The tariff classification of a Key Chain from an unknown country

N238500 February 25, 2013 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7326.20.0070 Ms. Fanny Pan JCLS Forwarding Worldwide 800 Airport Blvd., Suite 518 Burlingame, CA 94010 RE: The tariff classification of a Key Chain from an unknown country Dear Ms. Pan: In your letter dated February 6, 2013, on behalf of the Green Bag Company, you requested a tariff classification ruling. A sample of the subject article was submitted for our review. The article under consideration is identified as a Key Chain. The Key Chain consists of a steel split wire key ring and a nonfunctional polypropylene (PP) bag. The decorative nonwoven textile bag measures approximately 2 inches in length by 2 inches in width. You indicated in your letter that the Key Chain in question is a promotional item and is not for retail sale. The Key Chain under consideration is a composite article that consists of a steel key ring and a textile bag. The steel component and the textile component are classified in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (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 steel and textile components of the subject Key Chain 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 Key Chain is a composite good, we must apply rule 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 steel component or the textile component imparts the essential character to the Key Chain in question. 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 Key Chain under consideration is to hold keys. The steel split wire key ring directly performs the function of holding the keys, whereas the textile component is a nonfunctional decorative bag. Therefore, it is the opinion of this office that the steel split wire key ring imparts the essential character to the Key Chain. In accordance with GRI 3(b), the Key Chain under consideration will be classified as an other article of steel. The applicable subheading for the Key Chain will be 7326.20.0070, 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 on World Wide Web at http://www.usitc.gov/tata/hts/. 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 Ann Taub at (646) 733-3018. Sincerely, Thomas J. Russo Director National Commodity Specialist Division