CLA-2 CO:R:C:F 087893 STB
Ms. Becky Green
Senior Account Executive
M-B Sales
916 Harger Road, Suite 200
Oak Brook, IL 60521
RE: Modification of NYRL 844348 concerning Peanuts Farm Sets
Dear Ms. Green:
On August 22, 1989, our New York office, in New York Ruling
Letter (NYRL) 844348, classified various Peanuts character farm
sets in subheading 9503.70.8000, Harmonized Tariff Schedule of
the United States Annotated (HTSUSA). We have since reviewed
this classification and have found it to be partially in error.
FACTS:
On August 9, 1989, your company requested a classification
ruling letter regarding the following merchandise:
1. Snoopy with Cart and Hay Bale-(1) Snoopy, approximately
2 1/2 inches tall, (2) a cart designed to be "pulled" by the
figure, and (3) a hay bale which rests on the cart.
2. Charlie Brown with Tiller and Seed Bag - (1) Charlie
Brown, approximately 2 1/2 inches tall, (2) a tiller
designed to be "pushed", and (3) the seed bag worn over the
figure's shoulder.
3. Lucy with Wheelbarrow and Apple Basket - (1) Lucy,
approximately 2 1/2 inches tall, (2) a wheelbarrow designed
to be "pushed" by the figure, and (3) a basket of apples
to be placed in the wheelbarrow.
4. Linus with Hand Cart and Milk Can - (1) Linus,
approximately 2 1/2 inches tall, (2) a cart designed to
be "pushed" by the figure, and (3) a milk can which rests
on the milk cart.
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All of the figures depict Peanuts cartoon characters and are
made of roto-cast polyvinyl chloride. The farm implements are
packaged and imported with a particular figure, specially fitted
to be "held" in the molded grip of the figures' hands, and are
interchangeable among the figures. The loose items are also
interchangeable to a degree. In sum, the groups are marketed and
promoted as a collection, but each is sold separately and as
imported constitutes a complete product in and of itself.
The goods were classified in NYRL 844348 as other toys, put
up in sets or outfits, and parts and accessories thereof, under
subheading 9503.70.8000, HTSUSA.
ISSUE:
What is the proper classification of the subject Peanuts
Farm Sets?
LAW AND ANALYSIS:
Classification under the HTSUSA is governed by the General
Rules of Interpretation (GRI's). GRI 3(b) determines
classification of items in a set put up 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), 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, which constitute the official
interpretation of the HTSUSA at the international level, state in
Note X to Rule 3(b) that the phrase "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...
In the case of the instant merchandise, there are three
human figures and one non-human figure (Snoopy) packaged and sold
with the plastic farm items.
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First, we will discuss the merchandise that includes the
human figures. This merchandise satisfies the above criteria of
a set for the following reasons:
(1) The human Peanuts figures and the items sold with
them are classifiable under different headings. The human
figures are properly classifiable under Heading 9502,
HTSUSA, as "dolls representing only human beings." The
items included with the figures are clearly not classifiable
as dolls.
(2) In the instant case, the items are packaged
together to provide dolls with the accessories necessary to
allow the ultimate user to engage in a specific activity,
i.e., to pretend that the dolls are pushing or pulling the
various farm implements loaded with the accompanying items.
(3) The items are packaged together in a manner
suitable for sale without the need for repacking.
The instant merchandise thus meets all the requirements of a
set. Once the existence of a set is established, GRI 3(b)
indicates that the goods are to be classified according to the
material or component which gives them their essential character.
Explanatory Note VIII to GRI 3(b) provides the following guidance
for determining essential character:
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.
In each of the three sets under discussion, the doll
provides the essential character. The doll is the central item
used in conjunction with all the other items. The sets are
formed and marketed around the Peanuts dolls; it is these dolls
that represent the "draw" that spurs the purchase of the goods,
and will likely be the center of attention to the anticipated
child (or any other) user. These facts are further demonstrated
in the packaging of the sets themselves; the one word that is
immediately apparent to someone looking at the package is the
word "Peanuts."
The dolls in these sets are not stuffed, and are thus
properly classifiable in subheading 9502.10.4000, HTSUSA. As
explained in Headquarters Ruling Letter (HRL) 086633, dated
September 18, 1990, the same classification result occurs when
these items are classified on the basis that this merchandise
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consists of dolls with accessories; accessories are specifically
included by the language of Heading 9502, HTSUSA.
The Snoopy figure and accompanying items
The proper classification of the items entitled "Snoopy with
Cart and Hay Bale" remains as set out in NYRL 844348, i.e., under
subheading 9503.70.8000, HTSUSA, the provision for other toys,
put up in sets or outfits. This classification is accomplished
in accordance with GRI 1 since this merchandise is specifically
provided for in the HTSUSA.
HOLDING:
The merchandise that includes dolls representing human
figures, i.e., Charlie Brown with Tiller and Seed Bag, Lucy with
Wheelbarrow and Apple Basket, and Linus with Hand Cart and Milk
Can, are classified under subheading 9502.10.4000, HTSUSA, as
dolls representing human beings, whether or not dressed, not over
33 cm in height. The applicable rate of duty is 12 percent ad
valorem. The merchandise entitled "Snoopy with Cart and Hay
Bale" is classified under subheading 9503.70.8000, HTSUSA, the
provision for other toys, put up in sets or outfits, and parts
and accessories thereof, other, other. The applicable duty rate
is 6.8% ad valorem.
Pursuant to 19 CFR 177.9(d), NYRL 844348 of August 22, 1989,
(copy enclosed) is hereby modified. This modification is not to
be applied retroactively to NYRL 844348 (19 CFR 177.9 (d) (2)
(1989)) and will not, therefore, affect the transaction for the
importation of your merchandise under that ruling. However, for
the purposes of future transactions in merchandise of this type,
NYRL 844348 will not be valid precedent. We recognize that
pending transactions may be adversely affected by this
modification, in that current contracts for importation arriving
at a port subsequent to the release of HRL 087893 will be
classified under the new ruling. If such a situation arises, you
may, at your discretion, notify this office and apply for relief
from the binding effects of the new ruling as may be dictated by
the circumstances.
Sincerely,
John Durant, Director
Commercial Rulings Division