function as body supports in the ordinary manner; they are merely a vehicle through which the magnets are able to perform their intended function. Accordingly, the magnetic portion appears to be the component of primary importance to these composite articles and to be the component which imparts the essential character.
Because we have determined that the composite articles (magnet wrap and patches) should be classified according to their magnetic components in heading 8505, HTSUS, and the textile straps are classified in heading 6307, HTSUS, that the articles have been put up together to meet a particular need or carry out a specific activity, and that they have been put up in a manner suitable for sale directly to users without repacking, the Magnetic Therapy System constitutes a set for tariff purposes and is classifiable pursuant to the terms of GRI 3(b). It is also our determination that the essential character of this set is imparted by the magnetic components. It is the magnetic components that make this item distinguishable and the reason why consumers will purchase this product. Accordingly, the Magnetic Therapy System is appropriately classified in heading 8505, HTSUS. This ruling is consistent with HQ 963450, dated March 2, 2000.
HOLDING:
The HoMEDICS® Thera:P™ Magnetic Therapy System is classified in subheading 8505.19.0000, HTSUS, which provides for, electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: permanent magnets and articles intended to become permanent magnets after magnetization: other.
Sincerely,
John Durant, Director
Commercial Rulings Division