HQ 083195

April 28, 1989


CLA-2 CO:R:C:G 083195 DSN

CATEGORY: Classification

TARIFF NO.: 7323.99.9000

Mr. Morris D. Corson
Director of Purchasing
Selfix, Inc.
4501 West 47th Street
Chicago, Illinois 60632

RE: Classification of magnetic memo holders

Dear Mr. Corson:

This is in response to your inquiry of September 28, 1988,
concerning the classification of magnetic memo holders under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). Samples produced in China were submitted for
examination.

FACTS:

The submitted samples consist of two types of magnetic memo
holders. The first type is a painted plastic figure which is
glued to a sintered metal magnet. The second type is a plastic
clip painted to resemble an animal figure and is also glued to a
sintered metal magnet. The figures represent a soccer player,
hockey player, penguins, elves, and a panda bear. The
merchandise is designed to be placed on refrigerator doors or
other metal objects in the home.

ISSUE:

Whether the samples at issue are classified under heading
8505 or heading 7323, HTSUSA.

LAW AND ANALYSIS:

Heading 8505, HTSUSA, provides for electro-magnets,
permanent magnets and articles intended to become permanent


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magnets after magnetisation. The Explanatory Notes which
constitute the official interpretation of the tariff at the
international level, state that heading 8505 does not cover
"electro-magnets, permanent magnets or magnetic devices of this
heading, when presented with machines, apparatus, toys, games, of
which they are designed to form part (classified with those
machines, apparatus, etc.)." With respect to the instant
samples, they are magnets designed to form part of the article.
Since the magnets are presented with and incorporated into a
plastic caricature, they are precluded from classification in
this heading.

Since the samples are composed of different components,
i.e. sintered metal and plastic, they are classifiable under two
different headings, and therefore, GRI 3 is applicable. Heading
3926, HTSUSA, provides for other articles of plastics. Heading
7323, HTSUSA, provides for kitchen and other household articles
of iron or steel. GRI 3(a) states that the heading providing the
most specific description shall be preferred, however when each
heading refers to part only of the materials contained in
composite goods those headings are to be regarded as equally
specific, even if one of them gives a more complete description
of the goods. Each of the headings refers to part only of the
merchandise in this case. Therefore, the headings are regarded
as equally specific, and the classification of the samples at
issue cannot be determined by relative specificity.

GRI 3(b) provides that composite goods made up of different
components which cannot be classified by reference to GRI 3(a)
are classified by the component which gives them their essential
character. The Explanatory Notes to GRI 3(b) state that
essential character may be determined by the nature of the
component, its bulk, quantity, weight or value, or by the role of
a constituent material in relation to the use of the goods.

With respect to the merchandise at issue, the magnet is
essential for the intended use of the article. If the magnet
were removed, the product would be incapable of functioning as a
magnetic memo holder for refrigerator doors or other metal
objects. The plastic caricatures merely embellish the
merchandise and act as a decorative selling feature, but have no
effect on the ability of the magnet to perform its intended
function. Therefore, the essential character is imparted by the
magnet.

Heading 7323, HTSUSA, provides for kitchen or other
household articles of iron or steel. The Explanatory Notes to
heading 7323, state that this group comprises a wide range of
iron or steel articles, not more specifically covered by other
headings of the Nomenclature. With respect to the instant
samples, since they are designed to be used in the kitchen or


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around the home and have the essential character of metal, and
are not specifically covered by any other heading, they are
classifiable in this heading.

In NYRL 829918 of June 10, 1988, a magnetic memo holder
composed of metal with a textile covering was classified under
heading 6307, which provides for other made up articles. The
Explanatory Notes to heading 6307, state that the heading covers
made up articles of any textile material which are not included
more specifically in other headings of Section XI or elsewhere in
the Nomenclature. We believe heading 7323 is a more specific
provision for the magnetic memo holder and the instant samples.
We hereby revoke the above ruling.

HOLDING:

In view of the foregoing, the merchandise at issue is
classified under subheading 7323.99.9000, HTSUSA, which provides
for kitchen or other household articles of iron or steel, other,
not coated or plated with precious metal, other, other, and
dutiable at the rate of 3.4 percent ad valorem.

NYRL 829918 of June 10, 1988 is hereby revoked in
accordance with this ruling.

Sincerely,


John Durant, Director
Commercial Rulings Division