CLA-2-95:OT:RR:NC:N4:424
Mr. Christian Pellone
Zuru LLC.
228 Nevada Street
El Segundo, CA 90245
RE: The tariff classification of self-sealing party balloons and a party balloon pump set from China
Dear Mr. Pellone:
In your letter submitted November 1, 2018, you requested a tariff classification ruling.
Photographs and descriptions of the Zuru “Bunch O Balloons Self-Sealing Party Balloons” and the Zuru “Bunch O Balloons Self-Sealing Party Balloons and Pump Set” were submitted with your inquiry.
The first item at issue is the “Bunch O Balloons Self-Sealing Party Balloons”. As noted in your submission, this item consists of a plurality of balloons packaged for retail sale. The balloons are provided in stems of 8 balloons joined together along inflation conduits that allow the simultaneous inflation, sealing and stringing together of multiple balloons in a relatively short time. The balloons may be filled with an independent source of pressurized gas, such as an air pump or helium tank or may be used as a replacement or refill pack for use with the pump described below. You state that the balloons are intended for use in the children’s birthday party market and are designed for persons of 3 to 12 years of age.
The second item at issue is the “Bunch O Balloons Self-Sealing Party Balloons and Pump Set”. This product is packaged for retail sale and consists of the self-sealing party balloons as described above and an electric air pump. In use, the stem of a balloon or various balloons is attached to the reusable pump and the pump’s centrifugal component moves air into the balloon. This process is repeated by attaching other self-sealing balloons included in the set or available in replacement retail packs to the pump. Together, the air pump and the balloons produce inflated self-sealing balloons.
In your submission, you propose classification of the aforementioned products in 9505.90.40, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “ Confetti, paper spirals or streamers, party favors and noisemakers; parts and accessories thereof”. We disagree with your proposed classification. It is our determination that balloons as a class or kind of merchandise, as well as the particular balloons at issue here, are indeed designed for the amusement of children or adults.
In your letter, you also suggest the “Bunch O Balloons Self-Sealing Party Balloons and Pump Set” should be classified as a set for tariff classification purposes in accordance with GRI 3(b). You also suggest that the balloons impart the essential character. We agree the “Bunch O Balloons Self-Sealing Party Balloons and Pump Set” is classified as a set for classification purposes. However, in considering the information that you provided, in conjunction with the rulings you cited, we do not believe the balloons impart the essential character
The Explanatory Note to GRI 3(b), essential character may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods.
In this instance, the air pump is essential to producing inflated balloons. Furthermore, the air pump is reusable, allowing for the continuous inflation of balloons, such as balloons in replacement packs. Based on the air pump’s role and function in relation to “Bunch O Balloons Self-Sealing Party Balloons and Pump Set” and balloons not included in the set, the air pump imparts the essential character. As such, the product would properly be classified in heading 8414.
Accordingly, the applicable subheading for the “Bunch O Balloons Self-Sealing Party Balloons and Pump Set” will be 8414.59.6560, HTSUS, which provides for Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; Other; Other; Other; Other; Centrifugal. The rate of duty will be 2.3 percent ad valorem.
The applicable subheading for the “Bunch O Balloons Self-Sealing Party Balloons” will be 9503.00.0013, HTSUS, which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof… ‘Children’s products’ as defined in 15 U.S.C. § 2052: Inflatable toy balls, balloons …: Labeled or determined by importer as intended for use by persons: 3 to 12 years of age.” The rate of duty will be Free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8414.59.6560, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8414.59.6560, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 Roseanne Murphy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division