Modification of NY N009740; Tariff classification of plastic bracelets, charms, decorative shoe straps and embellishments from China

HQ H278152 February 7, 2018 OT:RR:CTF:CPMM H278152 RGR CATEGORY: Classification TARIFF NO.: 7117.90.7500 Ms. Alexandra O’Leary Jibbitz, LLC 3052 Sterling Circle Boulder, CO 80301 RE: Modification of NY N009740; Tariff classification of plastic bracelets, charms, decorative shoe straps and embellishments from China Dear Ms. O’Leary: This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered New York (“NY”) Ruling Letter N009740, dated May 8, 2007, regarding the classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of Jibbitz charms from China. The Jibbitz charms were classified under subheading 3926.40.00, HTSUS, as “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: Statuettes and other ornamental articles.” After reviewing this ruling in its entirety, we believe that it is partially in error. For the reasons set forth below, we hereby modify NY N009740 with respect to the classification of Jibbitz charms. The remaining analysis of NY N009740 remains unchanged. Pursuant to 19 U.S.C. § 1625(c)(1), a notice was published in the Customs Bulletin, Volume 51, No. 48 on November 29, 2017, proposing to modify NY N009740, and any treatment accorded to substantially similar transactions. No comments were received in response to this notice. FACTS: In NY N009740, we described the products as follows: Jibbitz charms can be inserted into the holes [of a molded plastic shoe, i.e., Crocs] to enhance the decorative effect. * * * The Jibbitz charms consist of three dimensional molded plastic decorative shapes on a short post with a round metal stud on the other end. The charms come in various decorative shapes, such as flowers, sports balls and animals. These charms can be secured to the bracelet straps and shoe straps by pushing the metal studs through the holes. ISSUE: Whether Jibbitz charms are classified under heading 3926, HTSUS, as “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914” or under heading 7117, HTSUS, as “[i]mitation jewelry”? LAW AND ANALYSIS: The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (“GRIs”). GRI 1 provides, in part, that “for legal purposes, classification shall be determined according to terms of the headings and any relative section or chapter notes…” In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied in order. In understanding the language of the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). The HTSUS headings under consideration are as follows: 3926: Other articles of plastics and articles of other materials of headings 3901 to 3914: 3926.40.00: Statuettes and other ornamental articles. . . *** 7117: Imitation jewelry: 7117.90: Other: Other: Valued over 20 cents per dozen pieces or parts: Other: 7117.90.75: Of plastics. . . * * * * Chapter 39, Note 2(r), excludes imitation jewelry from classification in the chapter. Note 9(a) to Chapter 71 states as follows: 9. For the purposes of heading 7113, the expression "articles of jewelry" means: (a) Any small objects of personal adornment (for example, rings, bracelets, necklaces, brooches, earrings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia); and * * * * Note 11 to Chapter 71 states as follows: 11. For the purposes of heading 7117, the expression "imitation jewelry" means articles of jewelry within the meaning of paragraph (a) of note 9 above (but not including buttons or other articles of heading 9606, or dress combs, hair slides or the like, or hairpins, of heading 9615), not incorporating natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed) nor (except as plating or as minor constituents) precious metal or metal clad with precious metal. * * * * The Harmonized Commodity Description and Coding System Explanatory Notes (EN) 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 HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to consult, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89–80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN to Heading 71.13 states, in pertinent part: This heading covers articles of jewellery as defined in Note 9 to this Chapter, wholly or partly or precious metal or metal clad with precious metal, that is: Small object of personal adornment (gem-set or not) such as rings, bracelets, necklaces, brooches, ear-rings, neck chains, watch-chains and other ornamental chains; fobs, pendants, tie-pins and clips, cuff-links, dress-studs, buttons, etc.; religious or other cross; medals and insignia; hat ornaments (pins, buckles, rings, etc.); ornaments for handbags; buckles and slides for belts, shoes, etc.; hair-slides, tiaras, dress combs and similar hair ornaments. (emphasis added). The EN to Heading 71.17 states, in pertinent part: For the purposes of this heading, the expression imitation jewellery, as defined in Note 11 to this Chapter, is restricted to small objects of personal adornment, such as those listed in paragraph (A) of the Explanatory Note to heading 71.13, e.g., rings, bracelets (other than wrist-watch bracelets), necklaces, ear-rings, cuff-links, etc., … According to Note 2(r) to Chapter 39 of the HTSUS, a product that is properly classified under heading 7117, HTSUS, is precluded from classification under Chapter 39, HTSUS. Thus, we must first consider whether Jibbitz charms can be classified in heading 7117, HTSUS, as imitation jewelry. The subject merchandise consists of molded plastic decorative charms known as Jibbitz that come in various shapes, such as flowers, sports balls and animals, and which can be inserted into the holes of Crocs shoes as decorations. Jibbitz, which contain a stud to insert into an article worn on the body, are “ejusdem generis” or “of the same kind” of articles as the exemplars in Note 9(a), such as dress studs and tie pins. Additionally, the ENs to heading 71.13 include “buckles and slides for … shoes…,” specifically including ornaments to adorn shoes as jewelry. Hence, Jibbitz, which adorn shoes, do not contain any metal, pearls or stone and are ejusdem generis with the exemplars of Note 9(a), are described as imitation jewelry under Note 11 to chapter 71. Moreover, we have previously classified Jibbitz charms in heading 7117, HTSUS. See, e.g., NY N212139, dated May 1, 2012 (classifying Jibbitz charms in heading 7117, HTSUS). In NY N032345, dated July 15, 2008, we also classified the following merchandise in heading 7117, HTSUS: Shoe charms for use on sport clogs which feature vent holes or openings around the forefoot. The top portion of the charm is composed of 100% PVC with a decorative label in various shapes. The bottom of the decorative top contains a post which attaches to the shoe by placing the small side of the charm lock on the inside portion of the desired hole and locking it into place. Though the term “Jibbitz” is not used to identify the merchandise in NY N032345, the description of the merchandise identifies them as Jibbitz (decorative shoe charms for use on sport clogs that feature vent holes (i.e., Crocs) that attach to the shoes by placing the charms in the desired hole and locking into place). There, we also held that the applicable heading for the shoe charms is heading 7117, HTSUS. In light of the foregoing, we find that the Jibbitz charms at issue are classified in heading 7117, HTSUS, and specifically provided for under subheading 7117.90.75, HTSUS, as “Imitation jewelry: Other: Other: Valued over 20 cents per dozen pieces or parts: Other: Of plastics.” HOLDING: Pursuant to GRI 1, Jibbitz charms are classified in heading 7117, HTSUS, specifically under subheading 7117.90.75, HTSUS, as “Imitation jewelry: Other: Other: Valued over 20 cents per dozen pieces or parts: Other: Of plastics.” The 2017 column one general rate of duty is “free”. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompany duty rate are provided on the World Wide Web, at http://www.usitc.gov/tata.hts/. EFFECT ON OTHER RULINGS: New York Ruling Letter N009470, dated May 8, 2007, is hereby MODIFIED as set forth above with regard to the classification of Jibbitz charms described therein. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division