HQ W968419

March 1, 2007

**CLA-2 RR:CTF:TCM** W968419 ADK

**CATEGORY:** Classification

**TARIFF NO.:** 7018.90.50

Area Director,

JFK International Airport Area,

C/o Chief, Liquidation and Protest Branch

Building 77, JFK International Airport,

Jamaica, New York 11430

**RE:** Glass beaded cosmetics compacts; Protest No. 4701-05-100176

Dear Area Director:

The following is our decision regarding the Application for Further
Review ("AFR") of Protest No. 4701-05-100176, timely filed on behalf of
Estee Lauder, Inc. (Estee Lauder) concerning classification of certain
cosmetics compacts under the Harmonized Tariff Schedule of the United
States (HTSUS).

**FACTS:**

The subject imports are brass cosmetics compacts made in China. The
topside and edges of the compacts are entirely covered with red, pink
and silver glass beads. In the center of the compact, the glass beads
are arranged to form a heart. Surrounding this heart, the beads are
agglomerated to the surface. The brass is minimally visible underneath
the heart, but completely obscured by the agglomerated beads. A small,
round mirror is permanently fixed to the inside of the compact. After
entry, the compact is filled with pressed powder and placed in a box for
retail sale.

The merchandise was liquidated under subheading 7018.90.50, HTSUS, which
provides for "\[g\]lass beads...other than imitation jewelry...:Other:
Other." Estee Lauder argues that the compact should be classified under
subheading 7419.99.1500, Harmonized Tariff Schedule United States
Annotated (HTSUSA), which provides for "\[o\]ther articles of copper:
Other: Other: Containers of a kind normally carried on the person, in
the pocket or in the handbag."

**ISSUE:**

Does the glass beading or the metal impart the essential character to
the subject merchandise?

**LAW AND ANALYSIS:**

Initially, we note that the matter is protestable under 19 U.S.C. §
1514(a)(2) as a decision on classification. The protest was timely
filed, within 180 days of liquidation of the last entry made on October
11, 2004. (Miscellaneous Trade and Technical Corrections Act of 2004,
Pub.L. 108-429, § 2103(2)(B)(ii), (iii) (codified as amended at 19
U.S.C. § 1514(c)(3) (2006)).

Further Review of Protest No. 4701-05-100176 was properly accorded to
protestant pursuant to 19 C.F.R. § 174.24. In accordance with § 174.24
(a), the decision against which the protest was filed is alleged to be
inconsistent with a ruling of the Commissioner of Customs or his
designee, or with a decision made at any port with respect to
substantially similar merchandise.

Classification under the HTSUS is made in accordance with the General
Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order.

The subject import is a composite article, made from both glass and
metal. Classification must therefore be in accordance with GRI 3(b).
That rule provides, in pertinent part:

> \...composite goods consisting of different materials...shall be
> classified as if they consisted of the material or component which
> gives them their essential character.

At issue is which of these composite materials imparts the essential
character. The HTSUS provisions under consideration are as follows:

7018 Glass beads, imitation pearls, imitation precious or semiprecious
stones and similar glass smallwares and articles thereof other than
imitation jewelry; glass eyes other than prosthetic articles; statuettes
and other ornaments of lamp-worked glass, other than imitation jewelry;
glass microspheres not exceeding 1mm in diameter:

7018.90 Other:

7018.90.50 Other

\* \* \*

7419 Other articles of copper:

Other:

7419.99 Other:

7419.99.15 Containers of a kind normally carried on the person, in the
pocket or in the handbag

\* \* \*

The Harmonized Commodity Description and Coding System Explanatory Notes
(ENs) constitute the official interpretation of the HTSUS. While not
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. The relevant EN
is as follows:

Heading 70.18:

> This heading covers a range of widely diversified glass articles, most
> of which are used directly or after further processing, for ornamental
> and decorative purposes
>
> These include:
>
> \(A\) Glass beads (e.g. as used...for decorating articles (trimmings,
> embroidery, etc.)...These beads, whether or not coloured \[sic.\], are
> in the form of small pierced balls, more or less round n shape....

\* \* \*

Classification of the subject compacts is dependent upon determining the
essential character. Merchandise adorned with glass beads has
traditionally been classified under heading 7018, HTSUS. Provided that
the beads cover the entire upper or outer surface of the article, the
beading, not the material beneath, imparts essential character.
*[See]{.underline}* Headquarters Ruling (HQ) 966663, dated March 31,
2004 (Plastic grapes "covered with" glass beads classified under
subheading 7018.90.50, HTSUS); HQ 966664, dated March 31, 2004 (Beaded
berry wreath in which the berries were "completely covered" with glass
beads, classified under subheading 7018.90.50, HTSUS); HQ 084748, dated
August 22, 1989 ("Fully glass beaded handbag" classified under
subheading 7018.90.50, HTSUS); and New York Ruling (NY) 888300, dated
May 5, 1993 (Two trinket boxes, the exterior of which were "completely
covered" with glass beads, classified under subheading 7018.90.50,
HTSUS).

