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HQ 959874



February 25, 1997

CLA-2 TC:RR:FC 959874 MMC

CATEGORY: CLASSIFICATION

TARIFF NO.: 3923.10.00; 3923.90.00

Mr. Stephen J. Leahy
Leahy & Ward, Attorneys at Law
63 Commercial Wharf
Boston, Massachusetts 02110

RE: Reconsideration of NYRL A84550; plastic CD trays and inserts; Components Shipped in Bulk Form; GRI 2(a); Unfinished Articles; Articles Presented Unassembled; HRLs 088891, 089204, 950431, 088595 and 087888.

Dear Mr. Leahy:

This is in reply to your August 15, 1996, letter on behalf Viva Magnetics requesting reconsideration of New York Ruling Letter (NYRL) A84550, dated June 14, 1996. NYRL A84550 held that bulk shipments of molded plastic CD trays and their cases were classifiable separately: the trays under 3923.90.00, and the covers under 3923.10.00 of the Harmonized Tariff Schedule of the United States Annotated (HTSUS).

FACTS:

The article, when completed, is know as a "CD Jewel Box". The CD Jewel Box consists of two components, a plastic tray insert which is molded to form a protective compartment in the shape of a compact disc and a plastic case which holds the insert. The cases are produced in Canada and the tray inserts are produced in China. In its completed form the CD Jewel Box is used to package and store compact discs.

However, for shipping purposes the components would be shipped unassembled, with an equal amount of cases and trays imported together. Therefore, for the boxes to be used as intended, they must be assembled after importation.

ISSUE:

Can a shipment of the above components be considered an unassembled CD Jewel box having the essential character of a complete or finished CD Jewel Box under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

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.

You assert that when shipped as described these components make up unassembled CD Jewel Boxes. Therefore, if the shipment consists of the correct components and equal quantities the components should be classified together as a jewel box and not as separate components.

General Rule of Interpretation (GRI) 2(a), HTSUSA, states in part that a heading which provides for a particular article will cover that article incomplete or unfinished provided that, as imported, the unfinished article has the essential character of the complete or finished article. The rule also applies to incomplete or unfinished articles imported unassembled or disassembled provided that they are to be treated as complete or finished articles by virtue of the first part of GRI 2(a). The articles in this case are unassembled.

The relevant ENs, page 2, provide some guidance on the application of GRI 2(a) to unassembled goods by stating that "when goods are so presented it is usually for reasons such as requirements or convenience of packing, handling or transport." The ENs provide further that for purposes of Rule 2(a) the expression "articles presented unassembled or disassembled" means articles the components of which are to be assembled either by means of simple fixing devices (screws, nuts, bolts, etc.) or by riveting or welding, for example, provided only simple assembly operations are involved.

You have made no statements or offered any evidence that these proposed shipments would be anything more than bulk shipments of equal numbers of components. This is not the type of "convenience of packing, handling or transport" that the ENs contemplate. Also, no evidence has been provided as to whether simple assembly operations are involved in creating CD Jewel Boxes from the components or whether they are assembled immediately or become a part of an inventory. Therefore, the volume shipments of these components would not be considered as having the essential character of complete CD Jewel Boxes because they are apparently nothing more than disparate components shipped in bulk form.

For a further discussion of shipments in bulk form, please see Headquarters Ruling Letters (HRL) 088891 dated June 21, 1991, holding that equal numbers of alarm system parts and accessories shipped in bulk form did not meet GRI 2(a) requirements. See also HRL 089204, dated November 22, 1991, HRL 950431 dated December 5, 1991, and HRL 088595, and HRL 087888, dated December 3, 1990, where we held that, without evidence that components shipped in bulk were packed that way for the convenience of packing, handling or transport as well as not dedicated to use as inventory prior to being assembled, such components would not be considered "unassembled" articles for GRI 2(a) purposes.

The plastic cases are classifiable separately under 3923.10.00, HTSUS, which provides for, "Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Boxes, cases, crates and similar articles." The plastic tray inserts are classifiable separately under 3923.90.00, HTSUS, which provides for "Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Other."

HOLDING:

The plastic cases are classifiable separately under 3923.10.00, HTSUS, which provides for, "Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics:boxes, cases, crates and similar articles," with a 1997 column one general rate of duty of 3 percent ad valorem. The plastic tray inserts are classifiable separately under 3923.90.00, HTSUS, which provides for "Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Other," with a 1997 column one general rate of duty of 3 percent ad valorem.

A84550 is affirmed.

Sincerely,

John Durant, Director

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