CLA-2 RR:CR:GC 966663 NSH
Ms. Julie Scoggan
Evans and Wood and Company, Inc.
612 East Dallas Road, Suite 200
Grapevine, Texas 76051
RE: NY G89195 modified; Articles of glass beads
Dear Ms. Scoggan:
This letter is pursuant to U.S. Customs and Border Protection (Customs) reconsideration of New York Ruling letter (NY) G89195, dated April 25, 2001, on behalf of your client, Hobby Lobby. We have reviewed the classification of item CP132 in NY G89195 and have determined that it is incorrect. This ruling sets forth the correct classification.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed modification of NY G89195, as described below, was published in the Customs Bulletin on February 25, 2004. No comments were received in response to the notice.
FACTS:
The item at issue, CP132, was previously classified in NY G89195 under subheading 6702.10.20, HTSUS, as “[a]rtificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit: [o]f plastics: [a]ssembled by binding with flexible materials such as wire, paper, textile materials, or foil, or by gluing or by similar methods.” In researching similar issues, Customs concluded that its classification was incorrect and that this item should be classified under subheading 7018.90.50, HTSUS, as “[g]lass beads…and similar glass smallwares and articles thereof other than imitation jewelry;…glass microspheres not exceeding 1 mm in diameter: [o]ther: [o]ther.”
Item CP132 resembles plastic grapes that are covered with glass beads and green, plastic leaves. These glass-beaded grapes are interspersed along a plastic vine. The glass beads impart a wet or sparkling look to the item. The materials composing the item are glass beads, polyvinyl chloride (PVC) paste, DOP oil, and limited other materials.
ISSUE:
Whether the glass-beaded artificial foliage is classified as artificial foliage or as an article of glass beads.
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). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the remaining GRIs 2 through 6.
The Harmonized Commodity Description and Coding System Explanatory Notes (EN) to the HTSUS constitute the official interpretation of the Harmonized System at the international level. Although 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 the headings. See T.D. 89-80.
The HTSUS provisions under consideration are as follows:
6702 Artificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit:
.10 Of plastics:
Assembled by binding with flexible materials such as wire, paper, textile materials, or foil, or by gluing or by similar methods
* * * * *
7018 Glass beads, imitation pearls, imitation precious or semiprecious stones and similar glass smallwares and articles thereof other than imitation jewelry; glass eyes other than prosthetic articles; statuettes and other ornaments of lamp-worked glass, other than imitation jewelry; glass microspheres not exceeding 1 mm in diameter:
7018.90 Other:
7018.90.50 Other
Artificial fruit is generally classified under heading 6702, HTSUS, as “[a]rtificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit: [o]f plastics: [a]ssembled by binding with flexible materials such as wire, paper, textile materials, or foil, or by gluing or by similar methods.” Although the item in question contains some of the materials described in heading 6702, HTSUS, and by its shape resembles artificial fruit, it is covered with glass beads. In contrast, articles of glass beads are listed under heading 7018, HTSUS.
Item CP132 is described as consisting of plastic grapes with plastic leaves that are attached to a plastic vine; the grapes are covered with glass beads. The item is to be hung as an ornament or display piece, not intended for use on a specific occasion. The glass beads impart to the item a wet or sparkling look which substantially enhances the visual appeal of the grapes and their merchantability. Furthermore, located exclusively on the surface of the item, and virtually covering it in its entirety, the glass beads effectively hide from view most all of the other materials used in its construction.
Note 3(a) to chapter 67 states that heading 6702 does not cover articles of glass and directs that such an article be classified in chapter 70. Because this item is substantially covered with glass beads on its surface that effectively hide from view any of the other materials used in its construction, it is an article of glass. Therefore, it is precluded from classification under heading 6702, HTSUS, by reference to the chapter note. Instead, classification will be under chapter 70.
The ENs to heading 7018, HTSUS, provide, in pertinent part:
This heading covers a range of widely diversified glass articles, most of which are used, directly or after further processing, for ornamental and decorative purposes.
These include:
…
(E) Various glass articles (other than imitation jewellery), obtained by assembling certain of the individual articles mentioned above, such as flowers, foliage and pearl ornaments for wreaths; fringes made of beads or bulges and intended for lampshades, shelves, etc.; blinds and portieres made of glass beads or bugles, and table mats made similarly; rosaries made of glass beads or imitation precious or semi-precious stones.
In view of the foregoing, item CP132 is classified under subheading 7018.90.50 as “[g]lass beads…and articles thereof other than imitation jewelry;…glass microspheres not exceeding 1 mm in diameter: [o]ther: [o]ther.”
HOLDING:
Pursuant to GRI 1, the classification for item CP132 is under subheading 7018.90.5000, HTSUS, as “[g]lass beads…and articles thereof other than imitation jewelry;…glass microspheres not exceeding 1 mm in diameter: [o]ther: [o]ther.” The rate of duty is 6.6 percent ad valorem.
EFFECT ON OTHER RULINGS:
NY G89195 is MODIFIED. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial Rulings Division