The tariff classification of shells, placed into a coconut husk, from Philippines.

N127200 October 27, 2010 CLA-2-96:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 9601.90.2000 Troy D. Crago-Edwards Import Specialist Atico International USA, Inc. 501 South Andrews Avenue Fort Lauderdale, FL 33301 RE: The tariff classification of shells, placed into a coconut husk, from Philippines. Dear Mr. Crago-Edwards: In your letter dated October 4, 2010, you requested a tariff classification ruling. As requested, the sample submitted will be returned to you. Item number A026OA03934 (label item number A26C3934) is described as a shell pack with coconut husk container. The coconut container is cut in half, hollowed out, and various natural seashells are placed within. The approximate size of this item is 7 inches in diameter by 3.5 inches in height. The item is enclosed within plastic see-through packaging. It is stated that the FOB cost is $0.87 each, with the shells costing $0.61 and the coconut husk $0.26. You state that: (1) the shells are gathered and placed into a tumbling machine for purposes of removing dirt, debris and sand, (2) after tumbling, the shells are soaked in chlorine to remove further residual dirt, (3) upon completion of the chlorination process the shells are immersed in acid to bring out their natural colors, and (4) the final step is to wash the shells and place them under the sun for drying. Based on the process description provided, these shells are worked beyond simple cleaning, and are therefore classifiable in heading 9601, Harmonized Tariff Schedule of the United States (HTSUS) – see Explanatory Notes (ENs) to the HTSUS for headings 0508 and 9601. Under the General Rules of Interpretation (GRIs), specifically at GRI 3 (b), HTSUS, the shells packaged into a coconut husk are composed of different components and are therefore considered a composite good. Composite goods under GRI 3 ( b) will be classified as if consisting of the material or component which gives them their essential character, insofar as this criterion is applicable. When the essential character of a composite good can be determined, the "whole product" is classified as if it consisted only of that material or component which imparts the essential character to the composite good.The ENs to the HTSUS, at GRI 3(b) (VIII), state that the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, 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, the decorative shells add beauty and provide decorative accents to one’s home, while also being used for other purposes, such as craft projects, exchanges of gifts, and wedding favors. Although the coconut husk adds to the marketability of the item, the husk (container) is simply a convenient means of holding all of the shells in one place, thereby making the item ready for packaging for retail sales. Accordingly, the seashells impart the essential character to the good. The applicable subheading for the shells packaged in a coconut husk, will be 9601.90.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Worked ivory, bone, tortoise-shell, horn, antlers, coral, mother-of-pearl and other animal carving material, and articles of these materials (including articles obtained by molding): Other; Worked shell and articles thereof.” The rate of duty will be free. 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 World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Neil H. Levy at (646) 733-3036. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division