CLA-2 CO:R:C:M 952238 KCC

Gail T. Cumins, Esq.
Sharrets, Paley, Carter & Blauvelt, P.C.
67 Broad Street
New York, New York 10004

RE: Mugs and Placemats; set; GRI 3(b); EN X to GRI 3(b); EN VIII to GRI 3(b); essential character; GRI 3(c)

Dear Ms. Cumins:

This is in response to your letter dated June 10, 1992, to Customs in New York, on behalf of Town and Country Linen Corporation, regarding the tariff classification of packaged stoneware mugs and vinyl placemats under the Harmonized Tariff Schedule of the United States (HTSUS). A sample of an unmatched mug and placemat were submitted for examination. The comments expressed by counsel in a September 10, 1992, meeting with members of my staff were taken under consideration.

FACTS:

The article under consideration is a package of four stoneware mugs and four vinyl placemats imported together in retail packaging from Taiwan or China. The mugs and placemats are matched with the same Town and Country decorative pattern.

ISSUE:

Are the mugs and placemats classified as a set pursuant to GRI 3(b), HTSUS, or are they properly classified under separate tariff provisions in the HTSUS?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes...." When goods are prima facie classifiable under two or more headings GRI 3 is applicable. In this case, classification is determined by application of GRI 3(b) which provides:

Goods put up in sets for retail sale shall be classified as if they consisted of the component which gives them their essential character.

To determine what is a "set put up for retail sale" the Explanatory Notes (EN) of the Harmonized Commodity Description and Coding System (HCDCS) may be utilized. EN X to GRI 3(b) provides a three part test for "goods put up in sets for retail sale":

For the purposes of this Rule, the term 'goods put up in sets for retail sale' shall be taken to mean 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 repackaging (e.g., in boxes or cases or on boards).

HCDCS, Vol. 1, p. 4. The Explanatory Notes, although not dispositive, are looked to for the proper interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

In the present situation, the merchandise consists of two different articles, each having its own classification. The mugs are classified under heading 6912, HTSUS, and the placemats are classified under heading 3924, HTSUS. The mugs and placemats are packaged together for sale directly to the consumer without repackaging. Therefore, the merchandise at issue meets two requirements of the three part test.

The third requirement to be met is whether the merchandise consists of "articles put up together to meet a particular need or carry out a specific activity." While it is unclear whether or not the components are put up together to meet a particular need, they do appear to be used for the same "specific activity", namely the serving of food or light snacks with decorative accessory pieces for use by the consumer with previously purchased tableware. Although it is true that mugs and placemats may not always be used together, we do not believe that this fact serves as a bar to classification of this particular importation as a set. As imported and as put up for retail sale, the merchandise is a set obviously intended to be used together which has the particular purpose of serving as decorative kitchenware accessories for the service of light meals and snacks and as such should be classified as a set.

In general, essential character has been construed to mean the attribute which strongly marks or serves to distinguish what an article is; that which is indispensable to the structure, core or condition of the article. In addition, EN VIII to GRI 3(b) provides further factors which determine the essential character of goods. Factors such as bulk, quantity, weight or value, or the role of a constituent material in relation to the use of the goods are to be utilized, though the importance of certain factors will vary between different kinds of goods. HCDCS, Vol. 1, p. 4.

As each article is equally important to the set, we are unable to determine which article imparts the essential character to the mug and placemat set. In this situation, GRI 3(c) obliges us to classify the merchandise under the heading which occurs last in numerical order among those which equally merit consideration. Therefore, the mug and placemat set is classified under subheading 6912.00.44, HTSUS, which provides for "Ceramic tableware, kitchenware, other household articles and toilet articles, other than of porcelain or china...Tableware and kitchenware...Other...Other...Other...Mugs and other steins"

HOLDING:

The mugs and placemats are properly classified as a set pursuant to GRI 3(b), HTSUS. As neither article imparts the essential character of the set, it is classified by the tariff provision occurring last in numerical order. Therefore, the set is classified under subheading 6912.00.44, HTSUS, which provides for "Ceramic tableware, kitchenware, other household articles and toilet articles, other than of porcelain or china...Tableware and kitchenware...Other...Other...Other...Mugs and other steins", which is dutiable at the rate of 13.5 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division