The tariff classification of a Retractable ID Holder from China

N287859 July 26, 2017 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7326.90.8688 Ms. Dionisia Melman The Jewelry Group, Division of Nine West Holdings 1411 Broadway New York, NY 10018 RE: The tariff classification of a Retractable ID Holder from China Dear Ms. Melman: In your letter dated June 29, 2017, you requested a tariff classification ruling. A product profile sheet and a sample of the subject article was submitted for our review. The sample will be returned to your office. The product under consideration is described as a retractable ID holder with a bees design, style number 60477079-Z01. The ID holder under consideration is comprised of a 30 mm steel box, 35 mm zinc casting (bees), glass stones, a plastic holder, cotton thread, enamel and plating. The ID holder features a retractable cord that is housed in a metal component. The zinc cast bees are attached to the front of the steel box, and a steel clip/clamp is affixed to back of the box. The attached clip can be used to secure the ID holder to a garment or belt. Attached to the end of the metal housing for the retractable cord is a small metal ring which holds a plastic tab. The plastic strip that snaps to form a loop to hold the ID with a metal snap is attached by a small metal ring to the metal housing for the retractable cord. The ID holder under consideration is a composite article that is comprised of/consists of a steel box, zinc cast bees, glass stones, a plastic holder, cotton thread, enamel and plating. The steel, zinc, glass, plastic, cotton, enamel and plating components 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, zinc, glass, plastic, cotton, enamel and plating components of the ID holder 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 ID holder 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 steel, zinc, glass, plastic, cotton, enamel or plating component imparts the essential character to the ID holder 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 ID holder under consideration is to secure the ID holder to a garment or belt and also to allow the cord to be retractable. Therefore, it is the opinion of this office that the metal components impart the essential character to the retractable ID holder. In accordance with GRI 3 (b), the ID holder under consideration will be classified as an other article of metal. You have indicated in your letter that the ID holder is composed of more than one base metal. The ID holder is composed of steel 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 and our examination of the submitted sample, the metal in the retractable ID holder that predominates by weight is steel. Therefore, the subject retractable ID holder is classifiable in heading 7326, HTSUS, which provides for other articles of iron or steel. The applicable subheading for the retractable ID holder with a bees design, style number 60477079-Z01, will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, 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 https://hts.usitc.gov/current. 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, Steven A. Mack Director National Commodity Specialist Division