OT:RR:CTF:FTM H341208 BJK

Mr. Stephen Lawson
TAG Hardware
19072 26 Avenue
Surrey, British Columbia V3Z 3V7
Canada

RE: Tariff Classification, Country of Origin, and USMCA Eligibility of a Jewelry Organizer Tray and Drawer Organizer Kit

Dear Mr. Lawson:

This letter is in response to the request submitted by TAG Hardware, (“TAG” or “Requestor”), dated April 28, 2024, for a binding ruling regarding the tariff classification, country of origin, and eligibility for preferential tariff treatment under the United States Mexico Canada Agreement (“USMCA”) of a jewelry organizer tray and drawer organizer kit.

The request concerns five items, of which the subject jewelry organizer tray and drawer organizer kit are identified as “Item 1” and “Item 3,” respectively. The National Commodity Specialist Division (“NCSD”) addressed the remaining three items in two separate rulings. Item 2, a decorative drawer liner, and Item 4, a drawer divider rails with liner kit, were the subject of New York Ruling Letter (“NY”) N340542, dated July 2, 2024. Item 5, a drawer divider and bracket kit, was the subject of NY N339814, dated May 22, 2024. Copies of each of these rulings are available on the Customs Rulings Online Search System (“CROSS”).

The request concerning the subject jewelry organizer tray and drawer organizer kit was forwarded to our office by the NCSD. The NCSD also forwarded the samples of the jewelry tray and organizer kit that were submitted for review. In arriving at our determination set forth below, we also considered supplemental information submitted via e-mail by Mr. Ian Povey on behalf of TAG. FACTS:

In its ruling request, the Requestor describes the jewelry organizer tray as follows:

The product in question is a jewelry organizer tray designed to hold and organize a variety of jewelry items. The product is used inside a standard dresser or closet drawer. It comprises of a large PVC plastic extrusion, u- shaped profile and a medium-sized u-shaped profile, both manufactured in Canada. Both profiles are wrapped in Canada with a decorative PVC fabric. The PVC fabric is purchased on 55’ wide rolls, that is made in China. The jewelry organizer tray also contains 2 plastic injection molded earring holders, which are manufactured in Canada. Attached to the medium-sized u-shaped profile is a fabric wrapped foam ring-holder, which is made in China.

As described above, the jewelry organizer tray consists of five pieces: one large u-shaped profile, which is a polyvinyl chloride (“PVC”) plastic extrusion covered with an imitation leather (PVC) fabric; one medium u-shaped profile, which is also a PVC plastic extrusion covered with the same imitation leather (PVC) fabric as the large u-shaped profile; two earring trays, which are molded plastic with shallow grooves for holding earrings (not covered with any type of fabric); and a ring holder, which is a molded foam covered in polyester fabric and glued to a paper base, that is inset into the medium u-shaped profile.

The Requestor states that the jewelry organizer tray is manufactured in Canada and China. Specifically, the large and medium u-shaped profile plastic extrusions are produced in Canada and the imitation leather (PVC) fabric used to wrap the large and medium u-shaped profiles is produced in China. The large and medium u-shaped profiles are wrapped and glued with the imitation leather (PVC) fabric in Canada. The earring trays are produced in Canada via a plastic injection process, by which a plastic resin is injected into a custom-built metal mold, which is also built in Canada. The ring holder, consisting of the molded foam covered in polyester fabric and glued to a paper base, is produced entirely in China. The jewelry organizer tray, consisting of the pieces described above, is then packaged together in Canada and imported into the United States as one complete product.

With respect to the drawer organizer kit, the Requestor describes it as follows:

The item in question is a drawer organizer kit for storing jewelry, fashion accessories (such as belts and ties) and eyewear. The kit consists of three items: the jewelry organizer tray, the drawer liner, and an accessory tray.

The jewelry organizer tray and the accessory tray are designed to sit on top of the drawer liner and slide back and forth within the drawer, to create customizable spaces for the home-[owners’] jewelry. The two trays and the liner will be packaged together and presented at the time of import as a [drawer] organizer kit.

2 The drawer organizer kit consists of three separate items: one jewelry organizer tray; one drawer liner, which was the subject of NY N340542, dated July 2, 2024; and an accessory tray. The jewelry organizer tray composition and manufacturing process is detailed above. In NY N340542, CBP described the drawer liner as follows:

The first item under consideration is a drawer liner intended to be used for lining drawers in a closet drawer or dresser. The liners are composed wholly of polyester woven fabric laminated to a layer of cellular PVC on one side. The PVC layer is stamped with a pattern and cured with heat to give it a faux leather look. [T]he textile layer is brushed to help with adhesion.

