Modification of HRL 084240 dated July 18, 1989; Animated Display Figures

HQ 087713 November 9, 1990 CLA-2 CO:R:C:G 087713 STB CATEGORY: Classification TARIFF NO.: 9505.10.5000 Mr. Marc S. Greenberg American Shipping Company 600 Sylvan Avenue P.O. Box 1486 Englewood Cliffs, NJ 07632 RE: Modification of HRL 084240 dated July 18, 1989; Animated Display Figures Dear Mr. Greenberg: On July 18, 1989, our office, in Headquarters Ruling Letter (HRL) 084240 classified certain animated display figures in subheading 9505.90.60, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). We have since reviewed this classification and have found it to be in error. FACTS: The facts are as stated in HRL 084240. In addition, we note that all the sample figures are clothed in garments of traditional Christmas colors. The two Santa Bear figures and the two Bed Time Bear figures are holding electric candles with red or green ribbons attached. The two Winter Bear figures are holding imitation snow balls. The figures are marketed as a series under the name "Santa's Favorite Folks." In HRL 084240, the Santa Bear figures were classified under subheading 9505.10.50, HTSUSA, the provision for Christmas festive articles. The Bed Time Bear and Winter Bear figures were classified under subheading 9505.90.60, HTSUSA, the provision for other festive articles. ISSUE: What is the proper classification of the subject merchandise? -2- LAW AND ANALYSIS: The General Rules of Interpretation (GRI's) set forth the legal framework in which merchandise is to be classified under the HTSUSA. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff and any relative section or chapter notes and, unless otherwise required, according to the remaining GRI's taken in order. It is Customs position that animated display figures belong to a class of merchandise that is holiday related and are thus properly classifiable in heading 9505, HTSUSA, the provision for festive articles. In reaching the proper eight digit subheading, one determination that must be made concerns whether the festive article is likely to be used during the Christmas season or during some other holiday period. In this case, it is clear that the Winter Bear figures and the Bed Time Bear figures are designed and marketed for use during the Christmas season. The marketing, the extensive use of Christmas colors, and the Christmas-type bows and candles that appear on this merchandise clearly indicate that the bears are intended for use during the Christmas season and that the principal use will conform to that intention. HOLDING: The Winter Bear figures and the Bed Time Bear figures are properly classifiable in subheading 9505.10.5000, HTSUSA, the provision for festive, carnival or other entertainment articles, including magic tricks and practical joke articles, parts and accessories thereof, articles for Christmas festivities and parts and accessories thereof, other, other, dutiable at a rate of 5.8 percent ad valorem. The classification of the Santa Claus Bear figures remains as stated in HRL 084240. HRL 084240 of July 18, 1989, is modified accordingly. Sincerely, John Durant, Director Commercial Rulings Division