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HQ 966797




August 25, 2004

CLA-2 RR:CR:GC 966797 KBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 7117.19.90

Port Director
Bureau of Customs & Border Protection
301 E. Ocean Blvd.
Suite 1400
Long Beach , CA 90802

RE: Protest 2704-01-102386; Lapel Pins

Dear Port Director:

This is our decision on protest 2704-01-102386 filed by counsel on behalf of Aminco International, Inc., against your action regarding the classification of various designs of lapel pins under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The goods were entered between July 11, 2000, and September 12, 2000. The entries under protest were liquidated between May 25, 2001, and July 27, 2001. This protest was timely filed on August 20, 2001.

FACTS:

The products are various designs of lapel pins. The pins are described as die struck, made of brass with a cloisonne surface finish, with either nickel or gold plating. The pins have a design on the front and a “military clutch” pin on the back for attaching to a jacket lapel as one would a brooch. Although there is a question as to whether the pin designs submitted for protest by the protestant match the actual pins that were imported, all the designs submitted by the protestant involve the Salt Lake City Olympics of 2002. The pin designs submitted picture and describe the individual pins as ranging in size from slightly under 1 inch in height and width to slightly less than 3 inches in height and width.

Pin style numbers 6280 (A through G) and 6281 (A through G) are each a group of eight pins that may be assembled together like a jigsaw puzzle to form a larger design of an Olympic torch. The protestant claims that pin style numbers 6280 and 6281 are not intended to be worn but are intended to be assembled onto a wooden frame and displayed. Each individual pin of style number 6280 and 6281 was imported in a separate polybag containing 36 and 5080 pins each, respectively. The invoice for pin style number 6281 also contained several other types of pins and emblems, as well as 4000 frames to mount and show the articles. The invoice for pin style number 6280 also contained thousands of other pins of different styles as well as 10 frames. It is not clear which articles the frames on the invoices were meant to be used to display. However, any pins that will be framed must be assembled and mounted after importation. Several invoices indicate certain styles of pins were imported without any frames listed on the invoice.

You classified the pins in subheading 7117.19.90, HTSUSA, which provides for “imitation jewelry: of base metal, whether or not plated with precious metal: other: other: other.” The protestant claims that the pins should be classified in subheading 8306.29.0000, HTSUSA, as “bells, gongs and the like, nonelectric, of base metal; statuettes and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; and base metal parts thereof: statuettes and other ornaments, and parts thereof: other.”

ISSUE:

Whether the lapel pins are classified as imitation jewelry or as ornaments of base metal?

LAW AND ANALYSIS:

Merchandise is classifiable under the HTSUSA in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUSA 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 HTSUSA provisions under consideration are as follows:

7117 Imitation jewelry:

Of base metal, whether or not plated with precious metal:

7117.19 Other:

Other:

7117.19.9000 Other

8306 Bells, gongs and the like, nonelectric, of base metal; statuettes and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; and base metal parts thereof:

Statuettes and other ornaments, and parts thereof:

8306.29.0000 Other

In understanding the language of the HTSUSA, the Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUSA, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

Chapter Note 11 referring to Note 9(a) for Chapter 71 states that for purposes of heading 7117, HTSUSA, the expression “ imitation jewelry” includes: “[a]ny small object of personal adornment (for example brooches, religious or other medals and insignia).” The individual lapel pins at issue are all small enough to be able to be worn in the same manner as any common brooch or medal. The instant lapel pins have a pin on the back to attach it to the wearer in the same way as any common brooch or medal. Therefore, we find that the instant individual lapel pins meet the terms of “imitation jewelry” in heading 7117, HTSUSA. See, e.g., HQ 961933 (August 20, 1999), HQ 956748 (August 8, 1994), HQ 957542 (April 26, 1995), and NY 812839 (July 20, 1995) in which CBP determined that lapel pins are classified as imitation jewelry in heading 7117, HTSUSA.

The protestant claims that the instant lapel pins should be classified in heading 8306, HTSUSA, as ornaments of base metal. The protestant claims that the lapel pins are collectors items and after importation the lapel pins will be mounted in frames or put in a presentation box rather than worn as personal adornment. The protestant also argues that the lapel pins are too large to be worn as personal adornment.

Protestant cites two Bureau of Customs & Border Protection (“CBP”) decisions which found that lapel pins were classified in heading 8306, HTSUSA. In NY 806371 (February 10, 1995), CBP found that lapel pins mounted in a frame for display were not meant to be worn but were meant to be hung as a decoration. Therefore, those mounted and framed lapel pins were classified in heading 8306, HTSUSA. In NY H81608 (May 16, 2001), issued to the protestant, the pins were either mounted in a frame or presentation box upon importation, or the pins were imported as a set and mounted into frames in the United States. CBP stated that the pins were not meant to be worn, and were, in fact, too large to be worn on the person. In both of these cases, the pins specifically could not be worn on the person but were to be displayed as a decoration. The protestant claims that similar to the goods in NY H81608, it intends to assemble a set of pins into a frame after importation.

