The tariff classification of pins from China and the United States.

N153755 March 31, 2011 CLA-2-71:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 7117.19.9000; 7117.19 Karine Gagiryan Supervisor, Import Operations and Compliance Herbalife International of America, Inc.990 E. 190th Street Torrance, CA 90502 RE: The tariff classification of pins from China and the United States. Dear Ms. Gagiryan: In your letter dated March 11, 2011, you requested a tariff classification ruling. As requested, the samples submitted will be returned to you. The merchandise at issue consists of several styles of metal pins, including some of the pins referred to as buttons. Most of the pins bear the Herbalife logo and/or an illustration and slogan.SKU numbers 7181, 7182, and 7193 are described as base metal pin sets. Each of the three pins bears the Herbalife logo (the circle tri-green leaf) on a silver base. Beneath the logo is the image of a floating ribbon with a numeric representation listed on the ribbon. The different pins represent weight loss goals. The orange ribbon denotes a 10 pound weight loss (SKU 7182), a green ribbon denotes a 20 pound weight loss (SKU 7182) and a yellow ribbon denotes a 25 kilogram weight loss (SKU 7193). Each pin has a military clutch backing. It is stated by you that these pins are part of a retail unit consisting of 5 pins. No complete set of pins with their packaging was received. On the back of the each of the three pins is the stamped country of origin of China. SKU numbers 7375US, 8200US, 8317US, and 8318US, are round metal pins, which you refer to as “buttons”. The buttons measure approximately 2½ inches in diameter. The buttons are metal coated with printed paper and polyester film. Each of the buttons has a safety pin on the back as a means of closure. The face of each button depicts Herbalife’s logo and/or slogans and artwork related to the company. It is stated by you that these buttons are sold in sets of ten. No complete set of the buttons with their packaging was received. Although it is stated by you that the pins are made in China and the United States, the samples received indicated four of the five buttons were stamped with made in the U.S.A., while the other button had no country of origin marking. Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS is such that most goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule 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 (1 through 6) may then be applied in order. Section XIV to the HTSUS, specifically Legal Notes 11 and 9(a) to Chapter 71, defines the expression imitation jewelry as any small objects of personal adornment, for example rings, bracelets, necklaces, brooches, ear-rings, watch-chains, fobs, pendants, tie-pins, cuff-links, dress-studs, religious or other medals and insignia – not incorporating natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed), nor (except as plating or as minor constituents) precious metal or metal clad with precious metal.The pins covered by your submission are intended to be worn by individuals. They can be worn directly by affixing them to one’s garments, or indirectly by affixing them to headgear or other personal wear. As such, it is our opinion that the pins and buttons are akin to imitation jewelry, brooches, classifiable in Heading 7117 of the HTSUS. See New York Ruling Letters H81403 dated June 4, 2001; N048058 dated January 27, 2009; N055578 dated April 14, 2009; and N130043 dated November 2, 2010. There is no disagreement that the pins and buttons under consideration are classified in heading 7117, HTSUS. One question is whether these goods form a set put up for retail sale. GRI 6 states that “the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable.” By application of GRI 6, we turn to GRI 3 (b) which states that when goods are prima facie classifiable under two or more (sub)headings, classification shall be determined as follows: (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a) [by reference to the (sub)heading which provides the most specific description], shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither 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 these headings. See T.D. 89-90. The Explanatory Notes (ENs) to the HTSUS, at (EN) (X) for GRI 3 (b), states that for the purposes of this Rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings . . .; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards). Even if condition (b) and (c) were met, the base metal pins are not classified in two different subheadings. Consequently, the pins are not classifiable as sets within the meaning of the tariff schedule. The applicable subheading for the Herbalife pins (buttons), imported from China, will be 7117.19.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Imitation Jewelry: Imitation Jewelry of base metal, whether or not plated with precious metal: Other: Other: Other.” The rate of duty will be 11% ad valorem. The applicable subheading for the Herbalife pins (buttons), of United States origin, will be 7117.19, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Imitation Jewelry: Imitation Jewelry of base metal, whether or not plated with precious metal: Other: Other: Other.” 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 World Wide Web at http://www.usitc.gov/tata/hts/. If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase “Made in the USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S. 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 Neil H. Levy at (646) 733-3036. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division