CLA-2-85:OT:RR:E:NC:N1:112
Mr. Al Gaidys
Vice President – Customs Compliance
Panalpina, Inc.
19409 Kenswick Dr.
Humble, TX 77365
RE: The tariff classification of reusable security tags from China and other unspecified countries of origin, and their eligibility as “packing” within the meaning of GRI 5(b)
Dear Mr. Gaidys:
In your letter dated June 28, 2009, on behalf of Telsec Corporation d.b.a. UNISEN and E-Tag, you requested a tariff classification ruling.
The merchandise concerned is five different models of plastic, reusable security tags.
The first security tag is referred to as the RF SST. It operates as part of a radio frequency (RF) security system. The internal components consist of a wound copper coil, which acts as an antenna, and a capacitor. These components form a resonant circuit or tuned circuit. They react to a specific frequency that is emitted from a security door portal. The door portal consists of both a transmitter and a receiver. The door portal transmits a specific radio frequency (8.2 MHz), the security tag reacts to that frequency by resonating, the receiver portion of the door portal responds to the resonating security tag by sounding an alarm. This type of security tag is known as a passive security tag because it does not require a battery to operate.
The next four items concerned are referred to as the Sensormatic SuperTag II, the Sensormatic SuperTag I, the Sensormatic VST and the Sensormatic UltraGator/MaxTag II. All four of these security tags operate as part of an acousto-magnetic (AM) security system. These plastic tags contain two magnetic acousto-resonators. They react to a specific “pulsed” frequency (58 kHz) that is emitted from a security door portal. The door portal consists of both a transmitter and a receiver. The door portal transmits a specific “pulsed” frequency; the security tag reacts to that frequency by vibrating/resonating, when the “pulsed” transmission stops, the tags continue to vibrate much like a tuning folk. Those vibrations are detected by the receiver portion of the door portal which responds by sounding an alarm. These types of security tag are known as passive security tags because they do not require a battery to operate.
Regarding the applicability of GRI 5(b), as stated in your submission these security tags may be attached to various types of wearing apparel prior to importation into the United States. Once the wearing apparel is sold at the retail store, the security tags are removed and sent to a processing center where they are inspected, repackaged and sent back to the apparel manufacturer. The apparel manufacturers will reuse the tags on subsequent shipments. This reuse/recirculation of the security tags is part of an “EAS Tag Recirculation Program”. GRI 5(b) states, “Subject to the provisions of rule 5(a) above, packing material and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.”
CBP has previously held that security tags attached to merchandise at time of importation are packing materials. In this instance, the security tags concerned are suitable for repetitive use. As such, by application of GRI 5(b), the security tags concerned are not classifiable with the merchandise with which they are imported, but are separately classifiable at the time of importation.
In addition you are questioning whether the security tags described above may be classified under subheading 9803.00.50, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Substantial containers and holders, if products of the United States (including shooks and staves of United States production when returned as boxes or barrels containing merchandise), or if of foreign production and previously imported and duty (if any) thereon paid, or if of a class specified by the Secretary as instruments of international traffic, repair components for containers of foreign production which are instruments of international traffic, and accessories and equipment for such containers, whether the accessories and equipment are imported with a container to be re-exported separately or with another container, or imported separately to be re-exported with a container.” Subheading 9803.00.50 is the only subheading in Subchapter III, Chapter 98, HTSUS. U.S. Note 1(a) to Subchapter III, Chapter 98, provides, in pertinent part:
This subchapter covers only the following: (a) Substantial containers or holders which are subject to tariff treatment as imported articles and are:
(i) Imported empty and not within the purview of a provision which specifically exempts them from duty; or
(ii) Imported containing or holding articles, and which are not of a kind normally sold therewith or are entered separately therefrom; and
(b) Certain repair components, accessories and equipment.
It is our position that the security tags do not contain or hold transported merchandise, as discussed above. As such, the security tags would not be eligible for classification under subheading 9803.00.50 (HTSUS).
The applicable subheading for each of the reusable security tags, (the RF SST, the Sensormatic SuperTag II, the Sensormatic SuperTag I, the Sensormatic VST and the Sensormatic UltraGator/MaxTag II) will be 8531.90.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electric sound or visual signaling apparatus…: Parts: Other: Other.” The rate of duty will be 1.3%.
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 Steven Pollichino at (646) 733-3008.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division