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HQ 087875


November 28, 1990

CLA-2 CO:R:C:G 087875 DFC

CATEGORY: CLASSIFICATION

TARIFF NO: 9105.91.80; 9403.60.8080; 9109.19.40

Mr. Herman W. Bernard
President
Bernards, Inc.
P.O. Box 1489
High Point, North Carolina 27261

RE: Reconsideration of New York Ruling Letter (NYRL) 855424 dated August 22, 1990, concerning the tariff classification of table clocks. NYRL 855424 affirmed

Dear Mr. Bernard:

In a letter dated August 28, 1990, you asked us to reconsider the result reached in NYRL 855424 dated August 22, 1990, concerning the tariff classification of two table clocks produced in Taiwan.

FACTS:

A photostat representation of Bernards' model 2228 clock table was submitted. The model 2228 is a battery-operated quartz analog clock in a Queen Anne-style wooden table that has three legs. The clock table measures 23" high and 18" in diameter. A glass crystal, which serves to protect the clock dial, also serves as the table top. The model 2228 is representative of model 2227 which is a quartz analog clock in a traditional style wooden table.

In NYRL 855424 you were advised that the subject merchandise is classifiable under subheading 9105.91.80, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as other clocks, other, battery or ac powered, other, with duty at the rate of 30 cents each plus 6.9 percent ad valorem on the case (the wooden table) plus 5.3 percent ad valorem on the battery.

You ask that you be allowed to import the table with or without the clock under subheading 9403.60.8080, HTSUSA , as other wooden furniture, other, other, with duty at the rate of 2.5 percent ad valorem.

ISSUE:

Should table clocks be considered furniture for tariff purposes?

LAW AND ANALYSIS:

You have submitted four reasons in support of your claim that the table clocks are classifiable as furniture. They are listed as follows:

1. the wood table represents 76% of the total cost;
2. the wood table represents 79% of the total weight;
3. if the clock ceased to function, you would still have a functional table; and
4. Bernards anticipates buying the same table with the glass top, less the clock movement, for sale as a regular end table. Bernards would then import the clock movement separately and their customers would buy the clock movement separately, if they so desired.

In applying the HTSUSA, the Customs Service must follow the terms of the statute. Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes, and, provided such headings or notes do not otherwise require, according to [the remaining GRI's taken in order]." In other words, classification is governed first by the terms of the headings of the tariff and any relative section or chapter notes.

GRI 3 reads in pertinent part as follows:

3. When by application of Rule 2(b) or for any other reason, goods are prima facie, classifiable under two or more headings, classification shall be effected as follows:

(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods . . . those headings are to be regarded as equally specific in relation to those goods, even if one of them gives as more complete or precise description of the goods.

(b) 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.

Legal Note (LN) 1(k) to Chapter 94, HTSUSA, provides that "[t]his chapter does not cover: Articles of chapter 91 (for example, clocks and clock cases)."

Due to the exclusionary language of LN 1(k), we do not consider the clock tables to be composite goods and thus GRI 3 HTSUSA, is not applicable here. Consequently, there is no need to consider your reasons 1 and 2 concerning the relative costs and relative weights of the clock tables.

With respect to reason 3, it is our observation that if the clock fails, it could be repaired just as any other clock is repaired. More often than not, the repair of a quartz analog clock is accomplished by simply replacing its battery.

Reason 4 is not a reason for your claimed classifications. In response to the statements contained therein the following classifications apply:

(a) If models 2227 and 2228 tables are imported with glass tops, but without clock movements, they are classifiable under subheading 9403.60.8080, HTSUSA, as other wooden furniture, other, other, with duty at the rate of 2.5 percent ad valorem.

(b) If the quartz analog clock movement is imported separately, it is classifiable in subheading 9109.19.40, HTSUSA, as clock movements, complete and assembled, battery or AC powered, other, other, other, valued not over $5 each. The rate of duty is
15 cents each plus 6.4 percent on the movement plus 5.3 percent ad valorem on the battery.

Based on the exclusionary language of LN 1(k) to Chapter 94, HTSUSA, it is our position that models 2227 and 2228 clock tables imported complete with clock movements were correctly classified under subheading 9105.91.80, HTSUSA, in NYRL 855424.

HOLDING:

NYRL 855424 is affirmed as to the classification of the models 2227 and 2228 clock tables imported complete with clock movements.

If models 2227 and 2228 tables are imported with glass tops, but without clock movements, they are classifiable under subheading 9403.60.8080, HTSUSA.

If the quartz analog clock movement is imported separately, it is classifiable under subheading 9109.19.40, HTSUSA.

Sincerely,

John Durant, Director

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