Horseshoe nail sculptures; heading 7326; ENs 73.26, 83.06

HQ 956022 July 13, 1994 CLA-2 CO:R:C:M 956022 MMC CATEGORY: Classification TARIFF NO.: 8306.29.00 Mr. William P. O'Brien 1742 Confederation Street Sarnio, Ontario CANADA N7W 1A5 RE: Horseshoe nail sculptures; heading 7326; ENs 73.26, 83.06 Dear Mr. O'Brien: This is in response to your March 8, 1994, letter requesting a tariff classification and the possibility of North American Free Trade Agreement (NAFTA) treatment for horseshoe nail sculptures under the Harmonized Tariff Schedule of the United States (HTSUS). Your picture with one of the sculptures was included with your letter. With regard to the applicability of NAFTA to your situation, we suggest you contact the local office of the U.S. Customs Service. FACTS: The articles in question are described as horseshoe nail sculptures. They are made of steel horseshoe nails, flatbar or used steel horseshoes and minimal amounts of steel wire. Subjects for the varying sculptures include horse or western related activities and events. The horseshoe nails form the subject itself with the steel wire acting as reigns or driving lines. The flatbar or used steel horseshoes serve as bases. ISSUE: How are horseshoe nail sculptures classified? LAW AND ANALYSIS: Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1, HTSUS, states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. The headings under consideration are as follows: 7326 [o]ther articles of iron or steel: 8306 [b]ells, gongs, and the like, nonelectric, of base metal; statuettes and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; and base metal parts thereof: In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be consulted. The Explanatory Notes (EN), although not dispositive, are to be used to determine the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128, (August 23, 1989). EN 73.26, pg. 1038, states, in pertinent part, that: [t]his heading also excludes: ...(e) Statues, vases, urns and crosses of the type used for decoration (heading 83.06)... Further, EN 83.06, pg. 1122, states, in pertinent part: (B) STATUETTES AND OTHER ORNAMENTS [t]his group comprises a wide range of ornaments of base metal (whether or not incorporating subsidiary non-metallic parts) of a kind designed essentially for decoration, e.g., in homes, offices, assembly rooms, churches, gardens... [t]he group covers articles which have no utility value but are wholly ornamental, and articles whose only usefulness is to contain or support other decorative articles or to add to their decorative effect, for example: (1) [b]usts, statuettes and other decorative figures; ornaments (including those forming parts of clock sets) for mantelpieces, shelves, etc. (animals, symbolic or allegorical figures, etc.); sporting or art trophies (cups, etc.); wall ornaments incorporating fittings for hanging (plaques, trays, plates, medallions other than those for personal adornment ); artificial flowers, rosettes and similar ornamental goods of cast or forged metal (usually of wrought iron); knick-knacks for shelves or domestic display cabinets... Based on the language of the tariff and Explanatory Notes, we find that your horseshoe nail sculptures are described by heading 8306, HTSUS. They are a form of statuette which in their imported condition, have no utility value but are wholly ornamental. The sculptures are classifiable in subheading 8306.29.00, HTSUS, which provides for [s]tatuettes and other ornaments, and parts thereof; other. HOLDING: The horseshoe nail sculptures are classifiable under subheading 8306.29.00, HTSUS, which has a column 1 duty rate of 5 percent ad valorem. Sincerely, John Durant, Director Commercial Rulings