CBP classified the drawer liner under subheading 5903.10.20, of the Harmonized Tariff Schedule of the United States (“HTSUS”), as a “Textile fabric impregnated, coated, covered or laminated with plastics, other than those of heading 5902: With poly(vinyl chloride): Of man-made fibers: Other.” In NY N340542, CBP determined that the country of origin for the drawer liner was China and CBP outlined the manufacturing process as follows:

The fabric is manufactured and laminated to the PVC in China; the PVC fabric is imported to Canada in 55-inch rolls along with rolls of double sided adhesive tape from China; the PVC fabric rolls are cut in Canada to specific widths and re- rolled; the double-sided adhesive tape is applied to the fabric rolls in Canada, and the tape laminated rolls are cut and packaged in Canada.

Finally, the Requestor describes the accessory tray as comprised of a large, plastic extruded u-shaped profile and two small plastic u-shaped profiles. All three of the profiles, the one large u-shaped profile and two small u-shaped profiles, are wrapped in the same imitation leather (PVC) fabric that covers the jewelry tray and comprises the drawer liner. The Requestor states that the large u-shaped profile and two small u-shaped profiles are plastic extrusions produced in Canada. The PVC fabric, as mentioned above, is produced in China. The large u-shaped profile and two small u-shaped profiles are wrapped with the PVC fabric in Canada.

ISSUES:

What is the tariff classification of the jewelry organizer tray and drawer organizer kit?

What is the country of origin of the jewelry organizer tray and drawer organizer kit?

Whether the jewelry organizer tray and drawer organizer kit are eligible for preferential tariff treatment under the USMCA.

LAW AND ANALYSIS:

Classification decisions under the HTSUS are made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined

3 according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.

GRI 3 provides, in pertinent part, that:

[w]hen, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:

(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

(b) Mixtures, 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.

....

The 2025 HTSUS provisions under consideration are as follows:

3924 Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics:

3924.90 Other:

3924.90.56 Other:

* * *

3926 Other articles of plastics and articles of other materials of headings 3901 to 3914:

3926.90 Other:

3926.90.99 Other:

* * *

4 4202 Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instruments, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper:

4202.92 Other: With outer surface of sheeting of plastics or of textile materials:

4202.92.91 Other: Other:

* * *

5903 Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902:

5903.10 With poly(vinyl chloride):

5903.10.20 Other: Over 70 percent by weight of rubber or plastics:

* * *

6307 Other made up articles, including dress patterns:

6307.90 Other:

6307.90.98 Other:

* * *

Note 1 to Section VII : Plastics and Articles Thereof; Rubber and Articles Thereof provides that:

Goods put up in sets consisting of two or more separate constituents, some or all of which fall in this section and are intended to be mixed together to obtain a product of section VI or VII, are to be classified in the heading appropriate to that product, provided that the constituents are:

(a) Having regard to the manner in which they are put up, clearly identifiable as being intended to be used together without first being repacked; (b) Presented together; and (c) Identifiable, whether by their nature or by the relative proportions in which they are present, as being complementary one to another.

Note 2 to Chapter 39, HTSUS, provides, in relevant part, that:

5 This chapter does not cover:

...

(m) Saddlery or harness (heading 4201) or trunks, suitcases, handbags or other containers of heading 4202;

...

(p) Goods of section XI (textiles and textile articles);

....

Additional U.S. Note 2 to Chapter 42, HTSUS, provides:

For purposes of classifying articles under subheadings 4202.12, 4202.22, 4202.32, and 4202.92, articles of textile fabric impregnated, coated, covered or laminated with plastics (whether compact or cellular) shall be regarded as having an outer surface of textile material or of sheeting of plastics, depending upon whether and the extent to which the textile constituent or the plastic constituent makes up the exterior surface of the article.

In addition, the Explanatory Notes (“EN”) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

The ENs for GRI 3(b) provide, in pertinent part:

This method relates only to:

(i) Mixtures. (ii) Composite goods consisting of different materials. (iii) Composite goods consisting of different components. (iv) Goods put up in sets for retail sales.

It applies only if Rule 3(a) fails.

In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

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

6 or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

For purposes of this Rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which:

(a) consist of at least two different articles which are, prima facie, classifiable in different headings; . . . (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to end users without repackaging (e.g., in boxes or cases or on boards).

