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HQ 966848




April 26, 2005

CLA-2 RR:CR:GC 966848 KBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 7117.19.9000; 8306.29.0000

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

RE: Protest 2704-01-102966; Lapel Pins

Dear Port Director:

This is our decision on protest 2704-01-102966 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 on October 4, October 17, October 30 and November 14, 2000. The entries under protest were liquidated on August 17, 2001, August 31, 2001, September 14, 2001 and September 28, 2001. This protest was timely filed on October 19, 2001. Consideration was given to additional material consisting of pictures submitted on April 15, 2005.

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.

Among the pins imported is a group of eight pins, Pin style number 6280 (A through G), that may be assembled together like a jigsaw puzzle to form a larger design of an Olympic torch. The protest claims that pin style number 6280 is not intended to be worn but is intended to be assembled onto a wooden frame and displayed. Each individual pin of style number 6280 was imported in a separate polybag containing 1020 pins each. The same shipment also contained 1050 wood frames to mount and show the pins. However, the pins must be assembled and mounted after importation.

You classified the pins in subheading 7117.19.9000, 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:

4414.00.0000 Wooden frames for paintings, photographs, mirrors or similar objects

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).” With the exception of style 6280, all of 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 them to the wearer in the same way as any common brooch or medal. Therefore, we find that the instant individual lapel pins are classified as 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.

With respect to style number 6280, 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 is a group of eight pins that fit together like a jigsaw puzzle to form a larger design of an Olympic torch. The protestant imported 1020 of each of the eight pins for assembly together. In the same shipment, the protestant also imported 1050 wooden frames to mount the assembled lapel pins after importation. 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 the 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 are, therefore, capable of being worn on the person.

The protestant claims that the pins may be mounted after importation into frames or presentation boxes. With the exception of style number 6280, there is no evidence that any of the styles of lapel pins will be mounted into a frame or presentation box. Further, again with the exception of style number 6280, no frames or presentation boxes were imported in conjunction with the lapel pins. Therefore, since all the pins are capable of being worn on the person, except for style number 6280, the lapel pins must be classified in their condition as imported, as imitation jewelry in heading 7117, HTSUSA.

Style number 6280 is imported as a group of eight pins that fit together like a jigsaw puzzle to form a larger design of an Olympic torch and an approximately equivalent number of frames to display the assembled lapel pins. The back of the frame has a page glued to it which shows a picture of the assembled pins and a description of each pin and the meaning behind the assembled set. Because the frame is dedicated for use with this assembled pin set, style number 6280, we find the pin set, style number 6280, and wood frames were imported unassembled “for reasons of convenience of packing, handling or transport.” Therefore, this combined importation qualifies as a GRI 2(a) unassembled article. Therefore, lapel pin style number 6280 is classified under 8306, HTSUSA, as ornaments of base metal. More wood frames than pin sets of style number 6280 were imported. Excess wood frames are classified in subheading 4414.00.0000, HTSUSA, as wooden frames for paintings, photographs, mirrors or similar objects.

HOLDING:

In accordance with the above discussion, lapel pin style 6280 is 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.” The 2000 column one, general rate of duty rate is free.

The remaining styles of 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.

Excess wood frames are classified in subheading 4414.00.0000, HTSUSA, as “wooden frames for paintings, photographs, mirrors or similar objects.” The 2000 column one, general rate of 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/tata/hts/.

The protest should be DENIED except to the extent that reliquidation in accordance with this decision results in a partial refund. In accordance with the Protest/Petition Processing Handbook (CIS HB, June 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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