Style number 6280 and 6281 are each a group of eight pins that fit together like a jigsaw puzzle to form a larger design of an Olympic torch. The protestant imported 36 of each of the eight pins of style number 6280 for assembly together, and 5080 of each of the eight pins of style number 6281 for assembly together. On the same invoice as pin style number 6280, the protestant also imported thousands of other styles of pins and 10 wooden frames to mount and display the articles after importation. On the same invoice as pin style 6281, the protestant also imported several other styles of pins and emblems as well as 4000 wooden frames to mount and display the articles after importation. It is not clear in either case which articles the frames are meant to display.

GRI 2(a) states:

[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.

Explanatory Note 2(a)(V) (p. 2) states that:

[t]he second part of Rule 2(a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.

In part, Explanatory Note 2(a)(VII) (p. 2) states that:

[f]or the purposes of this Rule, "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.

CBP has consistently held that, in general, items imported in bulk for later assembly do not qualify under GRI 2(a) as an incomplete or unfinished good for classification purposes. There must be evidence that the articles will definitely be assembled after importation, and that the articles are not being imported simply for inventory purposes. There must be evidence that the articles are presented for reasons such as requirements or convenience of packing, handling or transport. See HQ 088891, (June 21, 1991), HQ 954420 (August 12, 1993), HQ 953860 (June 23, 1993). For unassembled goods to be considered a set, all the articles for the assembly must be entered in the same importation; however, they need not be in the same container, box, crate, kit, etc. See HQ 958215 (July 9, 1996) and HQ 953313 (May 10, 1993).

HQ 952850 (April 14, 1993), concerned the classification of seven individually imported plastic parts of ball point pens available in various color combinations drawn from nine different colors. Even though the importer intended to convert all pens parts of a particular shipment into complete pens, some color combinations were created from other shipments causing intermingling of parts from separate shipments. CBP determined that a main reason the goods were entered unassembled was not for requirements or convenience of packing, handling, or transport, but because all the parts required for the assembled pens may not be included in the same shipment. CBP concluded that these parts were considered bulk inventory and classified the parts separately on the basis of GRI 1. In reaching this conclusion, CBP examined the number of parts which make-up a completed good versus the number of unmatched parts, how the merchandise was treated after importation (e.g., put into bins for later use in manufacturing, commingling with earlier shipments or domestic products), and how it was presented (e.g., convenience of packing). See HQ 958215 (July 9, 1996).

For the lapel pins involved in the instant protest, we first consider the size of the individual lapel pins. Each individual pin is less than 3 inches in height and width. This is small enough to be worn on the person. The pins are imported in polybags, not mounted in a frame or presentation box, and each individual pin is, therefore, capable of being worn on the person.

The protestant claims that the pins may be mounted after importation into frames or presentation boxes. Each pin may be worn individually, even if it also may be part of a pin grouping. It is not clear what pins or emblems the imported frames would be used to display. Even assuming the frames were to be used for pin styles 6280 or 6281, the number of frames being imported is far fewer than the number of pins sets being imported. Therefore, because each of the pins may be worn separately and individually, the lack of information tying the frame to a particular pin or pin set, and lack of correlation between the number of frames and pin or pin sets imported, we do not find that the pins qualify as unassembled goods under GRI 2 (a). It appears that the articles are imported for inventory purposes, not as a frame/pin set. Clearly, for the shipments which did not include any frames, there is no evidence that any of the styles of lapel pins will be mounted into a frame or presentation box. Therefore, since all the pins are capable of being worn on the person, and the frames do not correlate with the pin sets, the lapel pins must be classified in their condition as imported, as imitation jewelry in heading 7117, HTSUSA. Further, since the pins are being classified separately from any frames being imported, the wooden frames will also be classified in their condition as imported, as wooden frames in subheading 4414.00.000, HTSUSA.

HOLDING:

In accordance with the above discussion the lapel pins are classified in subheading 7117.19.9000, HTSUSA, as “imitation jewelry: of base metal, whether or not plated with precious metal: other: other: other.” The 2000 column one, general rate of duty rate is 11% ad valorum. The wooden frames are classified in subheading 4414.00.000, HTSUSA, as “wooden frames for paintings, photographs, mirrors or similar objects.” The 2000 column one, general duty rate is 3.9% ad valorum. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUSA and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.

The protest should be DENIED. In accordance with the Protest/Petition Processing Handbook (CIS HB, January 2002, pp. 18 and 21), you are to mail this decision, together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.

Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.

Sincerely,

Myles B. Harmon, Director
Commercial Rulings Division

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