HQ 081428: Tariff classification of quartz analog wrist watch with two movements

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 081428

                                  October 27, 1988




          CLA-2 CO:R:C:G  081428 LS

          CATEGORY:  Classification

          TARIFF NO.:  9102.11.45

          Dorothy J. Scherer
          Kenehan International Services
          727 Wright Brothers Lane
          Las Vegas, Nevada 89119

          RE:  Tariff classification of quartz analog wrist watch with two
               movements

          Dear Ms. Scherer:

               This is in response to your letter of December 3, 1987,
          written on behalf of your clients, Alexander and Melinda Mahban,
          proprietors of Princess Furs, requesting a classification ruling
          on a quartz analog wrist watch.  A sample of the watch was
          submitted for our examination.

               Your inquiry regarding the country of origin marking and the
          special marking requirements for watches has been referred to the
          Value, Special Programs and Admissibility Branch.  That branch
          will issue a separate ruling under file no. 731546.

          FACTS:

               The sample watch consists of two battery-operated quartz
          analog watch movements in a single base metal watch case, with a
          leather watch strap attached to the lugs at each end of the case.
          The inscription "Prince Vera Nocce" appears on the surface of the
          face, between the two movements.  The two movements are complete
          entities that are independent of each other.  Each movement has
          its own battery, quartz crystal, integrated circuit, stepping
          motor and gear train.  The difference between the two movements
          is that one has dials in Arabic numerals and the other has dials
          in Roman numerals.  Each watch can be set independently.

               The two movements are identical electromechanical movements
          that combine mechanical and electronic timekeeping technologies.
          The movements possess moving parts to which and from which motion
          is transferred.  Both movements are slightly over 0.60 inch wide
          and each movement has an anti-friction jewel.  The movements are
          made in Japan by Akita Ltd. and the watch case is a product of
          Hong Kong.  The movements are encased in Hong Kong.  The leather











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          strap and battery are entered with the watch.  While the battery
          is marked to show Japan as the country of origin, the leather
          watch strap is not marked with its country of origin.

          ISSUE:

               What are the applicable tariff classification provisions
          under the Tariff Schedules of the United States Annotated (TSUSA)
          and the Harmonized Tariff Schedule of the United States Annotated
          (HTSUSA) for the subject quartz analog watch with two movements?

          LAW AND ANALYSIS:

               In Belfont Sales Corp. v. United States, Slip Op. 87-90 (Ct.
          Int'l. Trade, decided July 30, 1987, motion for rehearing
          pending), the U.S. Court of International Trade held that a
          quartz analog watch was dutiable under item 688.45, TSUSA, which
          provides for "electrical  articles and electrical parts of
          articles, not specially provided for: . . . Other."  The court
          found that the watch, which did not entail rewinding, was not
          dutiable under items 716.27 and 716.29, TSUSA, because the
          heading to those items requires the movements to be "not self-
          winding," and "not constructed or designed to operate for a
          period in excess of 47 hours without rewinding."

               Pursuant to 19 CFR 177.7(b), we cannot issue a binding
          ruling letter on the watch under the TSUSA because a motion for
          rehearing is pending in Belfont Sales Corp., supra.  We are
          instead issuing an information letter, pursuant to 19 CFR
          177.1(d)(2), regarding classification under the TSUSA.  Until
          Belfont Sales Corp. becomes final, quartz analog watches, such as
          the instant watch, will be classified according to existing
          practice under Schedule 7, Part 2, Subpart E, TSUSA, which
          provides for watches, clocks, and timing apparatus.  Pending the
          outcome of the motion for rehearing in Belfont Sales Corp., you
          should take all actions necessary to protect your interests with
          respect to existing entries, such as the filing of a protest if
          the entry has already been liquidated.

               Watches with quartz analog movements are classifiable as
          watches under item 715.05, TSUSA.  Item 715.05 provides for the
          application of separate duty rates for the cases and movements as
          if the cases and movements were imported separately.  Headnote 3,
          Subpart E, Part 2, Schedule 7, TSUSA, provides that the complete
          tariff citation for watches is item 715.05, followed by the
          appropriate item numbers for the respective movements and cases
          comprising the watches.














