CLA-2-73:OT:RR:NC:N1:113
Mr. James A. Cecere
Claire's
2400 West Central Road
Hoffman Estates, Illinois 60192
RE: The tariff classification of key rings with charms from China
Dear Mr. Cecere:
In your letter dated August 24, 2020, you requested a tariff classification ruling for key rings with charms. Pictures and descriptions of the key rings under consideration were submitted for our review.
The articles for which you are requesting a ruling are identified as iron key rings with charms. The subject articles are available in three styles including item numbers 46220, 85137 and 85179. You indicated in your letter that item number 46220 is a set of iron key rings attached by a short iron chain to small polyresin charms depicting various animals. Item number 85137 is an iron key ring attached by a short iron chain to three glass dangle charms. Item number 85179 is an iron key ring attached to multiple material charms that include a star charm composed of zinc and iron, a gold-tone medal, a small carabiner, and a polyester tassel. You stated in your letter that each iron key ring “can be split apart for the purposes of attaching additional key rings and other objects to it. The primary function is to organize keys. The charms do not serve any function beyond decoration.”
Each key ring with charms is a composite article that is comprised of an iron split wire ring and charms comprised of different materials including iron, zinc, polyresin, glass and polyester. The iron, zinc, polyresin, glass and polyester are classified in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation 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 iron, zinc, polyresin, glass and polyester of the subject articles 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 rings with charms are composite goods, 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 iron, zinc, polyresin, glass or polyester component imparts the essential character to the key rings with charms. 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 iron split wire ring is to hold and organize keys and the charms provide decoration to the article. Therefore, it is the opinion of this office that the iron component imparts the essential character to the composite article. In accordance with GRI 3(b), item number 46220 comprised of iron and polyresin, and item number 85137 comprised of iron and glass will be classified as other articles of iron.
Noting that item number 85179 contains iron and zinc, the article is composed of more than one base metal. Section XV Note 7 of the HTSUS, states that the classification of composite articles of base metal containing two or more base metals are to be treated as articles of the base metal that predominates by weight over each of the other metals. Based on the information provided to our office, the metal in composite article number 85179 that predominates by weight is iron. Therefore, item number 85179 is classifiable in heading 7326, HTSUS, which provides for other articles of iron.
Consideration was given to your proposed classification of item numbers 46220, 85137 and 85179 under 8308.90.9000, HTSUS, which provides for clasps, frames with clasps, buckles, buckle clasps, hooks, eyes, eyelets and the like and parts thereof, of base metal, of a kind used for clothing, footwear, awnings, handbags, travel goods of other made up articles ….: other, including parts: other. However, this office disagrees. The Explanatory Notes (EN) for heading 8308 in pertinent part, provide that the heading includes “(C) Clasps, fasteners, and frames with clasps, for handbags, purses, brief-cases, executive-cases or other travel goods, or for books or wrist-watches; but the heading excludes locks (including locking clasps), and frames with clasps, incorporating locks (heading 83.01).”
This EN describes articles which are used to securely close or join the sides, or ends, of a good together (e.g., handbags). Thus the sides of a handbag, which when left open leave the handbag’s interior and contents exposed, are held securely closed by the interconnecting parts of a metal clasp mounted at the corresponding points on each side of the handbag. The subject split iron key rings can be distinguished from clasps and fasteners of the kind described by heading 8308, HTSUS, because they do not serve to hold two parts of an article together, in the manner a handbag clasp holds the two sides of the handbag together. Instead, they function simply to tether keys. As such, the subject split iron key rings are not described by the terms of heading 8308, HTSUS.
The applicable subheading for the iron key rings with charms including item numbers 46220, 85137 and 85179 will be 7326.20.0090, HTSUS, which provides for other articles of iron or steel, articles of iron or steel wire, other. The rate of duty will be 3.9 percent 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 the World Wide Web at https://hts.usitc.gov/current.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7326.20.0090, 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 7326.20.0090, 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 trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, 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 and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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