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HQ 086937


August 14, 1990
CLA-2 CO:R:C:G 086937 SLR

CATEGORY: CLASSIFICATION

TARIFF NO.: 3926.40.0000; 6702.10.4000; 6702.90.6000

Ms. Paige P. Carr
Entry Specialist
V. Alexander & Co., Inc.
P.O. Box 291929
Nashville, TN 37229-1929

RE: Gift Wrap Tie-Ons

Dear Ms. Carr:

This ruling is in response to your letter of March 27, 1990, on behalf of C.P.S. Industries, Inc., requesting the proper classification for a variety of items known as tie-ons for gift wrapping packages under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A composite photograph of the tie-ons, along with four representative samples, have been forwarded for our examination.

FACTS:

The four submitted samples are identified as follows: X79, plastic sleigh; and X83, mistletoe wreath; X72, plastic pick; and X73, gold holly spray.

Item X79, the molded plastic sleigh, consists of two pieces that fit together to form one whole. One piece is the runners; the other piece is the seat. The runners are made of gold colored plastic with black painted trim. The seat is of red colored plastic, painted white on the outer portion with painted gold trim.

Item X83, the mistletoe wreath, consists of a small wreath of paper wrapped around wire with leaves of polyester fabric. The wreath is surrounded by triple clusters of berries around its entire circumference. The berries are made of styrofoam dipped in plaster and painted white.

Item X72, the plastic pick, is decorated with plastic foliage and polyester fabric leaves, a natural pine cone spray painted pink, a cluster of plastic magenta colored berries, and a styrofoam ball wrapped in satin-like thread.

Item X73, the gold holly spray, consists of paper wrapped around a wire stem with stiff paper holly leaves painted gold, sprays of small dried flowers painted gold, and six berries made of styrofoam centers dipped in a thin coat of plaster and painted gold.

According to the importer, the above-described tie-ons are intended for use solely on Christmas packages, not for year-round use. Moreover, these items are included only in the "Christmas Custom Line" catalogue distributed by C.P.S. Industries. The importer, therefore, asserts that the subject tie-ons are classifiable as festive articles in either HTSUSA subheading 9505.10.4000 or 9505.10.5000, depending on the basic material of the item.

ISSUE:

What is the proper classification of gift wrap tie-ons under the HTSUSA?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

Heading 9505, HTSUSA, provides, in pertinent part, for "[f]estive, carnival or other entertainment articles." The Explanatory Notes, which represent the official interpretation of the tariff at the international level, offer guidance in understanding the scope of the headings. The Explanatory Note to Heading 9505 indicate that the heading covers:

(A) Festive, carnival or other entertainment articles which in view of their intended use are generally made of non-durable material. They include:

(1) Decorations such as festoons, garlands, Chinese lanterns, etc., as well as various decorative articles made of paper, metal foil, glass fibre, etc., for Christmas trees (e.g., tinsel, stars, icicles), artificial snow, coloured balls, bells, lanterns, etc. Cake and other decorations (e.g., animals, flags) which are traditionally associated with a particular festival are also classified here.

(2) Articles traditionally used at Christmas festivities, e.g., artificial Christmas trees (these are sometimes of the folding type), nativity scenes, Christmas crackers, Christmas stockings, imitation yule logs.

While the subject items are decorative (they adorn packages), gift tie-ons as a class or kind of merchandise are not specifically holiday related; they are used all year round and come in a wide variety of motifs. Accordingly, the instant tie-ons are not classifiable as festive articles in heading 9505. Classification must be found elsewhere.

X79, Plastic Sleigh

Heading 3926, HTSUSA, provides, in pertinent part, for "[o]ther articles of plastic." The Explanatory Note to 3926 indicates that this heading covers statuettes and other ornamental articles.

The subject tie-on works to ornament packages and is made of plastic. Accordingly, item X79 is classifiable in heading 3926 as an other article of plastic.

X83, Mistletoe Wreath

Heading 6702, HTSUSA, provides, in pertinent part, for "articles made of artificial flowers, foliage or fruit." The Explanatory Note to heading 6702 indicates that the heading covers:

(3) Articles made of artificial flowers, foliage or fruit (e.g., bouquets, garlands, wreaths plants), and other articles, for use as trimmings or as ornaments, made by assembling artificial flowers, foliage or fruit.