This complete coverage requirement ensures that the glass beading serves
as the focal point of the entire product, rather than as a mere
decoration. Where the glass beading is found to offer mere decoration,
beaded articles are excluded from heading 7018, HTSUS.
*[See]{.underline}* NY L87107, dated September 8, 2005 (Twine book marks
which were "merely" decorated with glass beads, classified under
subheadings 5609.00.3000, and 6307.90.9889, HTSUSA); NY I88555, dated
December 10, 2002 (Mini wooden sugar lids which featured glass beading
only at their tip, classified under subheading 4421.90.9740, HTSUSA).

According to Estee Lauder, the subject compact is "decorated on the top
side...with glass beads...." A visual inspection of the article confirms
that the glass beading covers the entire upper surface of the compact.
Furthermore, the use of bright and varying colors ensures that the glass
beads are the focal point of the entire compact. Like the plastic grapes
in HQ 966663, the top and sides of the compact are "covered with" glass
beads. Because the glass beading rises above the level of "mere
decoration," it imparts the essential character to the subject article.
Accordingly, the cosmetics compact will be classified as if it consists
only of the glass beading.

Estee Lauder cites five rulings in which imports were classified in
headings other than 7018, HTSUS, as evidence that the compacts were
improperly classified. The first three of these rulings are HQ 082992,
dated September 13, 1989 (Plastic cosmetics compact without adornment
classified under heading 3923, HTSUS), NY 831916, dated September 29,
1998 (Injection molded plastic compact without adornment, classified
under heading 3923, HTSUS), and NY A88945, dated November 25, 1996
(Wooden jewelry box featuring inlaid mother of pearl classified under
heading 4420, HTSUS). In each, CBP classified articles without beading
or glass adornment of any kind. These articles are factually
distinguishable from the subject import and have no bearing on the
present matter.

Estee Lauder also cites NY I81588, dated May 17, 2002 and NY E83190,
dated June 30, 1999. In both cases, the merchandise was adorned with
plastic not glass[^1]. As a result, the articles were *prima facie*
excluded from heading 7018, HTSUS, which provides only for glass beads,
imitation pearls, imitation precious or semiprecious stones.

**HOLDING:**

By application of GRI 3(b), the cosmetics compact is classifiable under
heading 7018, HTSUS. Specifically it is classifiable under subheading
7018.90.5000, HTSUSA, which provides for: "\[g\]lass beads, imitation
pearls, imitation precious or semiprecious stones and similar glass
smallwares and articles thereof other than imitation jewelry; glass eyes
other than prosthetic articles; statuettes and other ornaments of
lamp-worked glass, other than imitation jewelry; glass microspheres not
exceeding 1mm in diameter: Other: Other." The 2004 column one, general
rate of duty is 6.6 percent *ad valorem*.

The protest should be DENIED. In accordance with the Protest/Petition
Processing Handbook (CIS HB, January 2002, pp. 18 and 21), you are to
mail this decision, together with the Customs Form 19, to the Protestant
no later than 60 days from the date of this letter. Any reliquidation of
the entry in accordance with the decision must be accomplished prior to
mailing of the decision. Sixty days from the date of the decision the
Office of International Trade will make the decision available to CBP
personnel, and to the public on the CBP Home Page on the World Wide Web
at www.cbp.gov, by means of the Freedom of Information Act, and other
methods of public distribution.

Sincerely,

Myles B. Harmon, Director

Commercial and Trade Facilitation Division

[^1]: Ruling NY E83190 does not state whether the decorative beads were
    made of plastic or glass. The assigned subheading, 4202.22.4030,
    HTSUS, however, indicates that the beading was plastic. That
    subheading provides for: "Trunks, suitcases, vanity cases...powder
    cases...:With an outer surface of...**plastic**...: Other: Other."
    (Emphasis added). Not only do the terms of the subheading require an
    outer surface of plastic, but CBP has consistently classified
    handbags adorned with plastic beading under heading 4202, HTSUS. See
    HQ 963408, dated April 17, 2002; HQ 085520, dated December 14, 1989;
    NY M85839, dated September 13, 2006; NY I86746, dated October 1,
    2002.