us-cbp-cross-rulings-hq-081193•HQ 081193: Tariff classification of a clock/calculator key chain and pen packaged together for retail sale
HQ 081193: Tariff classification of a clock/calculator key chain and pen packaged together for retail sale
us-cbp-cross-rulings-hq-081193HQ 081193: Tariff classification of a clock/calculator key chain and pen packaged together for retail saleGuidance
Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.
HQ 081193
August 2, 1988
CLA-2 CO:R:C:G 081193 PAM 825037
CATEGORY: Classification
TARIFF NO.: 8470.10.0040
Mr. John Goodrich
Fingerhut Corporation
4400 Baker Road
Minnetonka, MN 55343
RE: Tariff classification of a clock/calculator key chain and pen
packaged together for retail sale
Dear Mr. Goodrich:
Your letter of August 28, 1987, requesting a classification
ruling on a pen and calculator/clock key chain was forwarded to
this office for reply.
FACTS:
The merchandise consists of a ball-point pen and a calculator
with a built-in timekeeping mechanism. The calculator is at-
tached to the end of a metal key chain. These articles are pack-
aged together for retail sale at the time of importation. New
York Ruling 825037 of October 2, 1987, addressed the classifica-
tion of this merchandise under the Tariff Schedules of the United
States. We did not receive a sample of this merchandise.
ISSUE:
Whether the pen and calculator/clock key chain are classified
separately or as a set under the proposed Harmonized Tariff
Schedule of the United States Annotated (HTSUSA).
LAW AND ANALYSIS:
Classification of commodities entering the United States will
be in accordance with the General Rules of Interpretation (GRI)
in the HTSUSA. The first four rules must be applied in the
order in which they are presented.
- 2 -
The components of this merchandise cannot be classified
together according to any of the terms of the headings or any
relative section or chapter notes. GRI 1. Several subheadings
could apply to different aspects of this merchandise. For
instance, subheading 8470.10.0040, HTSUSA, covers calculators,
regardless of the incorporation of a timekeeping mechanism;
subheading 9608.10.0000, HTSUSA, covers ball-point pens; and
subheading 7326.90.9090, HTSUSA, which covers articles of iron or
steel would include the chain and key ring portion of the key
chain. None of these subheadings are broad enough to encompass
all of the articles packaged together for retail sale at the time
of importation.
Since this merchandise cannot be classified together accord-
ing to the terms of GRI 1, it is necessary to proceed to GRI 2,
which contains two clauses. The first extends the provisions of
headings to include articles that are incomplete or unfinished,
and the second extends them to include mixtures or combinations
of materials, and goods consisting of two or more materials or
substances, when we are dealing with a heading based on a
material. Under GRI 2(b), goods composed of more than one
material or substance are considered to be prima facie
classifiable in two or more headings if those headings correspond
to each one of the constituent materials or substances. This
rule indicates that GRI 3 should govern the classification of
goods consisting of more than one material or substance.
Neither of these clauses applies to this merchandise. The
first clause cannot affect the situation because each element of
this merchandise is complete or finished. The second clause does
not apply because there is no question of headings referring to
materials. Therefore, it is necessary to proceed to GRI 3.
GRI 3 is divided into three parts designed to resolve classi-
fication questions which arise when goods otherwise appear to be
classifiable in two or more headings. As a condition to
classification under the GRI 3, goods must be prima facie
classifiable under two or more headings of the HTSUSA.
GRI 3(a) requires goods to be classified under the heading
that provides the most specific description. However, this rule
does not apply when two or more headings each refer to only one
of the constituent articles which comprise "goods put up in sets
for retail sale." In such circumstances, the competing headings
are to be regarded as equally specific in relation to those
goods. Therefore, the classification of articles under GRI 3(a)
will depend upon whether they constitute "goods put up in sets
for retail sale."
- 3 -
Initially, these articles appear to be "goods put up in sets
for retail sale." However, they fail to meet one of the three
elements used in the Explanatory Notes (Harmonized Commodity
Description and Coding System), Volume 1, pages 4 and 5, to
explain that phrase. Although the pen and calculator/key chain
are packaged together for retail sale, and are prima facie
classifiable in two or more headings, they are not products or
articles put up together to meet a particular need or carry out a
specific activity.
The terms of GRI 3(a) specifically exclude merchandise that
qualifies as "goods put up in sets for retail sale," from classi-
fication under the principle of relative specificity. Once we
determine that the merchandise fails to constitute "goods put up
in sets for retail sale," those goods are classified separately,
instead of being classified together under any of the provisions
of GRI 3. The analysis of these articles as individual items
begins at GRI 1 and progresses to GRI 4 in a consecutive fashion.
Our reconsideration of the ball-point pen and calculator/key
chain as separate commodities begins with GRI 1. We will con-
tinue with our analysis of the calculator/key chain, since the
classification of this ball-point pen does not present any diffi-
cult issues.
