CLA-2 CO:R:C:G AJS
Mr. G. Mylin
Mittelstaedt, Galaviz & Mylin
Custom House Brokers
645 Battery Street
San Francisco, CA 94111
RE: Low powered transceiver. walkie talkie set; House Conf. Rep.
No. 100-576; General Explanatory Notes, Chapter 95; Heading 9503;
Explanatory Notes 95.03; Subheading 8525.20.20; Section XVI, note
1(p).
Dear Mr. Mylin:
Your letter of May 7, 1990, requesting a tariff
classification under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), has been forwarded to this office for
reply.
FACTS:
The articles in question are the model RY-1306 low powered
transceivers, which are commonly known as walkie talkies. The
dimensions of the items are 3-1/4" x 1-1/2" x 8. They have a
power on LED and operates on a frequency of 49.820 MHz.
The name of the walkie talkie set is the "wrist rapper",
which is emblazed across the front of each device. The articles
are encased in a colorful blue and yellow plastic housing. In
addition, each article has a strap for convenient attachment to
the user's wrists.
ISSUE:
Whether the walkie talkie set at issue is classifiable
within heading 8525 or heading 9503, HTSUSA.
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LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI's). GRI 1 provides
that classification is determined first in accordance with the
terms of the headings of the tariff and any relative section or
chapter notes.
The Explanatory Notes (ENs) constitute the official
interpretation of the Harmonized System at the international
level and are useful in ascertaining the classification of
merchandise under the HTSUSA. House Conf. Rep. No. 100-576 100th
Cong., 2d Sess. 548 (1988) at 549. The General ENs to chapter 95
state that this chapter covers toys of all kinds whether designed
for the amusement of children or adults. Furthermore, it also
includes equipment for indoor or outdoor games, appliances and
apparatus for sports, gymnastics or athletics, certain
requisites for fishing, hunting or shooting, and roundabouts and
other fairground amusements. General ENs, chapter 95. Customs
research indicates that the vast majority of these low powered
walkie talkies are designed for use by children and sold in toy
stores or toy sections of major department stores. The articles
at issue possesses a colorful blue and yellow plastic housing,
wrist straps and are named the "wrist rapper". This appearance
and design leads to the conclusion that the articles are designed
for the amusement of children or adults. Accordingly, it is
Customs position that the walkie talkie set at issue is a toy for
classification purposes.
Heading 9503, HTSUSA, provides for "[o]ther toys; reduced
size ("scale") models and similar recreational models, working or
not; puzzles of all kinds; and accessories thereof." This
heading covers all toys not included in heading 95.01 and 95.02,
many of which are mechanically or electrically operated. ENs
95.03. The walkie talkie set in question satisfies this
description. More specifically, the walkie talkie set is
described by the terms of subheading 9503.70.80, HTSUSA, which
provides for other toys put up in sets.
Subheading 8525.20.20, HTSUSA, provides for low-power
radiotelephonic transceivers operating on frequencies from 49.82
to 49.90 MHz. While the walkie talkie operates on a frequency of
49.82 Mhz, it is precluded from classification within this
subheading based on the legal notes to chapter 85. Section XVI,
note 1(p) excludes articles of chapter 95 (i.e., toys) from
classification within this section. Subheading 8525.20.20 is
included within section XVI. Based on the fact that the walkie
talkie set at issue is properly classifiable as a toy, it is
precluded from classification within this subheading.
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HOLDING:
The walkie talkie set at issue is classifiable within
subheading 9503.70.80, HTSUSA, which provides for toys put up in
sets dutiable at the rate of 6.8 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division