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HQ W968061




October 5, 2006

CLA-2 RR:CTF:TCM W968061 KSH

TARIFF NO.: 1404.90.0000

Mr. Dennis Morse
BDP International, Inc.
2721 Walker Avenue N.W.
Grand Rapids, MI 49504

RE: Revocation of New York Ruling Letter (NY) J89446, dated October 24, 2003; Classification of “bean balls” from Thailand.

Dear Mr. Morse:

This letter is to inform you that the Bureau of Customs and Border Protection (CBP) has reconsidered New York Ruling Letter (NY) J89446, issued to you on October 24, 2003, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of 27 decorative articles described as “bean balls” in acetate boxes. The articles were classified in subheading 3926.40.0000, HTSUSA, which provides for “Other articles of plasticsstatuettes and other ornamental articles.” We have reviewed that ruling and found it to be in error. Therefore, this ruling revokes NY J89446.

FACTS:

The first item at issue, identified as Item 91015 (UPC 7-08820-04517), consists of 24 decorative articles described as “mini bean balls” in a clear acetate box. The second item at issue, identified as Item 91014, consists of 3 decorative “bean balls” in an acetate box. The mini bean balls measure approximately 1½ inches in diameter while the standard size bean balls measure approximately 2 ½ inches in diameter. The balls consist of foamed plastic spheres with various kinds of beans and seeds glued to the outer surface. The standard size bean balls include one ball covered with red beans, one covered with yellow corn kernels and one covered with millet seeds. The mini bean balls are covered with red beans, green beans, black beans, tan beans, corn kernels and millet seed. The bean balls are used as decorative articles.

ISSUE:

Whether the bean balls are classified in heading 3926, HTSUSA, as other articles of plastic or in heading 1404, HTSUSA, as vegetable products not elsewhere specified or included.

LAW AND ANALYSIS:

Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined 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 GRI may then be applied. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI.

The item is not specifically provided for in any one heading. Accordingly, they may not be classified solely on the basis of GRI 1. Further, GRI 2(a) is inapplicable because it applies to incomplete or unfinished articles, and the bean balls are imported in a finished complete condition. GRI 2(b) states that the classification of goods consisting of more than one material or substance shall be according to the principles of GRI 3. The subject bean balls are decorative items consisting of foamed plastic spheres that are covered with beans, kernels or seeds. Thus, for tariff purposes, they constitute goods consisting of two or more substances or materials. As such, the items are arguably classifiable under heading 3926, HTSUSA, as other articles of plastics or heading 1404, HTSUSA, as vegetable products not elsewhere specified or included.

GRI 3(a) states that when, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. As the subject bean balls are composite goods, we must apply rule 3(b), which provides that composite goods are to be classified according to the component that gives the good its essential character. We must determine whether the foamed plastic spheres or the beans, kernels or millet impart the essential character to the articles.

EN VIII to GRI 3(b) explains that "[t]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods."

The internal foamed plastic spheres may provide the bulk and shape, however the surface beans, kernels or millet that cover the bean balls provide the texture, markings and color. The beans, kernels or millet impart the visual impact, consumer appeal and nature of the article. The essential character of the bean balls is imparted by the exterior surface which includes beans, kernels, or millet. The beans balls are accordingly classifiable in heading 1404, HTSUSA. They are specifically provided for in subheading 1404.90.0000, HTSUSA.

HOLDING:

The bean balls are classified in heading 1404, HTSUSA. They are specifically provided for in subheading 1404.90.0000, HTSUSA, which provides for "Vegetable products not elsewhere specified or included: Other." The general, column one rate of duty is Free.

EFFECT ON OTHER RULINGS:

NY J89446, dated October 24, 2003, is hereby revoked.

Sincerely,

Myles B. Harmon, Director
Commercial and Trade Facilitation Division

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