Christmas Stocking for Dogs

HQ 084760 October 4, 1989 CLA-2 CO:R:C:G: 084760 DPS CATEGORY: Classification TARIFF NO.: 6307.90.9050, 9505.10.5000, 9801.00.1035 Mr. Richard G. Seley Rudolph Miles & Sons, Inc. 4950 Gateway East P.O. Box 144 El Paso, Texas 79942 RE: Christmas Stocking for Dogs Dear Mr. Seley: Your letter of June 6, 1989, on behalf of your client, The Reward Company, Inc., requested a tariff classification ruling under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of a Christmas stocking for dogs. The contents of the stocking contain items of mixed countries of origin, including the United States. A representative sample of the merchandise was furnished. FACTS: The merchandise at issue is a Christmas stocking for dogs, made of textile netting and plastic red and white striped trimming, imported from Japan. At the top of the stocking is a Header Card which serves as a product label and contains product information concerning the contents of the stocking. The card, which is stated to originate in the United States, also includes an illustration of a dog wearing antlers and holding a stocking in its mouth. The following items are contained in the stocking which is sold as a package: (1) Alpo Snaps, a food product for canines, made and packaged in a labelled carton in the United States; (2) Beef Bit Treats, a food product for canines, made and packaged in a labelled foil bag in the United States; (3) Jerky Bits, a food product for canines, made and packaged in a labelled foil bag in the United States; (4) Jerky Strips, a food product for canines, made in the United States and currently being packaged in Mexico; the importer states that this product is currently being imported through the port of El Paso, Texas, and is being classified as United States products exported and returned, under subheading 9801.00.1035, HTSUSA, entitled to duty free treatment; and (5) Reindeer Antlers, which can be attached to a dog's head with an elastic strap which is part of the antler headpiece; the antlers are made in China from man-made textile material. The inquirer believes the subject merchandise is a "set put up for retail sale," comprised of components of "mixed" countries of origin. ISSUES: (1) Whether the subject Christmas stocking for dogs is considered to be a set for tariff purposes under GRI 3(b). (2) If considered to be a set, and assuming that the canine food products (dog treats) are what gives the set its essential character, whether the entire set can be imported as United States products exported and returned, under subheading 9801.00.1035, HTSUSA. (3) If not considered to be a set, how are the items properly classified. (4) Whether any of the items, as classified, are entitled to duty free treatment as United States products exported and returned, under subheading 9801.00.1035, HTSUSA. LAW & ANALYSIS: The General Rules for the Interpretation of the Harmonized System (GRI's) govern classification under the Harmonized Tariff Schedule. According to GRI 1, the primary consideration in determining whether merchandise should be classified in a heading should be given to the language of the heading and any relevant chapter or section notes, and, provided such headings or notes do not otherwise require, according to the remaining GRI's, taken in order. Here, the first question to be considered is whether a single heading exists which covers the subject Christmas stocking. Because no heading, by itself, covers the subject merchandise, classification cannot be determined by applying GRI 1 alone. Therefore, reference to the subsequent GRI's is necessary. GRI 2 is not applicable here. GRI 3, however, is relevant. It provides, in pertinent part: 3. When, by application of Rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) 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. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. The Explanatory Notes to the HTSUSA constitute the official interpretation of the tariff at the international level. The Explanatory Notes to GRI 3(b) provide further guidance in determining what constitutes a "set". The relevant note states, in part: (X) For the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards). In this case, at least two of the above "set" criteria are satisfied. First, the subject merchandise consists of at least two different articles which are prima facie classifiable in different headings. Secondly, the items are put up in a manner suitable for sale directly to consumers without repacking. The third criterion, that the goods consist of articles put up together to meet a particular need or carry out a specific activity, does not appear to be satisfied. Although packaged together in a sealed stocking, the items are not dedicated to a specific function or a particular need. The dog food, reindeer antlers and the Christmas stocking perform diverse functions. The function of the dog food, feeding canines, is unrelated to the novelty function of the reindeer antlers. Accordingly, the subject merchandise is not properly classifiable as a set under GRI 3(b). Each item is classifiable separately under GRI 1. United States manufactured products which are merely packaged abroad without any further processing are entitled to enter free of duty as American goods returned, upon compliance with Section 10.1, Customs Regulations (19 CFR 10.1). Heading 9801 allows products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, to be entered free of duty. The United States origin dog treats, which include the Alpo Snaps, Beef Bit Treats, Jerky Bits, and Jerky Strips, along with the United States origin Header Card, are classifiable as United States products returned after being exported, under subheading 9801.00.1035, HTSUSA. The applicable subheading for the reindeer antlers, which are made in China, is 6307.90.9050, HTSUSA, which provides for other made up articles of textile materials. The Christmas stocking, which also serves as packaging, is manufactured in Japan. It appears to be classifiable under subheading 9505.10.5000, HTSUSA, which provides for articles for Christmas festivities, other. The Explanatory Notes to Heading 9505 support this position. They provide, in pertinent part, at page 1590, that the heading covers: (A) Festive, carnival or other entertainment articles, which in view of their intended use are generally made of non-durable material. They include: (2) Articles traditionally used at Christmas festivities, e.g., artificial Christmas trees, nativity scenes, Christmas crackers, Christmas stockings, imitation yule logs. (Emphasis added). Accordingly, the subject Christmas stocking is properly classifiable under subheading 9505.10.5000, HTSUSA, as an article for Christmas festivities. HOLDING: The Alpo Snaps, Beef Bit Treats, Jerky Bits, Jerky Strips and Header Card, all of which are manufactured in the United States, are classifiable as United States products exported and returned, classifiable under subheading 9801.00.1035, HTSUSA. These items are entitled to duty free treatment upon compliance with all applicable regulations. The reindeer antlers are properly classifiable under subheading 6307.90.9050, HTSUSA, the provision for other made up articles of textile materials. Items classified under this subheading are subject to a duty rate of 7 percent ad valorem. The Christmas stocking is properly classifiable under subheading 9505.10.5000, HTSUSA, the provision for articles for Christmas festivities, other. Items classified under this subheading are subject to a duty rate of 5.8 percent ad valorem. Sincerely, John Durant, Director Commercial Rulings Division