CLA-2 CO:R:C:F 951142 LPF

Mr. Michael Betette
Armbee Corp.
390 Selby Street
San Francisco, CA 94124

RE: Modification of NYRL 849777; "Valentine Bear" textile heart with stuffed bear in 9503 HTSUSA; Other toys (representing animals); Not 9505 festive article

Dear Mr. Betette:

In New York Ruling Letter (NYRL) 849777, a textile heart with a stuffed bear was classified in subheading 9505.90.6000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as "Festive, carnival or other entertainment articles,...: Other: Other." We have reviewed that ruling and have found it to be partially in error. The correct classification is as follows.

FACTS:

The article at issue, "Valentine Bear," item #10864, is a textile heart with a stuffed bear. The article consists of a five inch, stuffed, red and white bear superimposed within the hollow of a heart. The heart, composed of two tubes of stuffed, red, man-made satin textile, is trimmed with lace and forms an open "Valentine" heart shape. A man-made satin textile hanging loop attaches at the point where the two arcs of the heart connect.

ISSUE:

Whether the textile heart with stuffed bear is classifiable in heading 9505 as festive articles, in heading 6307 as other made up (textile) articles, or in heading 9503 as other toys (representing animals).

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LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) taken in their appropriate order provide a framework for classification of merchandise under the HTSUSA. Most imported 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 good cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's may then be applied. The Explanatory Notes (EN's) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI's.

Heading 9505 provides for, inter alia, festive, carnival and other entertainment articles. The EN's to 9505 indicate 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.

* * *

In general, merchandise is classifiable in heading 9505, HTSUSA, as a festive article when the article, as a whole:

1. is of non-durable material or, generally, is not purchased because of its extreme worth, or intrinsic value (e.g., paper, cardboard, metal foil, glass fiber, plastic, wood);

2. functions primarily as a decoration (e.g., its primary function is not utilitarian); and

3. is traditionally associated or used with a particular festival (e.g., stockings and tree ornaments for Christmas, decorative eggs for Easter). -3- An article's satisfaction of these three criteria is indicative of classification as a festive article. The motif of an article is not dispositive of its classification and, consequently, does not transform an item into a festive article. When examining the "Valentine Bear," as a whole, it is evident that the article is not traditionally associated or used with a particular festival. It is not ejusdem generis with those articles cited in the EN's to 9505, as exemplars of traditional, festive articles. On the contrary, such heart-shaped articles may serve to express love or affection not only on Valentine's Day, but also on other occasions, such as anniversaries, birthdays, etc. The subject article must be classified elsewhere.

The textile heart with a stuffed bear consists of two components which are classifiable as follows. The textile heart is classifiable in heading 6307 which provides for other made up textile articles. The stuffed bear is classifiable in heading 9503 which provides for other toys. The EN's to 9503 indicate that the heading covers, inter alia, "toys representing animals...." Since separate HTSUSA headings provide for each of these components, the article is classified by applying GRI 3(a) which explains, in pertinent part, that articles which are classifiable under two or more headings are classified under the heading which provides the most specific description of the article. However, all such headings are regarded as equally specific when each refers to only part of the article.

Each of the possible headings, in this case, refers to only part of the article. Since the headings are, thus, regarded as equally specific, we do not classify the article by GRI 3(a) but next turn to GRI 3(b).

GRI 3(b) provides that articles made up of different components, that is, composite goods, shall be classified as if they consisted of the component which gives them their essential character. "Essential character" is the attribute which strongly marks or serves to distinguish what an article is. EN VIII to GRI 3(b) explains that bulk, quantity, weight, value or the role of a constituent material in relation to the use of the article are indicia of essential character. Both the textile heart and stuffed bear contribute significantly to the bulk and weight of the article. Furthermore, based on use, neither component of the article imparts essential character; rather both components equally contribute to the design of the article.

Accordingly, GRI 3(c) explains that goods which cannot be classified by reference to 3(a) or 3(b) are classified under the heading which occurs last in numerical order among those which equally merit consideration. The article, therefore, is classifiable in heading 9503, the provision which occurs last in numerical order. The applicable subheading is 9503.41.1000.

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HOLDING:

The textile heart with a stuffed bear is classifiable in subheading 9503.41.1000, HTSUSA, as "Other toys...: Toys representing animals or non-human creatures...and parts and accessories thereof: Stuffed toys and parts and accessories thereof: Stuffed toys." The general column one rate of duty is 6.8 percent ad valorem. However, any duty on the article is temporary suspended under subheading 9902.95.02, HTSUSA. At the present time, the duty suspension is scheduled to expire on December 31, 1992.

This notice should be considered a modification of NYRL 849777 pursuant to 19 CFR 177.9(d)(1). It is not to be applied retroactively to NYRL 849777 (19 CFR 177.9(d)(2)) and will not, therefore, affect past transactions for the importation of your merchandise under that ruling. However, for the purposes of future transactions in merchandise of this type, NYRL 849777 will not be valid precedent. We recognize that pending transactions may be adversely affected by this modification, in that current contracts for importations arriving at a port subsequent to this decision will be classified pursuant to it. If such a situation arises, you may notify this office and apply for relief from the binding effects of this decision as may be warranted by the circumstances.

Sincerely,

John Durant, Director
Commercial Rulings Division