HQ 0086895 - Modification of HRL 084935; Pocket Gym - United States International Trade Commision Rulings

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HQ 086895

August 17, 1990

CLA-2 CO:R:C:G 086895 NLP

CATEGORY: CLASSIFICATION

TARIFF NO.: 9506.91.00

Mr. David Coutts
BodyPro Inc.
Box 475
2384 Yonge Street
Toronto, Ontario
M4P 2G9

RE: Modification of HRL 084935; Pocket Gym

Dear Mr. Coutts:

On August 23, 1990, this office issued Headquarter's Ruling Letter (HQ) 084935, which dealt with the tariff classification of the "Pocket Gym" and the applicable marking requirements. In a letter dated April 6, 1990 you requested a reconsideration of our holding, where we determined that a nylon bag contained in the Pocket Gym was subject to a textile visa. For the reasons stated below, we are modifying our prior ruling. In addition, you requested reconsideration of the marking requirements for the "Pocket Gym". We have forwarded that request to the Value, Special Programs & Admissibility Branch at Headquarters and a reply regarding this matter will be sent to you under separate cover.

FACTS:

The facts as set out in HQ 084935 which list the various components of the Pocket Gym are incorporated herein. In that ruling we concluded that the Pocket Gym formed a set, the essential character of which was imparted by the exercise equipment. We classified the set under subheading 9506.91.0030, HTSUSA, which provides for articles and equipment for gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this chapter, other, gymnasium or other exercise articles and equipment, parts and accessories thereof, other. Furthermore, we held that the set was eligible for treatment as goods originating in the territory of Canada because a substantial transformation had occured in accordance with General Note 3(c)(vii)(R)(20). Further, we held that the nylon bag was subject to a textile visa and quota requirements.

ISSUE:

What is the tariff classification of the Pocket Gym?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes, and, unless otherwise required, according to the remaining GRI's, taken in order.

In the instant case, the Pocket Gym is composed of unassembled parts that when assembled form a single piece of exercise equipment that can be used in many ways. The article is also incomplete to the extent that it is imported without the latex tubing and "O" rings. GRI 2(a) states the following:

(a) any reference in a heading to an article shall be taken to include reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or unfinished by virtue of this rule), entered unassembled or disassembled.

We are of the opinion that at the time of importation the Pocket Gym is readily identifiable as exercise equipment, even though the latex tubing has not yet been added. Therefore, the Pocket Gym imported in several pieces is to be classified in the same heading as the complete and assembled article. The applicable tariff provision is Heading 9506, HTSUSA, which provides for articles and equipment for gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this chapter.

GRI 3 governs the classification of goods which are prima facie classifiable within two or more headings. The exercise equipment is classifiable within subheading 9506.91.00, HTSUSA, which provides for articles and equipment for gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this chapter, other, gymnasium or other exercise articles and equipment, parts and accessories thereof. The carrying case is classifiable in subheading 4202.92.90, HTSUSA, which provides for trunks, suitcases and similar containers with outer surface of textile materials. However, neither one of these headings by itself covers the combined merchandise. Therefore, the merchandise as a whole is prima facie classifiable under two headings.

GRI 3(a) requires the heading which provides the most specific description of the article to govern over one which provides a more general description. However, when two or more headings each refer to part only of the components contained in composite goods those headings are to be regarded as equally specific in relation to those goods. This is the situation which exists in the instant case. Goods which cannot be classified according to this rule are then classified according to GRI 3(b).

GRI 3(b) provides for composite goods made up of different components. According to Explanatory Note IX to GRI 3(b):

...composite goods made up of different components shall be taken to mean not only those in which the components are attached to each to each other to form a practically inseparable whole but also those with separable components provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.

The components at issue satisfy this description. They are separable into the exercise equipment and the carrying bag. They are also adapted for use together. For example, the bag operates as both a storage place and carrying bag for the exercise equipment. In addition, these components are mutually complementary based on the fact that they are intended to be used together as a whole. Lastly, they are not normally offered for sale separately.

Composite goods are classifiable as if they consisted of the component which gives them their essential character. Explanatory Note VIII to GRI 3(b) states 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 goods.

The component which establishes essential character in this case is the exercise equipment based on the fact that it is the prinicipal component of the merchandise. As previously discussed the exercise equipment is classifiable in subheading 9506.91.00, HTSUSA. Accordingly, the composite good would be classifiable as if it consisted solely of the exercise equipment.

HOLDING:

The exercise equipment and the carrying bag are a composite good classifiable according to their essential character within subheading 9506.91.0030, HTSUSA, which provides for articles and equipment for gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this chapter, other, gymnasium or other exercise articles and equipment, parts and accessories thereof. The rate of duty is 4 percent ad valorem. As a product of Canada, the exercise articles are eligible for a reduced rate of duty of 3.7 percent ad valorem.

HRL 084935 is modified pursuant to 19 CFR 177.9(d).

Sincerely,

John Durant, Director
Commercial Rulings Division

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