CLA-2 CO:R:C:G 083667, 836580 JLJ

Ms. Laura Fumagalli
Dakin Inc.
7000 Marina Boulevard
Brisbane, California 94005

RE: Tariff classification of a combination/holder address book/notebook/calendar/pen set

Dear Ms. Fumagalli:

You requested a tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) for a combination article composed of an address book, a memorandum pad, a calendar and a pen enclosed in a plastic coated case, imported from Taiwan.

FACTS:

The instant merchandise consists of the four above-mentioned items enclosed in a plastic-coated cover with a velcro-type closure. In a conversation with Ms. Johnson of this office, your executive manager, Mr. Michael Kramer, stated that the article is imported in its assembled form -- i.e., with the pen, the address book, the calendar and the memorandum pad all tucked into the plastic coated, wrap-around case. The address book, the calendar and the memorandum pad are all of paper.

ISSUE:

For tariff classification purposes, does the instant combination article constitute goods put up in a set for retail sale?

LAW AND ANALYSIS:

General Rule of Interpretation (GRI) 3(b), HTSUSA, states that goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them

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their essential character. The Explanatory Notes for GRI 3(b), HTSUSA, define the term "goods put up in sets for retail sale" to mean goods which:

(1) consist of at least two different articles which are, prima facie, classifiable in different headings,

(2) consist of products or articles put up together to meet a particular need or carry out a specific activity, and

(3) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).

The instant combination article consists of an address book of paper and a memorandum pad of paper which -- if imported separately -- would both be classified under the provision for registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles...of paper or paperboard: registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles: diaries, notebooks and address books, bound: memorandum pads, letter pads and similar articles, in subheading 4820.10.20, HTSUSA, dutiable at the rate of 4 percent ad valorem. If printed in whole or in part by a lithographic process, the paper calendar would be classified under the eo nomine provision for calendars of any kind, printed, including calendar blocks printed on paper or paperboard in whole or in part by a lithographic process: not over 0.51 millimeters in diameter, in subheading 4910.00.20, HTSUSA, which is duty-free, or if over 0.51 millimeters in diameter, in subheading 4910.00.40, HTSUSA, dutiable at the general rate of 4.4 cents per kilogram. If not printed in whole or in part by a lithographic process, the calendar would be classified in subheading 4910.00.60, HTSUSA, dutiable at the general rate of 3 percent ad valorem. The ball point pen would be classified under the eo nomine provision for ball point pens in subheading 9608.10.00, HTSUSA, dutiable at the general rate of 0.8 cents each plus 5.4 percent ad valorem. The plastic-coated, wrap-around holder would be classified under the provision for articles of a kind normally carried in the pocket or in the handbag: with outer surface of plastic sheeting or of textile materials: with outer surface of plastic sheeting: in subheading 4202.32.10, HTSUSA, if of reinforced or laminated plastics, dutiable at the rate of 12.1 cents per kilorgram plus 4.6 percent ad valorem, or in subheading 4202.32.20, HTSUSA, if of other plastic sheeting, dutiable at the rate of 20 percent ad valorem. To summarize, the five items comprising the set would be classified in four different headings if they were imported separately; therefore this element of "goods put up in sets for retail sale" is present.

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The next element of retail sets is also present in that the five articles are all intended to help the owner organize his life -- i.e, a calendar, an address book, a memorandum pad, pen with which to record addresses and notes, and a convenient wrap- around container to package the set.

The third and final element of retail sets is also present in that the four articles are enclosed in a wrap-around case with a velcro-type closure which constitutes a package suitable for sale directly to users. We find, therefore, that the instant combination article constitutes goods put up in a set for retail sale.

The next question to be determined is the essential character of the set. The Explanatory Notes state that a set's essential character may be determined by the nature of the component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods. Clearly the only applicable criterion here is the role of the component article in relation to the overall purpose of the set. Viewed in this light, it is clear that the essential character of the set is determined by the wrap-around container which packages the set in a convenient form and which pulls all the components together. The set as a whole must therefore be classified in subheading 4202.32.10 or subheading 4202.32.20, depending upon whether the plastic-coated case is of reinforced or laminated plastics or not, because its essential character lies there.

HOLDING:

The instant combination article is classified as a set in subheading 4202.32.10 or subheading 4202.32.20, depending upon whether the plastic-coated case is of reinforced or laminated plastics or not.

Sincerely,

John Durant, Director
Commercial Rulings Division

JLJohnson:tj:typed 06/02/89
6cc: A.D. N.Y. (NIS-234)
Jones Library
name: 083667JLJ