CLA-2-95:RR:NC:2:224 E85827
Stacy Haines
Wal Mart Stores, Inc.
702 SW 8th Street
Bentonville, AR 72716/4318
RE: The tariff classification of a fishing rod and reel kit from China.
Dear Ms. Haines:
In your letter dated August 9, 1999, you requested a tariff classification ruling.
The merchandise is labeled as style 66PRKITWMH and consists of a 6 ½ foot rod which is packed in six pieces, and a graphite spinning reel with an aluminum spool. The rod and reel are retail packed in a plastic box with a transparent lid. This ruling’s conclusions are based on the presumption that the complete set will be imported from China in one retail package. The sample will be returned, as requested.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes. If GRI 1 fails to classify the goods and if the heading and legal notes do not otherwise require, the remaining GRIs are applied, taken in order.
In considering the classification of this fishing rod and reel kit we note that no one subheading fully describes the article. Therefore, the article cannot be classified in accordance with GRI 1. Since the article is made up of two or more components that if imported separately would be classifiable under different subheadings, we refer to GRI 3 to classify the rod and reel combination. In this regard we note that the individual components are classifiable as follows: the fishing rod in subheading 9507.10, HTSUS, and the reel in subheading 9507.30, HTSUS.
GRI 3(a) provides that a composite article or set such as the instant sample is to be classified in the heading that provides the most specific description. Since the description of the various components is equally specific the fishing kit cannot be classified under GRI 3(a). Accordingly, we must next consider the classification of the kit under GRI 3(b) that covers, among other things, goods put up in sets for retail sale.
Explanatory Note X to GRI 3(b), which represents the opinion of the international classification experts, provides that merchandise is a set put up for retail sale if it is composed of: (a) at least two different items classifiable in different headings (or subheadings); (b) it consists of items put up together to meet a particular need, (here , specifically, to serve as a compact fishing kit for sport fishing); and (c) it is put up in a manner suitable for sale directly to users without repacking, in a retail package. Goods classifiable under GRI 3 (b) are classified as if they consisted of the component that gives them their essential character, which 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 article.
In considering all these factors we have concluded that the rod and reel components both play equally necessary roles and are equally essential to the set’s performance of the function for which it was designed. Accordingly, we must refer to GRI 3 (c) which provides that when goods cannot be classified by reference to GRI 3 (a) or (b), they are to be classified in the heading (or subheading) which occurs last in numerical order among those which equally merit consideration in determining their classification.
Accordingly, by virtue of GRI 3 (c), the rod and reel set would be classified in the subheading which occurs last in numerical order among those which equally merit consideration, leading us to subheading 9507.30, HTSUS. The plastic retail container which is specially fitted for the rod and reel shall be classified with the rod and reel in 9507.30, HTSUS by virtue of GRI 5 (a).
The applicable subheading for the fishing rod and reel kit will be 9507.30.4000, Harmonized Tariff Schedule of the United States (HTS), which provides for “fishing reels and parts and accessories thereof: Fishing reels: Valued over $2.70 but not over $8.45 each..” The rate of duty will be .24 cents each.
Please note: When rod/reel combinations are classified in one of the three reel provisions of subheading 9507.30 by virtue of GRI 3 (b) or (c), we do not add together the costs of the rod and reel to determine the actual subheading classification. Rather, we determine the proper subheading based on the cost of the reel component only, (in the instant case: $6.00) and then apply that subheading’s duty rate to the combined value of the rod and reel package (or, in the case of the specific rate of subheading 9507.30.4000, to the total number of rod and reel units).
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Tom McKenna at 212-637-7015.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division