CLA-2-73:OT:RR:NC:N5: 113
Kristen Fannon
UWL Inc.
1340 Depot Street Rocky River, OH 44116
RE: The tariff classification of a Keychain Ornament from China
Dear Ms. Fannon:
In your letter dated June 18, 2024, on behalf of Formation Creative Group LLC., you requested a tariff classification ruling. A description and photographs of the subject keyring with an attachment were submitted for our review.
The article for which you are requesting a ruling is identified as the Keychain Ornament. You stated that "The item being imported is a miniature plastic tumbler with a stainless-steel keyring attached that will be sold and marketed as an ornament, keychain, or charm to be used year-round. The ornament is a molded Stanley Cup with a ribbon attached to the handle and a removable lid to allow small items to be hidden inside the cup. The cup is primarily made of polypropylene (body of the cup) and acrylonitrile styrene (straw fixed to the lid of the cup). It measures 12 cm in height and 5 cm in width (including the handle) with a depth of 3.25 cm (without the handle). The keyring is made of stainless-steel wire with an inner diameter of 30.2 mm, outer diameter of 25 mm and metal width of 2.6 mm.
The Keychain Ornament is a composite article that is comprised of a miniature cup, lid, straw, and split wire ring comprised of different materials including polypropylene, acrylonitrile styrene, and stainless steel that are classified in different headings. 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. Since no one heading in the tariff schedules covers the polypropylene, acrylonitrile styrene, and stainless steel of the subject article 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 Keychain Ornament is a composite good, 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 polypropylene, acrylonitrile styrene or stainless steel imparts the essential character to the Keychain Ornament under consideration. 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 subject Keychain Ornament is to hold and organize keys, and the stainless-steel split wire keyring performs the function of holding the keys. Therefore, it is the opinion of this office that the stainless-steel keyring imparts the essential character to the composite article. In accordance with GRI 3(b), the Keychain Ornament will be classified in heading 7326, HTSUS, which provides for other articles of iron or steel.
The applicable subheading for the Keychain Ornament 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 at https://hts.usitc.gov/.
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.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division