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