Classification of a blister packaged set containing a watch and toys.

HQ 084185 July 19, 1989 CLA2 CO:R:C:G 084185 SS; 838489, 838490 NY CATEGORY: Classification TARIFF NO.: 9102.12.00, 9503.90.60 MR. Thomas K. David Operations Manager Innovative Time Corporation 6054 Corte del Cedro Carlsbad, CA 92009 RE: Classification of a blister packaged set containing a watch and toys. Dear Mr. David: This is in response to your letter addressed to our New York office requesting a tariff classification for blister package sets containing a watch and toys, under the Harmonized Tariff Schedule of the United States (HTSUS). Two samples were submitted. FACTS: It is stated that the merchandise under consideration consists of a digital watch packaged in a sonicallysealed blister card with one or more items to promote a certain "theme." The separate items are intended for sale as a single unit and are designed for use by children ages 5 and up. The various articles packaged with the watch are stickers, decals, charms, nontoxic children's nail polish, etc. It is stated that the items cannot be removed from the packaging without destroying the packaging itself, and in turn, the integrity of the set. The two sample item submitted are as follows: (1) Model #YP6 is a blister packaged set known as "Kid's Commando". Included in this set are a fully functional LCD watch with a plastic case and band, with a small functional compass strapped onto the band, a plastic whistle with a neck cord, and a small plastic canteen that has a limited function.   2  (2) Model #YP34 is known as "Adventure Kid". The LCD watch in this set is fully functional, composed of plastic and rubber, is water resistant, has shock protection and time, day and date functions. Included in this set are a pair of small limited function binoculars and a plastic compass with a cord. ISSUE: What is the proper tariff classification of a packaged set containing a fully functional watch and toys? LAW AND ANALYSIS: Classification under the HTSUS is governed by the General Rules of Interpretation (GRI'S). Under GRI 1, the primary consideration in the classification of goods is the terms of the headings and any relative Section or Chapter notes. The merchandise under consideration consists of functional watches packaged with various toys. Heading 9503, HTSUS, provides for other toys. The Explanatory Notes to this heading, which is the official interpretation of the tariff at the international level, state that while certain toys may be capable of limited use, they are distinguishable by their size and limited capacity from the "real" article. The Notes further state that a collection of articles, the individual items of which, if presented separately, would be classifiable in other headings of the HTSUS, are classified as toys when put up in a form clearly indicating their use as toys. The watch in this case is not distinguishable from a "real" watch. In fact, the watch here is a real watch. It is packaged with a variety of small toys but there is no clear indication for its use as a toy. Therefore, although the watch is packaged with toys, the item is not properly classifiable in heading 9503, HTSUS. GRI 3(b) provides for the classification of goods put up in sets for retail sale. The rule states in pertinent part: (G)oods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.  3 The Explanatory Notes state in Note X to Rule 3(b) that the term "goods put up in sets for retail sale" means 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 activity; and (c) are put up in a manner suitable for sale directly to users without repacking. The watch packaged the with toys satisfy (a) and (c) in that the package set contains articles classifiable in at least two headings (the watch and toys), and are packaged for direct sale to the consumer. However, there is no clear particular activity for which a child would use stickers and a watch, nail polish and a watch, or any of the other packaged sets including the submitted samples. Accordingly, the item in issue is not properly classifiable as a set under GRI 3(b). Application of GRI 1 to the merchandise in issue results in the following classification: The watch is properly classifiable under heading 9102, HTSUS, which provides for wrist watches, pocket watches and other watches, including stop watches, other than those of heading 9101, HTSUS. The toys are properly classifiable under heading 9503, HTSUS, which provides for other toys. HOLDING: The watch in issue is properly classifiable under subheading 9102.12.00, HTSUS. The toys in issue are properly is properly classifiable under subheading 9503.90.60, HTSUS. Sincerely, John Durant, Director Commercial Rulings Division