CLA-2-71:OT:RR:NC:N4:433
Cheryl Barnes
Customs Senior Analyst
Dollar General Corporation
100 Mission Ridge
Goodlettsville, TN 37072
RE: The tariff classification of a charm bracelet from China.
Dear Ms. Barnes:
In your letter dated March 21, 2016, you requested a tariff classification ruling. As requested, the sample submitted will be returned to you.
SKU # 1-759-1501 is identified on the import quote sheet as the “Charm U Bracelet.” The import quote sheet indicates a Counter Display Unit (CDU) which will consists of 60 assorted charms that will be randomly assorted within the product packaging. Each CDU will contain eight, individually packaged charm bracelets.
The blister card packaging for each charm bracelet is marketed as the “Fashion Wearables! – Charm U – 2 Charms & Bracelet – Plus Stickers Inside – 1 Logo Charm.” The bracelet is composed of iron chain links with a stainless steel lobster clasp. Attached to the bracelet are two dangling charms made of plastic (PVC), one in the shape of a turtle and the other in the shape of a rainbow, and a logo charm made of base metal. Company provided information indicates that the weight and cost of the metal components when aggregated together are significantly greater than that of the plastic components when aggregated together. This item is intended to be worn by children, aged 4 and up.
When interpreting and implementing the Harmonized Tariff Schedule of the United States (HTSUS), the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to the HTSUS, General Rules of Interpretation (GRIs), at GRI 3 (b), X, provides that the term “goods put up in sets for retail sale” means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of 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. Goods classifiable as “sets” under GRI 3 (b) of the HTSUS are classified as if they consisted of the component or components taken together, which can be regarded as conferring on the set as a whole its essential character – see EN X to the GRIs.
With respect to the “Charm U Bracelet,” we have competing subheading within the imitation jewelry provisions of heading 7117, HTSUS. 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.
Using GRI 3 (b) in conjunction with GRI 6, we find at the [sub]heading level that the metal chain link bracelet and metal logo charm are classifiable in subheading 7117.19, HTSUS, while the plastic charms are classifiable in subheading 7117.90, HTSUS, the charms work together with the metal chain link bracelet forming a charm bracelet, and are packaged together for purposes of sale directly to users without repacking. The stickers are de minimis in value, and moreover are inconsequential to the forming of the charm bracelet. In the opinion of this office, the “Charm U Bracelet” is a set for tariff purposes.
Regarding the essential character of the “Charm U Bracelet” set, the 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. It is our opinion that the essential character for the charm bracelet is imparted by the metal chain link bracelet and metal logo charm, in that the metal components (bracelet plus logo charm) predominate by weight over the plastic components (two charms), cost more than the plastic components, and form a metal charm bracelet even without the two plastic charms.
The applicable subheading for the “Charm U Bracelet” set will be 7117.19.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Imitation jewelry: Of base metal, whether or not plated with precious metal: Other: Other: Other.” The rate of duty will be 11% 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 [email protected].
Sincerely,
Deborah Marinucci
Acting Director
National Commodity Specialist Division