CLA-2: OT:RR:CTF:TCM H141716 KSH
Kenneth G. Weigel, Esq.
Alston & Bird LLP
950 F Street N.W.
Washington, DC 20004-1404
RE: Tariff classification of a key plus combination lock and travel lock.
Dear Mr. Weigel:
This is in reference to your request of August 12, 2010, on behalf of
your client Master Lock Company LLC, for a prospective ruling to determine the classification of four locks under the Harmonized Tariff Schedule of the United States (HTSUS). Samples of the merchandise at issue have been examined in conjunction with your request. In reaching our decision, consideration was also given to the substance of a telephone conference held with a member of my staff on December 16, 2010.
FACTS:
The merchandise at issue is identified as the “Key Plus Combination Lock – M176XDLH” and the “Travel Lock – 4688D.”
The Key Plus Combination Lock is a padlock that operates by both key and combination and is constructed of boron-carbide. The combination mechanism is a locking mechanism that is not of pin tumbler or cylinder construction. The key operated locking mechanism is of cylinder/pin tumbler construction. The Key Plus Combination Lock also includes a “’reset’ tool.” Retail packing of the Key Plus Combination Lock states “Set your own
combination with back-up key™.” The reset tool allows the user to reset the combination but not operate the lock. The length of the key plus combination lock measured from the top of the shackle to the base of the body using a caliper, equals 4.3 inches (10.9 cm). The width, measured perpendicular to the length, excluding the rubber bumper protecting the dials and the sliding plastic piece protecting the key hole, equals 2.1 inches (5.3 cm).
The Travel Lock is a small padlock designed to be used on luggage. It is made of both metal and plastic components and incorporates a combination mechanism consisting of three numerical dials plus a cylinder mechanism that is operated by key. The combination mechanism is a locking mechanism that is not of pin tumbler or cylinder construction. The key operated locking mechanism is of cylinder/pin tumbler construction. The combination mechanism is operated by a Transportation Security Administration Officer.
ISSUE:
What is the proper classification of the locks?
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff Schedule of the
United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the remaining GRIs 2 through 6.
The HTSUS subheadings at issue are as follows:
8301.10 Padlocks:
Not of cylinder or pin tumbler construction:
8301.10.20 Not over 3.8 cm in width
8301.10.40 Over 3.8 cm but not over 6.4 cm in width
Of cylinder or pin tumbler construction:
8301.10.60 Not over 3.8 cm in width
8301.10.80 Over 3.8 cm but not over 6.4 cm in width
There is no dispute that the locks are classified in subheading 8301.10, HTSUS. At issue is the proper eight-digit national tariff rate. As such GRI 6 is implicated. GRI 6 provides that the classification of goods at the subheading level "shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules [GRIs 1 - 5], on the understanding that only subheadings at the same level are comparable. See Headquqarters Ruling Letters (HQ) 964701, dated October 22, 2001 and HQ H013671, dated January 16, 2009.
Both the Key Plus Combination Lock and the Travel Lock incorporate a key which is of pin tumbler construction and a combination locking mechanism which is not of pin tumbler construction. Because the locks are prima facie classifiable in more than one subheading resort to GRI 3 is necessary.
GRI 3(b) provides that “[m]ixtures, composite goods consisting of different materials or made up of different components, and 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.” EN VIII to GRI 3(b) explains that bulk, quantity, weight, value or the role of a constituent material in relation to the use of the article are indicia of essential character.
There have been several court decisions on "essential character" for purposes of classification under GRI 3(b). See, Conair Corp. v. United States, 29 C.I.T. 888 (2005); Structural Industries v. United States, 360 F. Supp. 2d 1330, 1337-1338 (Ct. Int’l Trade 2005); and Home Depot USA, Inc. v. United States, 427 F. Supp. 2d 1278, 1295-1356 (Ct. Int’l Trade 2006), aff’d 491 F.3d 1334 (Fed. Cir. 2007). "[E]ssential character is that which is indispensable to the structure, core or condition of the article, i.e., what it is." Home Depot USA, Inc. v. United States, 427 F. Supp. 2d at 1293 quoting A.N. Deringer, Inc. v. United States, 66 Cust. Ct. 378, 383 (1971). In particular in Home Depot USA, Inc. v. United States, the court stated "[a]n essential character inquiry requires a fact intensive analysis." 427 F. Supp. 2d 1278, 1284 (Ct. Int’l Trade 2006).
With regard to the Key Plus Combination Lock, we note that both the retail packaging and the product specifications listed on the company’s website describe the padlock as a combination lock with a convenient back-up key. In addition the padlock only includes one small key capable of operating the cylinder locking mechanism rather than two as is customary for such merchandise. The key appears to be used by consumers as a secondary means of operating the lock if the combination is forgotten. As such, the essential character is imparted by the combination locking mechanism.
With regard to the Travel Lock, both the key and the combination lock appear to be of equal importance. Although the traveler will only utilize the combination locking mechanism, the lock cannot be used to secure luggage during travel without being a TSA-Accepted Lock. To be a TSA-Accepted Lock, the lock must be accessible to TSA screeners through use of the key. As such a classification determination cannot be made by application of GRI 3(b).
GRI 3(c) explains that goods which cannot be classified by reference to 3(a) or 3(b) are classified under the heading which occurs last in numerical order among those which equally merit consideration. Accordingly, the Travel Lock is classified in subheading 8310.10.60, HTSUS, which occurs last in numerical order among the subheadings which merit equal consideration.
HOLDING:
Pursuant to GRI 6 through application of GRI 3, the Key Plus Combination Lock is classified in subheading 8301.10.40, which provides for: “Padlocks and locks (key, combination or electrically operated), of base metal; clasps and frames with clasps, incorporating locks, of base metal; keys and parts of any of the foregoing articles, of base metal: Padlocks: Not of cylinder or pin tumbler construction: Over 3.8 cm but not over 6.4 cm in width.” The general, column one rate of duty is 3.8% ad valorem.
The Travel Lock is classified in subheading 8301.10.60, which provides for: “Padlocks and locks (key, combination or electrically operated), of base metal; clasps and frames with clasps, incorporating locks, of base metal; keys and parts of any of the foregoing articles, of base metal: Padlocks: Of cylinder or pin tumbler construction: not over 3.8 cm in width.” The general, column one rate of duty is 6.1% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the world wide web at www.usitc.gov.
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without
a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch