CLA-2 RR:CR:GC 962978 PH
Ms. Maria Harris
Fritz Companies, Inc.
8870 Boggy Creek Road
Suite 700
Orlando, Florida 32824
RE: Drinking glass with ceramic stem; NY E80807
Dear Ms. Harris:
This is in reference to your request, on behalf of EuroAsia Products Inc., to the Director, Customs National Commodity Specialist Division, New York, NY, dated April 9, 1999, for a ruling as to the classification under the Harmonized Tariff Schedule of the United States (HTSUS), of a champagne drinking glass with a decorative ceramic stem. In New York Ruling (NY) E80807 dated April 30, 1999, the merchandise, stated to have a unit value of $4.75, was classified as glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes, other drinking glasses valued over $3 but not over $5 each in subheading 7013.29.50, HTSUS. Because of a possible misunderstanding of the unit value of the articles, the matter has been referred to this office for consideration.
FACTS:
The merchandise is described as "The Millennium 2000 Celebration Glass." It is a fluted champagne drinking glass with a decorative ceramic stem. The stem is midnight-blue in color and features a sculptured "2000" digit. In its letter to you of March 31, 1999, EuroAsia describes the article as a commemorative keepsake to celebrate the new millennium. Although advertising literature describes the article as costing $4.75 in the United States, the "cost breakdown" for the article and the declared value on importations made since the date of the ruling request, indicate a value of less than $3.00 each.
ISSUE:
What is the proper classification of "The Millennium 2000 Celebration Glass", a fluted champagne drinking glass with a decorative ceramic stem?
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6, taken in order. Under GRI 2(b), in part, any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance, and the classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. Pursuant to GRI 3(b), goods which are prima facie classifiable under two or more headings, and which are mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, shall be classified as if they consisted of the material or component which gives them their essential character.
The Harmonized Commodity Description and Coding system Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the System. Customs believes the ENs should always be consulted. See T.D. 89 80, published in the Federal Register August 23, 1989 (54 F.R. 35127, 35128).
The HTSUS headings and subheadings under consideration are as follows:
6912 Ceramic tableware, kitchenware, other household articles and toilet articles, other than of porcelain or china
7013 Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 7010 or 7018):
Drinking glasses, other than of glass ceramics:
7013.29 Other:
7013.29.20 Valued over $0.30 but not over $3 each
Valued over $3 each:
Other:
7013.29.50 Valued over $3 but not over $5 each
As table or kitchenware of both glass and ceramic, prima facie classifiable under the above two headings, classification of the merchandise is governed by GRI 3(b) (above), i.e., on the basis of the material which imparts the essential character. EN Rule 3(b)(VIII) lists as factors to help determine the essential character of such goods the nature of the materials or components, their bulk, quantity, weight or value, and the role of a constituent material in relation to the use of the goods.
Recently, there have been several Court decisions on "essential character" for purposes of GRI 3(b). These cases have looked primarily to the role of the constituent materials or components in relation to the use of the goods to determine essential character. See, Better Home Plastics Corp. v. United States, 916 F. Supp. 1265 (CIT 1996), affirmed 119 F.3d 969 (Fed. Cir. 1997); Mita Copystar America, Inc. v. United States, 966 F. Supp. 1245 (CIT 1997), motion for rehearing and reconsideration denied, 994 F. Supp. 393 (CIT 1998), and Vista International Packaging Co., v. United States, 19 CIT 868, 890 F. Supp. 1095 (1995). See also, Pillowtex Corp. v. United States, 983 F. Supp. 188 (CIT 1997), affirmed 171 F.3d 1370 (Fed. Cir. (T) 1999).
Based on the foregoing, we conclude that in an essential character analysis for purposes of GRI 3(b), the role of the constituent materials or components in relation to the use of the goods is generally of primary importance, but the other factors listed in EN Rule 3(b)(VIII) should also be considered, as applicable. In this case, the "indispensable function" (Better Home Plastics, supra) of the article is to hold and serve liquids to be imbibed. Since the glass material part of the good performs this function, this criterion indicates that the essential character of the good is provided by that component. Insofar as the other factors (quantity, bulk, weight, and value) are concerned, those factors appear to be indeterminate (value is indicated to be the same for each material; quantity is the same, and bulk and weight are unknown). We concur with the conclusion in NY E80807 that the essential character of the article is imparted by the glass material and, therefore, that it is classifiable in heading 7013, HTSUS.
Within heading 7013, HTSUS, the merchandise is classifiable as drinking glasses, other than of glass ceramics. In NY E80807 Customs determined that the merchandise was classified as drinking glasses, valued over $3 but not over $5 each, in subheading 7013.29.50, HTSUS. This determination was based on the facts available to Customs at that time, i.e., "[t]he unit value for this item will be $4.75."
NY E80807 was, and remains, correct on the facts as described in the ruling and before Customs (i.e., that drinking glasses with the essential character of glass valued at $4.75 each are classified under the provision for drinking glasses, valued over $3 but not over $5 each, in subheading 7013.29.50, HTSUS). However, Customs rulings are issued on the assumption that all of the information upon which they are based is accurate and complete in every material respect (see 19 CFR 177.9(b)(1); see also 19 CFR 177.2(b)(1)).
We now have information that the correct unit value of the merchandise is more than $0.30 and less than $3 each. Accordingly, based on the facts now before Customs, the merchandise is classified as other drinking glasses, other than of glass ceramics, valued over $0.30 but not over $3 each, in subheading 7013.29.20, HTSUS.
HOLDING:
"The Millennium 2000 Celebration Glass", a fluted champagne drinking glass with a decorative ceramic stem, is classified as other drinking glasses, other than of glass ceramics, valued over $0.30 but not over $3 each, in subheading 7013.29.20, HTSUS.
EFFECT ON OTHER RULINGS:
NY E80807 dated April 30, 1999, is DISTINGUISHED.
Sincerely,
John Durant, Director
Commercial Rulings Division