...

The term “goods put up in sets for retail sale” therefore only covers sets consisting of goods which are intended to be sold to the end user where the individual goods are intended to be used together. . . .

For the sets mentioned above, the classification is made according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character.

....

The ENs for Chapter 39, HTSUS, provide the following with respect to plastic and textile combinations:

[T]he classification of plastics and textile combinations is essentially governed by Note 1(h) to Section XI, Note 3 to Chapter 56 and Note 2 to Chapter 59.

EN 39.24 provides, in relevant part:

This heading covers the following articles of plastics:

...

(C) Other household articles such as ash trays, hot water bottles, matchbox holders, dustbins and mobile garbage bins (including those for outside use), buckets, watering cans, food storage containers, curtains, drapes, table covers and fitted furniture dust covers (slipovers).

....

EN 39.26 provides, in pertinent part:

7 This heading covers articles, not elsewhere specified or included, of plastics (as defined in Note 1 to the Chapter) or of other materials of headings 39.01 to 39.14. They include:

...

(10) Tool boxes or cases, not specially shaped or internally fitted to contain particular tools with or without their accessories (see the Explanatory Note to heading 42.02). ....

EN 42.02 provides, in relevant part:

The term “jewelry boxes” covers not only boxes specially designed for keeping jewelry, but also similar lidded containers of various dimensions (with or without hinges or fasteners) specially shaped or fitted to contain one or more pieces of jewelry and normally lined with textile material, of the type in which articles of jewelry are presented and sold and which are suitable for long-term use.

The ENs to Chapter 63, HTSUS, provide in pertinent part:

This Chapter includes:

(1) Under headings 63.01 to 63.07 (subchapter I) made up textile articles of any textile fabric (woven or knitted fabric, felt, nonwovens, etc.) which are not more specifically described in other Chapters of Section XI or elsewhere in the Nomenclature. . . .

EN 63.07 provides in relevant part:

This heading covers made up articles of any textile material which are not included more specifically in other headings of Section XI or elsewhere in the Nomenclature.

...

The heading excludes textile articles classified in more specific headings of this Chapter or of Chapters 56 to 62. It further excludes:

...

(b) Travel goods (suit-cases, rucksacks, etc.), shopping-bags, toilet-cases, etc., and all similar containers of heading 42.02 ....

* * *

8 CLASSIFICATION:

The products subject to this ruling are a jewelry organizer tray and a drawer organizer kit, which includes the jewelry organizer tray. As such, CBP must first consider the tariff classification of the jewelry organizer tray.

The jewelry organizer tray is composed of a large-sized molded plastic u-shaped profile, two small, molded plastic earring trays, and a medium-sized molded plastic u-shaped profile with inserted molded foam ring holder. Except for the earring trays, the other components are wrapped in a textile material; the large-sized and medium-sized u-shaped profiles are wrapped in imitation (PVC) leather and the mold foam ring holder is wrapped in polyester. The two earring trays and medium-sized u-shaped profile are removable from the large-sized u-shaped profile, but all pieces are sold together as a jewelry organizer tray. Thus, CBP must first determine if the jewelry organizer tray is classified in accordance with GRI 1 or should be considered as a “composite good” for purposes of classification in accordance with GRI 3.

By application of GRI 1, which provides that classification is determined in accordance with the terms of the headings and any relative section or chapter notes, CBP notes that heading 4202, HTSUS, provides for jewelry boxes and similar containers. By its terms, heading 4202, HTSUS, encompasses the enumerated articles and similar containers yet the subject merchandise is not specifically described in the heading. Hence, it is classified under heading 4202, HTSUS, only if it is similar to the enumerated articles. EN 42.02 states that the term “jewelry boxes” includes boxes specially designed for keeping jewelry and “similar lidded containers of various dimensions (with or without hinges or fasteners) specially shaped or fitted to contain one or more pieces of jewelry . . .” (emphasis added). Here, the jewelry organizer tray does not contain a lid and instead is open at the top. Consequently, the jewelry organizer tray is not similar to, but rather distinguishable from a jewelry box, and cannot be classified under heading 4202, HTSUS.

