HQ 082954: Champagne imported with two champagne flute glasses

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 082954

                                   December 20, 1989

            CLA-2 CO:R:C:G 082954 JLJ

            CATEGORY: Classification

            TARIFF NO.: 2204.10.00

            Mr. John B. Pellegrini
            Ross & Hardies
            529 Fifth Avenue
            New York, New York  10017-4608

            RE:  Champagne imported with two champagne flute glasses

            Dear Mr. Pellegrini:

                 On behalf of a client, you requested a tariff classifica-
            tion for vintage champagne imported from France with two
            champagne flute glasses.  You submitted a sample to our New
            York office, but the sample was not received in this office.

            FACTS:

                 The instant merchandise consists of a bottle of vintage
            French champagne imported with two champagne flute glasses and
            packaged together in a cardboard gift box.

                 The champagne bottle is made of glass, with a capacity of
            750 milliliters.  The champagne flutes are made of glass.  Both
            the bottle and the glasses have a flower design on them.

                 The gift box is a rectangular cardboard package.  The
            inside of the box has a satin type material which covers
            hollowed shapes designed to hold the champagne bottle and flute
            glasses.  A flower design appears on the top, front and sides
            of the box.

            ISSUE:

                 Are the champagne flute glasses classified separately or
            as a set with the champagne?




















                                          -2-


            LAW AND ANALYSIS:

                 The classification of the instant merchandise under the
            Harmonized Tariff Schedule of the United States Annotated
            (HTSUSA) is determined by General Rule of Interpretation (GRI)
            3(b).  The Explanatory Notes for the GRI define goods put up in
            sets for retail sale 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).

                 The champagne and the flute glasses are classifiable in
            two different headings.  The champagne is classifiable as a
            sparkling wine in subheading 2204.10.00, HTSUSA, and the
            glasses are classifiable as such in subheading 7013.39.30,
            HTSUSA.

                 The champagne and the glasses are put up together for the
            specific purpose of drinking champagne.

                 The gift pack will be sold in its imported condition to
            retail consumers.  The merchandise will not be repacked.  The
            instant merchandise thus meets all three requirements of a set.

                 Once it has been established that the instant merchandise
            is a set, GRI 3(b) indicates that the goods are to be
            classified according to the material or component which gives
            them their essential character.  The Explanatory Notes state
            that factors such as bulk, quantity, weight and value may be
            considered in determining the essential character.

                 You state that the price of the champagne is 116 French
            francs, while the glasses are valued at 25 French francs each.
            The suggested retail price of the champagne is $55, while the
            price of the champagne plus the glasses is $65.  The price of
            these products indicates that the purchaser is buying the gift
            set for the champagne, not the glasses.














                                          -3-


                 The marketing of the set also indicates that the champagne
            is the selling point of the gift box.  The outside of the gift
            box describes the product as champagne, with no mention of the
            glasses.

                 Based on the foregoing facts, we find that the essential
            character of the champagne/glasses gift package is the
            champagne.

            HOLDING:

                 The instant gift set is classified as a set under the
            provision for sparkling wine in subheading 2204.10.00, HTSUSA,
            provided that the champagne meets the requirements of Chapter
            22, Subheading Note 1, which states that "For the purposes of
            subheading 2204.10 the expression 'sparkling wine' means wine
            which, when kept at a temperature of 20`C in closed containers,
            has an excess pressure of not less than 3 bars."  The duty rate
            for this subheading is 30.9 cents per liter.  Wines classified
            under heading 2204 may also be subject to Federal Excise Tax
            (26 U.S.C. 5001, 5041) upon importation.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division
































            1 cc: D.D., Baltimore, Md.
            6 cc: A.D., N.Y. Seaport (NIS-232)
            hensley library
            082954JLJ