CLA-2-71:OT:RR:NC:N4:433
Brenda Bodnar
JAG Footwear, Accessories and Retail Corporation
Director, Corporate Customs Compliance
180 Rittenhouse Circle
Bristol, PA 19007
RE: The tariff classification of earrings and necklace, packaged together, from China.
Dear Ms. Bodnar:
In your letter dated September 20, 2010, you requested a tariff classification ruling. As requested, the sample submitted will be returned to you.
Sample A1610 (item number 60107767-5PJ) consists of two items: (1) a black plastic necklace, with a chain link extension and lobster clasp, and (2) a pair of earrings, each having a metal fishhook finding with one hanging black plastic teardrop ornament. The necklace features faceted black plastic gemstones, black beads and black teardrop ornaments strung on a textile cord. The necklace and earrings are a coordinated pairing. Both items are packaged together on a blister card, with the Anne Klein Logo.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS is such that most goods are classified by application of GRI 1, that is, 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 (1 through 6) may then be applied.
There is no disagreement that the necklace and earrings under consideration are classified in heading 7117, HTSUS. One question is whether these goods form a set put up for retail sale. GRI 6 states that “the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable.”
For the subject merchandise there are two provisions at the same level of subdivision [subheadings] within heading 7117, HTSUS, that describe the necklace and earrings. The necklace composed of faceted black gemstones, black beads and teardrop ornaments, made from plastic, and strung together, is classifiable in subheading 7117.90.7500, HTSUS, as imitation jewelry valued at over 20 cents per dozen pieces or parts of plastics. The earrings composed of metal fishhooks and hanging black plastic teardrop ornaments are classifiable in subheading 7117.19.9000, HTSUS, as imitation jewelry of base metal. By application of GRI 6, we turn to GRI 3 (b) which states that when goods are prima facie classifiable under two or more (sub)headings, classification shall be determined as follows:
(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) [by reference to the (sub)heading which provides the most specific description], shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
Explanatory Note (EN) (X) for GRI 3 (b), states that for the 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 users without repacking (e.g., in boxes or cases or on boards).
Here, the black plastic necklace and metal fishhook earrings with decorative hanging black plastic teardrop ornaments are classified in two different subheadings; is packaged for the specific activity of personal adornment; and is marketed and packaged on one blister card for retail sale directly to the consumer without repacking. Accordingly, the subject merchandise qualifies as a set pursuant to GRI 3 (b).
GRI 3 (b) states that sets 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. Under EN (VIII) to GRI 3 (b), “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 value, or by the role of a constituent material in relation to the use of the goods.”
It is common, when an item has two or more disparate functions, such as a storage ottoman used for seating, placing one’s foot upon and storage of household effects, not to be able to classify that item under the principle of GRI 3 (b). However in this instant case, we find that the necklace is significantly more complex in its construction with its plastic gemstones, beads and teardrop ornaments, than that of the earrings, which only have one plastic teardrop ornament per earring. Further, upon viewing and inspection of the necklace, as well as the earrings, we are of the opinion that the quantity and weight of the plastic gemstones, beads and teardrop ornaments found on the necklace far exceeds that of the plastic teardrop ornament found on each of the earrings. Therefore, the essential character of this set, packaged for retail sales, is imparted by the necklace, which is chiefly composed of plastic.
The applicable subheading for the necklace and earring set, will be 7117.90.7500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Imitation jewelry: Other: Other: Valued over 20 cents per dozen pieces or parts: Other: Of plastics.” The rate of duty will be free.
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 on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division