The tariff classification of lockout hasps from China

N351720 August 7, 2025 CLA-2-73:OT:RR:NC:N1:164 CATEGORY: Classification TARIFF NO.: 7326.90.8688; 9903.01.24; 9903.81.90; 9903.01.25; 9903.88.03 Adam Klaser C.H. Robinson 26555 Evergreen Rd., #300 Southfield, MI 48076 RE: The tariff classification of lockout hasps from China Dear Mr. Klaser: In your letter dated July 28, 2025, you requested a tariff classification ruling regarding lockout hasps from China on behalf of your client, ABUS USA, LLC. Product information was submitted with your request. The items under consideration are described as lockout hasps (model H702) which are used to secure machinery power switches and for other applications. The subject lockout hasps allow six padlocks to be fastened onto them through integrated openings. As a result, six individuals can independently secure an energy point against unauthorized reconnection. Based on the submitted information, the lockout hasps are composed of two high tensile steel plates which pivot around a central connection point. At one end, the hasps feature pivoting jaws for connection to the object at issue. The opposing ends are coated in vinyl and feature six corresponding holes for padlock mounting. When the steel plates are aligned and locked in position, the jaws are held closed to prevent unwanted access. Conversely, when the steel plates are unlocked and slid apart, the jaws open to provide access. The steel lockout hasps are 5 3/64 inches long, 2 23/64 inches wide, feature an inside jaw diameter of 1 1/2 inches, and weigh .23 pounds. In your letter, you propose classification of the lockout hasps in subheading 8302.49.6085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like; base metal hat racks, hat-pegs, brackets and similar fixtures; castors with mountings of base metal; automatic door closers of base metals; and base metal parts thereof: Other mountings, fittings and similar articles, and parts thereof: Other: Other: Other: Other. We disagree. As noted in Headquarters ruling 960428, the word “fittings” is defined as “the fixtures and fitments of a building,” and the word “fixtures” as “something fixed or fastened in position;” “articles attached to a house or land and regarded as legally part of it.” This steel hasp is a removable article; it is not fixed in place and therefore it does not meet the terms of heading 8302. Heading 7326, HTSUS, is a residual or basket provision which covers a wide range of iron or steel articles that are not more specifically provided for elsewhere in the HTSUS. The Explanatory Notes (ENs) to heading 7326 state that “This heading covers all iron or steel articles obtained by forging or punching, by cutting or stamping or by other processes such as folding, assembling, welding, turning, milling or perforating other than articles included in the preceding headings of this Chapter or covered by Note 1 to Section XV or included in Chapter 82 or 83 or more specifically covered elsewhere in the Nomenclature.” An article of iron or steel can be classified in heading 7326 if it is determined that the item is not more specifically provided for in any other heading of the tariff. Noting the steel lockout hasps are not more specifically provided for in heading 8302, or any other heading of the tariff, the lockout hasps can be classified in heading 7326, HTSUS. The applicable subheading for the steel lockout hasps will be 7326.90.8688, HTSUS, which provides for Other articles of iron or steel: Other: Other: Other: Other: Other. The general rate of duty will be 2.9 percent ad valorem. Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 7326.90.8688, HTSUS, listed above. On March 12, 2025, Presidential proclamation 10896 imposed additional tariffs on certain derivative iron or steel products. Additional duties for derivative iron or steel products of 50 percent are reflected in Chapter 99, headings 9903.81.89, 9903.81.90, and 9903.81.91. Products provided by heading 9903.81.91, as well as products of Chapter 73 provided by 9903.81.89 and 9903.81.90, will be subject to a duty of 50 percent upon the value of the steel content. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.81.90, in addition to subheading 7326.90.8688, HTSUS. Derivative iron or steel products processed in another country from steel articles melted and poured in the United States, provided for in heading 9903.81.92, are not subject to the additional ad valorem duties. Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from China will be subject to an additional 10 percent ad valorem rate of duty. For products covered by heading 9903.81.90, this additional duty applies to the non-steel content of the merchandise. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading 7326.90.8688, HTSUS, listed above. 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, 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/programs-administration/trade-remedies, respectively. The tariffs and additional duties cited above are current as of this ruling’s issuance. 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/. 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 (C.F.R.), 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 C.F.R. 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 Paul Taylor at paul.m.taylor@cbp.dhs.gov. Sincerely, (for) James Forkan Acting Director National Commodity Specialist Division