HQ 082500: Classification of magnetic memo holders

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 082500

                                   April 28, 1989


          CLA-2 CO:R:C:G   082500 DSN

          CATEGORY:  Classification

          TARIFF NO.:  7323.99.9000

          Francis W. Foote, Esquire
          Siegel, Mandell & Davidson, P.C.
          655 Fifteenth Street, N.W.
          Suite 300
          Washington, D.C. 20005

          RE:  Classification of magnetic memo holders

          Dear Mr. Foote:

                This is in response to your inquiry of June 30, 1988, on
          behalf of Avon Products, Inc., regarding the classification of
          fruit magnets under the Harmonized Tariff Schedule of the United
          States (HTSUSA).  Samples produced in either Hong Kong or China
          were submitted for examination.

          FACTS:

                The submitted samples "Shady Bunch Fruit Magnets" are
          composed of a circular metal magnet with a textile front
          covering.  The textile portion is composed of a woven polyester
          outer shell with a polyester filling.  The samples resemble
          different fruits and have short arms and legs attached and also a
          printed stylized human-type faces with plastic sunglasses glued
          on.  The samples submitted represent a strawberry, pineapple and
          a orange.  The magnets measure approximately 3/4 of an inch in
          diameter.  The merchandise is designed to be placed on
          refrigerator doors or other metal objects in the home.

          ISSUE:

                Whether the samples at issue are classified under heading
          8505 or heading 7323, HTSUSA.




















                                         -2-

          LAW AND ANALYSIS:

                You allege that the samples are classified under heading
          8505, HTSUS.  We disagree.  Heading 8505, HTSUSA, provides for
          electro-magnets, permanent magnets and articles intended to
          become permanent magnets after magnetisation.  The Explanatory
          Notes which constitute the official interpretation of the tariff
          at the international level, state that heading 8505 does not
          cover "electro-magnets, permanent magnets or magnetic devices of
          this heading, when presented with machines, apparatus, toys,
          games, of which they are designed to form part (classified with
          those machines, apparatus, etc.)."  With respect to the instant
          samples, they are magnets designed to form part of the article.
          Since the magnets are presented with and incorporated into a
          textile caricature, they are precluded from classification in
          this heading.

                Since the samples are composed of different components,
          i.e. metal, textile and plastic, they are classifiable under two
          or more headings pursuant to GRI 3.  Heading 6307, HTSUSA,
          provides for other made up articles of textiles.  Heading 3926,
          HTSUSA, provides for other articles of plastics.  Heading 7323,
          HTSUSA, provides for kitchen or other household articles of iron
          or steel.  GRI 3(a) states that the heading providing the most
          specific description shall be preferred, however when each
          heading refers to part only of the materials contained in
          composite goods those headings are to be regarded as equally
          specific, even if one of them gives a more complete description
          of the goods.  Each of the headings refers to part only of the
          merchandise here.  Therefore, the headings are regarded as
          equally specific, and the classification of the samples at issue
          cannot be determined by relative specificity.

                GRI 3(b) provides that composite goods made up of different
          components which cannot be classified by reference to GRI 3(a),
          are classified by the component which gives them their essential
          character.  According to the Explanatory Notes, essential
          character may be determined by the nature of the component, its
          bulk, quantity, weight or value, or by the role of a constituent
          material in relation to the use of the goods.

                With respect to the merchandise at issue, the magnet is
          essential for the intended use of the product.  Removal of the
          magnet would leave the product totally incapable of functioning
          as a magnetic memo holder for refrigerator doors or other metal
          objects.  The textile portion merely embellishes the product and
          acts as a decorative selling feature, but has no effect on the
          ability of the magnet to perform its intended function.  The same
          is true of the plastic portion (the sunglasses) which is













                                         -3-

          incidental to the article other than as decoration.  If the
          sunglasses were removed the product could still function as a
          decorative magnet holder.  Therefore, the essential character is
          imparted by the magnet.

                Heading 7323, HTSUSA, provides for kitchen or other
          household articles and parts thereof, of iron or steel.  The
          Explanatory Notes to heading 7323, state that this group
          comprises a wide range of iron or steel articles, not more
          specifically covered by other headings of the Nomenclature.  With
          respect to the instant samples, since they are designed to be
          used in the kitchen or around the home and have the essential
          character of metal, and are not specifically covered by any other
          heading, they are classifiable in this heading.

                In NYRL 829918 of June 10, 1988, a magnetic memo holder
          composed of metal with a textile covering was classified under
          heading 6307, which provides for other made up textile articles.
          The Explanatory Notes to heading 6307, state that the heading
          covers made up articles of any textile material which are not
          included more specifically in other headings of Section XI or
          elsewhere in the Nomenclature.  We believe heading 7323 is a more
          specific provision for the magnetic memo holder and the instant
          samples.  We hereby revoke the above ruling.

          HOLDING:

                In view of the foregoing, the samples are classified under
          subheading 7323.99.9000, HTSUSA, which provides for kitchen or
          other household articles of iron or steel, other, not coated or
          plated with precious metal, other, other, and dutiable at the
          rate of 3.4 percent ad valorem.

                New York Ruling 829918 of June 10, 1988 is hereby revoked
          in accordance with this ruling.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division