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HQ 953664


June 17, 1993

CLA-2 CO:R:C:F 953664 ALS

CATEGORY: CLASSIFICATION

TARIFF NO.: 3926.90.4000 9801.00.10

Ms. Jinny Jung
Import Supervisor
Expeditors International
601 N. Nash Street
El Segundo, CA 90245

RE: Transfer and Jewel Kits for the Decoration of Garments

Dear Ms. Jung:

This is in reference to your request of March 22, 1993, for a binding ruling on the subject kits which are known as Transfers to Treasures. Information in that request was modified and clarified in your subsequent telephonic conversations with our New York Seaport Office and this Office. You advised our New York Seaport Office that the sample submitted may not exactly correspond to the product to be imported. You advised us that only metalized braided cord would be used in the kits.

FACTS:

The articles under consideration are kits designed to decorate garments. They are composed of an assortment of small plastic top, metal back, colored flat acrylic discs. The discs are of various sizes and shapes and are described as artificial jewels. The kits also contain pattern transfer sheets which permit the heat transfer of the design to the garment. Some of the kits will have a metalized braided cord and others will have a container of glitter paint of U.S. origin. The kits will not have both the metalized cord and the glitter paint. None of the kits, contrary to the information initially submitted, will contain a bottle of glue.

ISSUE:

What is the classification of the complete kits and the glitter paint of U.S. origin contained in some of the kits?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes. If GRI 1 fails to classify the goods and if the heading and legal notes do not otherwise require, the remaining GRI's are applied taken in order.

In considering the headings eligible for classification of these goods, we noted that the components which permit the kits to perform their function of decorating garments fall into 3 different headings of the HTSUSA. For purposes of classification, the packaging was not considered. There is no specific heading that refers to all the components of the kits. Since each of the headings refer to only a part of the article, we referred to GRI 3 which, pursuant to GRI 2, provides that goods classifiable under 2 or more headings shall be classified according to the provisions of GRI 3. Although GRI 3(a) provides that the heading with the most specific description shall be preferred to other headings, when 2 or more headings refer to a part only of the materials or substances contained in mixed or composite goods, the headings are to be considered as equally specific. We found that to be the case with this article so it could not be classified under that GRI.

We next referred to GRI 3(b) which covers 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 GRI 3(a). In considering whether the subject articles are sets for retail sale in accord with GRI 3(b), we evaluated the articles against the specified requirements which a product must meet to qualify for classification thereunder. The articles must:

(a) consist of at least 2 different articles which are prima facie classifiable in different headings;

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and

(c) are put up in a manner suitable for retail sale directly to users without repacking.

We believe that the articles under consideration meet all those requirements. The individual components of the kits are clearly packaged to be sold at retail, they are composed of at least 2 different articles classifiable in different headings, and the contents of each kit are designed to permit an interested person to decorate a garment.

In considering which of the materials give the kit its essential character we noted 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 the goods. The imitation jewels and transfer sheets with the design thereon are common to all the kits. The imitation jewels, in addition to being common to all kits, are the one component which permits the kit to decorate the garment. The cord and glitter paint which are each present in some kits support the function of the imitation jewels. The transfer sheets, other than establishing the pattern for the decoration by the jewels, etc., perform no function and cannot be seen once they are utilized.

Accordingly, the imitation jewels form the essential character of the kits which are sets for classification purposes. Accordingly, they should be classified in the provision for imitation gemstones in heading 3926, HTSUSA, which covers other articles of plastic....

The glitter paint, stated to be of U.S. origin, is sent to the country where the kit components are assembled for repackaging into small squeeze bottles. The small squeeze bottles of glitter paint are then packaged in some of the kits without having been further advanced in value or improved in condition. Upon confirmation of the U.S. origin, compliance with section 10.1, Customs Regulations (19 CFR 10.1) and clarification of the specifics of the foreign processing, the glitter paint may be eligible for duty-free treatment pursuant to subheading 9801.00.10, HTSUSA.

HOLDING:

Transfer and imitation jewel kits for the decoration of garments, in which the imitation jewels form the essential character of the kit, are classifiable in subheading 3926.90.4000, HTSUSA, and are subject to a general rate of duty of 2.8 percent ad valorem.

Glitter paint of U.S. origin which is exported in bulk and repackaged into small squeeze bottles for inclusion in transfer and imitation jewel kits without having been further advanced in value or improved in condition may be eligible for duty-free treatment under subheading 9801.00.10, HTSUSA, upon compliance with section 10.1, Customs Regulations (19 CFR 10.1).

Sincerely,

John Durant, Director
Commercial Rulings division

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