CLA-2 RR:CR:GC 960465 MMC
Ms. Cindy Hazlett, CHB
International Trade and Logistics
Applause Inc.
6101 Variel Avenue
PO Box 4183
Woodland, Hills, CA 91365-4183
RE: "Snoopy" Play Set; NYRL B83149
Dear Ms. Hazlett:
On April 29, 1997, you submitted a request for
reconsideration of New York Ruling Letter (NYRL) B83149, which,
based on a series of designs submitted to Customs, classified a
plush dog under heading 9503, of the Harmonized Tariff Schedule
of the United States (HTSUS) as a stuffed toy and a plastic
coated doghouse-shaped carrying case in which the plush dog will
be carried under heading 4202, HTSUS, as a handbag. A sample of
an article with the exact same construction but with a "101
Dalmatians" theme, was submitted for our review.
Pursuant to section 625(c)(1) Tariff Act of 1930 [19 U.S.C.
1625(c)(1)], as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, (Pub. L. 103-182, 107 Stat. 2057, 2186),
notice of the proposed revocation of NYRL B83149 was published,
on May 13, 1998, in the Customs Bulletin, Volume 32,
Number 19. No comments were received in response to the notice.
FACTS:
The merchandise is identified as a "Snoopy Play Set." It
will consist of a "Snoopy" plush dog packaged together with a
seven-inch high plastic carrying case shaped and decorated like
"Snoopy's" doghouse. The case will be constructed of padded
paperboard coated with a vinyl material which will be die-cut and
heat-sealed. The material on the front of the case will have
"Snoopy's" name over a drawn entryway with a drawing of "Snoopy"
sitting in front of the entryway. On one of the longer sides of
the case, a dog dish and the character "Woodstock" will be drawn.
The "roof" of the doghouse will lift open from one side so that
the plush dog may be placed inside. When closed, the "roof" will
be secured to the side of the structure by a Velcro-like
material. Finally the "roof" will have a vinyl link strap for
carrying. The carrying case is being designed for the carrying
of the plush toy. Both articles will be imported together and
sold as a set. Neither will be sold separately.
ISSUE:
Whether the articles comprising the "Snoopy Play Set" are
classifiable as a toy set for tariff purposes.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRI's). The systematic
detail of the HTSUS 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 GRI's may
then be applied. The subheadings under consideration are as
follows:
4202.22.15 Handbags with outer surface or sheeting of
plastic
9503.41.10 Other toys representing animals or non-human
creatures, stuffed toys
9503.70 Other toys; reduced-size ("scale") models and
similar recreational models, working or not;
puzzles of all kinds; parts and accessories
thereof: Other toys, put up in sets or outfits,
and parts and accessories thereof
Note 1(l) of Chapter 42, HTSUS, states that: "[t]his chapter does
not cover:...[a]rticles of chapter 95 (for example, toys, games,
sports equipment.)" Therefore, we must first determine whether
the "Snoopy Play Set" is classifiable as a "toy set" for tariff
purposes. If so, it is excluded from classification in heading
4202.
The term "toy" is not defined in the HTSUS. However, in
understanding the language of the HTSUS, the Explanatory Notes
(ENs) of the Harmonized Commodity Description and Coding System
may be utilized. The ENs, although not dispositive or legally
binding, provide a commentary on the scope of each heading, and
are generally indicative of the proper interpretation of the
HTSUS. See, T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The ENs to Chapter 95 state, in pertinent part, that "[t]his
Chapter covers toys of all kinds whether "designed for the
amusement of children or adults." Although not set forth as a
definition of "toys," we have interpreted the just-quoted passage
from the ENs as equating "toys" with articles "designed for the
amusement of children or adults," although we believe such design
must be corroborated by evidence of the articles' principal use.
When the classification of an article is determined with
reference to its principal use, Additional U.S. Rule of
Interpretation 1(a), HTSUS, provides that, in the absence of
special language or context which otherwise requires, such use is
to be determined in accordance with the use in the United States
at, or immediately prior to, the date of importation, of goods of
that class or kind to which the imported goods belong, and the
controlling use is the principal use. In other words, the
article's principal use at the time of importation determines
whether it is classifiable within a particular class or kind.
