The tariff classification of a wallet replacement chain from China

N336180 November 9, 2023 CLA-2-73:OT:RR:NC:N5: 113 CATEGORY: Classification TARIFF NO.: 7326.90.8688; 9903.88.03 Ms. Jacqueline Turner Wemco Inc. 200 James Drive EastSt. Rose, LA 70087 RE:  The tariff classification of a wallet replacement chain from China Dear Ms. Turner: In your letter dated October 27, 2023, on behalf of Randa Accessories Leather Goods LLC, you requested a tariff classification ruling. A sample, description, photographs, and sketches of the wallet replacement chain were provided for our review. The sample was returned as you requested.The article under consideration is identified as a wallet replacement chain, wallet chain or biker wallet chain. The product is comprised of an iron chain, copper snap hook, zinc ornament, leather strap, and hardware. You stated in your letter that “The good's principal use in the United States is to secure and prevent loss or theft of wallets, keys and other personal items.” The user will fasten his wallet to one end of the chain and attach the other end of the chain to his belt or belt loop. You indicated that the wallet replacement chain is ready for retail sale at the time of importation into the United States and will be sold as a stand-alone item. The wallet replacement chain is comprised of iron, copper, zinc, and leather components that 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. The wallet replacement chain is comprised of iron, copper, zinc, and leather components that are classified in different headings. Since no one heading in the tariff schedules covers the components of the wallet replacement chain 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 wallet replacement chain is a composite article, we must apply GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. Explanatory Note (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 metal components or the leather component imparts the essential character to the wallet replacement chain. 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 metal components is to allow the user to secure his wallet to his belt or belt loop. Further, based on the breakdown of materials provided, the metal predominates by bulk and weight over the leather. Therefore, it is the opinion of this office that the metal components impart the essential character to the composite article. In accordance with GRI 3(b), the wallet replacement chain will be classified under a heading which provides for other articles of metal. We note that the wallet replacement chain is composed of more than one metal. Section XV, Note 7 of the HTSUS, states that the classification of 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, the metal in the wallet replacement chain that predominates by weight is iron. Therefore, the wallet replacement chain will be classified under heading 7326, HTSUS, which provides for other articles of iron or steel.  The applicable subheading for the wallet replacement chain 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 at https://hts.usitc.gov/current. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7326.90.8688, 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, 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.  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 the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. If 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 Ann Taub at ann.taub@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division