CLA-2-85:OT:RR:NC:N2:212
Cecelia Rothrock
Crane Worldwide Logistics
1500 Rankin Road
Houston, TX 77073
RE: The tariff classification of golf club sensors from China
Dear Ms. Rothrock:
In your letter received by this office on October 18, 2019, you requested a tariff classification ruling on behalf of your client, Arccos Golf, LLC.
There are four items at issue that are referred to as the I2 sensor, the RI2 sensor, and two versions of the Smart Grip. You state that the I2 sensor is incorporated into each item listed above and acts as the primary and functional component. The sensor, which is used in conjunction with the Arccos golf tracking system, is comprised of a light sensor, piezo disc, accelerometer, 3.5kb flash memory, and a 3V coin cell battery. The sensor measures 20.6 x 8.2 mm and weighs 4.6g.
In use, the I2 sensor is attached to the grip of a golf club. When the club is removed from the bag, the sensor detects daylight or movement and initializes the system. The sensor then generates a short, preprogrammed, inaudible tone that is registered by the golfer’s smart device, which is loaded with the Arccos application. Each club owned by the user can be affixed with an individual sensor that sends its own unique, inaudible tone to the smart device so the application can discern which club is being used. When the golfer addresses the ball in preparation for a shot, the sensor detects a lack of movement and sends a second inaudible tone notifying the application that a shot is imminent. A third and final inaudible tone is emitted upon a detected impact. You state that the I2 sensor does not provide any measurements and that all analysis is done via the application on the golfer’s smart device. This includes shot distance and accuracy as derived from the GPS capability of the smart device. You further state that the I2 sensor does not have Bluetooth capability and only communicates with the smart device via the inaudible tone that is picked up by the device’s microphone.
The RI2 sensor functions identically to the I2 sensor as explained above with the exception that the RI2 sensor is placed within a plastic housing that has a specially designed plastic base that will be screwed into the grip end of a user’s golf club.
You state that the final items are two versions of what you refer to as the Smart Grip. In the first version, the I2 sensor is preinstalled into a golf grip. In this case, a grip is preinstalled with the I2 sensor and sold directly to the user. The end user can then replace the entire grip on an existing club. The second version of the Smart Grip is identical to the first, but after the sensor is installed into a grip, the grip is attached to a club prior to importation. The entire club, fitted with the I2 sensor and grip, is imported into the United States.
In your request, you suggest that the correct classification for the I2 Sensor is 8531.80.9041, Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
Heading 8531, HTSUS, covers products that function to provide a visual and/or audible signal to a user. Such devices must have the ability to issue a sound or visual alert/indication that is readily understood by the user. This heading does not apply to devices that send a data or electrical signal to a computer system, monitor, or other device. It would also not cover a device that issues an inaudible tone or frequency.
As noted previously, the subject golf club sensors issue a non-audible tone/frequency that is detected by the user’s smart device. The tone does not represent a signal that would be easily understood by the user and does not provide usable information or an alert of any type. As such, based on the use and function of the sensors, heading 8531, HTSUS, is not appropriate.
The I2 sensor meets the definition of a composite machine as it acts as a sound generator and accelerometer. The classification of composite machines is governed by Note 3 to Section 16, HTSUS, which states, in pertinent part, that classification of composite goods shall be determinant upon the principal function of the good. We are of the opinion that the inaudible tone generation represents the principal function of the sensor. As that function is not specifically described elsewhere in the tariff, the I2 sensors, when imported separately, would be classifiable under heading 8543, HTSUS.
With regard to the RI2 sensor, it is our opinion that the addition of the plastic housing would not change the function of the good. The RI2 sensor would still be considered a composite machine representing the same functions as the I2 sensor above. As such, the RI2 sensor would also be classified under heading 8543, HTSUS.
However, this office is of the opinion that the grip imparts the essential character of the Smart Grips, and the addition of a sensor into a grip, as represented in both Smart Grip scenarios, does not substantially alter the function and character of the grip. The golf grip, which is a recognized part of a golf club, is specifically provided for within the nomenclature. Consequently, the addition of the sensor into an existing golf club grip does not alter the final classification of the grip. As golf clubs are specifically provided for in the nomenclature, and golf club grips are principally used with the clubs, the smart grip with the I2 sensor is classifiable accordingly.
The applicable subheading for the I2 Sensor and RI2 Sensor, when imported separately, will be 8543.70.9960, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Other.” The general rate of duty will be 2.6% ad valorem.
The applicable subheading for the “Smart Grip” which is comprised of an I2 sensor incorporated into a golf grip will be 9506.39.0060, HTSUS, the provision for "Articles and equipment for general physical exercise, gymnastics, athletics, other sports or outdoor games… Golf clubs and other golf equipment; parts and accessories thereof: Other, Parts of golf clubs." The general rate of duty will be 4.9% ad valorem.
The applicable subheading for the “Smart Grip” golf club equipped with an Arccos sensor inside the golf grip of a finished golf club will be 9506.31.0000, HTSUS, which provides for "Articles and equipment for general physical exercise, gymnastics, athletics, other sports or outdoor games… Golf clubs and other golf equipment; parts and accessories thereof: golf clubs, complete.” The general rate of duty will be 4.4% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8543.70.9960, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8543.70.9960, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9506.39.0060 and 9506.31.0000, HTSUS, unless specifically excluded, are subject to an additional 15 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 9506.39.0060 and 9506.31.0000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the Section 301 trade remedy, you may refer to the relevant parts of the USTR and CBP websites, which are available at:
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions https://www.cbp.gov/trade/remedies/301-certain-products-china
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 the 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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division