CLA-2 CO:R:C:F 951354 LPF
Mr. Daniel T. Petrosini
Alpha International
30 Vesey Street
New York, NY 10007
RE: Modification of NYRL 851087; Christmas stocking in
9505.10.5000, HTSUSA; Festive article, for Christmas
festivities, other than Christmas ornaments.
Dear Mr. Petrosini:
In New York Ruling Letter (NYRL) 851087, issued April 20,
1990, a Christmas stocking, imported from China, was classified
in subheading 9505.10.2500, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), as "Festive, carnival or other
entertainment articles,...: Articles for Christmas festivities
and parts and accessories thereof: Christmas ornaments: Other:
Other." Subsequently, we have reviewed that ruling and have
found it to be partially in error. The correct classification is
as follows.
FACTS:
The article at issue is a Christmas stocking of a 100
percent cotton shell and a 100 percent polyester fill. The shell
weighs approximately four ounces and the fill weighs
approximately one pound.
ISSUE:
Whether the Christmas stocking is classifiable in subheading
9505.10.2500 as a festive article, for Christmas festivities,
Christmas ornaments, other, other, or is classifiable in
subheading 9505.10.5000 as a festive article, for Christmas
festivities, other (than Christmas ornaments), other.
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LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) taken in their
appropriate order provide a framework for classification of
merchandise under the HTSUSA. The majority of imported goods are
classified by application of GRI 1, that is, according to the
terms of the headings of the tariff schedule and any relative
section or chapter notes. The Explanatory Notes (EN's) to the
Harmonized Commodity Description and Coding System, which
represent the official interpretation of the tariff at the
international level, facilitate classification under the HTSUSA
by offering guidance in understanding the scope of the headings
and GRI's.
Heading 9505 provides for, inter alia, festive, carnival and
other entertainment articles. The EN's to 9505 indicate that the
heading covers:
(A) Festive, carnival or other entertainment articles,
which in view of their intended use are generally
made of non-durable material. They include:
(1) Decorations such as festoons, garlands,
Chinese lanterns, etc., as well as various
decorative articles made of paper, metal foil,
glass fibre, etc., for Christmas trees (e.g.,
tinsel, stars, icicles), artificial snow, coloured
balls, bells, lanterns, etc. Cake and other
decorations (e.g., animals, flags) which
are traditionally associated with a particular
festival are also classified here.
(2) Articles traditionally used at Christmas
festivities, e.g., artificial Christmas trees
(these are sometimes of the folding type),
nativity scenes, Christmas crackers, Christmas
stockings, imitation yule logs....
* * *
In general, merchandise is classifiable in heading 9505,
HTSUSA, as a festive article when the article, as a whole:
1. is of non-durable material or, generally, is not
purchased because of its extreme worth, or intrinsic
value (e.g., paper, cardboard, metal foil, glass fiber,
plastic, wood);
-3-
2. functions primarily as a decoration (e.g., its primary
function is not utilitarian); and
3. is traditionally associated or used with a particular
festival (e.g., stockings and tree ornaments for
Christmas, decorative eggs for Easter).
An article's satisfaction of these three criteria is
indicative of classification as a festive article. The motif of
an article is not dispositive of its classification and,
consequently, does not transform an item into a festive article.
First, the Christmas stocking is made of non-durable
material. Customs will consider an article, such as the
Christmas stocking, to be made of non-durable material since it
is not designed for sustained wear and tear, nor is it purchased
because of its extreme worth or value (as would be the case with
a decorative, yet costly, piece of art or crystal).
Next, the article's primary function is decorative, as
opposed to, utilitarian. It is apparent, the Christmas stocking
serves no useful function besides its role as a decoration.
Finally, when examining the Christmas stocking, as a whole,
it is evident that the article is traditionally associated or
used with the particular festival of Christmas. Christmas
stockings are cited in the EN's to 9505, as exemplars of
traditional, festive articles.
Subheading 9505.10 includes articles for Christmas festivities.
As for the proper classification of the Christmas stocking at the
eight digit subheading level, subheadings 9505.10.10, 9505.10.15
and 9505.10.25 cover Christmas ornaments of glass, wood and
other, respectively. To qualify as a Christmas ornament, Customs
requires that the following three criteria be met:
1. that the item is advertised and sold
as a Christmas tree ornament;
2. that there is some method, generally
a loop attached to the top, to hang
the item on a tree; and
3. that the item is not too big or too
heavy to be hung or attached to a
tree.
-4-
The Christmas stocking does not meet these criteria. Thus,
it is not classifiable as a Christmas ornament. See Headquarters
Ruling Letters (HRL's) 088529 and 088164, issued April 22, 1991
and August 5, 1991, respectively, where Christmas stockings were
classified as other than Christmas ornaments.
Subheading 9505.10.40 covers other Christmas articles of
plastics, while 9505.10.50 covers other Christmas articles, other
(than of plastics). As the Christmas stocking is not made of
plastics, but of textile fabric, it is classifiable in
9505.10.50.
HOLDING:
The Christmas stocking is classifiable in subheading
9505.10.5000, HTSUSA, as "Festive, carnival or other
entertainment articles,...Articles for Christmas festivities and
parts and accessories thereof: Other: Other." The general column
one rate of duty is 5.8 percent ad valorem. We note that the
ruling being modified indicated a general column one rate of duty
of 5 percent ad valorem which, under subheading 9902.95.05, was
temporarily suspended until December 31, 1992.
This notice should be considered a modification of NYRL
851087 pursuant to 19 CFR 177.9(d)(1). It is not to be applied
retroactively to NYRL 851087 (19 CFR 177.9(d)(2)) and will not,
therefore, affect past transactions for the importation of your
client's merchandise under that ruling. However, for the
purposes of future transactions in merchandise of this type, NYRL
851087 will not be valid precedent. We recognize that pending
transactions may be adversely affected by this modification, in
that current contracts for importations arriving at a port
subsequent to this decision will be classified pursuant to it.
If such a situation arises, your client may, at its discretion,
notify this office and apply for relief from the binding effects
of this decision as may be warranted by the circumstances.
Sincerely,
John Durant, Director
Commercial Rulings Division