Furthermore, "[t]he articles of this heading are mainly used for decoration...."

As the Note expressly includes wreaths among those articles deemed exemplars of heading 6702, item X83 is classifiable in heading 6702 as an article of artificial foliage.

X72, Plastic Pick

The plastic pick consists of both natural and artificial foliage. Consequently, two headings may apply: 0604, "[f]oliage, branches and other parts of plants...being goods of a kind suitable for...ornamental purposes...dried, dyed...or otherwise prepared"; and 6702, "articles made of artificial flowers, foliage or fruit." As mandated by GRI 2(b), the proper classification of goods consisting of more than one material or component shall be determined by the application of GRI 3.

GRI 3(a) directs that composite goods shall be classified under the heading which provides the most specific description. Two or more headings are regarded as equally specific, however, when each refers to part only of the materials. Consequently, GRI 3(b) must be consulted.

GRI 3(b) directs that composite goods consisting of different materials or components shall be classified as if they consisted of the material or component which gives them their essential character. The Explanatory Notes for GRI 3(b) indicate that "essential character" may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material to the use of the goods.

Here, the plastic pick's artificial components comprise the bulk of that article. The natural pine cone merely accents the arrangement. Accordingly, item X72 is classifiable as an article of artificial foliage in heading 6702.

At the six-digit subheading level, Heading 6702 includes two subheadings: 6702.10, articles made of artificial flowers, foliage or fruit, of plastic; and 6702.90, articles made of artificial flowers, foliage or fruit, of other materials. This discussion is relevant due to the fact that the subject tie-on consists of both plastic and textile materials. To determine the proper six-digit subheading classification, we must turn to GRI 3.

Since each subheading refers to part only of the materials used in the construction of the tie-on, a classification determination cannot be made by way of GRI 3(a).

Applying GRI 3(b), it appears that the plastic represents the essential character of the subject tie-on. The plastic components exceed those made of textiles in bulk and in weight. Consequently, item X72 is classifiable in subheading 6702.10.

X73, Holly Spray

Item X73 consists of natural and artificial foliage. Two headings, therefore, may apply: 0604, "[f]oliage, branches and other parts of plants...being goods of a kind suitable for...ornamental purposes...dried, dyed...or otherwise prepared"; and 6702, "articles made of artificial flowers, foliage or fruit." Classification of this composite good will be according GRI 3(b).

Here, the artificial components of the subject tie-on represent that product's essential character. The paper leaves and plaster dipped berries are much more prominent than the dried flowers. Moreover, it is the gold leaves which provide the product's visual appeal. Accordingly, item X73 is classifiable as an article of artificial foliage in heading 6702.

At the six-digit subheading level, two subheadings apply: 6702.10, articles made of artificial flowers, foliage or fruit, of plastics; and 6702.90, articles made of artificial flowers, foliage, or fruit, of other materials.

While the berries are made from styrofoam, the bulk of the tie-on consists of paper. Consequently, item X73 is classifiable in subheading 6702.90, the provision for articles made from artificial flowers, foliage or fruit, of other materials (not plastics).

HOLDING:

Item X79, plastic sleigh, is classifiable in subheading 3926.40.0000, HTSUSA, which provides for other articles of plastic, statuettes and other ornamental articles, dutiable at 5.3 percent ad valorem.

Item X83, mistletoe wreath, is classifiable in subheading 6702.90.6000, HTSUSA, which provides for articles made of artificial flowers, foliage or fruit, of other materials, other, dutiable at 17 percent ad valorem.

Item X72, plastic pick, is classifiable in subheading 6702.10.4000, HTSUSA, which provides for articles made of artificial flowers, foliage or fruit, of plastics, other, including parts, dutiable at 3.4 percent ad valorem.

Item X73, holly spray, is classifiable in subheading 6702.90.6000, HTSUSA, which provides for articles made of artificial flowers, foliage or fruit, of other materials, dutiable at 17 percent ad valorem.

Please be advised that the liquidation of entries for articles classified under subheading 6702.90.6000, HTSUSA, is being withheld pending the disposition of legislation currently before Congress concerning the classification of artificial flowers and foliage.

Sincerely,

John Durant, Director
Commercial Rulings Division

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