CLA-2 OT:RR:CTF:TCM H056243 CkG
TARIFF NO: 7323.99.90
Elham Jawady
Merrick Engineering
7325 Imperial Drive
Waco, TX 76712
Re: Reconsideration of NY N050246; classification of “jawbreaker”
clothing hanger
Dear Mr. Jawady,
This is in response to your letter of March 23, 2009, requesting the reconsideration of New York Ruling Letter (NY) N050246, issued on February 26, 2009, regarding the tariff classification of certain types of clothes hangers under the Harmonized Tariff Schedule of the United States (HTSUS).
In NY N050246, CBP classified a “jawbreaker” skirt hanger imported by Merrick Engineering in heading 7323, HTSUS, as a household article of iron or steel. NY R02215, dated July 15, 2005, classified a similar skirt hanger in heading 3924, as a household article of plastic. You state that these rulings are inconsistent, and request clarification as to which ruling is most appropriate for the Merrick “jawbreaker” hanger at issue.
FACTS:
The submitted sample is described as a “jawbreaker” skirt hanger. The item consists of a metal hook on top, from which shaped, intertwining metal wire extends downward. Since the wire attracts a magnet, this office believes that it is made of steel. The hanger has a lower portion made of plastic that is designed in a jaw-like configuration. Holding the wire apart causes the jaws of the lower portion to separate while joining the wire closes the jaw around garments that will hang vertically.
ISSUE:
Whether the steel wire or plastic frame imparts the essential character of the instant jawbreaker hanger.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined 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 2 through 6 may then be applied in order.
The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs 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 provisions under consideration are as follows:
3924: Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics:
3924.90: Other:
3924.90.56: Other
* * * * *
7323: Table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel:
Other:
7323.99: Other:
Not coated or plated with precious metal
Other:
7323.99.90: Other……….
* * * * *
EN 73.23 provides, in pertinent part, as follows:
(A) TABLE, KITCHEN OR OTHER HOUSEHOLD ARTICLES AND PARTS THEREOF
This group comprises a wide range of iron or steel articles, not more specifically covered by other headings of the Nomenclature, used for table, kitchen or other household purposes…
The group includes:
…
(3) Other household articles such as wash coppers and boilers; dustbins, buckets, coal scuttles and hods; watering cans; ash trays; hot water bottles; bottle baskets; movable boot scrapers; stands for flat irons; baskets for laundry, fruit, vegetables, etc.; letter boxes; clothes hangers, shoe trees; luncheon boxes.
* * * * *
Heading 3924, HTSUS, provides for tableware, kitchenware, and other household articles of plastics. Heading 7323, HTSUS, provides for tableware, kitchen, or other household articles of iron or steel. These headings thus provide for items which are used in the home. EN 73.23 further specifically lists clothes hangers as an example of goods which are to be considered household articles under heading 7323, HTSUS. However, clothes hangers may be imported for individual retail sale as household goods, imported with a garment, or sold to garment vendors for use in packing, shipping, and transporting other garments. Whether the instant clothes hangers can be considered household articles of either heading 3924 or 7323 thus depends on whether they are principally used in the household.
Under Additional U.S. Rule of Interpretation 1(a), it is the principal use of the class or kind of goods to which the imports belong at or immediately prior to the time of importation and not the principal use of the specific import that is controlling. General criteria for determining “class or kind” with respect to classification were set forth in United States v. Carborundum Company, 63 CCPA 98, C.A.D. 1172, 536 F. 2d 373 (1976), cert. denied, 429 U.S. 979 (1976). Those criteria include: general physical characteristics, expectation of the ultimate purchaser, channels of trade, environment of sale (accompanying accessories, manner of advertisement and display), use in the same manner as merchandise which defines the class, economic practicality of so using the import, and recognition in the trade of this use.
In HQ 959271, dated October 21, 1996, CBP noted several features which would serve to distinguish clothes hangers of a type used to transport clothes or for use in dry cleaners and similar commercial establishments from those intended for use in the home. The former would normally be of flimsy construction, and of a type that is readily discarded or recycled. Clothes hangers used in the home, on the other hand, are likely to be of sturdier construction as an indication of long-term or repeated reuse, and possibly even decorative. The construction of the jawbreaker hanger in issue indicates that it is not intended as a one-time use item. Rather, its substantial construction and the manner in which it functions suggests it is of a type intended for repeated household use to hang/store one's personal clothes.
The environment of sale additionally reveals that Merrick jawbreaker hangers at issue are advertised and sold as “closet and home organization products”. See http://www.merrickengineering.com/ind.html. They are also found in the home and houseware departments of online retailers such as amazon.com or homeandbeyond.com, which also sell similar hangers for household use. See e.g.,
http://www.amazon.com/s/qid=1243458589/ref=sr_nr_i_0?ie=UTF8&rs=&keywords=merrick%20hangers&rh=i%3Aaps%2Ck%3Amerrick%20hangers%2Ci%3Agarden,
https://www.homeandbeyond.com/hangers--clothes.html, and
http://brands.hardwarestore.com/186-2474-merrick-engineering.aspx.
Based on the foregoing we conclude that the instant hangers are intended for household use and are classifiable as household articles. Because they are made of plastic and steel, they are composite goods. Their classification will thus be determined by the component which imparts the essential character according to GRI 3(b). GRI 3(b) provides that composite goods consisting of different materials or made up of different components, shall be classified as if they consisted of the material or component which gives them their essential character. EN VIII to GRI 3(b) explains that "[t]he 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 the constituent material in relation to the use of the goods." Recent court decisions on the essential character for 3(b) purposes have looked primarily to the role of the constituent material in relation to the use of the goods. See Structural Industries v. United States, 360 F. Supp. 2d 1330 (CIT 2005); Conair Corp. v. United States, 29 C.I.T. 888 (2005); Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278 (CIT 2006), aff’d 491 F.3d 1334 (Fed. Cir. 2007)
In the instant case, the steel wire imparts the essential character of the jawbreaker hanger. It is the metal portion of the hanger that operates the plastic jaws by causing them to open and close. The steel wire thus performs the principal function of the device. CBP has also held in the past that the essential character of jawbreaker hangers is imparted by the metal component. See HQ 959271, dated October 21, 1996.
The instant merchandise is thus properly classified in heading 7323, HTSUS, as a household article of iron or steel. With regard to the alleged inconsistency of this conclusion with CBP’s decision in NY R02215, the two cases are distinguishable. The composition of the skirt and trouser hanger of NY R02215 was alleged to be 96 percent polypropylene plastic, 2 percent rubber and 1 percent steel. The steel component of the instant jawbreaker hanger not only performs a greater role in relation to the use of the good, but it appears to constitute a far greater proportion of the total composition of the good.
HOLDING:
By application of GRI 1, the Merrick jawbreaker hanger is classified in
subheading 7323.99.90, HTSUS, which provides for: “Table, kitchen or other household
articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring
or polishing pads, gloves and the like, of iron or steel: Other: Other: Not coated or plated
with precious metal: Other: Other.” The 2009 column one, general rate of duty is 3.4% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N050246, dated February 26, 2009, is hereby affirmed.
Sincerely,
Myles B. Harmon, Director,
Commercial and Trade Facilitation Division