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HQ 955278

November 9, 1993

CLA-2 CO:R:C:M 955278 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 9102.11.50

Mr. Joseph Paprskar
Vice President, Operations
Seiko Corporation of America
1111 Macarthur Boulevard
Mahwah, NJ 07430

RE: Quartz Analogue Automatic Wrist Watch; Explanatory Notes 91.01 and 91.02; Battery or Accumulator Powered; GRI's 3(a) and 6; Heading 9101; 9102.21.30

Dear Mr. Paprskar:

This is in response to your letter of October 18, 1993, to the Area Director of Customs, New York Seaport, concerning the classification of a quartz analogue automatic wrist watch under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter, together with the sample watch, has been referred to this office for a response.

FACTS:

The Seiko Kinetic quartz analogue automatic wrist watch (model no. SHF032) is a product of Japan. The 6 jewel quartz watch features an "Automatic Generating System" (AGS), in a gold-plated case, with a steel back, connected to a gold-plated metal band. The AGS converts the rotational energy generated by the movement of the arm of the watch wearer into electrical energy, and thus powers the watch. The watch is not powered by a battery. The electrical energy generated is stored in the capacitor, which serves as the secondary source of power. Because the AGS is entirely self-generating, there is no need for another source of energy. If the watch is left unused for a long period of time, it will start operating again when the user merely swings it from side to side. When the capacitor is fully charged, the energy stored can power the watch for approximately 3 days even if left unused. When the energy stored in the capacitor is reduced to an extremely low level, the second hand starts moving at two-second intervals, indicating that the watch needs recharging. In that case, unless electrical energy is generated, the watch will run down in approximately 12 hours.

The subheadings under consideration are as follows:

9102.21.30: [w]rist watches, pocket watches and other watches, including stop watches, other than those of heading 9101: [o]ther wrist watches, whether or not incorporating a stop watch facility: [w]ith automatic winding: [h]aving over one jewel but not over 17 jewels in the movement: [w]ith strap, band or bracelet of textile movement or of base metal, whether or not gold-or silver-plated.

The general, column one rate of duty for goods classifiable under this provision is $2.19 each and 6 percent ad valorem and 14 percent ad valorem on the strap, band, or bracelet.

9102.11.50: [w]rist watches, battery powered, whether or not incorporating a stop watch facility: [w]ith mechanical display only: [o]ther: [w]ith strap, band or bracelet of textile material or of base metal, whether or not gold- or silver-plated: [w]ith gold- or silver-plated case.

The general, column one rate of duty for goods classifiable under this provision is 80 cents each and 6 percent ad valorem on the case and 14 percent ad valorem on the strap, band, or bracelet and 5.3 percent ad valorem on the battery.

ISSUE:

Whether the subject wrist watch is classifiable under subheading 9102.21.30, HTSUS, as an other wrist watch with automatic winding, or under subheading 9102.11.50, HTSUS, as an other battery powered wrist watch, with mechanical display only.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

It has been suggested that the wrist watch is classifiable under heading 9101, HTSUS, which provides for: "[w]rist watches, pocket watches and other watches, including stop watches, with case of precious metal or of metal clad with precious metal."

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive, are to be used to determine the proper interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory Note 91.01 (p. 1541) states that:

. . . watches with case of precious metal or of metal clad with precious metal, having a steel back, fall in heading 91.02, as do watches with case of base metal inlaid with precious metal.

Therefore, according to Explanatory Note 91.01, because the subject wrist watch has a steel back, it is precluded from classification under heading 9101, HTSUS, and is to be classifiable under one of the provisions of heading 9102, HTSUS.

In part, Explanatory Note 91.02 (p. 1542) expands the terms of subheading 9102.11, HTSUS, by reading "battery or accumulator powered". (emphasis supplied).

In the Oxford American Dictionary, the term "accumulator" is defined as "to increase in quantity or amount".

According to the above definition, it is our position that the subject wrist watch is accumulator powered. The rotational electrical energy generated by the watch user and converted by the AGS is stored in the capacitor. The watch operates on energy which is increased in quantity by the movement of the watch by the user. The operation of the watch is dependent upon the increase and subsequent storage of electrical energy. Consequently, the watch is described under subheading 9102.11, HTSUS.

However, the watch is also described under subheading 9102.21, HTSUS, because the watch in a sense automatically winds every time the user moves the watch from side to side.

GRI 6 states that:

[f]or legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.

In part, GRI 3(a) states that:

[t]he heading which provides the most specific description shall be preferred to headings providing a more general description. . .

Under GRI 3(a) and GRI 6, in comparing subheadings 9102.11 and 9102.21, HTSUS, it is our position that subheading 9102.11, HTSUS, more specifically describes the subject watch, because it provides for battery (including accumulator) powered watches. Subheading 9102.21, HTSUS, does not specifically state how watches classifiable under that provision must be powered.

Therefore, we find that the subject wrist watch is classifiable under subheading 9102.11.50, HTSUS.

HOLDING:

The Kinetic quartz analogue automatic wrist watch (model no. SHF032)is classifiable under subheading 9102.11.50, HTSUS, as an other battery powered wrist watch, with mechanical display only.

Because the wrist watch does not contain a battery, it is not subject to the 5.3 percent ad valorem rate of duty for batteries under subheading 9102.11.50, HTSUS.

Sincerely,

John Durant, Director

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