The tariff classification of a nail strip starter kit from China

N336140 November 9, 2023 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Classification TARIFF NO.: 8543.70.9860; 9903.88.02 Sungman Chang Pacific Global Partners 444 Montessori Ave.Placentia, CA  92870 RE:  The tariff classification of a nail strip starter kit from China Dear Mr. Chang: In your letter dated October 26, 2023, you requested a tariff classification ruling. The merchandise under consideration is identified as the “Dashing Diva Glaze” starter kit, which consists of gel nail strips and an LED curing lamp. The gel strips are manufactured in various colors and styles and are designed to be adhered to the user’s fingernails. After application, the user then places the nails underneath the LED lamp for up to 45 seconds. The light hardens and cures the adhesive on the back of the nail strips further adhering them to the nail. As presented in this request, the subject kit meets the definition of “goods put up in sets for retail sale” as it consists of articles classified in different headings that are put together to meet a specific need packaged in a manner suitable for sale directly to end users. Due to this fact, we look to the terms of General Rule of Interpretation (GRI) 3 in order to determine the appropriate classification.  GRI 3(a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific, and classification of the set is to be determined by GRI 3(b) or GRI 3(c) taken in the appropriate order in which they are set out in GRI 3. 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. Upon examination of the facts presented in this case, it is our opinion that the LED lamp would impart the essential character of the finished kit and would be the determining item in the classification. We further note that, in your request, you state that the nail strips are manufactured in South Korea while the LED lamp is manufactured in China before the set is packaged together for export to the US from South Korea. When importing goods put up in sets for retail sale (in accordance with GRI 3) that contain articles subject to the Section 301 remedy, if the product that imparts the essential character to the set (i.e. the tariff provision under which the entire set is classified) is covered by the Section 301 remedy, then the entire set will be subject to the additional duties.   The applicable subheading for the “Dashing Diva Glaze” starter kit will be 8543.70.9860, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: 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 8543.70.9860, 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., 9903.88.02, in addition to subheading 8543.70.9860, 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 at https://hts.usitc.gov/current. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division