HQ 956903 - Reconsideration of Pre-Entry Classification Determination (PC) 896720, Supplement 1, as it Pertains to Certain "Steel Tec" Constructional Toys - United States International Trade Commision Rulings

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HQ 956903

January 4, 1995

CLA-2 CO:R:C:F 956903 GGD

CATEGORY: CLASSIFICATION

TARIFF NO.: 9503.30.80

William J. Maloney, Esquire
Rode & Qualey
295 Madison Avenue
New York, New York 10017

RE: Reconsideration of Pre-Entry Classification Determination (PC) 896720, Supplement 1, as it Pertains to Certain "Steel Tec" Constructional Toys

Dear Mr. Maloney:

This letter is in response to your request of August 18, 1994, on behalf of your client, Azrak-Hamway International, Inc., for reconsideration of PC 896720, Supplement 1, as it pertains to the classification under the Harmonized Tariff Schedule of the United States (HTSUS), of ten separate "Steel Tec" constructional toys imported from China. Two sample articles were submitted with your request.

FACTS:

In PC 896720, Supplement 1, dated June 24, 1994, numerous articles were classified, including ten constructional toys identified by the following item nos. and product descriptions:

ITEM NUMBERS PRODUCT DESCRIPTIONS

7004 Pick-up Truck
7005 Dump Truck
7006 Auto Wrecker
7007 Excavator
7008 Road Grader
7009 Helicopter
7094 Star Trek: U.S.S. Enterprise
7095 Amusement Park Ferris Wheel
7096 Amusement Park Parachute Ride
7097 Space Station -2-

Each of the toys was classified in subheading 9503.30.80, HTSUS, the provision for "Other toys...and accessories thereof: Other construction sets and constructional toys, and parts and accessories thereof: Other," with an applicable duty rate of 6.8 percent ad valorem.

The sample articles, a pick-up truck and dump truck, identified by item nos. 7004 and 7005, respectively, are imported in retail packages that include 135 parts and 171 parts, respectively. The parts in each article consist of 4 wheels, steel plates, brackets, nuts, bolts, and washers. A twelve page instruction manual and three wrenches are included in each package, which also contains a picture of the finished product on the front.

ISSUE:

Whether the articles should be classified in subheading 9503.30.40, HTSUS, the provision for "Other toys...and accessories thereof: Other construction sets and constructional toys, and parts and accessories thereof: Toy building blocks, bricks and shapes;" or in subheading 9503.30.80, HTSUS, the provision for "Other toys...and accessories thereof: Other construction sets and constructional toys, and parts and accessories thereof: Other."

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 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, among other toys, the heading covers "[c]onstructional toys (construction sets, building blocks,

You submit that, although each construction set comes with directions for making a "suggested" article, the parts are usable with those of other sets and, whether combined or not, a child is allowed free rein to vary the final product and create his or her own simple or complex designs. You cite to a Customs Court case and to a Headquarters Ruling Letter, each of which concerns constructional toys held to be classified in item 737.55, Tariff Schedules of the United States (TSUS), the statutory language of which was carried forward to subheading 9503.30.40, HTSUS, upon enactment of the new tariff.

While we agree that subheading 9503.30.40, HTSUS, contains essentially the same nomenclature as TSUS item 737.55, merchandise previously covered by that TSUS item is now provided for in two HTS provisions. At the time the HTS was implemented, Customs determined that the new tariff provision, subheading 9503.30.80, would provide for constructional toys, the focus of which would be the building of specific objects (other than electric trains or models). It was determined that the focus of constructional toys classifiable in subheading 9503.30.40, HTSUS, would be upon unstructured building activity. We are mindful that a child may use the parts of any "Steel Tec" article to construct items not suggested or pictured on the packages, with or without combining the parts of one product with another. For classification purposes, however, the focus of each of these ten items at the time they are imported is upon the structured activity of building a particular object. The goods are therefore classified in subheading 9503.30.80, HTSUS.

HOLDING:

The "Steel Tec" constructional toys identified as: pick-up truck (item no. 7004), dump truck (item no. 7005), auto wrecker (item no. 7006), excavator (item no. 7007), road grader (item no. 7008), helicopter (item no. 7009), Star Trek: U.S.S. Enterprise (item no. 7094), amusement park ferris wheel (item no. 7095), amusement park parachute ride (item no. 7096), and space station (item no. 7097), are properly classified in subheading 9503.30.80, HTSUS, the provision for "Other toys...and accessories thereof: Other construction sets and constructional toys, and parts and accessories thereof: Other." The applicable duty rate is 6.8 percent ad valorem.

PC 896720, Supplement 1, dated June 24, 1994, is hereby affirmed.

Sincerely,

John Durant, Director
Commercial Rulings Division

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