CLA-2-73:OT:RR:NC:N1: 113
Mr. Chris Tovar CST Inc. 500 Westpark Drive, Suite 230 Peachtree City, GA 30269
RE: The tariff classification of a fishing cup holder from China
Dear Mr. Tovar:
In your letter dated January 18, 2023, you requested a tariff classification ruling on behalf of your client C.E. Smith Company, Inc. Descriptions, prints and drawings of the cup holder were provided for our review. The article under consideration is identified as a Round Cap Cast Cup Holder, part number 53699. The cup holder is designed to be installed in a fishing boat to hold beverages for the fisherman. You indicated that the purpose of the cup holder is to aid in the storage and transport of beverages while the boat is in motion as well as for the user while actively fishing. The cup holder and mounting equipment are made of stainless steel. You stated that “The non-slip surface, inserted into the cup holder, provides a secondary function to aid the holder in holding the beverage. The cup holder itself, provides sufficient support to hold the beverage without the need for the vinyl non-slip insert. Essentially, the insert is just an accessory to the cup holder and is not required for the cup holder to provide its function (holding the beverage within the vessel).” The cup holder will be imported in a finished condition that is ready to be mounted in the boat after importation.
In your request, you suggested classification for the Round Cap Cast Cup Holder in subheading 9507.10.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Fishing rods and parts and accessories thereof…”. Customs and Border Protection has stated that for merchandise to be considered an “accessory”, the item must contribute directly to the effectiveness of the primary article (e.g., facilitate the use or handling of the particular article, widen the range of its uses, or improve its operation…). The cup holder does not contribute directly to the effectiveness of the fishing rod, as it does not relate directly to the fishing rod’s performance or operation in any way. As such, the cup holder is not classified in heading 9507, HTSUS.
Classification of merchandise under the 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. The fishing cup holder is comprised of stainless steel and vinyl components that are classified in different headings. Since no one heading in the tariff schedules covers the components of the cup holder 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 subject Round Cap Cast Cup Holder is a composite article, we must apply GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. Explanatory Note (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 stainless steel or the vinyl component imparts the essential character to the cup holder. 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 cup holder provides sufficient support to hold the beverage without the need for the non-slip insert. The non-slip insert is not necessary for the cup holder to hold the beverage within the boat. Also, based on the breakdown of materials by weight, the stainless steel predominates by weight over the vinyl. Therefore, it is the opinion of this office that the stainless steel imparts the essential character to the composite article. In accordance with GRI 3(b), the Round Cap Cast Cup Holder will be classified under heading 7326, HTSUS, which provides for other articles of iron or steel.
Heading 7326 covers a wide range of iron or steel articles that are not more specifically provided for elsewhere in the tariff. Noting that the fishing cup holder under consideration is not more specifically provided for in heading 9507 or in any other heading of the tariff, the cup holder will be classifiable under heading 7326, HTSUS, as an other article of iron or steel.
The applicable subheading for the Round Cap Cast Cup Holder, part number 53699, will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, other…other. The rate of duty will be 2.9 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 at https://hts.usitc.gov/current.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7326.90.8688, 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 7326.90.8688, 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 and Border Protection 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, please contact National Import Specialist Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division