HQ 0955845 - "Quiz Wiz" Educational Electronic Module with Question Booklet and Answer Cartridge; Separate Booklet/Cartridge Combinations; "Goods Put Up in Sets for Retail Sale"; Essential Character; GRI 3(b); Heading 9504; EN to Chapter 94; HQs 088494, 088694, 086577 and 088044; NY 891428, revoked - United States International Trade Commision Rulings

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HQ 955845

August 22, 1994

CLA-2 CO:R:C:M 955845 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 4901.99.00, 8543.80.95

Mr. Paul S. Anderson
Sonnenberg, Anderson & Rodriguez
200 South Wacker Drive, 33rd Floor
Chicago, IL 60606

RE: "Quiz Wiz" Educational Electronic Module with Question Booklet and Answer Cartridge; Separate Booklet/Cartridge Combinations; "Goods Put Up in Sets for Retail Sale"; Essential Character; GRI 3(b); Heading 9504; EN to Chapter 94; HQs 088494, 088694, 086577 and 088044; NY 891428, revoked

Dear Mr. Anderson:

This is in response to your letter dated January 28, 1994, on behalf of Tiger Electronics, Inc., requesting reconsideration of NY 891428, dated November 3, 1993, involving the tariff classification of the "Quiz Wiz" question booklet and answer cartridge accessory set under the Harmonized Tariff Schedule of the United States (HTSUS). Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. No. 103-182, 107 Stat. 2057, 2186 (1993)(hereinafter, "section 625"), notice of the proposed revocation of NY 891428 was published on July 20, 1994, in the Customs Bulletin, Volume 28, Number 29. No comments were received. Our decision in this matter is set forth below.

FACTS:

The three-component version of "Quiz Wiz" consists of an electronic module, one question booklet and an answer cartridge, which are imported into the United States packaged together for sale as a set. The electronic module operates on three "AA" batteries and is not designed for use with an A/C adapter. The user enters a question number and an answer choice (from the booklet) on the keyboard. The module (with cartridge inserted) indicates whether the answer is correct by a red or green flashing light, or by a simulated vocal response of "yes/no" or "right/wrong."

The question booklet/answer cartridge combination, which was the subject of NY 891428, will also be imported packaged together for sale as an accessory to the "Quiz Wiz". Each version of the booklet/cartridge combination covers one of twenty-four separate topics, including nature, animals, science sports, famous people, geography, travel, language, television, and movies. Each booklet contains 1001 questions, and corresponding answer choices for each question. Because the module does not keep score, score sheets are included in the booklets for manual score keeping. Each cartridge, which is a printed circuit board, relates to the subject matter of its corresponding booklet, and must be inserted in the electronic module for the module to provide responses to the user's booklet-guided input.

ISSUE:

Which component imparts the essential character of the two "Quiz Wiz" sets under the HTSUS?

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 shall be determined according to the terms of the headings and any relative section or chapter notes.

In NY 891428, dated November 3, 1993, the Area Director of Customs, New York Seaport, determined that the question booklet/answer cartridge combination for the "Quiz Wiz" module was an accessory to a game machine classifiable under subheading 9504.90.40, HTSUS.

The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the Customs Cooperation Council's official interpretation of the HTSUS. While not legally binding, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed.Reg. 35127, 35128 (August 23, 1989). The ENs to Chapter 95, page 1585, states as follows: "This chapter covers toys of all kinds whether designed for the amusement of children or adults." (emphasis added). Therefore, to be classifiable in chapter 95, the merchandise must have the essential character of an article designed for the amusement of children or adults.

Customs has previously determined that electronic modules which teach functions such as spelling, math, picture identification, colors, shapes, matching and other basic academic skills, even if for the amusement of children and adults, fulfill an educational or learning function. Customs concluded that this type of merchandise was not covered within chapter 95, HTSUS. Because there is no provision in the HTSUS for "educational articles" per se, Customs would classify the electronic module under heading 8543, HTSUS, which provides for: "[e]lectrical machines and apparatus, having individual functions, not specified or included elsewhere. . . ." See HQ 088694 (July 10, 1991); HQ 088494 (April 19, 1991); HQ 086577 (May 4, 1990), for rulings involving similar articles.

The "Quiz Wiz" is intended for use by children as well as adults to test and increase knowledge of facts and other information in an entertaining manner. Based upon the previous rulings listed above, we conclude that the "Quiz Wiz" is an "educational article" and therefore not classifiable under chapter 95, HTSUS.

