Reconsideration of NY K87656; Bracelet And Detachable Broach Jewelry

HQ 967257 April 14, 2005 CLA-2 RR:CR:GC 967257 KBR CATEGORY: Classification TARIFF NO.: 7117.90.9000 Mr. Arthur W. Bodek Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 399 Park Avenue, 25th Floor New York, NY 10022-4877 RE: Reconsideration of NY K87656; Bracelet And Detachable Broach Jewelry Dear Mr. Bodek: This is in reference to New York Ruling Letter (NY) K87656, issued to you on behalf of Liz Claiborne, Inc, by the Customs and Border Protection (“CBP”) National Commodity Specialist Division, on July 19, 2004, concerning the classification of a plastic bracelet with a detachable metal and glass broach, Style JWRUE646/647/648, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A sample was submitted for our review. Consideration was given to arguments presented during a teleconference with you which was held on March 10, 2005. We have reviewed NY K87656 and have determined that the classification provided is correct. FACTS: NY K87656 concerns a bracelet and detachable broach jewelry, Style JWRUE646/647/648, imported for Liz Claiborne, Inc. In the sample provided, the bracelet is made of approximately 324 plastic beads strung on 9 elastic strings. The strings are gathered and held together by a permanently attached rectangular base metal clip. The beads are smaller and increase in size as they move away from the metal clip. The color of the beads also changes with the size, starting as a light green, to an olive green and then to a light blue. The broach is made of base metal in a flower-like or multiple connected butterfly-like design; with 30 glass ‘gems’ of two sizes inset into the metal, and 9 glass beads mounted on top of the metal. The glass gems and beads are of a color to complement the colors of the plastic beads in the bracelet. The broach attaches to the bracelet by inserting the hinged pin attached to the underside of the broach through the metal clip on the bracelet. The hinged pin is sized to fit the clip on the bracelet so that there is a minimum of movement once the broach is attached to the bracelet. You state that the bracelet with detachable broach is “bought, sold, marketed and retailed as a single item with a single style number.” The value of the plastic is slightly more than the value of the metal. However, the value of the plastic is slightly less than the combined value of the glass and metal. The weight of the plastic is .23 grams. The weight of the glass is .04 grams and the weight of the white metal is .12 grams. The combined weight of the glass and metal is .16 grams. The Liz Claiborne website indicates that a similar combined bracelet is currently sold for $28. A similar broach sold by itself is currently sold for $25. A plastic bead bracelet without the broach is not offered for sale, however an elastic stretch bracelet with fresh water pearls and faux pearls (more valuable components than the instant article) is currently priced at $25. Therefore, the retail value of the broach seems to be significantly higher than the retail value, if any, of the bracelet. In NY K87656, it was determined that the bracelet with detachable broach was classifiable as “[i]mitation jewelry: [o]ther: [o]ther: [v]alued at over 20 cents per dozen pieces or parts: [o]ther: [o]ther” under subheading 7117.90.9000, HTSUSA. ISSUE: What is the proper classification of the subject bracelet with detachable broach under the HTSUSA? 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. In interpreting the headings and subheadings, CBP looks to the Harmonized Commodity Description and Coding System Explanatory Notes (EN). Although not legally binding, they provide a commentary on the scope of each heading of the HTSUS. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUSA. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The HTSUSA provisions under consideration are as follows: 7117 Imitation jewelry: 7117.90 Other: Other: Valued over 20 cents per dozen pieces or parts: Other: 7117.90.7500 Of plastics 7117.90.9000 Other 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 rings, bracelets, necklaces, brooches, ….” In HQ 087960 (January 4, 1991), CBP defined “broach”(also spelled “brooch”) stating: A brooch is defined in the Jeweler's Dictionary, 3rd edition, 1976, published by Jewelers' Circular Keystone, as: "A piece of jewelry to be worn pinned to clothing, as at the neck or shoulder, on the breast or hat, or in the hair." The American Heritage Dictionary, 2nd college edition, 1985, Houghton Mifflin, defines a brooch as a "large decorative pin or clasp." The instant article is a combination bracelet and broach. They may be worn joined together as a bracelet or separately as a broach and bracelet. Therefore, the instant article, whether worn separately or joined together may be classified as imitation jewelry in heading 7117, HTSUSA. See, e.g., HQ 087960 (January 4, 1991), HQ 951137 (February 17, 1993), 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 broaches and other lapel pins are classified as imitation jewelry in heading 7117, HTSUSA; see also, HQ 088222 (February 15, 1991) and HQ 962509 (February 9, 1999) in which CBP found bracelets are classified as imitation jewelry in heading 7117, HTSUSA. There is no disagreement that the bracelet with detachable broach combination jewelry under consideration is classified in heading 7117. One question is whether these goods form a set put up for retail sale. GRI 6 states that “the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable.” For the instant case, applying GRI 6 at the subheading level (see e.g., HQ 965763 (September 3, 2002) and HQ 964940 (September 3, 2002)), two provisions at the same level of subdivision within heading 