Wooden hangers, articles of packing classified as their contents or separately classified; GRI 5 (b), Harmonized Tariff Schedule of the United States (HTSUS).

N275065 June 17, 2016 CLA-2-44:OT:RR:NC:N4:234 CATEGORY: Classification Sandra Tovar Licensed Customs Broker CST, Inc. 500 Lanier Ave West, Suite 901 Fayetteville, GA 30214 RE: Wooden hangers, articles of packing classified as their contents or separately classified; GRI 5 (b), Harmonized Tariff Schedule of the United States (HTSUS). Dear Ms. Tovar: In your letter dated April 21, 2016, on behalf of Revman International, you requested a ruling on the treatment of wooden hangers, and whether they were articles of packing or separate articles for classification purposes. A photo was provided of the wooden hanger and another photo was provided of a representative Nautica curtain placed on the wooden hanger. The hanger is approximately 14.5 inches in length. The hanger is composed of a wooden top piece with a metal hook. Approximately 2.25 inches below the top wooden piece, there is a wooden dowel and a metal bar running parallel to the top wooden piece. The top wooden piece and the wooden dowel and metal bar are connected with metal vertical pins. The metal pins run through the wooden dowel and through a metal rod and are held in place with screws. You state that the curtain will be sold at retail department stores and the hanger remains with the product through the sale to the end consumer.  Revman International is an importer of bedding and bath products such as shams, comforters, sheets, curtains, towels, and accessories. They import private label merchandise such as the Nautica brand. Revman International will import curtains, and possibly some throws, that will be packaged on wooden hangers. Each curtain pair is folded and held on the hanger by looping the folded curtains between the wooden dowel and the metal bar. The hanger has a metal hook at the top used to hang the product for display in a store. The hanger and curtain pair will be covered with plastic sheeting for protection during shipping. Company provided information, related to {hanging instructions} prior to international shipment of a Nautica “curtain pair” indicates: WINDOW PANEL (PAIRS) ON A WOODEN HANGER: A. The window panel pairs must be folded together and placed over the hanger bar before packing is applied. B. The correct Nautica corrugate board must be wrapped around the folded product after the product is placed on the hanger and secured or sealed with proper adhesive/glue at side over-lap. Clear round tape must be used to secure the tongue and groove along the gusset. C. The UPC must be placed on back, lower right corner of the corrugate. The second UPC sticker must be placed on the outside of the polybag, bottom right corner. D. The product must be packed in a poly bag (with flutter valves and printed suffocation warning) provided by vendor’s local resource, and heat sealed closed. E. The final dimensions on the window pair must be approximately 14.5 inches wide by 22 inches high measuring from the top of the corrugate to the bottom of the folded product. F. All prints that have a definite north/south direction must be folded so that when the product is put into the package, it shows the direction from top to bottom. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). 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 GRI’s may then be applied. GRI 5 states: In addition to the foregoing provisions (GRI 1 through GRI 4), the following rules shall apply in respect of the goods referred to therein: (a) Camera cases, musical instruments, gun cases, drawing instrument cases, necklace cases and similar containers, specifically shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character. (b) Subject to the provisions of rule 5 (a) above [which are not pertinent here], packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use We find controlling to determinations of GRI 5 (b) is the Court of International Trade decision on Holly Stores, Inc. v. United States, 534 F. Supp. 818 (1981), Court No. 75-8-02104, dated December 21, 1981; affirmed by the U.S. Court of Appeals for the Federal Circuit, Holly Stores, Inc. v. the United States, 697 F.2d 1387 (Fed Cir. 1982), dated November 22, 1982. The Court of Appeals for the Federal Circuit affirmed the CIT decision in Holly Stores (supra), stating that “Reuse in this context has been consistently interpreted to mean practical, commercial reuse, not incidental reuse.” In similar context, Headquarters rulings related to Instruments of International Traffic (IIT) employs the term “reuse” to mean articles used for “commercial shipping and transportation,” not non-commercial or fugitive uses – see Headquarter rulings: HQ 113531 dated August 31, 1995, HQ H117917 dated October 13, 2010 and HQ H217477 dated December 11, 2012. Consistent with Holly Stores, 534 F. Supp. 818, we find the merchandise concerned, the wooden hangers, used to display and sell curtains at retail: (1) do not enter the mainstream of commerce nor do they become separate items of commerce, (2) do not induce consumers to purchase the hung curtain pairs nor do they materially enhance the value of the hung curtain pairs, (3) although not provided, must have a cost negligible compared against the cost of the curtain pairs, (4) are packaged with their curtain pairs to exacting specifications as enumerated above for maximum marketing exposure and sales appeal to consumers, (5) have no ulterior purpose or use other than to be hung with their curtain pairs for presentation to perspective customers, of which they are part of the transportation process, and (6) upon sale to consumes are not returned to retail stores from where they were purchased, but most likely discarded and disposed of after installation over windows. Any use, such as hanging clothing or other personal effects on the hangers after installation would be of a non-commercial nature, and incidental and fugitive to the primary use of the hangers as an instrument of transportation of the curtain pairs. Accordingly, the hangers are not classified separately and are classified with their curtains. 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 neil.h.levy@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division