CLA-2-71:OT:RR:NC:N4:433
Isabel Fernandez
Founder & CEO
Bag Bug, LLC
2028 N. Haskell Avenue
Dallas, TX 75204
RE: The tariff classification of three variations of the “Bag Bug” from China.
Dear Ms. Fernandez:
In your undated letter, received in this office on September 4, 2015, you requested a tariff classification ruling. The samples submitted will be returned to you.
The Bag Bug is an accessory that clips onto a purse’s strap or straps, and is designed to keep the straps from slipping off the shoulder while adding comfort and relieving some of the pressure associated with carrying a purse. The Bag Bug is approximately 1.9 inches by 1.7 inches, and weighs between 30-34 grams. It is composed of a stainless steel clip (52% by weight) and a silicone pad (48% by weight). In some cases, the stainless steel clips will be gold plated or silver plated, or plated with another type of material. This item will be imported in three different variations: (1) without a precious or semiprecious gemstone, (2) with a precious gemstone, and (3) with a semiprecious gemstone.
Variant A is composed of a stainless steel clip and a silicone pad, and does not have a precious or semiprecious gemstone, whether natural, synthetic or reconstructed.
Variant B is the same as Variant A, except that it will incorporate a precious gemstone, such as a diamond, ruby, sapphire or emerald, whether natural, synthetic or reconstructed. The sample under review has a Cubic Zirconia (CZ) attached to the metal clip. A CZ is a simulated diamond categorized under the term synthetic, and is considered for tariff purposes an imitation precious gemstone.
Variant C is the same as Variant A, except that it will incorporate a semiprecious gemstone, such as amethyst, aquamarine, garnet, obsidian, opal, onyx, topaz, turquoise, etc., whether natural, synthetic or reconstructed.
You proposed that Variant A be classified in subheading 8308.90.9000 of the Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Clasps, frames with clasps, buckles, buckle clasps, hooks, eyes, eyelets and the like and parts thereof, of base metal, of a kind used for clothing, footwear, awnings, handbags, travel goods or other made up articles; ….” We are not in agreement with your proposal. Heading 8308, HTSUS, provides for articles that are types of closing mechanisms. The Bag Bug is described in your letter as “an accessory that clips onto a purse’s strap or straps, and it is designed to keep the straps from constantly slipping off the shoulder while adding comfort and relieving some of the pressure associated with carrying a purse.” Based on this description, it is not a closing mechanism and, as such, cannot be classified in heading 8308, HTSUS.
Variant A of the Bag Bug is composed of different components (stainless steel clip and silicon pad) and is considered a composite good for tariff purposes. Regarding the essential character of the Bag Bug, the Explanatory Notes (ENs) to the HTSUS, at GRI 3 (b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good.
In this case, the stainless steel clip performs the function of holding the strap or straps of the purse to one’s shoulder, and is critical to the functionality of the good. In accordance with GRI 3 (b), it is the opinion of this office that the metal clip imparts the essential character to the Bag Bug of Variant A.
The applicable subheading for the Bag Bug identified as Variant A, if coated or plated with precious metal, will be 7326.90.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other articles of iron or steel: Other: Other: Other; Coated or plated with precious metal.” The rate of duty will be 2.9% ad valorem.
The applicable subheading for the Bag Bug identified as Variant A, if not coated or plated with precious metal, will be 7326.90.8588, HTSUS, which provides for “Other articles of iron or steel: Other: Other: Other: Other: Other.” The rate of duty will be 2.9% ad valorem.
Legal Note 1 (a) to Chapter 71 of the HTSUS, provides in pertinent part, that subject to note 1 (a) to section VI and except as provided below (see Legal Note 3 to Chapter 71), that all articles consisting wholly or partially of natural or cultured pearls or of precious or semiprecious stones (natural, synthetic or reconstructed) are to be classified in this chapter.
The applicable subheading for the Bag Bug identified as Variant B, containing a precious gemstone, whether natural, synthetic or reconstructed, will be 7116.20.5000, HTSUS, which provides for “Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed): Of precious or semiprecious stone (natural, synthetic or reconstructed): Other: Other.” The rate of duty will be free.
The applicable subheading for the Bag Bug identified as Variant C, containing a semiprecious gemstone, whether natural, synthetic or reconstructed, will be 7116.20.4000, HTSUS, which provides for “Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed): Of precious or semiprecious stones (natural, synthetic or reconstructed): Other: Of semiprecious stones (except rock crystal): Other.” The rate of duty will be 10.5% 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 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 Neil H. Levy at E-Mail address [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division