Because there is no "educational articles" provision within the HTSUS, classification must be determined by application of the GRI's. However, neither version of the "Quiz Wiz" may be classified by reference to GRI 1 because each contains components that are classifiable in different headings. The electronic module is classifiable in heading 8543, HTSUS, as "[e]lectrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof." The answer cartridge, which is a printed circuit board in a plastic housing, is classifiable in heading 8534, HTSUS, as "[p]rinted circuits". The question booklet is classifiable in heading 4901, HTSUS, as "[p]rinted books, brochures, leaflets and similar printed matter, whether or not in single sheets."

Because classification in a single heading cannot be determined by applying GRI 1, we must apply the other GRI's. GRI 2(a) is not applicable here because the merchandise is not incomplete or unfinished. GRI 2(b) states that if a product is a mixture or combination of materials or substances that are, prima facie, classifiable in two or more headings, then GRI 3 applies.

GRI 3(a) provides in pertinent part:

[t]he 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 items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

Because the electronic module, the answer cartridge, and the question booklet fall under separate headings in the tariff schedule which describe only a portion of the "Quiz Wiz", the headings are to be regarded as equally specific under GRI 3(a). Therefore, GRI 3(a) fails in establishing classification, and GRI 3(b) becomes applicable. GRI 3(b) provides as follows:

[m]ixtures, composite goods . . . made up of different components, and goods put up in sets for retail sale, . . . shall be classified as if they consisted of the material or component which gives them their essential character.

EN X to GRI 3(b), page 4, provides a three-part test for "goods put up in sets for retail sale":

[f]or the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which:

(a) consist of at least two different articles which are, prima facie, classifiable in different headings. Therefore, for example, six fondue forks cannot be regarded as a set within the meaning of this Rule;

(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 sale directly to users without repacking (e.g., in boxes or cases or on boards).

In the present situation, the merchandise consists of two or three different articles, which are prima facie classifiable under different headings. The merchandise is put up together to meet a particular need or carry out a specific activity; to test and increase knowledge of facts and other information. Both versions of the "Quiz Wiz" are packaged together for sale directly to the consumer without repacking. Therefore, both versions of the "Quiz Wiz" are a set for tariff purposes. To determine the proper classification, the essential character of the "Quiz Wiz" sets needs to be determined.

EN VIII to GRI 3(b) provides the following guidance concerning the essential character determination:

[t]he 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.

With respect to the two-component version of "Quiz Wiz," we note that the question booklet not only contains 1001 questions, but also reveals all the answer choices. The booklet has educational value even standing alone. The answer cartridge, on the other hand, must function with the module to pair answers with questions and express whether the user's choice is correct. We thus find that the question booklet provides the booklet/ cartridge set with its essential character. See HQ 088044 (April 4, 1991), and HQ 086838 (July 3, 1990), for similar findings concerning the essential character of comparable, multiple component articles. Therefore, the question booklet and answer cartridge set is classifiable under subheading 4901.99.0093, HTSUS, which provides for: "[p]rinted books, brochures, leaflets and similar printed matter, whether or not in single sheets: [o]ther: [o]ther, [o]ther: [o]ther: [o]ther: [c]ontaining 49 or more pages each (excluding covers)."

Looking to the three-component version of "Quiz Wiz," we find that the electronic keyboard module is the essential component of the retail set due to its greater bulk, size and its relation to the question booklet and answer cartridge. The electronic module is the focus of the user's "hands on" interaction with the whole article, and the component which provides the light or sound indication of a right or wrong answer. As evidenced by the availability of other cartridges and books as an accessory, the user would buy the "Quiz Wiz" for the electronic module with the option of purchasing additional question and answer accessories. Therefore, the three-component version of "Quiz Wiz" is properly classified in subheading 8543.80.95, HTSUS, which provides for: "[e]lectrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter. . . : [o]ther machines and apparatus: [o]ther: [o]ther. . . ." Therefore, NY 891428 is revoked.

HOLDING:

The two-component version of "Quiz Wiz," which consists of a question booklet and an answer cartridge, is properly classified in subheading 4901.99.0093, HTSUS, which provides for: "[p]rinted books, brochures, leaflets and similar printed matter, whether or not in single sheets: [o]ther: [o]ther, [o]ther: [o]ther: [o]ther: [c]ontaining 49 or more pages each (excluding covers)." The general, column one rate of duty is free.

The three-component version of "Quiz Wiz," which consists of an electronic keyboard module, a question booklet, and an answer cartridge, is properly classified in subheading 8543.80.95, HTSUS, which provides for: "[e]lectrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter. . . : [o]ther machines and apparatus: [o]ther: [o]ther. . . ." The applicable duty rate is 3.9 percent ad valorem.

In accordance with section 625, this ruling will become effective 60 days after publication in the Customs Bulletin. Publication of rulings or decisions pursuant to section 625 does not constitute a change of practice or position in accordance with section 177.10(c)(1), Customs Regulations [19 CFR

Sincerely,

John Durant, Director
Commercial Rulings Division

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