CLA-2 RR:TC:MM 960004 RFA
Michael Rosbach
Rite Aid Corporation
P.O. Box 3165
Harrisburg, PA 17105
RE: Magnets; Household Ceramic Magnets; Permanent Magnets;
Plastic Key Holder with Magnetic Back; Essential Character;
Household Plastic Goods; T.D. 94-97; EN 85.05; GRI 3(b); ENs
VIII and IX to GRI 3(b); HQ 953264
Dear Mr. Rosbach:
This is in reference to your letter dated October 30, 1996,
inquiring as to the tariff classification of Plastic Key Holder
with Magnetic Back under the Harmonized Tariff Schedule of the
United States (HTSUS). Your letter and sample were forwarded to
this office for a response.
FACTS:
The merchandise, labeled as "Key Locker" Item No. G4013, are
two black plastic boxes with ceramic magnets attached to the
back, packaged together on a blister card. The plastic box
measures approximately 1.75 inches wide by 3 inches long. The
box is designed to hold a key inside and can attach to any metal
surface due to the presence of the magnet.
ISSUE:
Are magnets attached to other articles for household use
classifiable as magnets under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with 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.
In T.D. 94-97, 59 F.R. 62451, 62452 (December 5, 1994),
Customs determined that composite goods consisting of a magnet
and a plastic, textile or ceramic shell or housing should be
classified by applying an essential character analysis pursuant
to GRI 3(b). If the shell or housing portion of the article
merely embellishes the product and acts as a decorative selling
feature, and the essential character is imparted by the magnet,
then the article is properly classifiable in heading 8505, HTSUS,
as a permanent magnet. (see also HQ 953264, dated March 30, 1994,
for a similar holding).
The Key Lockers are to be considered composite goods,
because they each consist of a magnet and a plastic component.
The subject goods are prima facie classifiable in heading 8505,
HTSUS, as a magnet and in heading 3924, HTSUS, as an article of
plastic. Because classification in a single heading cannot be
determined by applying GRI 1, we must apply the other GRI's. GRI
2(a) is not applicable here because the merchandise is not
incomplete or unfinished. GRI 2(b) states that if a product is a
mixture or combination of materials or substances that are, prima
facie, classifiable in two or more headings, then GRI 3 applies.
GRI 3(a) states in pertinent part:
. . .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.
Because the magnet and the plastic component fall under
separate headings in the tariff schedule which describe only a
portion of the goods, the headings are to be regarded as equally
specific under GRI 3(a). Therefore, GRI 3(a) fails in
establishing classification, and GRI 3(b) becomes applicable.
GRI 3(b) provides that composite goods consisting of different
materials or made up of different components, shall be classified
as if they consisted of the material or component which gives
them their essential character.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the official interpretation of
the HTSUS. While not legally binding nor dispositive, the ENs
provide a commentary on the scope of each heading of the HTSUS
and are generally indicative of the proper interpretation of
these headings. See T.D. 89-80, 54 F.R. 35127, 35128 (August 23,
1989). EN IX to GRI 3(b), page 4, states as follows:
[f]or the purposes of this Rule, composite goods made
up of different components shall be taken to mean not
only those in which the components are attached to each
other to form a practically inseparable whole but also
those with separable components, provided these
components are adapted one to the other and are
mutually complementary and that together they form a
whole which would not normally be offered for sale in
separate parts. (emphasis in original)
Because the subject articles are composite goods, we must
determine which component provides the essential character. EN
VIII to GRI 3(b), page 4, states as follows:
[t]he 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.
We find that the essential character is imparted by the
permanent magnet. Removal of the magnet from the article would
leave the product totally incapable of functioning as a magnetic
key holder for metallic surfaces such as refrigerators,
automobile bumpers, sheds, etc. Without the magnet, the plastic
portion would have very little, if any, use. Based upon the GRI
3(b) and the above reasoning, we find that the Key Locker is
provided for in heading 8505, HTSUS, as a permanent magnet.
HOLDING:
The Key Locker is classifiable under subheading 8505.19.00,
HTSUS, which provides for: "[e]lectromagnets; permanent magnets
and articles intended to become permanent magnets after
magnetization. . .: [p]ermanent magnets and articles intended to become permanent magnets after magnetization: [o]ther. . . ."
The general, column one rate of duty is 4.9 percent ad valorem.
Sincerely,
John Durant, Director
Tariff Classification Appeals Division