In reviewing additional Chapters and headings of the HTSUS, no heading describes the jewelry organizer tray eo nomine. The jewelry organizer tray is a composite good made of both plastic material and textile material because it is classifiable as an article of plastic under Chapter 39, HTSUS, or as a “made up article” of textile under Chapter 63, HTSUS. As classification of the jewelry organizer tray cannot be achieved under GRI 1, CBP turns to GRI 3, which provides for goods that are prima facie classified under two or more headings, to determine the appropriate heading. The Court of International Trade (CIT) holds that GRI 3 may only be reached “if the terms of all available headings do not describe the product, eliminating all GRI 1 possibilities.” Nature’s Touch Frozen Foods (West) Inc. v. United States, 639 F. Supp. 3d. 1287, 1301 (CIT 2023).

GRI 3(a) provides that “[t]he heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded

9 as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.” Here, the jewelry organizer tray is classifiable as: a “household article of plastic” under heading 3924, HTSUS; as an “other article of plastic” under heading 3926, HTSUS; or as an “other made up article [of textiles]” under heading 6307, HTSUS. Each of these headings describes only a part of the jewelry organizer tray, and not the complete product. Headings 3924 and 3926, HTSUS, specifically describe the jewelry organizer tray’s plastic components, including the extruded plastic u-shape profiles and the molded plastic earring trays. Heading 6307, HTSUS, describes the jewelry organizer tray’s textile components, which include the ring holder made of molded foam covered with polyester fabric and the large and medium-sized u-shaped profiles wrapped in imitation (PVC) leather that CBP determined to be a textile fabric under heading 5903, HTSUS, in the companion ruling to this request, NY N340542, dated July 2, 2024. Consequently, application of GRI 3(a) fails to determine the proper tariff classification as there is no heading that provides the most specific description of the jewelry organizer tray. CBP next turns to GRI 3(b).

GRI 3(b) provides that articles that cannot be classified pursuant to GRI 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.” The ENs to GRI 3(b) state that GRI 3(b) applies only when GRI 3(a) fails, and GRI 3(b) applies only to, inter alia, “composite goods consisting of different materials.” Further, the ENs to GRI 3(b) indicate that this method of interpretation is premised on classifying a product based on “the material or component which gives them their essential character.” With respect to essential character, the ENs to GRI 3(b) provide that “[t]he 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 value, or by the role of a constituent material in relation to the use of the goods.”

In Apple Inc. v. United States, 375 F. Supp. 3d. 1288 (CIT 2019), the Court of International Trade (“CIT”) considered a Smart Cover, which was a composite good consisting of a plastic outer layer, a microfiber lining, an aluminum hinge, and magnets. In that case the CIT noted that the Smart Cover was prima facie classifiable under subheading 3926.90, HTSUS, as an “other articles of plastics” and subheading 6307.90, HTSUS, as an “other made up articles,” and applied the essential character analysis under GRI 3(b) to determine that the plastic outer layer gives the merchandise its essential character. The CIT reasoned that the plastic layer protects the screen of a phone and is the backing onto which the microfiber lining was attached and encapsulates the magnets. Id. at 1304. Because the plastic outer layer imparted the essential character of the Smart Cover, the CIT concluded that the proper tariff classification of the product was as an “other articles of plastics” under subheading 3926.90, HTSUS. Id. at 1305.

The jewelry organizer tray is a composite good consisting of plastic and textile material, and thus prima facie classifiable under two different headings. In applying the essential character analysis under GRI 3(b), CBP finds that the plastic extrusion that composes the large sized u-shaped profile, the medium sized u-shaped profile, and earring trays impart the essential character of the jewelry organizer tray. Like the Smart Cover in Apple Inc., here the plastic extrusions are vital to the function and general purpose of the jewelry organizer tray, as it is molded and designed to be fitted into a drawer as an organizing device for jewelry. With respect

10 to the textile component, the jewelry organizer tray is like the Smart Cover in Apple Inc., as the plastic extrusions act as the backing of the imitation leather (PVC) fabric is attached. It is the plastic extrusions that enable the product to hold and organize jewelry. The plastic extrusions have molded trays to hold earrings and molded profiles to contain rings and other jewelry items. Therefore, the plastic component imparts the essential character of the product.

