CLA-2 CO:R:C:M 956738 KCC
A. Phillip Carney
Quick Point, Inc.
1717 Fenpark Drive
Fenton, Missouri 63026
RE: Magnetic Power Clip; Heavy duty spring clip with plastic
housing and magnets; 8508.19.00; permanent magnets; GRI
3(b); composite good; EN Rule 3(b); essential character; NY
862919; HRL 953264
Dear Mr. Carney:
This is in response to your letter dated June 20, 1994, to
the Area Director, New York Seaport, regarding the tariff
classification of a magnetic power clip under the Harmonized
Tariff Schedule of the United States (HTSUS). Samples of the
magnetic power clips were submitted for our examination.
FACTS:
The magnetic power clip is comprised of a heavy duty spring
operated clip housed within a two-piece plastic body onto which a
ceramic magnet is attached. The ceramic magnet is used to secure
the clip onto metal surfaces. You state that the magnetic power
clip is "sold for use in the Promotional Products industry."
After importation into the U.S., plastic promotional
advertisements are attached to the side of the plastic body which
does not contain the magnet. The magnetic power clip appears to
be similar to devices which are used to hold memorandums, notes
or any other items capable of fitting into the spring operated
clip's jaws.
ISSUE:
What is the tariff classification of the magnetic power
clips under 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 terms of the headings and any
relative section or chapter notes...." The competing subheadings
are as follows:
8308.90.90 Clasps, frames with clasps, buckles, buckle
clasps, hooks, eyes, eyelets and the like and
parts thereof, of base metal, of a kind used for
clothing, footwear, awnings, handbags, travel
goods or other madeup articles; tubular or
bifurcated rivets of base metal; beads and
spangles of base metal...Other, including
parts...Other.
8505.19.00 Electromagnets; permanent magnets and articles
intended to become permanent magnets after
magnetization; electromagnetic permanent magnet
chucks, clamps and similar holding devices;
electromagnetic couplings; clutches and brakes;
electromagnetic lifting heads; parts
thereof...Permanent magnets and articles intended
to become permanent magnets after
magnetization...Other.
The magnetic power clip is comprised of a heavy duty clip
within a plastic housing (power clip) and a magnet. When, by
application of GRI 2, HTSUS, goods are prima facie classifiable
under two or more headings, GRI 3, HTSUS, is applicable. In this
case, classification is determined by application of GRI 3(b),
HTSUS, which provides:
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.
Explanatory Note (EN) Rule 3(b)(IX) of the Harmonized
Commodity Description and Coding System (HCDCS) states that:
For 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).
The ENs although not dispositive, provide a commentary on the
scope of the each heading of the HTSUS and are generally
indicative of the proper interpretation of these headings. See,
T.D. 89-90, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The magnetic power clip is a composite good. The components
of the article, the heavy duty clip with plastic housing and
ceramic magnet, are adapted one to the other, mutually
complementary, and together form a whole which would not normally
be offered for sale in separate parts. Therefore, we need to
determine which component imparts the essential character.
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 Rule 3(b) (pg. 4),
provides further factors which help 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.
Based on the information submitted, we are of the opinion
that the essential character of the magnetic power clip is the
power clip because it is the component which distinguishes the
article. The power clip is the component which fulfills the
function of the article; it holds the object within its jaws.
The magnet merely allows the power clip to be secured onto metal
objects, such as a refrigerator or file cabinet or dishwasher.
Moreover, even if the magnet were removed, the power clip would
still perform its function of holding an object, such as a chip
bag or misc. notes. Therefore, the power clip imparts the
essential character to the magnetic power clip. As the power
clip imparts the essential character to the composite good, the
magnetic power clip is classified under subheading 8308.90.90,
HTSUS, as other clasps, frames with clasps, buckles, buckle
clasps, hooks, eyes, eyelets and the like. See, New York Ruling
(NY) 862916 dated May 9, 1991, which classified a timer-clock
with an attached magnet as an apparatus for indicating intervals
of time, with a clock under subheading, 9902.91.06, HTSUS. The
timer-clock was deemed to impart the essential character to the
article because the timer-clock could still function, even if the
magnet was removed.
We note that Headquarters Ruling Letter (HRL) 953264 dated
March 30, 1994, classified a "Pillsbury Memo Magnet" (plastic
advertisement memo magnet) and plastic hook magnet under
subheading 8505.19.00, HTSUS, as a permanent magnet, because the
magnet imparted the essential character to the articles. HRL
953264 stated that "[r]emoval of the magnet from the article
would leave the product totally incapable of functioning as a
magnetic memo holder for metallic surfaces."
The magnetic power clip is distinguishable from the articles
in HRL 953264. Removal of the magnet from the power clip does
not leave the power clip incapable of functioning as a clip.
Whereas, removal of the magnet from the memo magnet and hook
magnet would leave the articles incapable of being secured to
surfaces and used in the manner intended, i.e., the hook to hang
objects and the memo to advertise its slogan.
HOLDING:
The magnetic power clips are classified under subheading
8308.90.90, HTSUS, as other clasps, frames with clasps, buckles,
buckle clasps, hooks, eyes, eyelets and the like. The
corresponding rate of duty for articles of this subheading is 5.3
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division