The tariff classification of headphone accessory pack from China

N314336 September 22, 2020 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Classification TARIFF NO.: 8544.42.9090; 9903.88.03 Raffaele Natale American Shipping Co. Inc. 250 Moonachie Road Moonachie, NY 07074 RE: The tariff classification of headphone accessory pack from China Dear Mr. Natale: In your letter dated September 1, 2020, you requested a tariff classification ruling on behalf of your client, AlphaTheta Music Americas Inc. The merchandise under consideration, identified by model# HC-CP08, is an accessory pack containing replacement ear pads and an audio cable for a specific set of headphones. The articles are packaged in a retail box ready to be sold to the ultimate purchaser at time of importation. The replacement ear pads and audio cables come in five different colors; orange, yellow, green, blue, and pink. The ear pads are made of a polyurethane material that covers a foam cushion. The audio cable is a coiled cable measuring 47.24 inches in length with an L-type 3.5mm audio plug on one end and 2.5mm plug on the other. The accessory pack is intended to be used as a replacement for original ear pads and audio cables to customize the appearance of the headphones. The General Rules of Interpretation (GRIs) of the Harmonized Tariff Schedule of the United States (HTSUS), when take in numerical order, set forth the official guidance for classifying merchandise entering the U.S. GRI 1 states, in part, that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining rules taken in order. Goods that are classifiable under two or more headings are classified in accordance with GRI 3, HTSUS. GRI 3(a) states that the heading that provides the most specific description shall be preferred over those offering a more general description. In the case where two or more headings refer to only part of an item in a composite good or set, then those headings are deemed to be equally specific and classification is determined based on the rules set forth in GRI 3(b) or, subsequently, GRI 3(c). GRI 3(b) states in part that composite goods or sets, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component that gives them their essential character. The Explanatory Notes, which constitute the official interpretation of the HTSUS at the international level, state in Note (X) to GRI Rule 3(b) that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles 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 headphone accessory pack meets the definition of "goods put up in sets for retail sale." GRI 3(b) states, in part, that goods put up in sets for retail sale are to be classified as if they consisted of the component that gives them their essential character. In our view, neither of the items impart an essential character as they both equally contribute to the nature and character of the accessory pack. In the event that a determination as to the essential character cannot be reached, we reference GRI 3(c), which states that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among the competing headings that equally merit consideration. Therefore, classification in accordance with GRI 3(c) is appropriate. The applicable subheading for the headphone accessory pack, Model# HC-CP08, will be 8544.42.9090, HTSUS, which provides for “Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors: Other electric conductors, for a voltage not exceeding 1,000 V: Fitted with connectors: Other: Other: Other.” The general rate of duty will be 2.6% ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8544.42.9090, 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, i.e., 9903.88.03, in addition to subheading 8544.42.9090, 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 Section 301 trade remedy, 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 https://www.cbp.gov/trade/remedies/301-certain-products-china 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 the 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 Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division