CLA-2-79:OT:RR:NC:N1:113
Ms. Anita Rampersad
Nine West Holdings
1411 Broadway Avenue - 3rd Floor
New York, NY 10018
RE: The tariff classification of key clips, card cases, coin purses and wallets from China
Dear Ms. Rampersad:
In your letter dated July 7, 2017, you requested a tariff classification ruling. Samples of three Key Fob Sets were provided for our review and will be returned as you requested.
You have identified the subject merchandise as three “Key Fob Sets in a Gifting Box from our Nine West Collection. The items in the box will be secured in the box at the time of resale.” You indicate that each Key Fob Set under consideration consists of a key clip made of zinc that has a dangle made of PVC material, and a card case or a coin purse. The subject key clips are composed of a zinc carabiner/snaphook that is attached by a small connector ring to a decorative polyvinyl chloride (PVC) dangle. The key clip can be used to hold keys and is designed to clip to a card case strap, purse strap, belt loop, backpack, etc. The card cases, coin purses and wallets are constructed with an outer surface of plastic sheeting. They are designed to provide storage, protection, portability and organization to business cards, credit cards, currency or other flat goods.
You stated in your letter that the “first set consists of a bow key clip (clip is zinc, bow is PVC) with a PVC two slot card holder. The second set consists of a dragon fly key clip (clip is zinc, dragon fly is PVC) with a PVC five slot card holder that has a side zip closure. The third set consists of a mirror key clip (clip is zinc, mirror is PVC) with a PVC coin purse.” The items in each gifting set are imported packaged together in a cardboard box ready for retail sale.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the principles set forth in the General Rules of Interpretation and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation. The General Rules of Interpretation and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes. The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) 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.
You proposed classification for the Key Fob Sets in a Gifting Box in subheading 7907.00.6000, HTSUS, which provides for other articles of zinc, other. However, in the case of the Key Fob Sets in a Gifting Box, it is the opinion of this office that the subject merchandise is not considered to be a set for tariff classification purposes since the articles that comprise the Key Fob Set are not put up together to meet a particular need or carry out a specific activity. The key clip is not intended for use together or in conjunction with the card case or coin purse for a single purpose or activity. Each of the items in the gifting box are used independently from each other as needed. Therefore, the zinc key clip with a PVC dangle and the PVC card case or coin purse do not comprise a set for tariff classification purposes and must be classified separately under their appropriate headings.
Each bow key clip, dragon fly key clip and mirror key clip with a dangle is a composite article that consists of zinc and PVC components that are classified in different headings. Classification of merchandise under the HTSUS is in accordance with the GRIs, taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the zinc and PVC components of the subject article in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character.
As the key clip with a dangle is a composite good, we must apply rule GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. EN VIII to GRI 3(b) explains that “the factor which determines 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 the use of the goods.” We must determine whether the zinc or PVC component imparts the essential character to the article in question. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the function of the key clip with a dangle under consideration is to hold keys and to clip to another item, and the zinc key clip performs the function of holding keys and clipping to a card case or purse strap, belt loop, backpack, etc. Therefore, it is the opinion of this office that the zinc key clip imparts the essential character to the bow key clip, dragon fly key clip and mirror key clip with a dangle. In accordance with GRI 3(b), the zinc key clip with a dangle under consideration will be classifiable in heading 7907, HTSUS, which provides for other articles of zinc.
The applicable subheading for the bow key clip, dragon fly key clip and mirror key clip with a dangle will be 7907.00.6000, HTSUS, which provides for other articles of zinc, other. The rate of duty will be 3 percent ad valorem.
The applicable subheading for the card cases coin purses, purses and wallets will be 4202.32.1000, HTSUS, which provides for articles of a kind normally carried in the pocket or the handbag, with outer surface of sheeting of plastic or of textile materials, with outer surface of sheeting of plastics, of reinforced or laminated plastics. The rate of duty will be 12.1¢/kg + 4.6% 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 https://hts.usitc.gov/current.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division