Revocation of NY N025129; Classification of a ceramic beverage jar

HQ H044960 August 2, 2011 CLA-2 OT:RR:CTF:TCM H044960 JRB CATEGORY: Classification TARIFF NO.: 6912.00.48 Ms. Amy Morgan Costco Wholesale 999 Lake Drive Issaquah, Washington 98027 RE: Revocation of NY N025129; Classification of a ceramic beverage jar Dear Ms. Morgan: This letter is to inform you that U.S. Customs and Border Protection (CBP) has reconsidered New York Ruling Letter (NY) N025129, issued to you on April 10, 2008, concerning the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of a ceramic beverage jar. The merchandise was classified under heading 8481, HTSUS, which provides for “Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof.” We have reviewed that ruling and found it to be in error. Therefore, this ruling revokes NY N025129. Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. §1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed modification was published on June 9, 2010, in the Customs Bulletin, Volume 44, No. 24. No comments were received in response to this notice. FACTS: The merchandise at issue was described as follows in NY N025129: [A] ceramic beverage jar/dispenser, item 109009. This portable beverage jar is a composite good that both stores and dispenses a liquid. The jar stands 16 inches tall and is made of earthenware ceramic with a matching removable earthenware lid. In addition, it includes a plastic hand operated tap/spigot at the base of the jar that dispenses the liquid. The jar is intended to sit on a table or countertop. ISSUE: Whether the ceramic beverage jar is classified in heading 8481, HTSUS, as a valve or heading 6912, HTSUS, as ceramic kitchenware. LAW AND ANALYSIS: Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 may then be applied. The relevant HTSUS provisions are as follows: 6912: Ceramic tableware, kitchenware, other household articles and toilet articles, other than of porcelain or china: 8481: Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: The merchandise at issue consists of a ceramic jar and lid of heading 6912, HTSUS and a tap of heading 8481, HTSUS. When goods are, prima facie, classifiable in two or more headings, they must be classified in accordance with GRI 3, which provides, in relevant part, 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 or to part only of the items in a set put up for retail sale, 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, 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 this case, headings 6912 and 8481, HTSUS, each refer to only part of the merchandise. Thus, pursuant to GRI 3(a), we must consider the headings equally specific in relation to the goods. Accordingly, the goods are classifiable pursuant to GRI 3(b) as a composite good because it is "made up of different components," which are "adapted one to the other and [be] mutually complementary and . . . together . . . form a whole which would not normally be offered for sale in separate parts." See EN IX to GRI 3(b). Infra.       In classifying the articles pursuant to a GRI 3(b) analysis, the goods are classified as if they consisted of the component that gives them their essential character. In relevant part, the ENs to GRI 3(b) state:       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 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. (IX) For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole, but also those with separable components, provided these components are adapted one to the other and are mutually complementary, and that together they form a whole which would not normally be offered for sale in separate parts… As a general rule, the components of these composite goods are put up in a common packing. *          *          * There have been several court decisions on "essential character" for purposes of GRI 3(b). These cases have looked to the role of the constituent materials or components in relation to the use of the goods to determine essential character. See Structural Industries v. United States, 360 F. Supp. 2d 1330, 1336 (citations omitted) (2005), "the essential character of an article is that which is indispensable to the structure, core or condition of the article, i.e., what it is." See also Conair Corporation v. United States, 29 Ct. Int’l Trade, 888, 895 (citations omitted) (2005), (discussing "the concept of ‘essential character’ found in GRI 3(b)"). In this instance, the ceramic beverage jar performs the necessary role of storing the water, provides the aesthetic appeal and provides the greatest bulk. The tap distributes the water but is dependent upon the earthenware jar for its water supply. As such, we find that the essential character of the ceramic beverage jar with plastic tap is provided by the jar. HOLDING: By application of GRI 3(b), the ceramic beverage jar is classified in heading 6912, HTSUS. It is provided for in subheading 6912.00.48, HTSUS, which provides for: “Ceramic tableware, kitchenware, other household articles and toilet articles, other than of porcelain or china: Tableware and kitchenware: Other: Other: Other: Other.” The column one, general rate of duty is 9.8% ad valorem. Duty rates are provided for your convenience and are 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 N025129, dated April 10, 2008, is hereby revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division