CLA-2-96:S:N:N1:113-857749
TO : Director, Commercial Rulings Division
Headquarters, U.S. Customs Service
FROM : Chief, National Import Specialist Branch 1
New York Seaport
SUBJECT: Pencil Kits & Geometry Set
Inquiry dated October 24, 1990, from Jeremy R. Page on behalf of
Rolykit, Inc., is attached.
The items are a Rolykit Pencil Box (JS-210), a Rolykit Geometry
Set (JS-270) and a Rolykit Junior Pencil Box (JS-100). The Rolykit Pencil Box
(JS-210) contains 8 fiber tipped pens, 9 pencils, 1 ruler, and 1 pencil
sharpener in a transparent/color storage box. The Rolykit geometry set (JS-
270) contains 1 geometric triangle, 1 compass, 1 tube of compass leads, 1
eraser, 3 lead pencils, 1 propelling pencil, and 1 fine liner pen in a
transparent/color storage box. The Rolykit Junior Pencil Box (JS-100)
contains 6 fiber tipped pens, 6 pencils, 1 pencil sharpener, and 1 eraser in
a transparent/color storage box.
LAW AND ANALYSIS:
Classification of goods under the HTSUSA is governed by the General
Rules of Interpretation(GRI), taken in order. When good are prima facie
classifiable under two or more headings GRI 3 is applicable. GRI 3(b)
provides, in part:
goods put up in sets for retail sale...
shall be classified as if they consisted
of the component which gives them their
essential character.
The Explanatory Notes to the HSTUSA constitute the official
interpretation of the tariff at the international level. The Explanatory
Notes to GRI 3(B) provide, in part:
For the purposes of this Rule, 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 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 repackaging (e.g. in
boxes or cases or on boards).
The merchandise at issue consists of at least two different articles,
which are prima facie classifiable in different headings, and it is put up
in a manner suitable for sale directly to users. In addition, all of the
components contribute to the activity of drawing and writing. Since the
merchandise at issue meets this three-part test so as to constitute a set,
the item that imparts the essential character of the set must be determined
to allow for the proper classification.
The Explanatory Notes for GRI 3(b) state that:
The factor which determines essential character
will vary as between different kinds of goods.
It may, for example, be determined by the nature
of the material or component, its bulk, quantity,
weight or value, or by the role of a constituent
material in relation to the use of the goods.
The factor or factors which determine essential character will vary
with the goods. However, the nature of a component and its relation to the
use of the good are often factors to be considered. In this case, each of the
kits have the essential character of either writing, drawing or measuring.
The Rolykit (JS-200) series is aimed at young people between the ages of
6 and 20. The Rolykit Pencil Box (JS-210) contains items which contribute
directly to writing and drawing. Although the cost of the storage box is more
than the cost of the other component materials, the "essential character" of
the set is clearly the "writing and drawing feature" which would prompt the
consumer to buy the set. The classification as pencils or crayons with leads
encased in a rigid sheath under 9609.10.0000, HTS, with a duty rate of 14
cents per gross plus 4.3 percent ad valorem would be deemed applicable.
The Rolykit Geometry Set (JS-270) consists of a triangle (which also
functions as a protractor and a scale), a drawing compass, pencils, and an
eraser in a storage box. Although described as a geometry set, it is
essentially a drawing set. Classification as other drawing instruments under
9017.20.8090, HTS, at a rate of 5.8 percent ad valorem would be deemed
applicable. The Explanatory Notes to 9017, pages 1485-86 (Harmonized Tariff
Schedule of the United States - 1990), which describes drawing compasses and
protractors under the heading of drawing instruments clearly states this
point. The note to GRI 3(b) under examples of sets, item (3), drawing kits
are also cited as an example.
The Rolykit Junior Pencil Box (Model JS-100) consists of writing and
drawing equipment. Again, as cited above, when referring to the Rolykit
Pencil Box (Model JS-210), the "essential character" of this particular item
is the writing and drawing feature which would prompt the consumer to buy the
item. Classification under pencils and crayons, with leads encased in a rigid
sheath under 9609.10.0000, HTS, with a duty rate of 14 cents per gross plus
4.3 percent ad valorem would be deemed applicable.
To summarize the classification of the merchandise is as follows:
1. Rolykit Pencil Box (Model JS-210) - 9609.10.0000/.14 per
gross + 4.3% ad valorem;
2. Rolykit Junior Pencil Box - 9609.10000/.14 per gross + 4.3% ad
valorem.
Classification of merchandise is according to the General Rules of
Interpretation - Note 3(c) which states that " when goods cannot be
classified by reference to 3(a) or 3(b), they shall be classified under the
heading which occurs last in numerical order among those which equally merit
consideration.
3. Rolykit Geometry Set - 9017.20.8090/5.8% ad valorem.
Classification is under GRI 1.
Note 4 Headquarters Rulings attached:
(1) CLA-2:CO:R:C:G: 085356 JLJ dated 11/20/89
(2) CLA-2:CO:R:C:G: 087437 JS dated 09/01/90
(3) CLA-2:CO:R:C:V: 084551 JAS dated 08/09/89
(4) CLA-2:CO:R:C:G: 085740 SER dated 03/22/90
If you require any further assistance on this matter, please call
National Import Specialist James Smyth at FTS 668-5678.
Robert Slomovitz