While Additional U.S. Rule of Interpretation 1(a), HTSUS,
provides general criteria for discerning the principal use of an
article, it does not provide specific criteria for individual
tariff provisions. However, the U.S. Court of International
Trade (CIT) has provided factors, which are indicative but not
conclusive, to apply when determining whether merchandise falls
within a particular class or kind. They include: general
physical characteristics, the expectation of the ultimate
purchaser, channels of trade, environment of sale (accompanying
accessories, manner of advertisement and display), use in the
same manner as merchandise which defines the class, economic
practicality of so using the import, and recognition in the trade
of this use. United States v. Carborundum Company, 63 CCPA 98,
C.A.D. 1172, 536 F. 2d 373 (1976), cert. denied, 429 U.S. 979.
The general physical characteristics of the"Snoopy Play
Set," mainly the doghouse shape of the handbag together with
both of the components' "Snoopy" theme, indicates that the
articles will be principally used as a toy. Moreover, although
no specific activity theme has been stated, it appears that the
articles will be used in the same manner as toys because it
appears that the articles are intended for use in a play activity
that involves "Snoopy" being carried around and placed in and out
of his "doghouse." Pretending that the carrying case is either
a doghouse or a pet carrier by putting "Snoopy" in the bag,
carrying him around, and then unpacking him, imparts a
recognizable and significant amount of play value to both the
components. As such, the components appear to be intended to
occupy the user in a pleasant or enjoyable (i.e., amusing) way,
allowing the user to employ imagination and creativity to create
different "play scenarios" for "Snoopy" and his "doghouse."
The ENs for heading 95.03 provide, in pertinent part, that:
[c]ollections of articles, the individual items of
which if presented separately would be classified in
other headings in the Nomenclature, are classified in
this Chapter when they are put up in a form clearly
indicating their use as toys (e.g., instructional toys
such as chemistry, sewing, etc., sets).
With respect to toy sets, the ENs for subheading 9503.70 provide,
in pertinent part, that:
"[s]ets" are two or more different types of articles
(principally for amusement), put up in the same packing for
retail sale without repacking. Simple accessories or
objects of minor importance intended to facilitate the use
of the articles may also be included.
It is Customs position that "toys put up in sets or outfits"
(subheading 9503.70) is an eo nomine provision denoting a clearly
identifiable class or kind of goods. Consequently, goods may be
classified in subheading 9503.70 pursuant to GRI 1, and recourse
to the other GRI's, particularly the provisions of GRI 3 relating
to sets, is unnecessary. See, e.g., Headquarters Ruling Letters
(HRL) 086407 of March 22, 1990, HRL 086330 of May 14, 1990, and
HRL 950700 dated August 25, 1993. Such sets typically contain
complementary articles intended for use together, rather than
individually, to provide amusement. However, there is no
requirement that the component of the set only be capable of use
together, and the ability of one or more of the components to be
used individually does not disqualify classification as a toy
set. It is sufficient that the components of the toy set
possess a clear nexus which contemplates a use together to amuse.
Because the "Snoopy Play Set's" components combine two
complete articles, a plush dog and a dog-shaped handbag, which
are intended for use together to occupy the user in a pleasant or
enjoyable (i.e., amusing) way, the "Snoopy Play Set" meets the
requirements for classification as a toy set. We note that in
HRL 957894 dated December 14, 1995, we indicated that an article
identified as "Tattoo Graphix" was not classifiable as a toy set
because a single component of the set, the carrying case,
predominated over the other set components. Such analysis was
applied to the "Snoopy Play Set" in NYRL B83149. Further review
of the HTSUS and the ENs disclose no basis for imposing such a
rule. Inasmuch as any finding of a component's predominance
would have no impact on a finding that the components together
constitute a collection of articles designed and principally used
for amusement, we have determined this rule to be inappropriate.
A proposal to revoke HRL 957894 was published on April 15, 1998,
in Vol. 32 Customs Bulletin No. 15. As a result of finding the
"Snoopy Play Set" to be a toy set properly classified in Chapter
95, classification of the articles elsewhere in the HTSUS is
precluded.
HOLDING:
The "Snoopy Play Set" is classified in subheading
9503.70.00, HTSUS, the provision for "[o]ther toys; reduced-size
("scale") models and similar recreation models, working or not;
puzzles of all kinds; parts and accessories thereof: [o]ther
toys, put up in sets or outfits, and parts and accessories
thereof," with a general 1998 column one duty rate of free.
NYRL B83149 is revoked. In accordance with 19 U.S.C.
1625(c)(1), this ruling will become effective 60 days after its
publication in the Customs Bulletin. Publication of rulings or
decisions pursuant to 19 U.S.C. 1625(c)(1) does not constitute a
change of practice or position in accordance with section 177.10
(c)(1), Customs Regulations [19 CFR 177.10(c)(1)].
Sincerely,
John Durant, Director
Commercial Rulings Division