CLA-2 CO:R:C:F 954345 GGD
Mr. Jerrold E. Anderson
Katten Muchin & Zavis
525 West Monroe Street, Suite 1600
Chicago, Illinois 60661-3693
RE: Four Dolls: "Birthday Party Barbie, Paint'n Dazzle Barbie,
Romantic Bride Barbie, and Western Stampin' Barbie;" Printed
Paper Advertising Inserts: American Goods Returned
Dear Mr. Anderson:
This letter is in response to your inquiry of May 12, 1993,
on behalf of your client, M-B Sales, concerning the
classification under the Harmonized Tariff Schedule of the United
States (HTSUS), of four dolls imported from China. Each doll has
a paper insert that has been printed with advertising in the
U.S., then sent to China to be packaged with the dolls and
returned. Production sample dolls were submitted with your
inquiry.
FACTS:
Each of the dolls at issue measures approximately 4-1/2
inches in height, and is comprised essentially of molded plastic
with clothing and facial features painted on. The dolls have
long, fibrous hair that is capable of being combed. Each doll is
imported in a sealed plastic bag with a paper advertising insert
previously printed in the United States.
ISSUES:
1) What is the proper classification of the dolls?
2) Whether the U.S.-origin printed matter is entitled to a
duty exemption under subheading 9801.00.10, HTSUS.
-2-
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRIs). The systematic
detail of the harmonized system is such that virtually all 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 goods cannot be
classified solely on the basis of GRI 1, and if the headings and
legal notes do not otherwise require, the remaining GRIs may then
be applied. The Explanatory Notes (ENs) to the Harmonized
Commodity Description and Coding System, which represent the
official interpretation of the tariff at the international level,
facilitate classification under the HTSUS by offering guidance in
understanding the scope of the headings and GRIs.
The proper heading in this case is clear, i.e., heading
9502, for dolls representing only human beings. Since the dolls
are not stuffed, and are not over 33 cm. in height, only one
subheading is applicable. The dolls are classified in subheading
9502.10.40, HTSUS.
Subheading 9801.00.10, HTSUS, provides for the duty-free
entry of products of the U.S. that are returned after having been
exported, without having been advanced in value or improved in
condition by any process of manufacture or other means while
abroad. In Superscope, Inc. v. United States, 13 CIT 997, 727
F.Supp. 629 (1989), the court held that certain glass panels of
U.S. origin that were exported, repacked abroad with certain
foreign components, and returned to the U.S. as part of
unassembled audio cabinets, were entitled to duty-free entry
under item 800.00, Tariff Schedules of the United States (TSUS),
since the U.S. panel portion of the imported article was "not
'advanced in value or improved in condition ... while abroad,'
but [was] merely repacked." Id. at 631.
Although the Superscope case concerned the TSUS, the
decision is equally applicable to similar situations arising
under subheading 9801.00.10, HTSUS, since that provision's
predecessor - item 800.00, TSUS - and relevant Schedule 8, TSUS,
headnotes, were carried over into the HTSUS, virtually unchanged.
See also Headquarters Ruling Letter 555428, issued April 17,
1990.
In this case, because the U.S.-origin printed advertising
inserts are merely placed inside the plastic bags and sealed,
they are not advanced in value or improved in condition while
-3-
abroad. Therefore, when the dolls are imported, the printed
matter will be entitled to duty-free treatment under subheading
9801.00.10, HTSUS, assuming compliance with the documentation
requirements of 19 CFR 10.1.
HOLDING:
The four dolls, identified as "Birthday Party Barbie,
Paint'n Dazzle Barbie, Romantic Bride Barbie, and Western
Stampin' Barbie," are properly classified in subheading
9502.10.40, HTSUS, the provision for "Dolls representing only
human beings and parts and accessories thereof: Dolls, whether or
not dressed: Other: Not over 33 cm in height." The applicable
duty rate is 12 percent ad valorem.
The U.S.-origin printed advertising inserts are entitled to
a duty exemption under subheading 9801.00.10, HTSUS, assuming
compliance with the documentation requirements for this tariff
provision.
Sincerely,
John Durant, Director
Commercial Rulings Division