Chapter 39, HTSUS, covers articles of plastics. Heading 3924, HTSUS, provides for “Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics.” Heading 3926, HTSUS, is the basket provision that provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914.” To be classified under the more specific heading of 3924, HTSUS, the jewelry organizer tray needs to be considered an “other household article” since it is not “tableware, kitchenware” or “hygienic or toilet article” as provided in heading 3924, HTSUS. EN 39.24 explains that this heading covers such household articles as “ash trays, hot water bottles, matchbox holders, dustbins and mobile garbage bins (including those for outside use), buckets, watering cans, food storage containers, curtains, drapes, table covers and fitted furniture dust covers (slipovers).” In S.C. Johnson & Son Inc., v. United States, 999 F.3d 1382 (Fed. Cir. 2021), the Court of Appeals for the Federal Circuit (“CAFC”) considered whether heading 3924, HTSUS, is an eo nomine provision or a use provision. The CAFC distinguished an eo nomine provision with a use provision by stating that an “eo nomine provision ‘describes an article by a specific name,’ whereas a use provision describes articles according to their principal or actual use’” Id. at 1388 (quoting Schlumberger Tech. Corp. v. United States, 845 F.3d 1158, 1164 (Fed. Cir. 2017)). The CAFC determined that with respect to “household articles” under heading 3924, HTSUS, the terms “household” and “article” described a location where the objects can be found rather than a specific type of use. S.C. Johnson at 1389. Thus, the CAFC held that “heading 3924 encompasses goods of plastic commonly found in the home” and that “the heading is an eo nomine provision.” Id. at 1390.

Prior CBP rulings reflect treatment of heading 3924, HTSUS, as an eo nomine provision. For example, in Headquarters Ruling Letter (“HQ”) H031399, dated December 10, 2008, CBP considered whether a bed elevator, a plastic bed riser to elevate a bed, was classifiable under heading 3924, HTSUS, as a household article, or under heading 3926, HTSUS, as an other article of plastic. In that ruling, CBP stated that “[c]lassification under heading 3924, HTSUS, is dependent upon the cannon of construction known as ejusdem generis, which means literally, ‘of the same class or kind.’” Further, CBP reasoned that “ejusdem generis requires that the imported merchandise possess the essential characteristics or purposes that unite the articles enumerated eo nomine in order to be classified under the general terms.” Id. (quoting Nissho-Iwai American Corp. v. United States, 10 CIT 154, 156 (1986)). Thus, CBP concluded that “classification in heading 3924, HTSUS, requires that the [merchandise] be ejusdem generis (of the same class or kind) as those household articles enumerated in the heading.” Id. In HQ H031399, CBP determined that the bed elevator was more akin to protective cups and furniture glides affixed to furniture legs as they impacted the character, performance, and function of the item to which they are affixed to. CBP then concluded that the bed elevator was not a “household article” as provided for under heading 3924, HTSUS, and instead was classifiable under heading 3926, HTSUS.

11 Here, the jewelry organizer tray would prima facie be an article found in the home. However, it cannot be said that the jewelry organizer tray is of the same class or kind as the household articles enumerated in heading 3924, HTSUS. Specifically, the jewelry organizer tray is not tableware or kitchenware and is not a hygienic or toilet article. With respect to other household articles, EN 39.24 provides a list of the class or kind of household articles considered under heading 3924, HTSUS. In reviewing the listed articles under EN 39.24, such as “ash trays, hot water bottles, matchbox holders, dustbins and mobile garbage bins (including those for outside use), buckets, watering cans, food storage containers, curtains, drapes, table covers and fitted furniture dust covers (slipovers),” the jewelry organizer tray is not similar in class or kind to any of the enumerated articles. As heading 3924, HTSUS, is an eo nomine provision, and the jewelry organizer tray is not of the same class or kind as the identified articles, then the jewelry organizer tray is not a household article for purposes of classification under heading 3924, HTSUS. Also, similar to HQ H031399, the jewelry organizer tray is designed to be placed, or affixed to a drawer and impact the character, performance, and function of the drawer. Since no heading accurately describes the jewelry organizer tray, the jewelry organizer tray is classified under the basket provision of heading 3926, HTSUS, which provides for “other articles of plastic.” Specifically, in accordance with GRI 3(b), the jewelry organizer tray is classified under subheading 3926.90.99, HTSUS, as an “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other.”

