CLA-2 CO:R:C:G 087713 STB
Mr. Marc S. Greenberg
American Shipping Company
600 Sylvan Avenue
P.O. Box 1486
Englewood Cliffs, NJ 07632
RE: Modification of HRL 084240 dated July 18, 1989;
Animated Display Figures
Dear Mr. Greenberg:
On July 18, 1989, our office, in Headquarters Ruling Letter
(HRL) 084240 classified certain animated display figures in
subheading 9505.90.60, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA). We have since reviewed this
classification and have found it to be in error.
FACTS:
The facts are as stated in HRL 084240. In addition, we note
that all the sample figures are clothed in garments of
traditional Christmas colors. The two Santa Bear figures and the
two Bed Time Bear figures are holding electric candles with red
or green ribbons attached. The two Winter Bear figures are
holding imitation snow balls. The figures are marketed as a
series under the name "Santa's Favorite Folks."
In HRL 084240, the Santa Bear figures were classified under
subheading 9505.10.50, HTSUSA, the provision for Christmas
festive articles. The Bed Time Bear and Winter Bear figures were
classified under subheading 9505.90.60, HTSUSA, the provision for
other festive articles.
ISSUE:
What is the proper classification of the subject
merchandise?
-2-
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) set forth the
legal framework in which merchandise is to be classified under
the HTSUSA. GRI 1 requires that classification be determined
first according to the terms of the headings of the tariff and
any relative section or chapter notes and, unless otherwise
required, according to the remaining GRI's taken in order.
It is Customs position that animated display figures belong
to a class of merchandise that is holiday related and are thus
properly classifiable in heading 9505, HTSUSA, the provision for
festive articles. In reaching the proper eight digit
subheading, one determination that must be made concerns whether
the festive article is likely to be used during the Christmas
season or during some other holiday period. In this case, it is
clear that the Winter Bear figures and the Bed Time Bear figures
are designed and marketed for use during the Christmas season.
The marketing, the extensive use of Christmas colors, and the
Christmas-type bows and candles that appear on this merchandise
clearly indicate that the bears are intended for use during the
Christmas season and that the principal use will conform to that
intention.
HOLDING:
The Winter Bear figures and the Bed Time Bear figures are
properly classifiable in subheading 9505.10.5000, HTSUSA, the
provision for festive, carnival or other entertainment articles,
including magic tricks and practical joke articles, parts and
accessories thereof, articles for Christmas festivities and parts
and accessories thereof, other, other, dutiable at a rate of 5.8
percent ad valorem. The classification of the Santa Claus Bear
figures remains as stated in HRL 084240.
HRL 084240 of July 18, 1989, is modified accordingly.
Sincerely,
John Durant, Director
Commercial Rulings Division