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HQ 955897

April 15, 1994

CLA-2 CO:R:C:F 955897 GGD


TARIFF NO.: 9503.80.20

Mr. Andrew G. Halpern
Strasburger & Price, L.L.P.
901 Main Street, Suite 4300
Dallas, Texas 75202

RE: "Radio Control Apache;" Radio Remote Control Toy Vehicle with Battery, Battery Pack, and Battery Charger; GRI 3(b) Set

Dear Mr. Halpern:

This letter is in response to your inquiry of January 17, 1994, on behalf of your client, Nikko America, Inc., concerning the classification under the Harmonized Tariff Schedule of the United States (HTSUS), of a toy vehicle and accessories, identified as a "Radio Control Apache," to be imported from Malaysia. A sample was submitted with your inquiry.


The sample article to be imported, identified by item no. RDC-16845, consists of a toy vehicle; a hand-held, radio remote control transmitter; a 4.8 volt, rechargeable, nickel-cadmium battery pack (for insertion in the toy vehicle); a 9 volt battery (for insertion in the remote control); and a battery charger, all packaged together for retail sale. The toy vehicle and remote transmitter are made in Malaysia. The battery pack is a product of Japan. The charger is a product of Thailand. The 9 volt battery is of U.S. origin.


Whether the article should be classified as a set, or as individual, separately classifiable components.


Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the harmonized system is such that virtually all goods are classified by application of GRI 1, that is, 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 Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRIs.

As noted above, the article consists of five individual components. The article cannot be classified by reference to GRI 1 because several of the components are classifiable in different headings. The toy vehicle is classifiable in heading 9503, HTSUS, as an other toy. The remote control transmitter is classifiable in heading 8526, HTSUS, as a radio remote control apparatus. The battery pack and battery are classifiable in heading 8507, HTSUS, as electric storage batteries. The battery charger is classifiable in heading 8504, HTSUS, as an electrical transformer.

In pertinent part, GRI 2(b) states that:

[t]he classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.

GRI 3(a) directs that the headings are regarded as equally specific when each heading refers to part only of the items in a set put up for retail sale. Therefore, to determine under which provision the article will be classified, we look to GRI 3(b), which states in pertinent part that:
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.

With respect, initially, to whether the "Radio Control Apache" article comprises goods put up in sets, we look to Explanatory Note X to GRI 3(b), which indicates that for purposes of the rule, the term "goods put up in sets for retail sale" means goods which:

(a) consist of at least two different articles which are prima facie, classifiable in different headings;

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and

(c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).

As previously noted, the subject goods meet criteria (a) and (c). With regard to criterion (b), we must determine whether the products are put up together to carry out a specific activity, i.e., the providing of amusement. Of the five components, all but the battery charger play a direct part in the operation of the toy. However, since the toy vehicle is designed to operate only on the power of a rechargeable battery pack, the toy is inoperable once the charge is depleted.

In Headquarters Ruling Letter 955055, issued October 5, 1993, this office held that a broadcast receiver and accessories including a rechargeable battery pack and battery charger, were put up together to receive broadcast bands, and that the components comprised a set for classification purposes. We similarly find in this case, that the battery charger meets the particular need for which the goods are put up together, and that the "Radio Control Apache" article is a set.

In order to determine the essential character of the set, we next view Explanatory Note VIII to GRI 3(b), which provides the following guidance:

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.

Having found that each of the components plays a role in the toy vehicle's operation, it is clear that the vehicle is the component which provides the set with its essential character. Therefore, the "Radio Control Apache" is classified in heading 9503. The proper subheading for the article is 9503.80.20, HTSUS.


The "Radio Control Apache," article, identified by item no. RDC-16845, is classified in subheading 9503.80.20, HTSUS, the provision for "Other toys...and accessories thereof: Other toys and models, incorporating a motor, and parts and accessories thereof: Toys (except models): Incorporating an electric motor." The applicable duty rate is 6.8 percent ad valorem.


John Durant, Director

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