The tariff classification of Nautical Key Chains from China

N271493 December 28, 2015 CLA-2-79:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7907.00.6000; 7326.20.0071 Mr. David Prata OHL International At CVS Health Mail Code 1049 1 CVS Drive Woonsocket, RI 02895 RE: The tariff classification of Nautical Key Chains from China Dear Mr. Prata: In your letter dated November 30, 2015, on behalf of CVS/Pharmacy, you requested a tariff classification ruling. Two samples of the subject Nautical Key Chains were submitted for our review and will be returned as you requested. The merchandise under consideration is identified as CVS item number 174086 Nautical Key Chains, which will be imported and sold in three styles. Each style of key chain consists of an iron split-wire ring with an attached pendant. You indicated in your letter that “Style 174086A features rope of polyester yarn knotted around and completely encompassing a glass ball…Style 174086B features a round pendant of zinc alloy depending from a chain of iron links. The face of the pendant depicts a sailboat in epoxy…Style number 174086C is identical in construction to Style 174086B, but depicts an anchor instead of a sailboat.” Each Nautical Key Chain in question is a composite article that consists of components that are classified in different headings. Style 174086A consists of iron, polyester and glass components that are classified in different headings. Style 174086B and Style 174086C consist of iron, zinc and epoxy components that 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 iron, polyester and glass components or the iron, zinc and epoxy components of the subject Nautical Key Chains 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 each Nautical Key Chain 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 iron, polyester or glass component, or the iron, zinc or epoxy 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 and the iron component performs the function of holding the keys. Therefore, it is the opinion of this office that the metal component imparts the essential character to the Nautical Key Chains. In accordance with GRI 3(b), the Nautical Key Chain under consideration will be classified as an other article of metal. You stated in your letter that Style 174086B and Style 174086C are composed of more than one base metal. The key chains are composed of iron and zinc. Section XV, Note 7 of the HTSUS, states that the classification of composite articles of base metal containing two or more base metals are to be treated as articles of the base metal that predominates by weight over each of the other metals. Based on the information provided to our office, the metal in the Style 174086B and Style 174086C key chains that predominates by weight is zinc. Therefore, the Style 174086B and Style 174086C Nautical Key Chains are classifiable in heading 7907, HTSUS, which provides for other articles of zinc. The applicable subheading for the Style 174086B and Style 174086C Nautical Key Chains will be 7907.00.6000, HTSUS, which provides for other articles of zinc, other. The rate of duty will be 3 percent ad valorem. The applicable subheading for the Style 174086A Nautical Key Chains will be 7326.20.0071, HTSUS, which provides for other articles of iron or steel, other 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 Ann.Taub@cbp.dhs.gov. Sincerely, Gwenn Klein Kirschner Director National Commodity Specialist Division