The tariff classification of hanging kits from China

N320523 August 3, 2021 CLA-2-83:OT:RR:NC:N1:121 CATEGORY: Classification TARIFF NO.: 7326.90.8688, 8302.50.0000, 9903.88.03 Kiera Conlan, VP Customs Brokerage Odyssey International Services Inc. 18209 80th Avenue South Kent, WA 98032 RE: The tariff classification of hanging kits from China Dear Ms. Colan: In your letter dated July 14, 2021, you requested a tariff classification ruling on behalf of the Hillman Group, Inc. The first product under consideration is identified as the Home Lightweight Décor Hanging Kit/Starter Décor Kit, part number 9977130. Part 9977130 consists of 43 items including 28 picture hangers made of steel of varying sizes and holding capability, 6 small poster strips which are rubber tabs with adhesive on either side, 8 pieces of adhesive Velcro, and 1 plastic box to hold and package the kit. The picture hangers are described as 10-pound, 30-pound and 50- pound holding power nail and hook combinations. This kit will be sold and marketed as a home hanging kit for the purpose of hanging pictures, posters, and other lightweight home décor. The second product under consideration is identified as the Lightweight Hangers, Part Number 9977111. Part 9977111 consists of 51 items including 6 décor pins made of steel and polystyrene, 6 picture clips made of steel and polystyrene, 20 push pins made of steel and polystyrene, 2 hooks made of steel and suction cups made of silicone rubber, 16 screw hooks made of nickel-plated steel, and 1 polyproline, six-cavity box to hold and package the kit. This kit will be sold and marketed as a lightweight hanger kit for the purpose of hanging pictures, posters, and other light weight home décor. 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 all the components of the subject products, 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. Both sets listed above, consist of at least two different articles that are, prima facie, classifiable in different headings. They consist of articles put up together to carry out a specific activity (i.e., hanging lightweight home décor). Finally, both subject products are put up in a manner suitable for sale directly to users without repacking. Therefore, the items in question are within the term "goods put up in sets for retail sale." GRI 3(b) states in part that goods put up in sets for retail sale, 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 to the HTSUS, GRI 3(b) (VIII), state that the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods. When the essential character of a composite good can be determined, the whole product is classified as if it consists only of the material or component that imparts the essential character to the composite good. If no essential character for the composite good can be determined, then Rule 3(c) provides that classification will be determined by the heading which occurs last in numerical order among those headings which equally merit consideration. The item identified as the Home Lightweight Décor Hanging Kit/Starter Décor Kit, part number 9977130, consists of 43 items used to perform hanging and holding functions. Since each hanging/holding component performs a similar function, in the opinion of our office they merit equal consideration. Therefore, the Home Lightweight Décor Hanging Kit/Starter Décor Kit, is classified by application of GRI 3(c) according to its steel component. The applicable subheading for the Home Lightweight Décor Hanging Kit/Starter Décor Kit, part number 9977130, will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, other, other…other. The rate of duty will be 2.9 percent ad valorem. The item identified as Lightweight Hangers, Part Number 9977111, consists of 51 items used to provide mounting and holding functions. As each hanging component performs a similar function, this office finds they are of equal significance. As such, the Lightweight Hangers, Part Number 9977111, is classified by application of GRI 3(c) according to its metal component. The applicable subheading for the Lightweight Hangers, Part Number 9977111, will be 8302.50.0000, HTSUS, which provides for Hat racks, hat pegs, brackets and similar fixtures and parts thereof, of base metal. The rate of duty will be Free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7326.90.8688 and 8302.50.0000, 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 7326.90.8688 and 8302.50.0000, 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, including information on exclusions and their effective dates, 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. 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 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. ruling contact National Import Specialist Jennifer Jameson at jennifer.d.jameson@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division