HQ 0955932 - Beehive Honey Pot; glass dish with silver-plated lid; silver- plated plate and spoon; set; GRI 3(b); EN Rule 3(b)(X); essential character; EN Rule 3(b); EN 70.13; HRL 954414 - United States International Trade Commision Rulings

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HQ 955932
June 29, 1994

CLA-2 CO:R:C:M 955932 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 7013.31; 7013.39

Mr. Michael Skidmore
Tower Group International, Inc.
115 Broad Street
P.O. Box 192
Boston, Massachusetts 02101

RE: Beehive Honey Pot; glass dish with silver-plated lid; silver- plated plate and spoon; set; GRI 3(b); EN Rule 3(b)(X); essential character; EN Rule 3(b); EN 70.13; HRL 954414

Dear Mr. Skidmore:

This is in response to your letter dated February 16, 1994, on behalf of Newton Buying Corporation, regarding the tariff classification of the "Beehive Honey Pot" under the Harmonized Tariff Schedule of the United States (HTSUS). A sample was submitted for our examination.

FACTS:

The article under consideration is the "Beehive Honey Pot" which consists of a lead crystal glass dish with silver-plated lid, silver-plated plate and spoon. The "Beehive Honey Pot" is boxed and sold as a set. It is marketed as a "Queen Anne Beehive Honey Pot, Silver plated tableware." You state that as the items are never sold individually, the only value breakdown available is as follows:

Silver-plated plate, spoon and lid $2.50
Glass dish $4.30

You contend that the "Beehive Honey Pot" is classified under subheading 7114.20.00, HTSUS, as other tableware of metal clad with precious metal, or under subheading 7013.31.50, HTSUS, as tableware of lead crystal. The competing subheadings are as follows:

7013 Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 7010 or 7018)...

7013.31 Glassware of a kind used for table (other than drinking glasses) or kitchen purposes other than that of glass-ceramics...Of lead crystal....

7013.39 Glassware of a kind used for table (other than drinking glasses) or kitchen purposes other than that of glass-ceramics...Other....

7114.20.00 Articles of goldsmiths' or silversmiths; wares and parts thereof, of precious metal or of metal clad with precious metal...Of base metal clad with precious metal.

ISSUE:

What is the tariff classification of the "Beehive Honey Pot" under the HTSUS?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, 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...."

When, by application of GRI 2, HTSUS, goods are prima facie classifiable under two or more headings, GRI 3, HTSUS, is applicable. In this case, classification is determined by application of GRI 3(b), HTSUS, which provides:

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 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

To determine what is a "set put up for retail sale" the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System (HCDCS) may be utilized. EN Rule 3(b)(X) (pg. 4), provides a three-part test for "goods put up in sets for retail sale":

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

The ENs, although not dispositive, are to be looked to for the proper interpretation of the HTSUS. See, T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

In the present situation, the merchandise consists of three different articles, which are classified under different headings. The glass dish with silver-plated lid is classified under heading 7013, HTSUS. The silver-plated spoon is classified under heading 8215, HTSUS, and the silver-plated plate is classified under the heading of the metal from which it is made. All three articles are packaged together for sale directly to the consumer without repackaging. Additionally, the components are put up together to meet a particular need or carry out a specific activity; to serve honey. Therefore, the "Beehive Honey Pot" is a set for tariff purposes. To determine the proper classification, the essential character of the "Beehive Honey Pot" set needs to be determined.

In general, essential character has been construed to mean the attribute which strongly marks or serves to distinguish what an article is; that which is indispensable to the structure, core or condition of the article. In addition, EN Rule 3(b) (pg. 4), provides further factors which help determine the essential character of goods. Factors such as bulk, quantity, weight or value, or the role of a constituent material in relation to the use of the goods are to be utilized, though the importance of certain factors will vary between different kinds of goods.

We are of the opinion that the essential character of the "Beehive Honey Pot" set is imparted by the glass dish with silver- plated lid. The glass dish with silver-plated lid is valued higher than the other components. The glass dish with silver-plated lid performs the principal function of the "Beehive Honey Pot" set; the glass dish actually holds the honey. The glass dish with silver- plated lid is the central piece and the focus of the set when the merchandise is being used to serve honey.

As stated previously, the glass dish with silver-plated lid is classified under heading 7013, HTSUS. EN 70.13 (pgs. 936- 936a) states that:

Articles of glass combined with other materials (base metal, wood, etc.) are classified in this heading only if the glass gives the whole the character of glass articles. Precious metal or metal clad with precious metal may be present, as minor trimmings only; article in which such metals constitute more than mere trimmings are excluded (heading 71.14) (emphasis in original).

In this case, we are of the opinion that the glass dish gives the whole article (glass dish with silver-plated lid) the character of glass article. We note that EN 70.13 indicates that articles containing precious metal or metal clad with precious metal, constituting more than mere trimmings, would not be classified under heading 7013, HTSUS. However, the silver-plating found in the "Beehive Honey Pot" set is neither precious metal nor metal clad with precious metal. Therefore, the glass dish and silver- plated lid are classified under heading 7013, HTSUS.

Inasmuch as the essential character of the set is imparted by the glass dish with the silver-plated lid, the entire set is, therefore, classified under the tariff classification subheading of the glass dish with silver-plated lid. GRI 3(b), HTSUS, states that "...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...." See, Headquarters Ruling Letter (HRL) 954414 dated March 25, 1994.

You state that the glass dish is made out of lead crystal and is valued at $4.30 and that you are unable to provide the exact value of the silver-plated lid. Lead crystal is defined as "...glass having a minimum lead monoxide (PbO) content by weight of 24 percent." Subheading Note 1, Chapter 70, HTSUS. If the glass dish meets the definition of lead crystal as stated in Subheading Note 1, Chapter 70, HTSUS, it is classified under subheading 7013.31, HTSUS, as glassware of a kind used for table or kitchen purposes, of lead crystal. If the glass dish with the silver-plated lid is not lead crystal, it is classified under subheading 7013.39, HTSUS, as other cut or engraved glassware of a kind used for table or kitchen purposes. Therefore, depending on the lead content of the glass dish, the entire "Beehive Honey Pot" set will be classified under either subheading 7013.31, or 7013.39, HTSUS. Classification to the eight digit level is dependent on the exact value of both the glass dish and silver- plated lid. The value of the silver-plated lid must be ascertained for a correct classification of the "Beehive Honey Pot" set.

HOLDING:

The "Beehive Honey Pot" is classified as a set pursuant to GRI 3(b), HTSUS. The essential character of the set is imparted by the glass dish with silver-plated lid. Therefore, depending on the lead content of the glass dish, the entire "Beehive Honey Pot" set will be classified under subheading 7013.31, HTSUS, as glassware of a kind used for table or kitchen purposes, of lead crystal, or under subheading 7013.39, HTSUS, as other cut or engraved glassware of a kind used for table or kitchen purposes. Classification to the eight digit level is dependent upon the exact value calculation of the glass dish and the silver-plated lid.

Sincerely,

John Durant, Director

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