Next, CBP considers the proper tariff classification of the drawer organizer kit. The drawer organizer kit consists of the jewelry organizer tray, which is classified above; the drawer liner, classified in NY N340542, dated July 2, 2024; and an accessory tray, which has not been classified. The accessory tray is also a composite good of both plastic and textile material. It features the same large size u-shaped profile as the jewelry organizer tray, and two smaller u- shaped profiles consisting of the same plastic extrusions wrapped in imitation leather (PVC) fabric as the larger u-shaped profile. As with the jewelry organizer tray, the accessory tray is not accurately described in any HTSUS headings to allow for classification pursuant to GRI 1. In turning to GRI 3(a), CBP again finds that the accessory tray, like the jewelry organizer tray, is prima facie classifiable under Chapter 39 and Chapter 63, HTSUS, as either an article of plastic or an article of textile material. Applying GRI 3(b) to the accessory tray, CBP determines that the essential character of the accessory tray is the plastic extrusions, which form the larger and smaller u-shaped profiles. Thus, the accessory tray is an article of plastic for purposes of classification under Chapter 39, HTSUS. Similar to the jewelry organizer tray, CBP further determines that the accessory tray is not a household article as described by EN 39.24. As such, the accessory tray is classified under heading 3926, HTSUS, which provides for other articles of plastic. Specifically, CBP classifies the accessory tray under subheading 3926.90.99, HTSUS, which provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other.”

The Requestor states that the drawer organizer kit, which includes the jewelry organizer tray, the drawer liner, and the accessory tray, is imported together and sold as one complete set. Tariff classification of retail sets is determined in accordance with GRI 3. The ENs for GRI 3 provide three requirements for goods put up in sets for retail sale. First, the goods must consist of at least two different articles which are, prima facie, classifiable in different headings. Second, the goods must consist of products or articles put up together to meet a particular need

12 or carry out a specific activity. Third, the goods must be put up in a manner suitable for sale directly to an end user without repackaging (e.g., in boxes or cases or on boards).

With respect to the first criteria for goods put up in sets for retail sale, the drawer organizer kit consists of three articles that are classified in two different headings. The jewelry organizer tray and accessory tray are classified under subheadings 3926.90.99, HTSUS, while the drawer liner is classified under subheading 5903.10.20, HTSUS. Thus, the first requirement is met.

The second criteria is that the goods must consist of products or articles put up together to meet a particular need or carry out a specific activity. Here, the drawer organizer kit consisting of jewelry organizer tray, accessory tray, and drawer liner is intended to be used as a drawer organization system, to organize a purchaser’s personal wares, including jewelry and accessories. These items are sold together in matching colors to allow for a harmonized drawer organization system that is functional and visually appealing. Thus, the jewelry tray, accessory tray, and drawer liner are put up together to meet a particular need or carry out a specific activity, namely a drawer organization system for a purchaser’s personal wares.

The third criteria for the drawer organizer kit to be considered goods put up for retail sale under GRI 3(b) is that the goods must be put up in a manner suitable for sale directly to an end user without repackaging. Here, the Requestor states that the drawer organizer kit is imported with the jewelry organizer tray, accessory tray, and drawer liner packaged together, and then sold at retail packaged together. The product is advertised and packaged together as a drawer organizer kit. Consequently, CBP finds that the third requirement is met.

As the drawer organizer kit meets the requirements to be considered goods put up for retail sale under GRI 3(b), CBP proceeds with tariff classification in accordance with GRI 3(b). GRI 3(b) provides, in pertinent part, that “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.” The ENs for GRI 3(b) further provide that “classification is made according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character.” As previously discussed, the plastic extrusions of both the jewelry organizer tray and accessory tray confer the essential character, as it forms the basis of the product and functions to allow the product to perform its organizational purpose. Since the jewelry organizer tray and accessory tray are combined with the drawer liner to form the drawer organizer kit, CBP concludes that it is the jewelry organizer tray and accessory tray that give the drawer organizer kit its essential character. The purpose of the drawer organizer kit is to function as a drawer organizer for a purchaser’s personal wares, organizing the purchaser’s jewelry items and other accessories. While the drawer liner is a part of the overall organization purpose, the jewelry organizer tray and the accessory tray allow for the arranging, sorting, and organizing of a drawer organizer kit. Because the jewelry organizer tray and accessory tray impart the essential character of the drawer organizer kit, in accordance with GRI 3(b) the drawer organizer kit is classified under subheading 3926.90.99, HTSUS, as an “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other.”

13 COUNTRY OF ORIGIN:

The marking statute, section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that unless excepted, every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. § 1304 was that the ultimate purchaser should be able to know by an inspection of the markings on the imported goods the country of which the good is the product. “The evident purpose is to mark the goods so at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940).

Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of this part; ….”

