CLA-2:RR:NC:SP:225 B80680
Mr. Stephen B. Keeney
Cap Toys, Inc.
26201 Richmond Road
Bedford Heights, Ohio 44146-1439
RE: The tariff classification of a plastic toy from China and
candy from Mexico
Dear Mr. Keeney:
In your letter dated December 20, 1996, received in this
office on December 26, 1996, you requested a tariff
classification ruling.
The product submitted, "Monster Mouth", item #4405 consists
of a plastic toy incorporating a lollipop candy. The toy is
composed of a 3 1/2 inch length plunger unit attached to a
monster head. When the plunger is pushed it causes the the
monster's mouth to open wide. Upon drawing back on the plunger
the mouth snaps closed. The item features a lollipop designed to
resemble a grotesque looking tongue. Upon insertion of the
lollipop into the unit, the candy tongue will withdraw and pop
out of the monster's mouth as the plunger is manipulated.
Although the toy unit may operate as a handle for the lollipop,
it clearly has amusement value long after the lollipop is
consumed.
According to your letter, the lollipops will be manufactured
and cellophane wrapped in Mexico prior to export to China where
they will be inserted into the "Monster Mouth" toy. Upon
assembly in China, the items will be placed in wrapped retail
cartons. Each carton will contain one dessicant packet (of U.S.
origin) to prevent moisture contamination of the lollipops.
The classification of merchandise under the HTS is governed
by the General Rules of Interpretation (GRI'S). The Explanatory
Notes, which represent the official interpretation of the HTS at
the international level, for GRI 3(b) define "goods put up in
sets for retail sale." Such goods: (a) consist of at least two
different articles that are classifiable in different headings,
(b) consist of products 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.
Components of the "Monster Mouth", when combined, do not
address one particular need or activity. The consumption of
candy and playing with toys are two separate and distinct
activities. Therefore, each item in the retail package is
separately classifiable.
The applicable subheading for the "Monster Mouth" toy will
be 9503.90.0030, Harmonized Tariff Schedule of the United States
(HTS), which provides for other toys (except models), not having
a spring mechanism. The rate of duty will be free.
The applicable tariff provision for the lollipop (tongue)
will be 1704.90.3505, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), 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. The general rate of duty will be 6.3
percent ad valorem. The lollipops do not qualify for
preferential treatment under the North American Free Trade
Agreement (NAFTA) because they have been transshipped, noting
General Note 12(l).
In regards to the desiccant packets subheading 9802.00.8065,
HTS, provides for a partial duty exemption for articles assembled
abroad in whole or in part of fabricated components, the product
of the United States, which (a) were exported in condition ready
for assembly without further fabrication, (b) have not lost their
physical identity in such articles by change in form, shape or
otherwise, and (c) have not been advanced in value or improved in
condition abroad except by being assembled and except by
operations incidental to the assembly process such as cleaning,
lubricating and painting.
On the basis of the information presented, it is the opinion
of this office that placement of the desiccant packets in retail
cartons falls within the scope of operations incidental to the
assembly process. Therefore, they are eligible for a partial
duty exemption under subheading 9802.00.8065, HTS. An article
entered under this tariff provision is subject to duty upon the
full cost or value of the imported assembled article, less the
cost or value of the U.S. components incorporated therein, upon
compliance with the documentary requirements of 19 C.F.R. 10.24.
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 J.
Wong at 212-466-5538.
Sincerely,
Gwenn Klein Kirschner
Chief, Special Products Branch
National Commodity
Specialist Division