CLA-2 CO:R:C:F 089867 SLR
Mr. Elias Joseph
ICI Worldwide, Inc.
175 West Bonita Ave
P.O. Box 8
San Dimas, CA 91773
RE: Artificial Foliage Candle Ring Table Decoration with Candles
from China; GRI 3(b) "Set"; Festive Article of Heading 9505.
Dear Mr. Joseph:
This is in response to your May 23, 1991 letter requesting
the classification of an artificial foliage candle ring table
decoration under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA). A sample was provided for our
examination.
FACTS:
The article in question, item HK135410 DATA #40194, is a
foliage candle ring table decoration with candles. Described in
detail, it consists of one large plastic candle ring with two
small plastic candle holders joined to one side. The candle ring
houses one candle (3 inches in diameter by 6 inches high), while
the plastic candle holders each house an 8 inch taper candle.
The subject article is decorated with plastic foliage, holly and
pine, gold glitter, plastic red berries, plastic gold balls, red
satin balls, and miniature wrapped gifts of styrofoam cubes
covered in textile plaid and tied with gold string.
In your letter, you refer to the article in question as a
"set." You indicate that each "set" is shipped in a corrugated
cardboard box, 36 "sets" to a carton. None of the "sets" is
placed in a polybag or otherwise wrapped in plastic before
being placed inside the corrugated boxes.
In a telephone conversation with Customs Headquarters, you
later indicated that your company operates a mail order business
and that the subject article is forwarded to the consumer as is,
without repacking.
-2-
ISSUE:
Whether the article in question qualifies as a "set" for
tariff purposes?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's). The
Explanatory Notes to the Harmonized Commodity Description and
Coding System represent the official interpretation of the
tariff at the international level and offer guidance in
understanding the tariff's various provisions.
GRI 3 governs the classification of goods put up in sets for
retail sale. The Explanatory Note to GRI 3(b) indicates that the
term "goods put up in sets for retail sale" shall be taken to
mean goods which:
(a) consist of at least two different articles
which are, prima facie, classifiable in
different headings;
(b) consist of products or articles put up
together to meet a particular need or
carry out a specific activity; and
(c) are put up in a manner suitable for sale
directly to users without repacking.
Goods which meet these requirements are classified as if they
consisted of the material or component which gives them their
essential character.
The article in question satisfies the above-mentioned
requirements. The article consists of two different components
that are classifiable in different headings (the foliage candle
ring in heading 9505 and the candles in heading 3406). Likewise,
its components are put up together to meet a particular need
(that of decoration). The article is put in a manner suitable
for sale directly to users without repacking. Based on the facts
before us, the table decoration is distributed to purchasers in
its condition as imported. As the article qualifies as a
GRI 3(b) set, we must now determine whether the foliage candle
ring or the candles represents the essential character of the
table decoration.
-3-
The factor which determines essential character will vary as
between different kinds of goods. Generally speaking, however,
essential character may be determined by the nature of the
material or component, its bulk, quantity, weight or value, or by
the role of the constituent material in relation to the use of
the goods.
Examining the submitted sample, the artificial foliage
component makes up the bulk of the article's surface area.
Furthermore, when comparing the candles and the artificial
foliage, the later is of much greater value. The foliage
arrangement is also capable of repetitive use, whereas the
candles are spent and must be replaced. As the artificial
foliage candle ring component represents the essential character
of the subject table decoration, the table decoration is
classifiable under the heading which describes the candle ring.
Heading 9505, HTSUSA, provides, in pertinent part, for
"[f]estive, carnival or other entertainment articles." The
Explanatory Note to heading 9505 indicates that the heading
covers:
(A) Festive, carnival or other entertainment articles
which in view of their intended use are generally made
of non-durable material. They include:
(1) Decorations such as festoons, garlands,
Chinese lanterns, etc., as well as various
decorative articles made of paper, metal foil,
glass fibre, etc., for Christmas trees (e.g.,
tinsel, stars, icicles), artificial snow, coloured
balls, bells, lanterns, etc. Cake and other
decorations (e.g., animals, flags) which are
traditionally associated with a particular
festival are also classified here.
(2) Articles traditionally used at Christmas
festivities, e.g., artificial Christmas trees
(these are sometimes of the folding type),
nativity scenes, Christmas crackers, Christmas
stockings, imitation yule logs.
* * *
Items classifiable as festive articles in heading 9505 tend to
serve no other function than decoration.
The candle ring component in question is both decorative
and traditionally associated with the Christmas holiday.
Consequently, it is classifiable in heading 9505 as a festive
article.
-4-
Subheading 9505.10, HTSUSA, provides for articles for
Christmas festivities. The candle ring is classifiable within
this provision. We must now turn our attention to its proper
classification at the eight-digit subheading level.
Subheadings 9505.10.10, 9505.10.15, and 9505.10.25 cover
Christmas ornaments of glass, wood, and other, respectively. To
qualify as a Christmas ornament, Customs requires that the
following three criteria be met:
1. that the item is advertised and sold
as a Christmas tree ornament;
2. that there is some method, generally
a loop attached to the top, to hang
the item on a tree; and
3. that the item is not too big or
too heavy to be hung or attached
to a tree.
The subject article does not meet the above-mentioned
criteria and is not classifiable as a Christmas ornament in
subheading 9505.10.25.
Subheading 9505.10.30, HTSUSA, covers nativity scenes and
figures thereof. The item at issue is neither a nativity scene
nor part thereof. Subheading 9505.10.40, HTSUSA, covers other
Christmas articles of plastics. As the candle ring is made of
plastics, it is classifiable in subheading 9505.10.40.
HOLDING:
The article in question qualifies as a GRI 3(b) "set" and is
classifiable in subheading 9505.10.4000, HTSUSA, which provides
for festive, carnival or other entertainment articles; articles
for Christmas festivities: other (than Christmas ornaments): of
plastics. The rate of duty is 8.4 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division