CLA-2-90:OT:RR:NC:N2:212
Lisa Murrin
Expeditors Tradewin LLC
795 Jubilee Drive
Peabody, MA 01960
RE: The tariff classification of eyewear and cases from multiple countries
Dear Ms. Murrin
In your letter dated March 4, 2020, you requested a tariff classification ruling on behalf of your client, Kering Eyewear. Samples were submitted for review.
In your request, you address three separate classification scenarios concerning three different articles. In the first, you describe an item consisting of a pair of completed sunglasses, identified by part number GG0419S-003, a hard-sided carrying case, a cloth pouch, and a cleaning cloth. The constituent parts are imported separately and will be combined together to complete the set that will be sold to the end user. You state that the sunglasses are made in Italy and the remaining articles are all of Chinese origin. The frames of the sunglasses are made of acetate, while the cleaning cloth is 80% polyester, 20% polyamide and the pouch is 95% polyester, 5% elastene.
The second item consists of an empty pair of plastic frames, identified by style number SL 29-004, a carrying case, and a cleaning cloth made of 75% polyester and 25% polyamide material. You state that the frames are manufactured in Italy while all remaining articles are manufactured in China. The plastic frames are imported in a separate container and meant to be combined with the case and cloth to complete the set after importation.
The final item consists of an empty pair of plastic optical frames, identified by style number PU0257O-001, a hard-sided carrying case, and a cleaning cloth made up of 75% polyester and 25% polyamide material. You state that all items within this set are manufactured in China. In this instance, the frames are imported within the case that also contains the cleaning cloth.
In your request, you suggest that, in all three scenarios, the classification is based upon the frames or completed sunglasses, as they would impart the essential character of the set. You further suggest that the hard-sided carrying cases would be classified according to General Rule of Interpretation (GRI) 5. In the following paragraphs, we address these suggestions as they relate to each scenario.
We first address the issue as to whether the sunglasses and frames, in conjunction with the cleaning cloth, pouch, and case constitute “goods put up in sets for retail sale.” Classification of sets is governed by the rules set forth in GRI 3(b), which provides, in relevant part, that such sets are classified by the component that imparts the essential character. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized Tariff Schedule of the United States (HTSUS) and are generally indicative of the proper interpretation of the headings. The ENs for GRI 3 define “goods put up in sets for retail sale.” This rule states, in relevant part, that the items must be “put up in a manner suitable for sale directly to end users without repacking.”
It is the opinion of this office that, based on the information provided, the goods described in scenario one and scenario two are not imported in a manner suitable for sale directly to the end user without repacking. The sunglasses and frames are imported separately from the cases, cleaning cloth and pouch and, after importation, the individual articles are then packaged together. As such, they cannot be considered sets per GRI 3 and will be classified separately.
However, in applying this rule to the information presented for scenario three, based upon the information provided, the frames are packaged within the carrying case with the cleaning cloth at the time of importation. Therefore, it is the opinion of this office that, pursuant to GRI 3(b), these goods are considered goods put up in sets and should be classified by the single item that imparts the essential character. In this instance, that would be the optical frames.
With regard to the carrying cases in scenario one and scenario two, we look to GRI 5, which states that camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. Further, the EN to GRI 5 states, in relevant part, that the cases can be presented with the articles for which they are intended, whether or not they are packed separately for ease of transport. The carrying cases presented in both instances are designed specifically for use with the imported sunglasses and frames and are clearly meant for long-term and repetitive use. As such, if the cases are imported in the same number as that of the sunglasses or frames, they meet the requirements set forth in GRI 5.
We note that the merchandise described within scenario three meets the definition of a set per GRI 3. As such, the application of GRI 5 is not applicable.
You further request clarification as to whether the Chinese origin items are subject to 301 Trade Remedies. When importing goods put up in sets for retail sale (in accordance with General Rule of Interpretation 3) that contain articles subject to the Section 301 remedy, if the product that imparts the essential character to the set (i.e. the HTSUS provision under which the entire set is classified) is covered by the Section 301 remedy, then the entire set will be subject to the additional duties. This also pertains to those goods classified pursuant to GRI 5. As the cleaning cloth and textile pouch within scenario one are to be classified separately and are of Chinese origin, they would be subject to the applicable trade remedies. This is also true of the cleaning cloth within scenario two. However, as the glasses and frames within the first and second scenario are manufactured outside of China and control the classification in conjunction with the carrying cases, it is our opinion that Section 301 trade remedies are not applicable. With regard to the third set, as the frames are manufactured in China and impart the essential character, 301 trade remedies would be applicable.
The applicable subheading for the sunglasses and carrying case (scenario one), style number GG0419S-003, will be 9004.10.0000, HTSUS, which provides for “Spectacles, goggles and the like, corrective, protective or other: Sunglasses.” The general rate of duty will be 2% ad valorem.
The applicable subheading for the frames and carrying case (scenario two), style number SL 29-004, will be 9003.11.0000, HTSUS, which provides for “Frames and mountings for spectacles, goggles or the like, and parts thereof: Frames and mountings: Of plastics.” The general rate of duty will be 2.5% ad valorem.
The applicable subheading for the textile pouch within scenario one will be 4202.32.9300, HTSUS, which provides for articles of a kind normally carried in the pocket or in the handbag, with outer surface of textile materials: other: of man-made fibers. The general rate of duty will be 17.6% ad valorem.
The applicable subheading for the cleaning cloth within scenarios one and two will be 6307.10.2030, HTSUS, which provides for “Other made up articles, including dress patterns: Floorcloths, dishcloths, dusters and similar cleaning cloths: Other: Other.” The rate of duty will be 5.3% ad valorem.
The applicable subheading for the complete frame set (scenario three), style number PU0257O-001, will be 9003.11.0000, HTSUS, which provides for “Frames and mountings for spectacles, goggles or the like, and parts thereof: Frames and mountings: Of plastics.” The general rate of duty will be 2.5% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.10.2030, 9003.11.0000 and 9004.10.0000, HTSUS, unless specifically excluded, are subject to an additional 7.5 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 6307.10.2030, 9003.11.0000 and 9004.10.0000, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4202.32.9300, 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., 9903.88.03, in addition to subheading 4202.32.9300, 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).
Importations of this product may be subject to the provisions of Section 133 of the Customs Regulations if they copy or simulate a registered trademark, trade name or copyright recorded with U.S. Customs and Border Protection. If you are an authorized importer of the product, we recommend notifying your local Customs office prior to importation.
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