Pursuant to 19 C.F.R. Part 102 of the CBP interim regulations regarding the country of origin marking rules, tariff-rate quotas, and other United States-Mexico-Canada Agreement (“USMCA”) provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in 19 C.F.R. §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Specifically, 19 C.F.R. § 102.11(a) provides that the country of origin of a good is the country in which:

(1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfied any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

Beginning with the jewelry organizer tray, the Requestor explains that the manufacturing process of the jewelry tray takes place in Canada and China. Specifically, the large and medium u-shaped profile plastic extrusions are produced in Canada, as are the earring trays. The imitation leather (PVC) fabric used to wrap the large and medium u-shaped profiles, and the ring holder, consisting of the molded foam covered in polyester fabric and glued to a paper base, is produced in China, and inserted into the tray. Since the jewelry organizer tray is produced in Canada and China, the country of origin cannot be determined by 19 C.F.R. § 102.11(a)(1) and (a)(2). CBP then turns to 19 C.F.R. § 102.11(a)(3) to determine whether the fabric and ring holder produced in China undergo the applicable change in tariff classification.

14 “Foreign material” is defined in 19 C.F.R. § 102.1(e) as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.” The jewelry organizer tray is classified under subheading 3926.90.99, HTSUS, and 19 C.F.R. § 102.20 provides that for articles classified in headings 3922 – 3926, HTSUS, the applicable tariff shift requirement is “[a] change to heading 3922 through 3926 from any other subheading, including another heading within that group, except for a change to heading 3926 from articles of apparel and clothing accessories, other articles of plastics, or articles of other materials of headings 3901 to 3914 of heading 9619.” Because the imitation leather (PVC) fabric from China is classified under heading 5903 and the jewelry tray organizer is classified under heading 3926, HTSUS, the imitation leather (PVC) fabric undergoes the requisite tariff shift set forth in 19 C.F.R. § 102.20. The ring holder, consisting of a molded foam wrapped in polyester fabric and glued to a paper base produced in China, is classified under heading 6307, HTSUS, and undergoes the requisite tariff shift set forth in 19 C.F.R. § 102.20 when it is inserted into the jewelry tray. As both foreign materials, the imitation leather (PVC) fabric and ring holder from China, undergo the applicable tariff shift pursuant to 19 C.F.R. § 102.20, in accordance with 19 C.F.R. § 102.11(a)(3), the country of origin for the jewelry organizer tray is Canada.

Turning to the drawer organizer kit, the respective components are the jewelry organizer tray, the drawer liner, and the accessory tray. In NY N340542, CBP determined that the country of origin of the drawer liner was China. As discussed above, the country of origin of the jewelry tray organizer is Canada. With respect to the accessory tray, the manufacturing process occurs in both Canada and China. The Requestor states that the large u-shaped profile and two small u- shaped profiles are plastic extrusions produced in Canada. The PVC fabric is produced in China. The large u-shaped profile and two small u-shaped profiles are wrapped with the PVC fabric in Canada. Like the jewelry organizer tray, the accessory tray’s country of origin cannot be determined by application of 19 C.F.R. § 102.11(a)(1) or (a)(2) as the product components originate in Canada and China. In applying 19 C.F.R. § 102.11(a)(3), CBP finds that the fabric wrapping the large and medium sized u-shaped profiles is produced in China and therefore the foreign material must undergo the applicable tariff shift pursuant to 19 C.F.R. § 102.20. The relevant tariff shift rule allows for “[a] change to heading 3922 through 3926 from any other subheading, including another heading within that group…” Because the fabric produced in China is classified under heading 5903, HTSUS, then the accessory tray classified under heading 3926, HTSUS, undergoes the applicable tariff shift pursuant to 19 C.F.R. § 102.20. Thus, the country of origin for the accessory tray is Canada.

With respect to the drawer liner, it remains a separate component and is sold with the two trays as a set. As 19 C.F.R. § 102.17 provides that simple packing is a non-qualifying operation, such the drawer liner does not undergo the requisite tariff shift, then CBP must examine the next step in the hierarchy for determining country of origin, which leads us to apply 19 C.F.R. § 102.11(b). We note that 19 C.F.R. § 102.11(b) provides an exception for goods that are specifically described in the Harmonized System as a set, or are classified as a set pursuant to GRI 3. Since the drawer liner is classified with the jewelry organizer tray and accessory tray as a set pursuant to GRI 3, CBP next considers 19 C.F.R. § 102.11(c). This regulation states that “[w]here the country of origin cannot be determined under paragraph (a) or (b) of this section and the good is specifically described in the Harmonized System as a set or mixture, or classified

15 as a set, mixture or composite good pursuant to the General Rule of Interpretation 3, the country of origin of the good is the country or countries of origin of all materials that merit equal consideration for determining the essential character of the good.” In examining the components of the drawer organizer kit and taking into consideration the criteria in 19 C.F.R. § 102.18 to determine the essential character of the drawer organizer kit, CBP finds that the materials that impart the essential character of the drawer organizer kit are the jewelry organizer tray and accessory tray, which are made in Canada. Therefore, CBP determines that the country of origin of the drawer organizer kit will be Canada.

