CLA-2 CO:R:C:M 950636 DWS
Mr. David W. Paskin
E.P.C. Int. Inc.
11304 Taffrail Court
Reston, VA 22091
RE: Key Rings; GRI 3(b); EN 3(b)(VIII); HQ 087831;
Revocation of NY 847644, NY 853072, NY 854126, NY 854127,
NY 854128, NY 856670; 3926.90.90
Dear Mr. Paskin:
This is in response to your letter of October 1, 1991,
concerning the classification of key rings under the Harmonized
Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise consists of key rings with plastic holders
attached. The plastic holder has a recess into which a logo or
photograph can be placed. The logo or photograph is held in
place by a clear plastic window which snaps into the recess. A
further variation of the key ring is a version that includes a
soft plastic pouch in various colors to protect the plastic
holder. The pouch may be embossed with a logo to customer
specifications.
ISSUE:
What is the proper classification of the subject key rings
under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification is determined
according to the terms of the headings and any relative section
or chapter notes.
The two subheadings at issue are 7326.20.00 and 3926.90.90,
HTSUS. Subheading 7326.20.00, HTSUS, provides for: "[a]rticles
of iron or steel wire." Subheading 3926.90.90, HTSUS, provides
for: "[o]ther articles of plastic: [o]ther."
HQ 087831, dated November 27, 1990, dealt with a steel split
key ring with a non-utilitarian vinyl attachment. A Diet Pepsi
logo was imprinted onto the vinyl portion of the key ring. In
that ruling, it was held that under GRI 3(b) analysis, the
essential character of the key ring was the steel element.
GRI 3(b) provides that:
[m]ixtures, composite goods consisting of different
materials or made up of different components, and goods put
up in sets for retail sale, which cannot be classified by
reference to 3(a), shall be classified as if they consisted
of the material or component which gives them their
essential character, insofar as this criterion is
applicable.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are
to be used to determine the proper interpretation of the HTSUS.
54 Fed. Reg. 35127, 35128 (August 23, 1989). Explanatory Note
3(b)(VIII) (p. 4) provides that:
The factor which determines essential character will
vary as between goods. It may, for example, be
determined by the nature of the material or component,
its bulk, quantity, weight or value, or by the role of
a constituent material in relation to the use of the
goods.
In HQ 087831, it was stated that "[t]his office is of the
opinion that, as between plastic and steel components, it is the
steel element which provides the essential character of this
item. We base this conclusion on two factors . . . Second, the
steel component is what makes up the utilitarian portion of the
key ring, whereas the plastic component is present primarily for
decorative purposes."
It is our position that the steel element of the subject key
rings is what makes up the utilitarian portion of the key rings.
It is the part that keeps keys together, which is the primary
purpose of key rings. The plastic element is present for
decorative purposes and to add bulk to the entity.
Legal Note 2 to chapter 73, HTSUS, states that "[i]n this
chapter the word 'wire' means hot- or cold-formed products of any
cross-sectional shape, of which no cross-sectional dimension
exceeds 16 mm." The subject key rings meet the definition of a
steel wire in chapter 73, HTSUS. Accordingly, they are
classifiable under subheading 7326.20.00, HTSUS.
NY 847644, dated December 13, 1989, NY 853072, dated June
14, 1990, NY 854126, dated July 27,1990, NY 854127, dated July
18, 1990, NY 854128, dated July 27, 1990, and NY 856670, dated
October 9, 1990, all classified similar key rings under
3926.90.90, HTSUS. Based upon the reasoning in this ruling and
in HQ 087831, those rulings no longer represent the views of the
Customs Service and will be revoked.
HOLDING:
The subject key rings are classifiable under subheading
7326.20.00, HTSUS. The general, column one rate of duty is 5.7
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division