Classification and GSP eligibility for chemistry kits

HQ 084926 September 20, 1989 CLA-2 CO:R:C:G 084926 DSN CATEGORY: Classification TARIFF NO.: 9503.70.8000 Mr. Arcelio V. Gerardo Import Supervisor Tasco Quality Optics 7600 Northwest 26 Street Miami, Florida 33122-1494 RE: Classification and GSP eligibility for chemistry kits Dear Mr. Gerardo: This ruling letter is in response to our inquiry of May 24, 1989, in which you requested GSP eligibility and tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), for a junior science kit and a energy lab kit. Samples were provided for examination. FACTS: The "toy junior science lab kit" is a chemistry kit for children. The kit includes a candle holder, copper sulfate, eye dropper, filter paper, measuring spoons, plastic slides, sea sand, sodium ferrocyanide, specimen slides, steel wool, stones, tannic acid, test tubes, a holder, a rack and zinc metal. All of these articles are of Israeli origin. Also included in the kit is a microscope which is of Taiwan origin. This kit is designed to teach children how to use a microscope and arouse their interest in science. The total value of the goods originating in Taiwan is $2.68. The microscope is valued at $2.40. The total value of the kit is $6.35. The "toy energy and you lab kit" is designed for teaching children how to control, transform and use various forms of energy. The kit and accompanying instruction booklet contain -2- over 120 experiments about how to make windmills, levers, cars, and batteries. All of these articles except for a magnifier and an eye dropper are produced in Israel. The magnifier and eye dropper are produced in Hong Kong and Taiwan respectively. The total value of the magnifier is $0.25. The total value of the eye dropper is $.08. The total value of the kit is $10.85. ISSUE: Whether the samples at issue are classified under heading 9503, HTSUSA, and whether they are eligible for GSP treatment. LAW AND ANALYSIS: Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. Heading 9503, HTSUSA, provides for other toys; reduced-size models and similar recreational models, working or not; puzzles of all kinds. The Explanatory Notes constitute the official interpretation of the tariff at the international level. The Explanatory Notes state that the heading covers educational toys, such as toy chemistry sets. The Notes further state that collections of articles, the individual items of which if presented separately would be classified in other headings in the Nomenclature, are classified in this chapter when they are put up in a form clearly indicating their use as toys, for example, instructional toys such as chemistry sets. It is our opinion that the samples at issue, while not exclusively toy chemistry sets, do in fact resemble them so as to be classifiable under this heading. We note that the microscope included with the "toy junior science lab kit" is considered a toy because it is designed for the amusement of children and is not functional as a real microscope because its magnifying abilities are limited. Our next concern is to determine whether the samples at issue are eligible for GSP treatment. Under the GSP, eligible articles which are imported directly from a designated beneficiary developing country (BDC) into the U.S. qualify for duty-free treatment if the sum of the cost or value of the constituent materials produced in the BDC plus the direct costs involved in processing the eligible article in the BDC is at least 35 percent of the article's appraised value at the time it is entered into the U.S. See 19 U.S.C. 2463. Israel is a BDC, see General Note 3(c)(ii)(A), HTSUSA, and, according to the above analysis, the samples at issue will be classified under subheading 9503.70.8000, HTSUSA, a GSP-eligible provision. Assuming that the sets satisfy the 35 percent value added requirement and the other applicable requirements of -3- Section 10.171 through Section 10.178, Customs Regulations, the sets will be entitled to duty free treatment under the GSP. HOLDING: The samples at issue are classified under subheading 9503.70.8000, HTSUSA, which provides for other toys; reduced-size models and similar recreational models, working or not; puzzles of all kinds; and accessories thereof, other toys, put up in sets or outfits, and parts and accessories thereof, other, other, and dutiable at the rate of 6.8 percent ad valorem, or free of duty under the GSP of all requirements are met. Sincerely, John Durant, Director Commercial Rulings Division