USMCA:

The United States-Mexico-Canada Agreement (“USMCA”) was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (GN) 11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states:

For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a "good originating in the territory of a USMCA country" only if—

(i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;

(ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials;

(iii) the good is a good produced entirely in the territory of one or more USMCA countries using nonoriginating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); . . . .

In reviewing both the jewelry organizer tray and the drawer organizer kit, neither GN 11(b)(i) or (b)(ii) apply, as neither are “wholly obtained or produced entirely” in Canada, nor are they “produced entirely in [Canada], exclusively from originating materials.” CBP turns to GN 11(b)(iii) to determine whether the jewelry organizer tray and drawer organizer kit are eligible for preferential tariff treatment under the USMCA.

GN 11(b)(iii) provides that a good is eligible for preferential tariff treatment under the USMCA if it is a “good produced in [Canada] using nonoriginating materials, if the good satisfies all applicable requirements set forth in this note (including in the provisions of subdivision (o)).” GN 11(o) provides for the applicable tariff shift requirements. For products

16 of Chapter 39, GN 11(o) states that the applicable tariff shift is “[a] change to headings 3916 through 3926 from any other heading, including another heading within that group.” As both the jewelry organizer tray and drawer organizer kit are classified under heading 3926, HTSUS, CBP applies the above tariff shift requirement to each good.

The nonoriginating materials for the jewelry organizer tray are the fabric that wraps the plastic u-shaped profiles and the ring holder, each produced in China. The fabric is classified under heading 5903, HTSUS, and the ring holder is classified under heading 6307, HTSUS. By application of GN 11(o), the nonoriginating materials undergo the applicable tariff shift. Therefore, pursuant to GN 11(b)(iii), the jewelry organizer tray is eligible for preferential tariff treatment under the USMCA.

Regarding the drawer organizer kit, GN 11(i), states:

(i) Goods classifiable as goods put up in sets.-- Notwithstanding the rules set forth in subdivision (o) of this note, goods classifiable as goods put up in sets for retail sale as provided for in rule 3 of the general rules of interpretation of the tariff schedule shall not be considered to be originating goods unless— (A) each of the goods in the set is an originating good; or (B) the total value of the nonoriginating goods in the set does not exceed 10 percent of the value of the set. [Compiler's note: numbering of subdivisions as set forth in proclaimed text.]

As indicated above, the jewelry organizer tray may be considered an originating good under the USMCA. The drawer liner is classified in heading 5903. For products of heading 5903, GN 11(o) states that the applicable tariff shift is:

A change to headings 5903 through 5908 from any other chapter, except from headings 5111 through 5113, 5208 through 5212, 5310 through 5311, 5407 through 5408 or 5512 through 5516.

The nonoriginating materials for the drawer liner is the fabric from China also classified under heading 5903, HTSUS. Therefore, as the drawer liner does not qualify as an originating good under the USMCA, the set will not qualify for preferential tariff treatment unless the drawer liner does not exceed 10 percent of the value of the set. Based on the information submitted by the Requestor concerning the transaction value method, the drawer liner accounts for 8.5% of the value of the set. As the drawer liner does not exceed 10 percent of the value of the set, the drawer organizer kit will be eligible for preferential tariff treatment under the USMCA.

HOLDING:

By application of GRI 3(b), the jewelry organizer tray and the drawer organizer kit are classified under subheading 3926.90.99, HTSUS, as “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other.” The 2025 column one general rate of duty is 5.7% ad valorem.

17 Pursuant to 19 C.F.R. § 102.11(a)(3), the country of origin of the jewelry organizer tray is Canada. Pursuant to 19 C.F.R. § 102.11(c), the country of origin of the drawer organizer kit is Canada.

Pursuant to GN 11(b)(iii), the jewelry organizer tray and drawer organizer kit are eligible for preferential tariff treatment under the USMCA.

Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”

A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.


Sincerely,

Sarah Kafka, Chief
Food, Textiles, and Marking Branch

18