7117 describe the bracelet and broach jewelry in part. The bracelet is composed of plastic beads strung together and is classifiable in subheading 7117.90.75, HTSUSA, as “[i]mitation jewelry: [o]ther: [o]ther: [v]alued at over 20 cents per dozen pieces or parts: [o]ther: [o]f plastics.” The broach component of the jewelry is composed of metal with glass beads and is classifiable in subheading 7117.90.90, HTSUSA “[i]mitation jewelry: [o]ther: [o]ther: [v]alued at over 20 cents per dozen pieces or parts: [o]ther: [o]ther.” By application of GRI 6, we turn to GRI 3(b) which states that when goods are prima facie classifiable under two or more (sub)headings, classification shall be effected as follows: (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) [by reference to the (sub)heading which provides the most specific description], shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. EN (X) for GRI 3(b), states that "[f]or 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). Here, the plastic bracelet and glass and metal broach combination jewelry has two components of different subheadings; is packaged for the specific activity of personal adornment; and is marketed and packaged in one box for retail sale directly to the consumer without repacking. The bracelet is manufactured so that the pin of the broach fits snugly through a metal bar on the bracelet so that the two components may be worn joined together. Therefore, it qualifies as a set pursuant to GRI 3(b). See HQ 085577 (January 10, 1990). GRI 3(b) states that sets are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. Under EN (VIII) to GRI 3(b), “the 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 a constituent material in relation to the use of the goods.” Customs has taken the position that, in an essential character analysis for purposes of GRI 3(b), the role of the constituent materials or components in relation to the use of the goods is generally of primary importance, but the other factors listed in EN (VIII) for GRI 3(b) should also be considered, as applicable (see, e.g., HQ 961095 dated July 20, 1998; HQ 962047 dated May 17, 1999). In the instant case, looking at the cost and the weight of the bracelet compared to that of the broach is inconclusive for determining the essential character. The plastic beads of the bracelet weigh slightly more than the metal and glass components of the broach. However, the value of the metal and glass components of the broach is slightly more that that of the plastic components of the bracelet. In the teleconference held on March 10, 2005, you argued that the plastic bracelet provided the essential character of the jewelry, citing Structural Industries, Inc. v. United States, slip op. 05-21 (CIT February 15, 2005). However this case found that the essential character was determined by “the only component indispensable for the [article] to perform its intended function….” Id. In the instant case, the bracelet/broach combination jewelry does not have one component that is indispensable. While they may be worn attached together, the very concept of the instant jewelry is that the broach may be detached and the two components may be used individually. Therefore, neither of the components is indispensable. You state that the bracelet is the motivation for a purchaser of the jewelry. Arguably, the broach is the more important of the components. The bracelet is less likely to be worn once the primary decoration (the broach) is removed. However, the purpose of making the broach detachable is so that it may be worn without the bracelet. Hence, the broach is used with or without the bracelet, but the reverse is less likely to be true. You cite several CBP cases concerning a purchaser’s motivation to buy a combined article. HQ 956009 (February 22, 1996) involved a plastic insulated picnic cooler with built in speakers. This case is distinguishable from the instant situation as the speakers were not removable for use separate from the cooler. In HQ 956986 (December 5, 1994), CBP found the essential character of a hat and removable sunglasses was imparted by the hat. However, in that case, although the sunglasses were removable, once removed the sunglasses could not be used. In HQ 954337 (October 25, 1993), (involving a jacket and scarf combination) and HQ 954073 (September 23, 1993), (involving a dress and belt combination), the jacket and dress, respectively, were found to provide the essential character of the combined article. These cases are not similar to the instant jewelry in that the scarf and belt are clearly only accessories or minor components to the main article of the jacket and dress. The question in the instant case of the bracelet and broach jewelry is which component provides the essential character to the set. We find that the bracelet and detachable broach combination jewelry does not have one essential character. Both the bracelet and the broach merit equal consideration. Therefore, pursuant to GRI 3(c), the bracelet and detachable broach jewelry is classifiable under the subheading which occurs last in numerical order, subheading 7117.90.9000, HTSUSA, as “[i]mitation jewelry: [o]ther: [o]ther: [v]alued over 20 cents per dozen pieces or parts: [o]ther: [o]ther.” HOLDING: Pursuant to GRIs 6 and 3(c), the bracelet and detachable broach jewelry is classified in subheading 7117.90.9000, HTSUSA, as “[i]mitation jewelry: [o]ther: [o]ther: [v]alued over 20 cents per dozen pieces or parts: [o]ther: [o]ther.” The 2005 column one, general rate of duty rate is 11% 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. EFFECT ON OTHER RULINGS: NY K87656, dated July 19, 2004, is AFFIRMED. Sincerely, Myles B. Harmon, Director Commercial Rulings Division