CLA-2 CO:R:C:M 957327 DFC
Ms. Laurie Robbins
The Hippage Company, Inc.
2420 Mall Drive, Suite 208
Charleston, S.C. 29418
RE: Mugs, candy-filled, ceramic, musical; Sets; NYRL 883711
Dear Ms. Robbins:
In a letter dated November 10, 1994, on behalf of Mackley
International, you inquired as to the tariff classification under
the Harmonized Tariff Schedule of the United States (HTSUS), of
candy-filled ceramic musical mugs produced in China. Descriptive
literature was submitted.
FACTS:
The merchandise consists of ceramic coffee mugs, which you
indicated in a telephone conversation with a member of our staff,
are made of porcelain. These mugs are the size and shape of a
normal 10 ounce mug. A portion of the mug will change color when
filled with hot coffee. Enclosed in the base of the mug and
sealed with ceramic is a very small battery powered integrated
circuit (IC) chip that produces music.
The mugs are imported and sold with three ounces of
strawberry flavored hard candy individually wrapped in a plastic
bag which is placed in each of the mugs.
ISSUE:
Whether the mugs and hard candy imported together constitute
a set for tariff purposes.
What is the tariff classification of the mugs and candy if
considered separate articles?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
"classification shall be determined according to the terms of the
headings and any relative section or chapter notes, and, provided
such headings or notes do not otherwise require, according to
[the remaining GRI's]." In other words, classification is
governed first by the terms of the headings of the tariff and any
relative section or chapter notes.
We will deal first with the issue of whether the mugs and
the candy imported together constitute a set for tariff purposes.
GRI 3, HTSUS, which is relevant to a determination of this issue
reads, in pertinent part, as follows:
3. When by application of rule 2(b) or for any other
reason, goods are, prima facie, classifiable under two
or more headings, classification shall be effected as
follows:
(a) The heading which provides the most specific
description shall be preferred to headings
providing a more general description. However,
when two or more headings each refer to part only
of the materials or substances contained in mixed
or composite goods . . . those headings are to be
regarded as equally specific in relation to those
goods, even if one of them gives a more complete
or precise description of the goods.
(b) Mixtures, composite goods consisting of different
materials or made up of different components, and
goods 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.
Because the mug and candy are classified in different
headings, each of which refers to only part of the items in a
possible set put up for retail sale, the subheadings are
considered equally specific and GRI 3(b) must be applied. The
Harmonized Commodity Description and Coding System Explanatory
Notes (EN) to the HTSUS, although not dispositive should be
looked to for the proper interpretation of the HTSUS. See T.D.
89-80, 54 FR 35128 (August 23, 1989). EN (X) to GRI 3(b) at p.
4, provides that 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 repacking (e.g., in boxes or cases or on
boards).
Inasmuch as these three steps are listed in the conjunctive,
all three must be met to satisfy the requirements for a "set" in
the nomenclature. The porcelain musical mugs are prima facie
classifiable under subheading 6911.10.45, HTSUS, which provides
for tableware, kitchenware, other household articles and toilet
articles, of porcelain or china, other, other, other, mugs and
other steins. See New York Ruling Letter 883711 dated March 25,
1993, which also concerned the classification of a musical mug.
The strawberry flavored candy is prima facie classifiable under
subheading 1704.90.20, HTSUS, which provides for sugar
confectionery (including whitechocolate), not containing cocoa,
other, confections or sweet meats ready for consumption, other.
The goods are packaged together for sale directly to users
without any further repacking. Therefore, the requirements of
parts (a) and (c) are clearly met by the mug and candy
combination.
However, the porcelain musical mugs and the candy do not
fulfill the same particular need or carry out a specific
activity. There is no affinity between the mugs and the candy.
Although, the mugs in this instance act as a holder for the
candy, their normal function is to act as a container for hot
liquids (coffee). Consequently, as the porcelain musical mugs
and the candy do not meet the requirements of part (b), they do
not comprise a "set" within the meaning of GRI 3(b), HTSUS.
The porcelain musical mugs and the candy are separately
classifiable pursuant to GRI 1, HTSUS. The porcelain musical
mugs are classifiable under subheading 6911.10.45, HTSUS. The
strawberry flavored candy is classifiable under subheading
1704.90.20, HTSUS.
HOLDING:
The candy-filled ceramic musical mugs and not considered
sets within the meaning of GRI 3(b), HTSUS.
The ceramic musical mugs are separately dutiable at the rate
of 17.2% ad valorem under subheading 6911.10.45, HTSUS.
The strawberry flavored hard candy is dutiable at the rate
of 6.8% ad valorem under subheading 1704.90.20, HTSUS.
Sincerely
John Durant, Director
Commercial Rulings Division