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HQ 083134


April 28, 1989

CLA-2 CO:R:C:G 083134 DSN

CATEGORY: CLASSIFICATION

TARIFF NO.: 7323.99.9000

Ms. L. Ephie Hearne
Sekin Transport International
P.O. Box 655464
Dallas, Texas 75265-5464

RE: Classification of magnetic memo holders

Dear Ms. Hearne:

This is in response to your inquiry of October 4, 1988, on behalf of Grynnen Barrett Inc., regarding the classification of magnetic memo holders under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A brochure of magnets holders produced in Taiwan was submitted.

FACTS:

The brochure submitted shows forty different magnetic memo holders. All of the magnetic memo holders are composed of a metal magnet attached by glue to hand-painted acrylic plastic. The plastic caricature depicts the intended design. The memo holders are designed to be placed on refrigerator doors or other metal objects in the home.

ISSUE:

Whether the products of the submitted brochure are classified under heading 8505 or heading 7323, HTSUSA.

LAW AND ANALYSIS:

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 plastic caricature, they are precluded from classification in this heading.

Since the samples are composed of different components, i.e. metal and plastic, they are classifiable under two different headings, and therefore, GRI 3 is applicable. Heading 3926, HTSUSA, provides for other articles of plastics. Heading 7323, HTSUSA, provides for kitchen and 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 in this case. 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. The Explanatory Notes to GRI 3(b), state that 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 samples at issue, the magnet is essential for the intended use of the article. If the magnet were removed, the product would be incapable of functioning as a magnetic memo holder for refrigerator doors or other metal objects. The plastic caricatures merely embellishes the merchandise and acts as a decorative selling feature, but has no effect on the ability of the magnet to perform its intended function. Therefore, the essential character is imparted by the magnet.

Heading 7323, HTSUSA, provides for kitchen or other household articles 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.

We note that 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 textiles 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.

HOLDING:

In view of the foregoing, the merchandise at issue is 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.

NYRL 829918 of June 10, 1988 is hereby revoked in accordance with this ruling.

Sincerely,

John Durant, Director

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