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HQ 956738




August 30, 1994

CLA-2 CO:R:C:M 956738 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 8308.90.90

A. Phillip Carney
Quick Point, Inc.
1717 Fenpark Drive
Fenton, Missouri 63026

RE: Magnetic Power Clip; Heavy duty spring clip with plastic housing and magnets; 8508.19.00; permanent magnets; GRI 3(b); composite good; EN Rule 3(b); essential character; NY 862919; HRL 953264

Dear Mr. Carney:

This is in response to your letter dated June 20, 1994, to the Area Director, New York Seaport, regarding the tariff classification of a magnetic power clip under the Harmonized Tariff Schedule of the United States (HTSUS). Samples of the magnetic power clips were submitted for our examination.

FACTS:

The magnetic power clip is comprised of a heavy duty spring operated clip housed within a two-piece plastic body onto which a ceramic magnet is attached. The ceramic magnet is used to secure the clip onto metal surfaces. You state that the magnetic power clip is "sold for use in the Promotional Products industry." After importation into the U.S., plastic promotional advertisements are attached to the side of the plastic body which does not contain the magnet. The magnetic power clip appears to be similar to devices which are used to hold memorandums, notes or any other items capable of fitting into the spring operated clip's jaws.

ISSUE:

What is the tariff classification of the magnetic power clips 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 terms of the headings and any relative section or chapter notes...." The competing subheadings are as follows:

8308.90.90 Clasps, frames with clasps, buckles, buckle clasps, hooks, eyes, eyelets and the like and parts thereof, of base metal, of a kind used for clothing, footwear, awnings, handbags, travel goods or other madeup articles; tubular or bifurcated rivets of base metal; beads and spangles of base metal...Other, including parts...Other.

8505.19.00 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings; clutches and brakes; electromagnetic lifting heads; parts thereof...Permanent magnets and articles intended to become permanent magnets after magnetization...Other.

The magnetic power clip is comprised of a heavy duty clip within a plastic housing (power clip) and a magnet. 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.

Explanatory Note (EN) Rule 3(b)(IX) of the Harmonized Commodity Description and Coding System (HCDCS) states that:

For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts (emphasis in original).

The ENs although not dispositive, provide a commentary on the scope of the each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See, T.D. 89-90, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

The magnetic power clip is a composite good. The components of the article, the heavy duty clip with plastic housing and ceramic magnet, are adapted one to the other, mutually complementary, and together form a whole which would not normally be offered for sale in separate parts. Therefore, we need to determine which component imparts the essential character.

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.

Based on the information submitted, we are of the opinion that the essential character of the magnetic power clip is the power clip because it is the component which distinguishes the article. The power clip is the component which fulfills the function of the article; it holds the object within its jaws. The magnet merely allows the power clip to be secured onto metal objects, such as a refrigerator or file cabinet or dishwasher. Moreover, even if the magnet were removed, the power clip would still perform its function of holding an object, such as a chip bag or misc. notes. Therefore, the power clip imparts the essential character to the magnetic power clip. As the power clip imparts the essential character to the composite good, the magnetic power clip is classified under subheading 8308.90.90, HTSUS, as other clasps, frames with clasps, buckles, buckle clasps, hooks, eyes, eyelets and the like. See, New York Ruling (NY) 862916 dated May 9, 1991, which classified a timer-clock with an attached magnet as an apparatus for indicating intervals of time, with a clock under subheading, 9902.91.06, HTSUS. The timer-clock was deemed to impart the essential character to the article because the timer-clock could still function, even if the magnet was removed.

We note that Headquarters Ruling Letter (HRL) 953264 dated March 30, 1994, classified a "Pillsbury Memo Magnet" (plastic advertisement memo magnet) and plastic hook magnet under subheading 8505.19.00, HTSUS, as a permanent magnet, because the magnet imparted the essential character to the articles. HRL 953264 stated that "[r]emoval of the magnet from the article would leave the product totally incapable of functioning as a magnetic memo holder for metallic surfaces."

The magnetic power clip is distinguishable from the articles in HRL 953264. Removal of the magnet from the power clip does not leave the power clip incapable of functioning as a clip. Whereas, removal of the magnet from the memo magnet and hook magnet would leave the articles incapable of being secured to surfaces and used in the manner intended, i.e., the hook to hang objects and the memo to advertise its slogan.

HOLDING:

The magnetic power clips are classified under subheading 8308.90.90, HTSUS, as other clasps, frames with clasps, buckles, buckle clasps, hooks, eyes, eyelets and the like. The corresponding rate of duty for articles of this subheading is 5.3 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

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