CLA-2-95:RR:NC:SP:225 M80611
Mr. Karl F. Krueger
DHL Danzas Air and Ocean
2660 20th Street
Port Huron, MI 48060
RE: The tariff classification of “Pez Candy Dispensers” from China, Hungary and the United States.
Dear Mr. Krueger:
In your letter dated February 15, 2006, on behalf of your client, Pez Candy Manufacturing of Orange, Connecticut, you requested a tariff classification ruling.
You submitted samples of five “Pez Candy Dispensers” (no item numbers), which are being returned upon your request. Two are the standard plastic pocket dispensers, one with the head of the Star Wars character Chewbacca (candy not included) and one with a ball with a painted-on cartoon “smiley face”(candy not included). The remaining three “dispensers” are molded in the shapes of vehicles. The first, is a semi-truck that measures approximately 1-1/2” in height x ¾” in width x 4-1/4” in length. It dispenses candies (not included) when the cab is tilted forward. The remaining two “dispensers” are molded in the shapes of race cars, one NASCAR and one Indy-style that measure approximately 2” in height x 3” in width x 8” in length. These race cars contain a spring motor that propels the cars forward after they have been pulled back.
Although referred to as “dispensers”, the semi-truck and two race cars are fully functional toy vehicles with operational wheels. These vehicles roll forward when pushed on a hard surface. Additionally, the two race car “dispensers” will be imported with three packs of Pez candy that is made in the United States.
The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two 2 different articles which are, prima facie, classifiable in different headings; (b) consist of 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 repacking. The toy race car dispensers and the Pez candy must be classified separately since the components are not put up together to meet a particular need or carry out a specific activity. Playing with toy race cars is a different activity than eating candy. Therefore, the contents must be classified separately.
Additionally, you suggest that the standard Pez dispensers Chewbacca (candy not included) and one with a ball with a painted-on cartoon “smiley face”(candy not included) should be classified in subheading 3923.90.0080 of the Harmonized Tariff Schedule, which provides for articles for the conveyance or packing of goods. However, Customs Headquarters has ruled that the articles of heading 3923 are those that are used in the conveyance or packing of bulk goods and commercial goods, not items in the possession of the consumer. Instead the standard Pez dispensers will be classified in heading 3926 for “other articles of plastics…other”
The applicable subheading for the standard Pez dispensers Chewbacca (candy not included) and one with a ball with a painted-on cartoon “smiley face”(candy not included) will be 3926.90.9880, HTSUS, which provides for other articles of plastics...other. The rate of duty will be 5.3 percent ad valorem.
The applicable subheading for the toy vehicles (semi-truck dispenser, Indy and NASCAR race cars) will be 9503.90.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other toys; reduced-size ("scale") models and similar recreational models, working or not; puzzles of all kinds; parts and accessories thereof: Other: Other. The rate of duty will be Free.
The applicable subheading for the Pez candies will be 1704.90.3550, HTSUS, which provides for Sugar confectionery (including white chocolate), not containing cocoa: Other: Confections or sweetmeats ready for consumption: Other: Other...Put up for retail sale: Other. The rate of duty will be 5.6 percent ad valorem. The Pez candy, stated to be of U.S. origin, will be eligible for entry as American Goods Returned, provided the documentary requirements of 19 C.F.R. §10.1 are satisfied. The applicable subheading for the Pez candy will be 9801.00.1097, Harmonized Tariff Schedule of the United States (HTSUS), which provides for products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad: other: other. Products in subheading 9801.00.1097 are free of duty.
This merchandise is subject to The Public Health Security and Bioterroism Preparedness and Response Act of 2002 (The Bioterroism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterroism Act can be obtained by calling FDA at telephone number (301) 575-0156, or at the Web site www.fda.gov/oc/bioterroism/bioact.html.
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/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Alice Wong at 646-733-3026.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division