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HQ 951398


June 8, 1992

CLA-2 CO:R:C:F 951398 LPF

CATEGORY: CLASSIFICATION

TARIFF NO.: 4602.10.5000, 4602.90.0000

Ms. Janet Iyoya
Western Trimming Corp.
9667 Canoga Avenue
Chatsworth, CA 91311

RE: Modification of Pre-Entry Classification Rulings 866737 and 868733; Paper Straw Hat; Decorative Peacock Chair; Subheadings 4602.90.0000 and 4602.10.5000; Other articles made directly to shape from plaiting materials.

Dear Ms. Iyoya:

In Pre-Entry Classification Ruling (PC) 866737 issued October 9, 1991, a straw hat article, of paper, (Item 6206) was classified in subheading 4823.90.8500 as other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers, at a general column one duty rate of 5.3 percent ad valorem. In PC 868733 the same article was classified in subheading 4602.10.5000 as basketwork, wickerwork and other articles, made directly to shape from plaiting materials, of vegetable materials, at a temporary duty rate of 2.3 percent ad valorem, pursuant to subheading 9903.10.38.

In PC 866737, peacock chairs, of buri, (Items 13441 and 13442) were classified in subheading 9503.90.6000 as other toys and accessories thereof, at a general column one duty rate of 6.8 percent ad valorem.

Subsequently, we have reviewed these rulings and have found them to be partially in error. The correct classification is as follows.

FACTS:

One article at issue (Item 6206) is a straw hat, made of paper, which includes a ribbon. It is three inches in diameter.

The other articles (Items 13441 and 13442) are peacock chairs, made of buri (a type of palm). These articles are twelve and sixteen inches high, respectively.

ISSUES:

Whether the paper straw hat is classifiable in heading 4823 as other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers; in heading 9502 as doll parts and accessories, or in heading 4602 as basketwork, wickerwork and other articles, made directly to shape from plaiting materials.

Whether the buri peacock chairs are classifiable in heading 9503 as other toys and accessories thereof or are classifiable in heading 4602 as basketwork, wickerwork and other articles, made directly to shape from plaiting materials.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) taken in their appropriate order provide a framework for classification of merchandise under the HTSUSA. The majority of imported goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative section or chapter notes. The Explanatory Notes (EN's) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI's.

Straw hat

This article is classifiable by applying GRI 1, that is, according to the terms of the applicable heading. Heading 9502 provides for dolls representing only human beings and parts and accessories thereof, while heading 9503 provides for other toys. The EN's to Chapter 95, HTSUSA, indicate that,

[t]his Chapter covers toys of all kinds whether designed for the amusement of children or adults....

[e]ach of the headings of this Chapter also covers identifiable parts and accessories of articles of this Chapter which are suitable for use solely or principally therewith....

It is Customs position that the amusement requirement means that toys should be designed and used principally for amusement. See Additional U.S. Rule of Interpretation 1(a), HTSUSA.

Although the EN's to heading 9502 provide that hats may be considered a part or accessory of a doll, the subject hat has divergent uses. The crocheted structure and stiffness of the article creates an item which consumers, understandably, may be inclined to use as a household decoration. The article is not "solely or principally used" as a doll accessory, nor will the article's principal use be as a toy. See Headquarters Ruling Letters 950129, dated December 16, 1991 and 950349, dated January 27, 1992. Thus, the paper straw hat must be classified elsewhere.

Heading 4602 provides for basketwork, wickerwork and other articles, made directly to shape from plaiting materials. The EN's to Chapter 46, HTSUSA, explain that the chapter covers articles made by interlacing, weaving or by similar methods of assembling unspun materials, including strips of paper, provided it is in a state or form suitable for plaiting, interlacing or similar processes. The paper strips of the straw hat have been interlaced in this manner. As the article incorporates a decorative motif, and is made to shape from plaiting materials, it is classifiable in heading 4602. See HRL 950400, dated November 20, 1991. Because paper is not considered a vegetable material, the applicable subheading is 4602.90.0000.

Having determined that heading 4602 provides for the article, there is no need to resort to the "basket" provision, heading 4823, which provides for other articles of paper pulp, paper and paperboard. As between the two headings, the former appropriately and specifically provides for the product as opposed to the latter.

Peacock chairs

Applying the analysis employed above, the peacock chairs are not classifiable in heading 9502 or 9503. Rather, the buri peacock chairs are classifiable in heading 4602. Because buri is considered a vegetable material, the applicable subheading is 4602.10.5000.

HOLDING:

The paper straw hat is classifiable in subheading 4602.90.0000 as "Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601; articles of loofah: Other." The general column one rate of duty is 5.3 percent ad valorem.

The buri peacock chairs are classifiable in subheading 4602.10.5000 as "Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601; articles of loofah: Of vegetable materials: Other: Other." The general column one rate of duty is 3 percent ad valorem. However, the article is subject to a temporary duty reduction under subheading 9903.10.38, where the general column one rate of duty is 2.3 percent ad valorem. At the present time, the duty reduction is scheduled to expire on December 31, 1992.

This notice should be considered a modification of Pre-Entry Classification Rulings 866737 and 868733 pursuant to 19 CFR 177.9(d)(1). It is not to be applied retroactively to PC's 866737 or 868733 (19 CFR 177.9(d)(2)) and will not, therefore, affect past transactions for the importation of your merchandise under those rulings. However, for the purposes of future transactions in merchandise of this type, PC's 866737 and 868733 will not be valid precedent. We recognize that pending transactions may be adversely affected by this modification, in that current contracts for importations arriving at a port subsequent to this decision will be classified pursuant to it. If such a situation arises you may notify this office and apply for relief from the binding effects of this decision as may be warranted by the circumstances.

Sincerely,

John Durant, Director

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