United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1995 HQ Rulings > HQ 956472 - HQ 956576 > HQ 956534

Previous Ruling Next Ruling
HQ 956534




October 6, 1994

CLA-2 CO:R:C:F 956534 GGD

CATEGORY: CLASSIFICATION

TARIFF NO.: 9503.70.80

Mr. Warren E. Coe
Amway Corporation
7575 Fulton Street, East
Ada, Michigan 49355-0001

RE: Modification of Cleveland District Ruling Letter (DD) 885222; Toy Walkie-Talkies; Not Transmission Apparatus Incorporating Reception Apparatus

Dear Mr. Coe:

In DD 885222, issued May 12, 1993, five separate articles were classified. One of the products, identified as a toy walkie-talkie (but which was actually a pair), was classified in subheading 8525.20.20, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Transmission apparatus for radiotelephony...: Transmission apparatus incorporating reception apparatus: Transceivers: Low-power radiotelephonic transceivers operating on frequencies from 49.82 to 49.90 MHz." We have reviewed that ruling and, with respect to the toy walkie-talkies, have found it to be partially in error. Therefore, this ruling modifies DD 885222. 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. 103-182, 107 Stat. 2057, 2186 (1993) (hereinafter section 625), notice of the proposed revocation of DD 885222 was published on August 31, 1994, in the Customs Bulletin, Volume 28, Number 35.

FACTS:

The article at issue, identified by SKU No. Z9581, and by Vendor No. SOUNDESIGN PS-180, consists of a pair of 49.86 MHz, battery-powered walkie-talkies that allow children to talk to each other while they play. -2-

ISSUE:

Whether the article is properly classified as a transmission/reception apparatus in subheading 8525.20.20, HTSUS, or as other toys put up in sets in subheading 9503.70.80, HTSUS.

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied. The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRIs.

Heading 8525, HTSUS, provides for, among other items, transmission apparatus for radiotelephony, whether or not incorporating reception apparatus. Heading 8525 falls within Section XVI, HTSUS. Note 1(p) to Section XVI, states that the section does not cover articles of chapter 95. Thus, if the walkie-talkie set is described in both Section XVI and Chapter 95, it is classified in Chapter 95.

Heading 9503, HTSUS, applies to "other toys," i.e., all toys not specifically provided for in the other headings of chapter 95. Although the term "toy" is not defined in the tariff, the EN to chapter 95 indicates that a toy is an article designed for the amusement of children or adults. The ENs to heading 9503 indicate that certain toys, including toy arms, tools, gardening sets, tin soldiers, etc., are often put up in sets. The ENs also state that certain toys (e.g., electric irons, sewing machines, musical instruments, etc.) may be capable of a limited "use," but they are generally distinguishable by their size and limited capacity from real sewing machines, etc.

Mindful of the toy walkie-talkies' low value, limited range, and durability relative to real walkie-talkies, we find that the article is designed principally for amusement, and is properly classified in subheading 9503.70.80, HTSUS, the provision for other toys put up in sets. -3-

HOLDING:

The toy walkie-talkie set, identified by SKU No. Z9581, and by Vendor No. SOUNDESIGN PS-180, is classified in subheading 9503.70.80, HTSUS, the provision for "Other toys...and accessories thereof: Other toys, put up in sets or outfits, and parts and accessories thereof: Other: Other." The applicable duty rate is 6.8 percent ad valorem.

DD 885222, dated May 12, 1993, is hereby modified.

In accordance with section 625, this ruling will become effective 60 days from its 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

Previous Ruling Next Ruling

See also: