CLA-2 CO:R:C:G 083137 NLP
Ms. Molly Petr
Product Manager, Import Division
Abco Dealers, Inc.
6601 West Mill Road
P.O. Box 23090
Milwaukee, WI. 53223
RE: Tariff classification of disposable plastic shroud kits
from Taiwan.
Dear Ms. Petr:
This is in response to your inquiry of October 1, 1988,
requesting a tariff classification for disposable plastic shroud
kits under the Harmonized Tariff Schedule of the United States
(HTSUS). A sample was submitted for examination.
FACTS:
The disposable shroud kit is used primarily by hospitals,
and to a lesser extent by nursing homes and health care
facilities, to wrap the bodies of deceased persons. The major
component of each kit is a rectangular sheet made of polyethylene
plastic in one of three sizes, depending on the size of the
corpse to be wrapped. The kit contains one chin strap consisting
of a thin strip of woven fabric measuring 2-1/2 inches x 38
inches and two rectangular pads of cellular cellulose plastic
measuring 10-1/2 inches x 5-1/2 inches each. One of the pads is
to be placed under the rectum and the other pad will be placed
under the chin strap. The kit also contains five 1/2 inch wide
strips of narrow fabric; three measure 36 inches in length and
two measure 20 inches in length. One of the strips is used to
bind the wrists of the corpse, a second strip is used to secure
the ankles, and the three remaining strips are used to bind the
shroud around the deceased. There are also three cardboard
identification tags and three pieces of string used to secure the
tags. These items are all packaged inside a heat sealed plastic
bag. The instructions indicate that the bag may be used to
contain the personal belongings of the deceased.
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ISSUE:
What is the HTSUS tariff classification of the disposable
plastic shroud kit?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. Goods which cannot be classified in accordance
with GRI 1 are to be classified in accordance with subsequent
GRI's taken in order.
GRI 3(b) provides for the classification of goods put up in
sets for retail sale. The rule states in pertinent part:
]G[oods put up in sets for retail sale, which cannot
be classified by reference to 3(a) ]which requires
that goods be classified, if possible, under the
more specific of competing provisions[, shall be
classified as if they consisted of the material or
component which gives them their essential
character, insofar as this criterion is applicable.
The Explanatory Notes constitute the official interpretation
of the HTSUS at the international level. Explanatory Note (X) to
GRI 3(b) states that the term "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 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 disposable plastic shroud kit meets the criteria of (a)
and (b), as described above. It consists of a group of articles
which are, prima facie, classifiable under two or more headings.
All of the articles in the shroud kit are put up together to
carry out a specific activity; the articles contribute to the
activity of wrapping the bodies of deceased persons. The
packaging bag of the shroud is used as a holder for the personal
effects of the deceased. The instruction sheet included with
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the package describes the manner in which each of the articles is
used in the act of wrapping and identifying the body.
The remaining issue centers on whether goods sold directly
to a user, who is not a retailer, can be considered as "goods put
up in sets for retail sale". It is our opinion, that the instant
product sold directly to hospitals and other health care
facilities qualifies as a " good put up in a set for retail
sale".
The Explanatory Notes to GRI 3(b) do not require that sets
must be sold to retail stores, only that they be put up in a
manner suitable for sale directly to the users, without
repacking. In the instant case, the goods are being sold
directly to the users; hospitals and other health care
facilities, and they are packaged in such a way that do not need
to be repacked.
Furthermore, there is ample evidence that the HTSUS
envisions sales to hospitals as being considered retail sales.
Heading 3005 provides for wadding, gauze, bandages and similiar
articles...impregnated or coated with pharmaceutical substances
or put up in forms or packings for retail sale (emphasis added)
for medical, surgical, dental or veterinary purposes. The
Explanatory Notes for heading 3005 state that wadding, gauze and
bandages which are not impregnated or coated with pharmaceutical
substances "are also classified in this heading, provided they
are exclusively intended for sale directly without re-packing, to
users for use for medical, surgical, dental or veterinary
purposes". Though some retail stores will be in the group that
uses the above products, it is obvious that hospitals and other
health care facilities form the larger group that will be using
these products. Therefore, products intended for sale directly
without repacking to hospitals meet the requirement in heading
3005 of being "put up in forms or packings for retail sale."
Thus, the shroud kit meets all the requirements for
classification as a set.
Sets, when not specifically provided for, are classified
according to the component, or components taken together, which
can be regarded as conferring on the set as a whole its essential
character. Explanatory Note VIII to GRI 3(b) provides that:
The 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 a constituent material in relation to the
use of the goods.
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The essential character of the shroud kit is imparted by the
polyethylene sheet. The sheet serves the primary function of the
kit by forming the shroud itself. The sheet is also the primary
component in terms of bulk and value. The other components
contribute to the function of the sheet as a shroud. Therefore,
the shroud kit is classifiable in heading 3920, which provides
for other plates, sheets, film, foil and strip, of plastics,
noncellular and not reinforced, laminated, supported or similarly
combined with other material, of polymers of ethylene.
HOLDING:
The disposable plastic shroud kit is classifiable in
subheading 3920.10.0000, which provides for other plates, sheets,
film, foil and strip, of plastics, noncellular and not
reinforced, laminated, supported or similarly combined with other
material, of polymers of ethylene. The rate of duty is 4.2 % ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division