The tariff classification of a Care Bear Cheer 3D Keychain from China

N340532 June 24, 2024 CLA-2-73:OT:RR:NC:N5:113 CATEGORY: Classification TARIFF NO.: 7326.90.8688; 9903.88.03 Simone Simon Agra-Services Brokerage Company, Inc. 221-20 147th AvenueJamaica, NY 11413 RE:  The tariff classification of a Care Bear Cheer 3D Keychain from China Dear Ms. Simon: In your letter dated June 4, 2024, on behalf of Jacmel Jewelry Inc., you requested a tariff classification ruling. A sample of the subject key ring with attachments was submitted for our review and was returned to your office. The article for which you are requesting a ruling is identified as the Care Bear Cheer 3D PVC (Polyvinyl Chloride) Keychain, style number GH00376YL. You stated that the “PVC bear has a lobster claw clasp attached to a chain and keyring with a PVC wrist strap and charm attached to the ring on the chain attached to the bear’s head.” The subject keychain includes a PVC 3D bear that measures approximately 60 mm in length, a PVC wrist strap that is printed with the words “Positive Vibes”, a PVC heart shaped charm, an iron 30 mm split wire key ring, two iron jump rings, 4 iron chain links, and a zinc lobster claw clasp.    In your request you state that the Care Bear Cheer 3D PVC Keychain is properly classified as a toy under subheading 9503.00.0073, Harmonized Tariff Schedule of the United States (HTSUS). We disagree. The PVC bear figure offers no manipulative play value and is not akin to a doll or plush animal figure to warrant classification as a toy. The principal use of the Care Bear Cheer 3D PVC Keychain is to carry keys and any amusement derived from the bear figure is incidental to the utilitarian function of the key ring, lobster claw clasp, and hand carry strap.  The Care Bear Cheer 3D PVC Keychain is a composite article that is comprised of rings, links, a lobster claw clasp, a wrist strap, a charm, and a bear comprised of different materials including iron, zinc, and PVC that are classified in different headings. Classification of merchandise under the 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 the iron, zinc, and PVC of the subject article 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 Care Bear Cheer 3D Keychain is a composite good, we must apply rule GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. 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 iron, zinc or PVC imparts the essential character to the Care Bear Cheer 3D Keychain under consideration. 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 hold and organize keys, and the PVC attachments provide decoration to the article. 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 subject Care Bear Cheer 3D Keychain will be classified as an other article of metal. Noting that the Care Bear Cheer 3D Keychain contains iron and zinc, the article is composed of more than one base metal. Section XV Note 7 of the HTSUS, states that the classification of composite 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 composite article that predominates by weight is iron. Therefore, the Care Bear Cheer 3D Keychain is classifiable in heading 7326, HTSUS, which provides for other articles of iron or steel. The applicable subheading for the Care Bear Cheer 3D Keychain, style number GH00376YL, 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/. 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 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 Ann Taub at ann.taub@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division