H268403

 HQ H268403 January 25, 2021 OT:RR:CTF:CPMM H268403MMM CATEGORY: Classification TARIFF NO.: 3924.90.56 Mr. Ralph Saunders Deringer Logistics Consulting Group 1 Lincoln Boulevard, Suite 225 Rouses Point, NY 12979 RE: Modification of NY L82296 and Revocation of NY I87269, NY D84404, NY 816190, NY N005466, NY C85171, and NY L86796; Classification of “piggy” Banks Dear Mr. Saunders, This is reference to the New York Ruling Letter (NY) L82296, issued to you by U.S. Customs and Border Protection (CBP) on February 22, 2005 concerning classification of an animal “piggy” bank under the Harmonized Tariff Schedule of the United States (HTSUS). We have reviewed your ruling, and determined that it is incorrect, and for the reasons set forth below, are modifying your ruling. We have also reviewed NY I87269, dated October 11, 2002, NY D84404, dated December 2, 1998, NY 816190, dated October 31, 1995, NY N005466, dated January 26, 2007, NY C85171, dated April 2, 1998, and NY L86796, dated August 5, 2005, and determined they are also incorrect, and for the reasons set forth below, we are revoking those rulings. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), 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), a notice of the proposed action was published in the Customs Bulletin, Volume 54, No. 42, on October 28, 2020. No comment was received in response to this notice. FACTS: In your ruling NY L82296 (representation of a pig), and in rulings NY I87269 (representation of a pig), NY D84404 (representation of a soda vending machine), and NY 816190 (representation of Mickey Mouse character), CBP classified the subject plastic “piggy” banks into heading 9503, HTSUS, as toys. In NY N005466, CBP stated as follows in reference to the subject merchandise: Described as a Zillions Counting Pig Toy Bank. There is no designated item number indicated for the product. The article is a large, translucent pig bank with a digital reader that indicates the amount of money in the bank. This “piggy” bank encourages a child to save money and tells them the amount in the bank deposited. In NY C85171, CBP stated as follows: The first article is a PVC bank measuring approximately 4" in height. It is depicted in the shape of the head of the Looney Tune cartoon character "Marvin the Martian." It has a black face, large white eyes, and is shown wearing a green trojan helmet. The article has a small coin slot in its top and a retrieval plug in the base. The base is red in color and contains the legend "BIRTHDAY GREETINGS EARTHLING!!!." Inside of the article is an electronic musical mechanism which plays a Happy Birthday melody when coins are dropped through the coin slot. This mechanism consumes a large part of the cavity of the article. The second article is a PVC bank measuring approximately 4" in height. It is depicted in the shape of a football permanently mounted to a football tee. The football is brown and white in color and contain a small coin slot in its top. The football tee is orange in color and has a retrieval plug in its base. The utility of these items is limited due to the small size of the respective coin slots and storage capacities. In NY L86796, CBP stated as follows: An animal bank that is composed of a plastic body covered with plush on the outside surface. The product is designated as item number C078JA01245. The bank is a whimsical depiction of an elephant, and although it is a functional bank, the primary purpose of the article is to amuse a child or an adult. CBP also classified the merchandise in NY N005466, NY C85171, and NY L86796 in heading 9503, HTSUS, as toys. ISSUE: Whether the subject “piggy” banks are classified in heading 9503, HTSUS, as other toys. LAW AND ANALYSIS: Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes. GRI 1 requires that classification be determined first 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 heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 2(a) provides, in relevant part, that "[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished articles has the essential character of the complete or finished article." The Harmonized Commodity Description and Coding System Explanatory Notes ("ENs") constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings . See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The 2019 HTSUS provision under consideration are as follows: 3924: Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: 6307: Other made up articles 8543: Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: 9503: Dolls, other toys Note 2 to Chapter 39, states in relevant part: 2. This chapter does not cover: (s) Articles of section XVI (machines and mechanical or electrical appliances) (y) Articles of Chapter 95 (for examples, toys, games, sports equipment) The ENs to Heading 9503 state in relevant part: (D) Other toys. This group covers toys intended essentially for the amusement of persons (children or adults). However, toys which, on account of their design, shape or constituent material, are identifiable as intended exclusively for animals, e.g., pets, do not fall in this heading, but are classified in their own appropriate heading. This group includes: All toys not included in (A) to (C). Many of the toys are mechanically or electrically operated. These include: (xxii) Toy money boxes * * * * Classification within Chapter 39 is subject to Chapter 39, Legal Note 2(y), which excludes from Chapter 39 goods that are classifiable in Chapter 95, HTSUS. Therefore, if the subject articles are described in Chapter 95, they are precluded from classification in any of the provisions of Chapters 39, even if they are described therein. We must therefore first address whether the subject articles are described in heading 9503, HTSUS. Although the term “toy” is not defined in the HTSUS, EN 95.03 provides that heading 9503, HTSUS, covers toys intended essentially for the amusement of persons. U. S. v. Topps Chewing Gum, 58 CCPA 157, C.A.D. 1022 (1971) (hereafter Topps), is illustrative in determining whether an article is intended for the amusement of the user. Topps held that an article may be considered a toy if it provides the same kind of amusement as a plaything. In Topps, various decorative buttons with humorous quotes which created evident and inherent amusement were classified as toys of heading 9503. Where merchandise might have another purpose in addition to providing amusement, the primary purpose of the item must be its amusement value for it to be classified as a toy. In Ideal Toy Corp. v. United States, 78 Cust. Ct. 28, 33 (1977), the Customs Court held that “when amusement and utility become locked in controversy, the question becomes one of determining whether the amusement is incidental to the utilitarian purpose, or the

Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes.GRI 1 requires that classification be determined first 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 heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 2(a) provides, in relevant part, that "[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished articles has the essential character of the complete or finished article."The Harmonized Commodity Description and Coding System Explanatory Notes ("ENs") constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings . See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).The 2019 HTSUS provision under consideration are as follows:3924: Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics:6307: Other made up articles8543: Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof:9503: Dolls, other toysNote 2 to Chapter 39, states in relevant part:2. This chapter does not cover:(s) Articles of section XVI (mac