Acrylic display cases with wood bases; NY 814263; NY 814365

HQ 961678 February 3, 1999 CLA-2:RR:CR:GC 961678 AML CATEGORY: Classification TARIFF NO.: 3926.90.98 Ruby L. Wood, Senior Vice President Evans and Wood & Co., Inc. P.O. Box 610005 D/FW Airport, Texas 75261 Re: Acrylic display cases with wood bases; NY 814263; NY 814365 Dear Ms. Wood: This is in reference to your letter of March 6, 1998, to the Customs National Commodity Specialists Division in New York, requesting, on behalf of Greco Frame and Supply, the classification of acrylic display cases with wood bases pursuant to the Harmonized Tariff Schedule of the United States (HTSUS). Photographs of the display cases were provided for our examination. We regret the delay in responding. FACTS: The products consist of cube-type display cases made of acrylic plastic with wooden bases. It is claimed that each case is designed to hold and display a single sports ball. The cases are available in three (3) sizes: to fit and hold a football, a baseball and a basketball. According to the cost breakdown submitted, the acrylic accounts for 40% of the value and the wood accounts for 35% of the value of the articles. The remainder of the value is accounted for by labor and packing costs. It appears from the photographs that the acrylic components predominate the bulk of the products. ISSUE: Whether an acrylic display case with a wooden base should be classified under subheading 3924.90.55, HTSUS, as other household articles of plastics, or subheading 3926.40.00, HTSUS, as other articles of plastics . . . statuettes and other ornamental articles, subheading 3926.90.98, HTSUS, as other articles of plastic, or subheading 4420.90.80, HTSUS, as other cases and boxes of wood ? LAW and ANALYSIS: Classification of imported merchandise is accomplished pursuant to the Harmonized Tariff Schedule of the United States (HTSUS). Classification under the HTSUS is guided by the General Rules of Interpretation of the Harmonized System (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 applicable heading and subheadings under consideration are as follows: 3924 Tableware, Kitchenware, other household articles and toilet articles, of plastics: 3924.90.55 Other. * * * 3926 Other articles of plastics and articles of other materials of headings 3901 to 3914: 3926.40.00 Statuettes and other ornamental articles; 3926.90.98 Other. * * * 4420 Wood Marquetry and inlaid wood; caskets and cases for jewelry or cutlery and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling within chapter 94: 4420.90 Other: Jewelry boxes, silverware chests, cigar and cigarette boxes, microscope cases, tool or utensil cases and similar boxes, cases and chests, all the foregoing of wood: 4420.90.80 Other. The product is described by headings 3924 and 3926, which provide for articles of plastic. The wooden component also requires consideration. Pursuant to GRI 6, classification is to be made by applying the GRI’s in sequence to determine classification within a heading. Resort must then be made to the remaining GRI’s. GRI 2 (b) provides in pertinent part that “[a]ny reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance [and] [t]he classification of goods consisting of more than one material or substance shall be according to the principles of [GRI] 3." GRI 3 states, in pertinent part: When by application of [GRI] 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods . . . , those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components . . . which cannot be classified by reference to 3(a), shall be classified by as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. When interpreting and implementing the HTSUS, the Explanatory Notes (EN’s) of the Harmonized Commodity Description and Coding System may be utilized. The EN’s, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See, T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The guidance of the EN's is necessary in the instant analysis. EN VII to GRI 3(b), p. 4, states that in “all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.” The term “essential character” is not defined within the HTSUS, GRI’s or EN’s. EN VIII to GRI 3(b), p. 4, gives guidance, stating that: [t]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods. Recently, there have been several decisions by the Court of International Trade (CIT) which addressed “essential character” for purposes of GRI 3(b). Better Home Plastics Corp. v. United States, 916 F. Supp. 1265 (CIT 1996), affirmed, 119 F. 3rd 969 (Fed. Cir. 1997), involved the classification of shower curtain sets, consisting of an outer textile curtain, inner plastic magnetic liner, and plastic hooks. The Court examined the role of the constituent materials in relation to the use of the goods and found that, although the relative value of the textile curtain was greater than that of the plastic liner, and that although the textile curtain also served protective, privacy and decorative functions, because of the fact that the plastic liner served the indispensable function of keeping water inside the shower, the plastic liner imparted the essential character upon the set. See also Mita Copystar America, Inc. v. United States, 966 F. Supp. 1245 (CIT 1997), motion for rehearing and reconsideration denied, 994 F. Supp. 393 (CIT 1998), and Vista International Packaging Co. v. United States, 19 CIT 868, 890 F. Supp. 1095 (1995), in which the Court also looked to the role of the constituent material in relation to the use of the goods to determine essential character. For the acrylic display case with wood base, the indispensable function is the display and protection of the ball it encases. The clear acrylic plastic is the primary constituent material which accomplishes this function. The wooden base provides an aesthetic effect and supports the acrylic in an ancillary function. As such, the acrylic appears to be of more importance to the function, since the acrylic protects the contents and allows a clear display. The essential character of the product is imparted by the acrylic components. We note that the other criteria listed in EN VIII to GRI 3(b) (bulk, quantity, weight or value) also lead to the conclusion that the acrylic plastic component of the article imparts the essential character of the article. New York Rulings (NY) 814362 and 814365, both dated September 33, 1995, are also consistent with our determination. NY 814362 covered an acrylic desk top case with a hinged lid. NY 814365 covered acrylic stands used to display items in museums or retail establishments. Both products were classified under subheading 3926.90.98 as other articles of plastics. This decision is also consistent with HQ 962331, dated January 19, 1999, in which we classified similar articles under subheading 3926.90.98, HTSUS, as other articles of plastics. As was the case in HQ 962331, the contents displayed by the acrylic containers may be considered to be decorative or ornamental; however, the cases, in and of themselves, cannot be considered to be ornamental. The cases can be used to house and display innumerable other articles, such as flower arrangements, figurines or other collectibles. It is the item displayed which is ornamental, not the acrylic container. HOLDING: The products, clear acrylic display cases with wooden bases for footballs, baseballs and basketballs are classified in subheading 3926.90.98, HTSUS, which provides for: other articles of plastic, other. The column 1, general rate of duty is 5.3% ad valorem. Sincerely, John Durant, Director Commercial Rulings Division