The clock/calculator and key chain combination cannot be
classified under GRI 1 according to the terms of the headings or
any relative section or chapter notes. Two subheadings could ap-
ply to this commodity. Subheading 8470.10.0040, HTSUSA, covers
calculators and subheading 7326.90.9090, HTSUSA, covers articles
of iron or steel. Yet neither of these provisions is broad
enough to encompass every aspect of this article.
The clauses of GRI 2 also do not apply to this commodity.
The calculator/key chain is a finished article, so rule 2(a) is
not relevant. This commodity is not potentially classifiable un-
der two or more headings which refer to different materials or
substances. Subheading 7326.90.9090, HTSUSA, which covers
articles of iron or steel is the only relevant portion of the
HTSUSA that refers to a material or substance. This
calculator/key chain is not considered to be a mixture or
combination of materials or substances, or goods consisting of
more than one material or substance, that is prima facie
classifiable under two or more headings of the HTSUSA within the
meaning of GRI 2(b).
- 4 -
The calculator/key chain would be classified according to the
provisions of GRI 3 if "for any other reason" it is considered to
be prima facie classifiable under two or more headings of the
HTSUSA. Devices consisting of more than one component are
considered to be prima facie classifiable under two or more head-
ings, provided that at least two of the components are classifi-
able in different headings of the HTSUSA.
GRI 3(a) requires goods to be classified under the heading
that provides the most specific description. However, this rule
does not apply when two or more headings each refer to only one
of the constituent elements which comprise composite goods. In
such circumstances, the competing headings are to be regarded as
equally specific in relation to those goods. GRI 3(a). There-
fore, the classification of commodities under GRI 3(a) will de-
pend upon whether they constitute composite goods.
The constituent elements of this calculator/key chain are at-
tached to each other to form a practically inseparable whole.
They are adapted one to the other and are mutually complementary
and together they form a whole which would not normally be of-
fered for sale in separate parts. The size of the calculator is
specially adapted to its use with the key chain and each of these
articles appears to be designed for use with the other. The size
of the calculator forces us to conclude that it would not nor-
mally be sold apart from the key chain. Since the calculator/key
chain is a composite commodity, we must proceed with the analysis
under GRI 3(a).
This calculator/key chain is potentially classifiable as a
calculator under subheading 8470.10.0040, HTSUSA, which provides
for electronic calculators capable of operating without an
external power source, or under the competing provision for
articles of iron or steel in subheading 7326.90.9090, HTSUSA.
The components of this device are each prima facie classifiable
under different provisions of the HTSUSA. GRI 3(a) prevents this
calculator/key chain from being classified according to the
principle of most specific provision by requiring that the
competing provisions applicable to composite article be treated
as equally specific. Our analysis must then address the
principle of essential character in GRI 3(b).
These composite goods are not susceptible to classification
under the principle of essential character. The nature of this
article is intimately intertwined with each of its constituent
elements. It is impossible to determine which component is more
essential to the structure, core or condition of this article.
- 5 -
We consider the nature of this calculator/key chain to be derived
from the combination of these two components. Therefore, the es-
sential character of this merchandise is dependent upon both the
calculator and the key chain in equal proportions.
When a classification question cannot finally be resolved by
the application of GRI 3(a) and GRI 3(b), then, by virtue of GRI
3(c), the goods are classified under the heading which occurs
last in numerical order among those which equally merit consider-
ation. In this instance, the subheading for calculators
(8470.10.0040, HTSUSA), and the subheading for articles of iron
or steel (7326.90.9090, HTSUSA), equally merit consideration.
As noted earlier, the classification of this pen does not
present any difficult issues of either a legal or factual nature,
since the terms of subheading 9608.10.0000, HTSUSA, specifically
provide for ball-point pens.
CONCLUSION:
For the reasons stated above, the calculator/key chain is
classified under subheading 8470.10.0040, HTSUSA, which provides
for calculators dutiable at the column one rate of 3.7 percent ad
valorem. The pen is classified under subheading 9608.10.0000,
HTSUSA, which provides for ball-point pens dutiable at the column
one rate of 0.8 cents each plus 5.4 percent ad valorem. We have
not been provided with information regarding the country of
origin of this merchandise but, for purposes of this ruling, we
assume that the goods are subject to column one rates of duty.
This classification represents the present position of the
Customs Service regarding the dutiable status of the merchandise
under the proposed HTSUSA. If there are changes before
enactment, this advice may not continue to be applicable.
Sincerely,
John Durant, Director
Commercial Rulings Division
Enclosure
6cc: Area Director, New York Seaport
1cc: Area Director, Newark
1cc: Department of Commerce
1cc: John Durant
1cc: Phil Robins
PAMartin:jaj:7/12/88
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