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HQ 082500


April 28, 1989

CLA-2 CO:R:C:G 082500 DSN

CATEGORY: CLASSIFICATION

TARIFF NO.: 7323.99.9000

Francis W. Foote, Esquire
Siegel, Mandell & Davidson, P.C.
655 Fifteenth Street, N.W.
Suite 300
Washington, D.C. 20005

RE: Classification of magnetic memo holders

Dear Mr. Foote:

This is in response to your inquiry of June 30, 1988, on behalf of Avon Products, Inc., regarding the classification of fruit magnets under the Harmonized Tariff Schedule of the United States (HTSUSA). Samples produced in either Hong Kong or China were submitted for examination.

FACTS:

The submitted samples "Shady Bunch Fruit Magnets" are composed of a circular metal magnet with a textile front covering. The textile portion is composed of a woven polyester outer shell with a polyester filling. The samples resemble different fruits and have short arms and legs attached and also a printed stylized human-type faces with plastic sunglasses glued on. The samples submitted represent a strawberry, pineapple and a orange. The magnets measure approximately 3/4 of an inch in diameter. The merchandise is designed to be placed on refrigerator doors or other metal objects in the home.

ISSUE:

Whether the samples at issue are classified under heading 8505 or heading 7323, HTSUSA.

LAW AND ANALYSIS:

You allege that the samples are classified under heading 8505, HTSUS. We disagree. Heading 8505, HTSUSA, provides for electro-magnets, permanent magnets and articles intended to become permanent magnets after magnetisation. The Explanatory Notes which constitute the official interpretation of the tariff at the international level, state that heading 8505 does not cover "electro-magnets, permanent magnets or magnetic devices of this heading, when presented with machines, apparatus, toys, games, of which they are designed to form part (classified with those machines, apparatus, etc.)." With respect to the instant samples, they are magnets designed to form part of the article. Since the magnets are presented with and incorporated into a textile caricature, they are precluded from classification in this heading.

Since the samples are composed of different components, i.e. metal, textile and plastic, they are classifiable under two or more headings pursuant to GRI 3. Heading 6307, HTSUSA, provides for other made up articles of textiles. Heading 3926, HTSUSA, provides for other articles of plastics. Heading 7323, HTSUSA, provides for kitchen or other household articles of iron or steel. GRI 3(a) states that the heading providing the most specific description shall be preferred, however when each heading refers to part only of the materials contained in composite goods those headings are to be regarded as equally specific, even if one of them gives a more complete description of the goods. Each of the headings refers to part only of the merchandise here. Therefore, the headings are regarded as equally specific, and the classification of the samples at issue cannot be determined by relative specificity.

GRI 3(b) provides that composite goods made up of different components which cannot be classified by reference to GRI 3(a), are classified by the component which gives them their essential character. According to the Explanatory Notes, essential character may be determined by the nature of the component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

With respect to the merchandise at issue, the magnet is essential for the intended use of the product. Removal of the magnet would leave the product totally incapable of functioning as a magnetic memo holder for refrigerator doors or other metal objects. The textile portion merely embellishes the product and acts as a decorative selling feature, but has no effect on the ability of the magnet to perform its intended function. The same is true of the plastic portion (the sunglasses) which is
incidental to the article other than as decoration. If the sunglasses were removed the product could still function as a decorative magnet holder. Therefore, the essential character is imparted by the magnet.

Heading 7323, HTSUSA, provides for kitchen or other household articles and parts thereof, of iron or steel. The Explanatory Notes to heading 7323, state that this group comprises a wide range of iron or steel articles, not more specifically covered by other headings of the Nomenclature. With respect to the instant samples, since they are designed to be used in the kitchen or around the home and have the essential character of metal, and are not specifically covered by any other heading, they are classifiable in this heading.

In NYRL 829918 of June 10, 1988, a magnetic memo holder composed of metal with a textile covering was classified under heading 6307, which provides for other made up textile articles. The Explanatory Notes to heading 6307, state that the heading covers made up articles of any textile material which are not included more specifically in other headings of Section XI or elsewhere in the Nomenclature. We believe heading 7323 is a more specific provision for the magnetic memo holder and the instant samples. We hereby revoke the above ruling.

HOLDING:

In view of the foregoing, the samples are classified under subheading 7323.99.9000, HTSUSA, which provides for kitchen or other household articles of iron or steel, other, not coated or plated with precious metal, other, other, and dutiable at the rate of 3.4 percent ad valorem.

New York Ruling 829918 of June 10, 1988 is hereby revoked in accordance with this ruling.

Sincerely,

John Durant, Director

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