CLA-2-84:RR:NC:1:120 M80734
Lisa C. Sessions
Customs House Broker
P.O. Box 3671
Meridian, MS 39303
RE: The tariff classification of a USB flash disk pen from Taiwan
Dear Ms. Sessions:
In your letter received March 8, 2006, on behalf of your client, Bullet Line, Inc., you requested a tariff classification ruling for a Universal Serial Bus (USB) flash disk pen; item number SM-3286.
The USB flash disk pen combines a conventional ballpoint pen, a USB flash memory drive (64 MB) and a plastic stylus. The plastic housing measures approximately 4.75” long by 1” wide by .5” deep. It contains the ballpoint pen, which is changeable to the stylus for use on touch screens, Personal Digital Assistants (PDA) and cell-phones. It has an on-board LED display, safety lock for on/off switch, and a wide design pocket clip to cover the USB plug. The flash disk pen is imported as a set with the stylus and pen refill, software, and a USB connector.
A Universal Serial Bus (USB) port is a direct high-speed digital connection into a personal computer (PC). The USB flash memory is available in 64 MB of memory storage. The USB flash drive is designed to plug into the USB port of a PC or Notebook. This USB memory device is encased within the pen’s housing and it is not assembled in a cabinet for placing on a table, desk, wall, floor or similar place. It is used for data storage and retrieval of data.
The Universal Serial Bus Flash Memory Drive with Pen and Stylus is a composite good consisting of a USB storage device classified under heading 8471, Harmonized Tariff Schedule of the United States (HTSUS), a ballpoint pen and a plastic stylus classified under heading 9608, HTSUS; three components described under different provisions of the HTSUS. Noting Section XVI, Note 3, "Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function." The General Rules of Interpretation (GRIs) of the HTSUS governs the classification of goods. Composite goods are classified in accordance with GRI 3(b), by determining the essential character of the good. The Explanatory Notes (ENs) of the HTSUS provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. The ENs to GRI 3(b) state, in pertinent part, the following:
(VIII) The factor which determines the 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.
The USB electronics represents more than 80% of the value of the USB pen with stylus. Therefore the USB flash memory provides the essential character of the USB flash disk pen.
With respect to the issue of "sets" under the General Rules of Interpretation 3(b), relevant Explanatory Notes under the caption Rule 3(b) state:
(X) For purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean 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).
These items are packed and enclosed within a carton, will be shipped and marketed as a retail set without additional packaging. The flash disk pen is imported as a set with the stylus and pen refill, software, and a USB connector intended as a writing tool for data storage and retrieval of data. It meets the definition of a "retail set" as noted in GRI-3 (b) of the HTS. The "essential character" of this retail set is exemplified by the USB.
The software diskette is not separately classified as per Legal Note 6 to Chapter 85 of the HTS.
The applicable subheading for the USB flash disk pen set will be 8471.70.6000, HTSUS, which provides for “Automatic Data processing machines and units thereof…Storage units: Other storage units: Not assembled in cabinets for placing on a table, desk, wall, floor or similar place." The general rate of duty will be free.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Denise Faingar at 646-733-3010.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division