CLA-2-49:OT:RR:NC:2:234
Ms. Kathleen Scanlon
Schenker Stinnes Logistics
10401 Harrison Road
Romulus, MI 48174
RE: The tariff classification of a book with CD or DVD from China
Dear Ms. Scanlon:
In your letter dated May 28, 2008, you requested a tariff classification ruling on behalf of your client, Borders Group, Inc.
You submitted samples of two book sets for our examination which will be returned to you as requested. The first sample is entitled “A Classic Treasure of Nursery Songs and Rhymes” and the second sample is entitled “Simply Tai Chi.”
The first book set, “A Classic Treasure of Nursery Songs & Rhymes”, includes an interactive CD that accompanies the book. The hardcover book is a collection of seventy-one nursery rhymes, poems and songs. It has ninety-six pages (excluding covers) and measures approximately 9½” (W) X 12” (L). There is a circular opening in the front cover of the book that holds a see-thru, snap-lock plastic case to store the compact disc. The set allows the consumer to read the book, listen to the narrator and sing-along to the rhymes aloud. The second book set, “Simply Tai Chi”, has a book and instructional DVD. The soft cover book has sixty-four pages (excluding covers) and measures approximately 6¼” (W) x 8½” (L). The book contains a detailed introduction and has more than 100 full color photographs to guide beginners step-by-step through the Tai Chi techniques.
The submitted samples, consisting of a book and an audio CD and a book and a DVD, are single retail packages containing articles that are classifiable under two separate headings of the Harmonized Tariff Schedule of the United States (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. When goods are prima facie classifiable under two or more headings, GRI 3 must be consulted. GRI 3(b), which specifically provides for classification of retail sets, states, in pertinent part: …goods put up in sets for retail sale…shall be classified as if they consisted of the material or component which gives them their essential character…
The Harmonized Commodity Description and Coding System Explanatory Notes ("ENs") constitute the official interpretation of the HTSUS. While not 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.
The Explanatory Notes to GRI 3(b) indicate, in pertinent part, that "goods put up in sets for retail sale" means 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 (c) are put up in a manner suitable for sale directly to users without repacking…
The subject articles, in our opinion, meet the criteria for sets as the terms are defined in the cited Explanatory Notes. For the purposes of the HTS, the submitted samples, consisting of a book and an audio CD and a book and a DVD, constitute a set. Having determined that the items constitute a set for tariff classification purposes, we must decide the essential character. According to the Explanatory Notes to GRI 3(b), essential character may 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.
In the first set, the nursery rhymes book imparts the essential character of the book and CD set. Therefore, the set is classified as the book which is classified in heading 4901., HTS. In the second set, the instructional DVD imparts the essential character of the set. Therefore, the set is classified as the DVD which is classified in heading 8523., HTS.
The applicable subheading for the book set entitled, “A Classic Treasure of Nursery Songs and Rhymes”, with illustrative CD will be 4901.99.0093, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Printed books, brochures, leaflets and similar printed matter, whether or not in single sheets: Other: Other: Other Other: Other: Containing 49 or more pages each (excluding covers). The rate of duty will be Free.
The applicable subheading for the book set “Simply Tai Chi” with DVD will be 8523.40.5000, (HTSUS), which provides for Discs, tapes, solid-state non-volatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of chapter 37: optical media: recorded optical media: other: other. The rate of duty will be 2.7 percent 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/.
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 Patricia Wilson at 646-733-3037.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division