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               Under existing practice, the instant watch would be
          classifiable under the following eo nomine provisions:
          715.05 - 716.0940 - 720.2800, TSUSA.  See Headquarters Ruling
          Letter 077973 (classification of a watch with a quartz analog
          movement).  Thus, each watch movement would be classified under
          item 716.0940, which provides for "watch movements . . . with
          dials or hands whether or not assembled thereon:  having no
          jewels or not over 17 jewels:  not adjusted, not self-winding
          . . ., and not constructed or designed to operate for a period in
          excess of 47 hours without rewinding:  having no jewels or only 1
          jewel:  over 0.6 but not over 0.9 inch in width:  other."  The
          watch movements are dutiable at 36 cents for each movement.  This
          classification is consistent with New York Ruling Letter 805760,
          which determined that a chess clock, consisting of two separate
          quartz analog clock movements measuring less than 1.77 inches in
          width, is classifiable under items 715.15 - 720.02 - 720.34,
          TSUSA.  The two watch movements in the clock were dutiable at 33
          cents each.

               The base metal watch case of the instant quartz analog watch
          would be classifiable under item 720.2800, TSUSA, which provides
          for other cases which are not wholly and not almost wholly of
          gold or platinum or of both gold and platinum.  The case is
          dutiable at 4 cents plus 8.5 percent ad valorem.

               The watch strap would be separately classifiable under the
          provision for leather straps in item 791.5400, TSUSA, and would
          be dutiable at the rate of 2.8 percent ad valorem if it is
          produced in a column 1 country.  If the strap is produced in a
          country which is designated a beneficiary developing country for
          purposes of the Generalized System of Preferences, it may be
          eligible for duty-free entry.  The watch battery would also be
          separately classifiable under the provision for primary cells and
          primary batteries in item 682.9500, TSUSA, and would be dutiable
          at the rate of 5.3 percent ad valorem since it is a product of a
          column 1 country.

               The Harmonized Tariff Schedule of the United States
          Annotated (HTSUSA) is scheduled to replace the TSUSA.
          Classification under the HTSUSA is in accordance with the General
          Rules of Interpretation (GRI's).  GRI 1 provides that
          classification is determined first in accordance with the terms
          of the headings and any relative section or chapter notes.  Note
          3 to Chapter 91, Section XVIII defines watch movements as
          "devices regulated by a balance wheel and hairspring, quartz
          crystal or any other system capable of determining intervals of
          time, with a display or a system to which a mechanical display
          can be incorporated."  Additional U.S. Note 2 provides that watch














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          straps entered with the wrist watch and of a kind normally sold
          therewith are classified with the watch.  Additional U.S. Note 3
          provides that batteries entered with battery powered watches and
          intended for use therewith are classifiable under the provision
          for the watch.

          HOLDING:

               With respect to classification under the TSUSA, this letter
          is written for information purposes only, pursuant to 19 CFR
          177.1(d)(2) and 177.7(b).  Following existing practice, the
          sample quartz analog watch would be classifiable under item
          715.05 - 716.0940 - 720.2800, TSUSA.  The watch movements are
          dutiable at 36 cents for each movement and the watch case is
          dutiable at 4 cents plus 8.5 percent ad valorem.  As discussed
          above, the watch strap would be separately classifiable under
          item 791.5400, TSUSA, and the watch battery would be separately
          classifiable under item 682.9500, TSUSA.

               The HTSUSA subheading applicable to the sample quartz analog
          watch with two movements is 9102.11.45, which provides for "wrist
          watches, battery powered, whether or not incorporating a stop
          watch facility:  With mechanical display only:  Having no jewels
          or only one jewel in the movement:  Other:  Other."  The watch is
          dutiable at 40 cents each, plus 8.5 percent on the case, 2.8
          percent on the strap, and 5.3 percent on the battery.  The
          provision for 40 cents each is the rate per watch irrespective of
          the number of watch movements contained in the watch.  This
          classification represents the present position of the Customs
          Service regarding the dutiable status of the merchandise under
          the HTSUSA.  If there are changes before enactment this advice
          may not continue to be applicable.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division