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HQ 954147


SEPTEMBER 1 1993

CLA-2:CO:R:C:M 954147 JAS

CATEGORY: CLASSIFICATION

TARIFF NO.: 9403.80.60

District Director of Customs
Area/Port of Blaine
1000 Second Ave., Suite 2200
Seattle, WA. 98174

RE: PRD 3004-92-100168; Cardboard Display Stand; Predator Display; Stand-Alone Beverage Display, Motor Operated; Furniture, Movable Articles of Utility; Printed Matter, Subheading 4911.91.30; Electrical Machines and Apparatus, Subheading 8543.80.90; GRI 3(a), HTSUS; NY 868233

Dear Sir:

This is our decision on Application for Further Review of Protest No. 3004-2-100168, filed against your action in classifying certain cardboard displays from Canada. The entry was liquidated on October 16, 1992, and this protest timely filed on October 27, 1992.

FACTS:

The article in issue, designated the Predator Display, is a cardboard cutout designed to be folded into a three-dimensional stand. Cardboard shapes of fruits and a bottled drink designated "Clearly Canadian" are attached to the front. A battery-operated motor causes the fruit shapes to revolve around the bottle and to create the visual illusion of water pouring into the bottle. These stands are displayed in stores that sell the bottled beverage.

The cardboard display was entered under a duty-free provision for other printed matter, in subheading 4911.91.30, HTSUS. You determined that the presence of the motor indicates these novelty items are electrical in nature and liquidated the entry under the provision for electrical machines and apparatus, in subheading 8543.80.90.

A ruling issued to the protestant by the Area Director of Customs, New York Seaport, stated, in part, that the merchandise in issue was classifiable under the provision for other - 2 -
furniture, in subheading 9403.80.60. NY 868233, dated November 13, 1991.

The provisions under consideration are as follows:

4911.91.30 Other printed matter, including printed pictures and photographs: Other: Over
0.51 mm in thickness...Free

8543.80.90 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in [chapter 84]:
Other...0.7 percent under the United States- Canada Free-Trade Agreement (CFTA)

9403.80.60 Other furniture and parts thereof: Furniture of other materials: Other...0.8 percent under the United States-Canada Free-Trade Agreement

ISSUE:

Whether the motor-operated cardboard display stand is a good of heading 8543; which of the remaining two headings is more specific.

LAW AND ANALYSIS:

Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6.

The Harmonized Commodity Description And Coding System Explanatory Notes (ENs) constitute the Customs Cooperation Council's official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the System. Customs believes the notes should always be consulted. See T.D. 89-80.

Initially, ENs at p. 1402 state that heading 8543 does not cover electrical apparatus provided more specifically in any - 3 -
other heading in chapter 85 or in any heading in another chapter of the HTSUS. In addition, the cardboard display stand does not have an individual function as required for goods of heading 8543. Therefore, this heading does not apply here.

Relevant ENs at p. 691 state that with a few exceptions not relevant here, chapter 49 covers all printed matter of which the essential nature and use is determined by the fact of its being printed with motifs, characters or pictorial representations. The ENs for chapter 94 state at p. 1574 that the term "furniture" means any movable article not included under other more specific headings of the HTSUS, which have the essential characteristic that they are constructed for placing on the floor or ground and are used, mainly with a utilitarian purpose, to equip hotels, theaters, offices, schools, restaurants, laboratories, hospitals, among other places. The cardboard display stand in issue is prima facie classifiable both in heading 4911 and in heading 9403. In our opinion, the motor does not add a second primary function or impart a new capability that would remove the cardboard display stand from the scope of either heading.

In accordance with GRI 3(a), the heading which provides the most specific description shall be preferred to headings providing a more general description. In most cases, goods will be classified in a provision that most narrowly and specifically describes them or which have requirements that are more difficult to satisfy. Heading 9403 encompasses "other" furniture, a class of goods designated eo nomine, by name, and a term that is defined in the ENs. Heading 4911, on the other hand, is a more general provision that encompasses "other" printed matter. An eo nomine designation will generally prevail over words of general description, unless a contrary legislative intent appears.

HOLDING:

Under the authority of GRI 3(a), we conclude that heading 9403 provides a more specific description for the cardboard display stand than does heading 4911. The goods are properly classifiable in subheading 9403.80.60, HTSUS, as furniture of other materials.

Since the CFTA rate of duty under subheading 9403.80.60 is more than the liquidated rate, the protest should be denied. A copy of this decision should be attached to the Customs Form 19 and mailed to the protestant, through his representative, as part of the notice of action on the protest.

Sincerely,

John Durant, Director
Commercial Rulings Division


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