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HQ 087865


December 21, 1990

CLA-2 CO:R:C:G 087865 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 4911.10.00; 4820.90.00

Mr. Kevin Hawe
Marketing Manager
Trifour Systems International, Ltd.
#19-3318 Oak Street
Victoria, British Columbia
Canada V8X 1R1

RE: Wynn's X-tend Planned Service Care; Other printed matter; Trade advertising material; General Note 4(c); GRI 3(b)

Dear Mr. Hawe:

This is in reply to your letter of July 18, 1990, on behalf of Trifour Systems International, Ltd., requesting classification of "Wynn's X-tend Planned Service Care" printed materials, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

Trifour Systems International, Ltd., (Trifour) is a computer data processing firm that specializes in the production of automotive dealership customer service reminder letters, manuals, advertising, etc. These materials are part of a customer follow- up automobile maintenance program. The program is called "Wynn's X-tend Planned Service Care." This program is essentially a packaged data processing service that is sold to automotive dealers on a per enrolment basis, rather than selling the software to the dealer.

The submitted samples include:

The "Service Scheduling Lists" which are records containing customer and automobile information used internally by the automobile dealer.

The "Planned Service Care" booklets which are printed booklets for the consumers' use in determining when service is necessary and what service should be performed. These booklets are customized with the consumers' name, address and automobile information.

The "Planned Service Care" personalized form letter which is a marketing/advertising tool designed to generate automobile service.

The "Planned Service Care Customer Retention & Service Merchandising Program" booklet is designed as a marketing/ advertising tool to persuade the automobile dealers to enroll in Wynn's X-tend Planned Service Care Program.

The "Quick Start Bulk Enrollment" form is a single sheet, blank business form (intended to compile the consumers' statistical information) to be completed by the U.S. automobile dealer and returned to Trifour.

ISSUE:

What is the classification of "Wynn's X-tend Planned Service Care" printed materials, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

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 these materials should be exempt from duty under General Note 4(c), HTSUSA, which provides for: "records, diagrams and other data with regard to any business, engineering or exploration operation whether on paper, cards, photographs, blueprints, tapes or other media." We agree that the "Service Scheduling Lists" are records with regard to business because they are records containing customer and automobile information used internally by the automobile dealer. However, the other submitted samples are not "records" "with regard to any business." These are materials generally for the consumers' use and for marketing automobile dealers' service business.

The "Planned Service Care" booklets are printed booklets for the consumers' use in determining when service is necessary and what service should be performed. These booklets are customized with the consumers' name, address and automobile information. Clearly, these booklets are marketing/advertising tools provided for under subheading 4911.10.00, HTSUSA, which provides for: "[o]ther printed matter, including printed pictures and photographs: [t]rade advertising material, commercial catalogs and the like."

The "Planned Service Care" personalized form letter is also a marketing/advertising tool designed to generate automobile service. Therefore, it is also provided for under subheading 4911.10.00, HTSUSA, which provides for: "[o]ther printed matter, including printed pictures and photographs: [t]rade advertising material, commercial catalogs and the like."

The "Planned Service Care Customer Retention & Service Merchandising Program" booklet is designed as a marketing/ advertising tool to persuade the automobile dealers to enroll in Wynn's X-tend Planned Service Care Program. Therefore, it is also provided for under subheading 4911.10.00, HTSUSA, which provides for: "[o]ther printed matter, including printed pictures and photographs: [t]rade advertising material, commercial catalogs and the like."

The "Quick Start Bulk Enrollment" form is a single sheet, blank business form (intended to compile the consumers' statistical information) to be completed by the U.S. automobile dealer and returned to Trifour. This business form is provided for under subheading 4820.90.00, HTSUSA, which provides for: "[r]egisters, account books...manifold business forms...and other articles of stationary...: [o]ther."

Trifour has not stated which articles, if any, will be imported together. GRI 3(b) states:

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.

However, it appears that none of these articles would impart the essential character of the whole. "Wynn's X-tend Planned Service Care" program is a system that relies equally on all of its components for success. Therefore, GRI 3(c) applies:

When 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.

Therefore, when the submitted merchandise is imported together, it will be classifiable under subheading 4911.10.00, HTSUSA, which provides for: "[o]ther printed matter, including printed pictures and photographs: [t]rade advertising material, commercial catalogs and the like."

HOLDING:

The "Service Scheduling Lists" are classifiable under General Note 4(c), HTSUSA, which provides for: "records, diagrams and other data with regard to any business, engineering or exploration operation whether on paper, cards, photographs, blueprints, tapes or other media." These records are therefore exempt from duty.

The "Planned Service Care" booklets are trade advertising material provided for under subheading 4911.10.00, HTSUSA, which provides for: "[o]ther printed matter, including printed pictures and photographs: [t]rade advertising material, commercial catalogs and the like." The rate of duty is Free.

The "Planned Service Care" personalized form letter is trade advertising material provided for under subheading 4911.10.00, HTSUSA, which provides for: "[o]ther printed matter, including printed pictures and photographs: [t]rade advertising material, commercial catalogs and the like." The rate of duty is Free.

The "Planned Service Care Customer Retention & Service Merchandising Program" booklet is trade advertising material provided for under subheading 4911.10.00, HTSUSA, which provides for: "[o]ther printed matter, including printed pictures and photographs: [t]rade advertising material, commercial catalogs and the like." The rate of duty is Free.

The "Quick Start Bulk Enrollment" form is a single sheet, blank business form provided for under subheading 4820.90.00, HTSUSA, which provides for: "[r]egisters, account books...manifold business forms...and other articles of stationary...: [o]ther." The rate of duty is 3.1% ad valorem, (2.1% January 1, 1991), if the requirements of the United States- Canada Free Trade Agreement are met.

When the submitted merchandise is imported together, it will be classifiable under subheading 4911.10.00, HTSUSA, which provides for: "[o]ther printed matter, including printed pictures and photographs: [t]rade advertising material, commercial catalogs and the like." The rate of duty is Free.

Sincerely,

John Durant, Director

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