The tariff classification of the Pez Sport Set from China

NY L83690 April 21, 2005 CLA-2-91:RR:NC:MM:114 L83690 CATEGORY: Classification TARIFF NO.: 9102.91.20; 1704.90.3550 Mr. Mark Davis Licensed Customs Broker 72 Park Avenue, Suite 4A Hoboken, NJ 07030 RE: The tariff classification of the Pez Sport Set from China Dear Mr. Davis: In your letter dated March 20, 2005, on behalf of Pez Candy, Inc., you requested a tariff classification ruling on the Pez Sport Set from China. A sample of the Pez Sport Set was submitted with the ruling request. The sample submitted with your letter, bar code number 0 73621 00941 7, is identified as the Pez Sport Set. The Pez Sport Set consists of a stop watch containing a whistle and a small Pez candy dispenser, and two wrapped packages of Pez candy. The combination article contains a battery-operated electronic watch movement with a liquid crystal display. The watch requires one 1.5 volt battery to operate. The watch has a plastic case with a Pez candy dispenser built into the bottom of the watch case. The whistle is permanently attached to the bottom of the Pez candy dispenser. The combination article features a textile neck strap that is permanently attached to the plastic case. The combination article and two wrapped packages of Pez candy will be packaged in a blister display pack with a cardboard insert. You have stated in your letter that the stop watch containing a whistle and a small Pez candy dispenser will be made in China. You have indicated that the Pez candy will be made and wrapped in the United States, and shipped to China for inclusion in the blister packed Pez Sport Set. The operating instructions on the back of the cardboard insert informs the user how to set the time and date, use the stopwatch, and replace the battery. The essential character of the combination article is derived from the quartz digital stop watch. For tariff classification purposes the combination article and the Pez candy are classified separately. The applicable subheading for the Pez Sport Set will be 9102.91.20, Harmonized Tariff Schedule of the United States (HTS), which provides for wrist watches, pocket watches and other watches, including stop watches, other than those of heading 9101; other; electrically operated; with opto-electronic display only. The rate of duty will be 3.9 percent ad valorem on the movement and case plus 5.3 per cent ad valorem on the battery. The applicable subheading for the Pez candy will be 1704.90.3550, HTS, which provides for sugar confectionery (including white chocolate), not containing cocoa; other; confections or sweetmeats ready for consumption; other; other; put up for retail sale; other. The rate of duty will be 5.6% ad valorem. This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html. Accordingly, Pez candies of U.S. origin that are packaged in rolls in the U.S., shipped to China for inclusion in the blister packed Pez Sport Set and returned to the United States, are not considered to have been advanced in value or improved in condition for the purposes of subheading 9801.00.1097, HTS. As a result, the Pez candy will be exempt from duty under the tariff provision when they are returned to the U.S., provided that the documentation requirements of 19 CFR 10.1 are satisfied. The general rate of duty will be free, and the Merchandise Processing Fee will not apply. Note the documentation requirements in Customs Regulation 10.1 for shipments valued over $2,000. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Barbara Kiefer at 646-733-3019. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division