CLA-2 OT:RR:CTF:TCM H004589 IDL
TARIFF NOS.: 8211.91.5060; 8215.99.2000; 8215.99.4060
Barthco Trade Consultants, Inc.
5101 South Broad Street Philadelphia, Pennsylvania 19112-1404
Re: Flatware; Modification of NY B87880
Dear Sir or Madam:
This letter concerns NY B87880, dated August 11, 1997, issued to you by the U.S. Customs Service (“Customs”) (now Customs and Border Protection, or CBP) regarding the classification of certain flatware under the Harmonized Tariff Schedule of the United States (HTSUS). We have since reviewed NY B87880, and find that it contains errors.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. § 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed modification was published in the Customs Bulletin, Volume 42, No. 13, on March 20, 2008. No comments were received in response to the notice.
FACTS:
In NY B87880, Customs described a 5-piece flatware set, as follows:
The flatware pieces are made of stainless steel with a brown plastic insert
on the front and back of the handle leaving the stainless steel sides visible. The knife handle has an overall length of 3 ½ inches while the plastic inserts are 2 ½ inches long, leaving ½ inch of steel visible at the top and bottom of the handle. There are also two polished steel rivets visible in the plastic area on the back and on the front. The handles of the forks and spoons are similarly constructed. …[B]oth the plastic and stainless steel components form significant parts of the handle….
Customs properly classified the flatware set under subheading 8215.20.0000, HTSUSA, which provides for “[s]poons, forks, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware; and base metal parts thereof: Other sets of assorted articles”.
However, Customs stated that the flatware pieces, consisting of handles of stainless steel and plastic, if imported separately, would be classified and dutiable as follows:
Knives—8211.91.8060 (0.3¢ each plus 5.4%);
Forks—8215.99.2400 (0.3¢ each plus 4.5%);
Spoons—8215.99.4500 (1.8%).
In addition, Customs determined that the duty rate for the flatware set was “0.3¢ each plus 5.4%”, based on the highest duty rate provided among the three subheadings listed above.
CBP now believes that it erred in its classification of the flatware pieces, if imported separately, and that such flatware pieces should be classified and dutiable as set forth below:
Knives—8211.91.5060 (0.7¢ each plus 3.7%);
Forks—8215.99.2000 (0.5¢ each plus 3.2%);
Spoons—8215.99.4060 (5%).
Further, CBP now believes that the duty rate for the set should be 5%, which is the highest rate provided among the individual pieces.
Samples of the subject goods were not available for examination.
ISSUES:
(1) What is the classification of the subject knives, forks, and spoons, imported separately, with handles of stainless steel and plastic under the HTSUS?
(2) What is the applicable duty rate for the flatware set?
LAW AND ANALYSIS:
Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS is such that most 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. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 6 provides that “for legal purposes”, classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes, and mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. GRI 6 thus incorporates GRIs 1 through 5 in classifying goods at the subheading level.
In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The HTSUS provisions under consideration are as follows:
8211 Knives with cutting blades, serrated or not (including pruning
knives), other than knives of heading 8208, and blades and other base metal parts thereof:
* * *
Other:
Table knives having fixed blades:
* * *
Knives with rubber or plastic handles
* * *
Other
Other
* * *
Other
…
8215 Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-
knives, sugar tongs and similar kitchen or tableware; and base metal parts thereof:
* * *
Other:
* * *
8215.99 Other:
Forks:
* * *
With rubber or plastic handles
Other:
Without their handles
Other:
* * *
Other
Spoons and ladles:
* * *
8215.99.40 With base metal (except stainless steel) or nonmetal handles
* * *
Other
Other
…
As stated above, samples of the goods are not available for examination.
Therefore, our analysis of the classification of the goods is limited by the description of the goods, as provided in NY B87880 and the FACTS section, above. Inasmuch as the subject goods are made of stainless steel and plastic, no provision in the HTSUS describes the subject flatware in its entirety. The flatware is considered a composite good and cannot be classified according to GRI 1.
When goods cannot be classified by applying GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's are applied. GRI
2(a) applies to incomplete or unfinished and unassembled or disassembled goods. As the subject articles are imported finished and complete, GRI 2(a) does not apply. GRI 2(b) states, in pertinent part, that any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. The classification of goods consisting of more than one material or substance shall be according to the principles of GRI 3.
GRI 3 states that 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 or to part only of the items in a set put up for retail sale, 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. In this instance, the competing HTSUS subheading provisions for the
subject flatware, described as having handles of stainless steel and plastic, are equally specific in relation to one another. As we cannot classify these goods pursuant to GRI 3(a), we continue our analysis by examining GRI 3(b), which states:
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.
Based on the description alone, we cannot now determine which materials (i.e., stainless steel or plastic) impart the essential character of the subject knives, forks, and spoons under 3(b). Therefore, we continue our analysis by examining GRI 3(c), which states:
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
Accordingly, by application of GRI 3(c), the subject knives are classified in subheading 8211.91.5060, HTSUSA; the subject forks are classified in subheading 8215.99.2000, HTSUSA; and the subject spoons are classified in subheading 8215.99.4060, HTSUSA. The duty rate applicable to the set is 5%, based on the highest rate applicable to the flatware pieces individually (i.e., the spoons).
HOLDING:
By application of GRI 3(c), the subject knives with handles of stainless steel and plastic are classified under subheading 8211.91.5060, HTSUSA, as: “Knives with cutting blades, serrated or not (including pruning knives), other than knives of heading 8208, and blades and other base metal parts thereof: Other: Table knives having fixed blades: Knives with rubber or plastic handles: Other”; the subject forks with handles of stainless steel and plastic are classified under subheading 8215.99.2000, HTSUSA, as: “Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware; and base metal parts thereof: Other: Other: Forks: With rubber or plastic handles”; and the subject spoons with handles of stainless steel and plastic are classified under subheading 8215.99.4060, HTSUSA, as: “Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware; and base metal parts thereof: Other: Other: Spoons and ladles: With base metal (except stainless steel) or nonmetal handles: Other”.
The column one, general duty rate applicable to the flatware set is 5% ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the Internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY B87880 (August 11, 1997) is hereby modified by changing the classification under the HTSUS of the flatware pieces, if imported separately, and by changing the applicable duty rate for the flatware set to the rate applicable to the spoons. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division