HQ 0086838 - "My Talking Storybook" children's book with built-in integrated circuit and electronic reading tray - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1990 HQ Rulings > HQ 0086826 - HQ 0086891 > HQ 0086838

HQ 086838

July 3, 1990

CLA-2 CO:R:C:G 086838 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 4903.00.00, 8519.99.00

Mr. Paul Anderson
Sonnenberg, Anderson, O'Donnell
& Rodriguez
200 West Adams Street, Suite 2625
Chicago, Illinois 60606

RE: "My Talking Storybook" children's book with built-in integrated circuit and electronic reading tray

Dear Mr. Anderson:

This is in reply to your letter of March 13, 1990, on behalf of Tiger Electronics, Inc., requesting classification of "My Talking Storybook," under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

A sample was submitted. The merchandise at issue consists of an electronic book and an electronic reading tray that will be sold together. The books with electronic components will also be sold separately. The book is a printed childrens' book with words and pictures. It also contains an integrated circuit built into the back cover of the book, which contains the permanent memory of the book's text in speech digital data. The reading tray has several buttons which control functions such as: 1) proceed to next page, 2) repeat a phrase, 3) volume, and 4) select an answer. When the book is placed correctly on the reading tray, the digital speech data is transferred from the permanent built- in circuit in the book, through an electronic connector located along the lower right back cover of the book, to integrated circuits located within the reading tray. A speech synthesizer microprocessor integrated circuit synthesizes the digital speech signal into an audio analog signal. The audio analog signal then moves through an audio circuit, first to an audio amplifier, and then to a speaker and becomes audible to the listener. The tray is designed to be used with other electronic books produced by the manufacturer whereas the book is not adaptable to other applications.

ISSUE:

What is the classification of "My Talking Storybook" book with built-in integrated circuit and electronic reading tray under the Harmonized Tariff Schedule of the United States Annotated

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

You argue that the children's book with built-in integrated circuit (hereafter "book") is classifiable under 4901.99.00, HTSUSA, which provides for: "[p]rinted books...: [o]ther: [o]ther." Alternatively, you argue that the book is classifiable under 4903.00.00, HTSUSA, which provides for: "[c]hildren's picture, drawing or coloring books."

General Rule of Interpretation (GRI) 3 delineates the treatment of goods that are prima facie classifiable under two or more headings. GRI 3(a) provides that when two or more headings each refer to part only of the materials or substances contained in composite goods, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete description of the goods. In the instant case, the book is prima facie classifiable under three headings; 4901, HTSUSA, which provides for printed books, 4903, HTSUSA, which provides for children's picture, drawing or coloring books, and 8542, HTSUSA, which provides for electronic integrated circuits and microassemblies. GRI 3(b) states that composite goods consisting of different materials or made up of different components, which cannot be classified by reference to GRI 3(a), shall be classified as if they consisted of the material or component which gives them their essential character.

In a similar case regarding musical greeting cards with a built-in integrated circuit, HQ 081831 (May 17, 1989), we stated:

It is our opinion that the role of the printed paper in relation to the use of this merchandise clearly indicates that the paper portion is indispensable to the functioning of this product. We believe that the musical aspect is secondary to the paper portion, because the article would still function as a greeting card without the integrated circuit. While the integrated circuit adds an additional feature to the card by complementing the greeting, it is nevertheless secondary to the card because the card conveys the printed message.

Similarly, when imported separately from the reading tray, it is our opinion that the book's printed matter imparts the essential character of this book/integrated circuit composite good.

The Harmonized Description and Coding System Explanatory Notes (EN) of the HTSUSA, to heading 4903 (children's picture books), page 694, state:

This heading is restricted to those picture books clearly compiled for the interest or amusement of children or for guidance in their first steps of primary education, provided the pictures form the principal interest and are not subsidiary to the text (see Note 6 to this chapter).

This category includes, for example, pictorial alphabet books and books of the kind in which the sense of stories is conveyed by a series of episodal pictures accompanied by captions or summary narratives related to the individual pictures.

The sample provided, "Percy's Perfect Pancakes," is clearly compiled for the interest and amusement of children. Half of the pages of the book (alternating) contain a full page picture with a maximum of two sentences at the bottom, usually consisting of 5 or 6 words each (summary narrative related to the individual picture). The alternating pages contain three pictures each (answer choices) and have no text. Therefore, clearly, the book itself is properly classifiable under 4903, HTSUSA, which provides for: "[c]hildren's picture, drawing or coloring books."

You argue that the reading tray is classifiable under heading 8519, HTSUSA, which provides for: "[t]urntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device." The EN to 8519, page 1366, states:

This heading covers all sound reproducing apparatus, whatever the purpose for which it is intended (for example, educational purposes, conferences, radio broadcasting, cinema, dictating mail)."

Clearly, the reading tray's sole function is that of sound reproducing apparatus. The various buttons on the reading tray simply direct what text is audibly reproduced. Therefore, we agree that the reading tray is properly classifiable under subheading 8519.99.00, HTSUSA, which provides for: "[o]ther sound reproducing apparatus: [o]ther."

GRI 3(b) governs the classification of goods put up in sets for retail sale:

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

The EN, page 4, Roman numeral X, states:

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 up 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 repacking.

The book and reading tray, when packaged and imported together, meet these three criteria since they are prima facie classifiable under different headings and are designed to carry out a specific activity together.

Therefore, pursuant to GRI 3(b), it is necessary to determine the essential character (if discernable) of the book and reading tray set. The EN to GRI 3(b), page 4, Roman numeral VIII, states:

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 reading tray weighs more than the book, however, the reading tray is less expensive to produce than the book. The majority of the electronics are in the reading tray, including; the power source (batteries), speech synthesizer microprocessor, audio amplifier and speaker. Additionally, what distinguishes this set from a regular children's book is its ability to "read" the text aloud. However, the reading tray only reproduces the text in an audio form. The book provides the story and imagery that is the framework of the audio text. It is the book and its pictures which will be the focus of the child's attention. However, again, the reading tray has greater utility because it will presumably be used with a number of electronic books in the future, whereas, the book remains static in its use.

In the instant case, it is Customs position that there is no single essential character to these goods when put up in sets for retail sale.

GRI 3(c) dictates that; "[w]hen 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." Thus, when the reading tray and book are imported together as goods put up in a set for retail sale, they are classifiable under 8519.99.00, HTSUSA, which provides for: "[t]urntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device: [o]ther sound reproducing apparatus: [o]ther."

HOLDING:

When the book is imported separately, it is classifiable under 4903.00.00, HTSUSA, which provides for: "[c]hildren's picture, drawing or coloring books." The rate of duty is Free.

When the reading tray is imported separately, it is classifiable under 8519.99.00, HTSUSA, which provides for: "[t]urntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device: [o]ther sound reproducing apparatus: [o]ther." The rate of duty is 3.9% ad valorem.

When the reading tray and book are imported together, as goods put up in a set for retail sale, they are classifiable under 8519.99.00, HTSUSA, which provides for: "[t]urntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device: [o]ther sound reproducing apparatus: [o]ther." The rate of duty is 3.9% ad valorem.

Sincerely,

Previous Ruling Next Ruling

See also: