The tariff classification of a Smart Phone Glove Package from China

N241935 June 3, 2013 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7326.90.8588 Ms. Rachael Harris WM Wright Company 6050 Dana Way Antioch, TN 37013 RE: The tariff classification of a Smart Phone Glove Package from China Dear Mr. Harris: In your letter dated May 9, 2013, you requested a tariff classification ruling on a Smart Phone Glove Package. A sample of the SensaThread, descriptive literature and a photograph of the packaging for the merchandise under consideration were submitted for our review. The subject merchandise is identified in the submitted marketing literature as a Smart Phone Glove Package, Product Number 34076611231. The package in question is described as a kit that includes ten yards of SensaThread Conductive Filament, one tapestry needle and a cardboard insert with instructions for stitching the Sensathread to the tips of gloves or mittens. You stated in our telephone conversation on May 28, 2013, that the SensaThread, the tapestry needle and the cardboard insert will be packed together in a display package ready for retail sale at the time of importation into the United States. You indicated in your letter that the SensaThread is comprised of 95 percent polyester and 5 percent stainless steel by weight. The SensaThread is advertised as a conductive sewing thread which, when stitched into the fingertips of gloves or mittens, allows the wearer to use touch-screen digital devices such as smart phones, ATM screens, etc., without removing their gloves. The Smart Phone Glove Package consists of SensaThread Conductive Filament and a tapestry needle packed with a cardboard instruction sheet. The General Rules of Interpretation (GRIs) set forth the legal framework in which merchandise is to be classified under the Harmonized Tariff Schedule of the United States (HTSUS). GRI 1 requires that classification be determined first according to the terms of the headings of the tariff and any relative section or chapter notes. Goods that cannot be classified in accordance with GRI 1 are to be classified in accordance with subsequent GRIs taken in order. The Smart Phone Glove Package is a single retail package containing items that are classifiable under two or more different headings of the tariff. The Explanatory Notes represent the official interpretation of the HTSUS at the international level. GRI 3 applies when goods are put up for sale collectively and are classifiable under two or more headings of the tariff. GRI 3(b) covers goods put up in sets for retail sale. Explanatory Note X to GRI 3(b) defines “goods put up in sets for retail sale”. Such goods: (a) consist of at least two different articles that are classifiable in different headings, (b) consist of products 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. The subject merchandise, in our opinion, meet the criteria for sets as the terms are defined in the cited Explanatory Notes. For the purposes of the HTSUS, the merchandise constitutes a set. Having determined that the items constitute a set for tariff classification purposes, we must decide the essential character. According to the Explanatory Notes to GRI 3(b), essential character may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods. In this case, 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 instance, the function of the SensaThread under consideration is to allow the wearer to use a touch-screen digital device without removing their gloves. Therefore, the SensaThread imparts the essential character to the set under consideration. The SensaThread in question is a composite article that is comprised of polyester and stainless steel. The polyester component and the stainless steel component are classified in different headings. Since no one heading in the tariff schedules covers the polyester and stainless steel components of the SensaThread 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 SensaThread 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. We must determine whether the polyester or stainless steel component imparts the essential character to the SensaThread. In this case, it is the role of the constituent material or component in relation to the use of the good that imparts the essential character. Since the function of the stainless steel component is to allow the wearer to use a touch-screen digital device without removing their gloves, it is the opinion of this office that the stainless steel component imparts the essential character to the SensaThread. In accordance with GRI 3(b), the SensaThread under consideration will be classified as an other article of iron or steel. The applicable subheading for the Smart Phone Glove Package, Product Number 34076611231, will be 7326.90.8588, HTSUS, which provides for other articles of iron or steel, other, other, other, other, other. The rate of duty will be 2.9 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