The tariff classification of a bracelet kit and a room banner kit from China

N310798 April 14, 2020 CLA-2-95:OT:RR:NC:N4:424 CATEGORY: Classification TARIFF NO.: 9503.00.0073; 4421.99.9780; 9903.88.03 Mr. William Maloney Sandler, Travis, & Rosenberg, P.A. 551 5th Avenue; Suite 1100 New York, NY 10176 RE: The tariff classification of a bracelet kit and a room banner kit from China Dear Mr. Maloney: In your letter, dated March 19, 2020, you requested a tariff classification ruling on behalf of your client, Tara Toy Corporation. Photographs and a description of the merchandise was submitted for our review. The first product under consideration is item 51587, the “Design N’ Wear Wrap Bracelet” kit. The kit is comprised of all the materials and components that a child will use to create decorated “charm” textile wrap “bracelets” or other decorative items. The kit will include three lengths of unfinished, raw edge polyester fabric strip, six plastic toy “charms” and one sheet of holographic paper stickers packaged together for retail sale. The fabric has unfinished edges and will easily fray and curl. The flimsy, unfinished fabric is suitable to the intended use of the kit in providing an activity for children resulting in an amusing creation of very limited utility and durability. To create a wrap bracelet or other decoration, the child will cut the textile strip to the desired length and thread on the toy charms which have been decorated by the child with the included stickers. The product is designed principally for the amusement of children ages 6 and up. The kit’s amusement value is greater than the utilitarian value of the finished article and would therefore be considered an educational craft kit. The second product, item 51592DG, the “Design N’ Display Room Banner,” is a kit containing all the components to create and decorate a banner. The banner is created using a length of twine and medium density fiberboard (MDF) clips that are used to hang photos. The kit includes four MDF heart-shaped clips, four small clothing pins, one foil sticker sheet, three paint pods (acrylic), one brush, four paper photo frame cutouts, 48 inches of hemp cord, and an instruction sheet. The components are packaged together in a box, ready for retail sale, at time of importation. The Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS) constitute the official interpretation of the tariff at the international level. EN X to General Rule of Interpretation (GRI) 3(b) provides: “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 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).” Sets are classified according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character. You propose that the “Design N’ Wear Wrap Bracelet” kit and the “Design N’ Display Room Banner” kit are classifiable as 9503.00.0073, HTSUS. However, we find that the “Design N’ Display Room Banner” kit is not principally designed for amusement and therefore does not meet the terms of heading 9503. The “Design N’ Display Room Banner” kit is comprised of multiple articles classifiable under separate headings. The components of the kit carry out a specific activity, that of creating the finished decoration, and are packaged together for retail sale. In accordance, in part, with GRI 3b… 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. We find that the essential character of the “Design N’ Display Room Banner” kit is conferred by the MDF heart-shaped clips because of the role the clips play in the functioning of the banner as well as their decorative value. The applicable subheading for the “Design N’ Wear Wrap Bracelet” kit will be 9503.00.0073, HTSUS, which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof… ‘Children’s products’ as defined in 15 U.S.C. § 2052: Other: Labeled or determined by importer as intended for use by persons: 3 to 12 years of age.” The rate of duty will be Free. The applicable subheading for the “Design N’ Display Room Banner” kit will be 4421.99.9780, HTSUS, which provides for Other articles of wood: Other: Other: Other: Other: Other. The rate of duty will be 3.3 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. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4421.99.9780, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, 9903.88.03, in addition to subheading 4421.99.9780, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. 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 Roseanne Murphy at roseanne.j.murphy@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division