Classification of leather thimble containing a rubber (flexible) magnet; NY N003931

HQ H006836 May 30, 2008 CLA-2 RR:CTF:TCM H006836 GC CATEGORY: Classification TARIFF NO.: 8505.19.2000 Mr. Robert Lamber President, RHL Enterprises 35 Georgian Bay Drive Morganville, New Jersey 07751-1353 RE: Classification of leather thimble containing a rubber (flexible) magnet; NY N003931 Dear Mr. Lamber: Customs and Border Protection (CBP) is in receipt of your correspondence, dated January 9, 2007, requesting that New York Ruling (NY) N003931, dated December 22, 2006, be revoked. The letter was forwarded to this office for review. FACTS: The merchandise, which is the subject of NY N003931 and identified as the FingerThinker™, is a leather thimble containing a flexible rubber magnet located on the part of the thimble that corresponds with wearer’s finger pad. The thimble is to be worn by students taking part in a new learning program, whereby, while studying, the student rubs his or her thumb against the magnet, which action is said to enhance the student’s concentration and memory. You state that the magnet is included in the leather thimble not because of its magnetic properties, but because magnet’s flexibility and smooth surface provides the merchandise with the focal point necessary for the psychological benefits of the product to be received. The magnet within the sample thimble submitted to CBP is strong enough to pick up a paper clip. In NY N003931, CBP held that the thimble was classifiable in subheading 8505.19.20, of the Harmonized Tariff Schedule of the United States (HTSUS)(2006), which provides for, inter alia: “…permanent magnets and articles intended to become permanent magnets after magnetization…: [p]ermanent magnets and articles intended to become permanent magnets after magnetization: [o]ther: [c]omposite goods containing flexible magnets”. You take the position that the subject merchandise is properly classifiable in heading 4205, HTSUS, which provides for: “[o]ther articles of leather or composition leather.” ISSUE: What is the proper classification under the HTSUS for the leather thimble containing a rubber (flexible) magnet? LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Because the subject merchandise is composed of two components (the leather and the magnet) that are prima facie classifiable under different HTSUS headings, GRI 1 is not applicable. GRI 2 is also not applicable in this case as it applies to incomplete or unfinished articles, or unassembled or disassembled articles and mixtures or combinations of materials of substances. GRI 3 provides that when goods are prima facie classifiable under two or more headings, they are to be classified in the heading which provides the most specific description, unless “the headings refer to part only of the materials or substances contained in mixed or composite goods…”, in which case the headings are regarded as equally specific and GRI 3(b) must be considered. See GRI 3(a). GRI 3(b), which governs this particular case, states the following: (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods 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. In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, though not dispositive or legally binding, may provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). In its discussion concerning “essential character,” the EN to GRI 3(b) states that: The 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. In this case, you have not submitted any information concerning the relative costs of the two components at issue. In terms of bulk, quantity or weight, the leather component is more substantial than the magnet, but the disparity between the components is not significant. As such, the determination of which component imparts the subject merchandise with its essential character will be guided mainly by the role of the constituent materials in relation to the use of the goods. The HTSUS provisions under consideration in this case are as follows: 4205 Other articles of leather or of composition leather: Other: Other: 4205.00.80 Other… * * * 8505 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization: 8505.19 Other: 8505.19.20 Composite good containing flexible magnets… In your request to have NY 003931 reconsidered, you argue that heading 8505, HTSUS, does not describe the magnet or the subject merchandise. As support for this conclusion, you state that the product is not intended to be used as a magnet (to attract metal), and that the thin magnet on the part of the thimble corresponding to the users finger pad is utilized because it happens to have a smooth texture and because of its pliability. Essentially, you argue that the fact that the magnet possesses magnetic qualities is merely incidental to primary purpose of the merchandise, which is to help students concentrate while they are studying. Thus, because the product does not directly utilize the magnetic qualities of the magnet component, its essential character is imparted by the leather. However, we note that heading 8505, HTSUS, covers, in pertinent part, “permanent magnets”. There is nothing in the heading text indicating that, in order to be classified in the heading, the magnets must be used for their magnetic qualities (i.e. attraction to metal objects). This notion is supported by EN 85.05, which states in pertinent part: (2) Permanent magnets and articles intended to become permanent magnets after magnetization. * * * Permanent magnets remain classified here whatever their use, including small magnets used, inter alia, as toys (emphasis added). Consequently, the magnet component of the subject merchandise is properly classifiable in heading 8505, HTSUS, even if it is not included as a part of the product in order to attract metal. Thus, even if we accept your statement that a magnet was chosen for use in the subject merchandise for reasons other than magnetic properties, that does not change the fact that the component is still a permanent magnet, and is thus classifiable in heading 8505, HTSUS.( In terms of which component imparts the subject merchandise with its essential character, we note that the leather component is the component that is worn by the user. It also facilitates the use of the magnet component by placing the magnet on the pad of the index finger to be rubbed by the thumb. Furthermore, the information on your website indicates that leather exterior of the product can be in different colors to decorate the product and also makes the product easily transportable. The information from your website, as well as your written submission to this office, also indicates that the magnet is the focal point of the overall product. Without the smooth surface of the magnet, the user would not be able to benefit from the “sensory psychological dynamics of creating focus and concentration.” You state on your website in the section entitled, “Why does FingerThinkers™ have a magnet?”, that the magnet component of the product provides the necessary physical stimulus for the product to function. While the leather exterior of the product helps to position, transport and decorate the magnet, it is the magnet that plays the integral role to the function of the product. Consequently, it is the conclusion of this office that the magnet imparts the product with its essential character. HOLDING: By application of GRI 3(b), the leather thimble containing a rubber (flexible) magnet is classifiable under heading 8505 HTSUS, as a permanent magnet. Specifically, it is classifiable under subheading 8505.19.2000, HTSUSA, which provides for, inter alia: “…permanent magnets and articles intended to become permanent magnets after magnetization…: [p]ermanent magnets and articles intended to become permanent magnets after magnetization: [o]ther: [c]omposite good containing flexible magnets”. The column one, general rate of duty is 4.9 percent ad valorem. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov. EFFECT ON OTHER RULINGS: NY N003931, dated December 22, 2006 is AFFIRMED. Sincerely, Myles Harmon, Director Commercial and Trade Facilitation Division