CLA-2-71:OT:RR:NC:N4 462
Andrew Kuhlman
Showcase Holograms LLC
1001 East Villa Street, Unit 4 Pasadena, CA 91106
RE: The tariff classification of a hologram necklace from China
Dear Mr. Kuhlman:
In your letter dated May 19, 2024, you requested a tariff classification ruling. Images and descriptive information were provided.
The item under consideration is a hologram necklace that consists of a colorful plastic shell, an internal battery, a hologram fan mounted in the shell, a clear acrylic front panel to showcase the holographic images, and a nylon lanyard for wearing around the neck. The hologram fan is a fan blade with an LED strip on the blade. As the fan spins, the LEDs produce images that appear to hover in mid-air. The device has a single USB-C port in the back, which charges the internal battery via cord and wall plug. The internal battery allows the device to run wirelessly. There is a button to turn the hologram fan on and off. Some versions have a speaker in the shell that plays pre-recorded music.
The Explanatory Notes (EN) to the Harmonized Tariff Schedule of the United States (HTSUS), General Rules of Interpretation (GRI) 3(b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight, or value, or by the role of a constituent material in relation to the use of the goods.”
You have suggested classification of the hologram necklace 7117.90.90.00 in subheading Harmonized Tariff Schedule of the United States (HTSUS). We agree. The hologram necklace is a composite good made of plastic, a battery, an LED strip, a nylon lanyard, and an USB-C port. In this instance, it is the hologram created by the LED strip that provides the primary visual appeal. Accordingly, it is our opinion that the LED strip imparts the essential character.
The applicable subheading for the hologram necklace will be 7117.90.90.00, HTSUS, which provides for “Imitation jewelry: Other: Other: Valued over 20 cents per dozen pieces or parts: Other: Other.” The rate of duty will be 11 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7117.90.9000, 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 7117.90.9000, HTSUS listed above.
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/.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Sandra Sary at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division