CLA-2-55:OT:RR:NC:N3:351
Ms. Regina Woody
Hobby Lobby
7707 SW 44th Street
Oklahoma City, OK 73179
RE: The tariff classification of yarn kits from China
Dear Ms. Woody:
In your letter dated Nov. 20, 2013, you requested a tariff classification ruling.
You submitted four samples of yarn kits. Each is retail packaged.
Yarn Butterfly, item 127001, consists of all of the components necessary to make three yarn butterflies. The kit includes five skeins of different colored 100% polyester yarn, a French knitting tool, a plastic sewing needle, a plastic crochet needle, a bag containing six “googly eyes,” and an illustrated step-by step instruction booklet. Children will derive amusement by following the directions in order to create their own colorful yarn butterfly. The kit’s amusement value is greater than the utilitarian value of the finished article and it will be classified as an educational toy. The kit serves as an introduction to the basics of French knitting.
The applicable subheading for the Yarn Butterfly kit will be 9503.00.0073, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys … puzzles of all kinds; parts and accessories thereof … ‘Children’s products’ as defined in 15 U.S.C. § 2052: Other: Labeled or determined by importer as intended for use by persons: 3 to 12 years of age.” The rate of duty will be free.
Knitting Art, item 126086, contains six (6) skeins of 100% polyester yarn, each a different color. By virtue of the weight and decitex, the yarn meets the tariff definition of “put up for retail sale” found in Section XI, Note 4, HTSUS. According to your figures, the yarn comprises 72% of the value of the components. The other components are a plastic sewing needle, two pairs of size-6 plastic knitting needles, four buttons, and illustrated step-by-step instructions (as well as a text-only version in six foreign languages). The instructions are too difficult for most children to follow on their own without adult supervision.
Crochet Art, item 126201, contains seven (7) skeins of 100% polyester yarn, each a different color. By virtue of the weight and decitex, the yarn meets the tariff definition of “put up for retail sale. According to your figures, the yarn comprises 79% of the value of the components. The other components are a plastic sewing needle and two plastic crochet hooks. The instructions are similar to the previous item, including their complexity.
Crochet Hat & Scarf Kit, item 352377, marketed as Kitcraze® by Artiste®, contains four (4) skeins of 100% polyester yarn, each a different color. By virtue of the weight and decitex, the yarn meets the tariff definition of “put up for retail sale.” According to your figures, the yarn comprises 92% of the value of the components. The other components are a plastic sewing needle, a plastic crochet hook, and a metal hair clip. The instructions are similar to the previous item, including their complexity.
The kits as described above, imported in their retail sale condition, are considered sets for tariff purposes. The essential character of each set is imparted by the polyester yarn. General Rule of Interpretation 3(b), HTSUS, noted.
The applicable subheading for the above kits, 126086, 126201, and 352377, will be 5511.10.0060, HTSUS, which provides for yarn (other than sewing thread) of man-made staple fibers, put up for retail sale, of synthetic staples fibers, containing 85 percent or more by weight of such fibers, other. The duty rate will be 7.5% ad valorem.
In your letter, you suggest that kits 126086, 126201, and 352377 are classifiable in heading 9503, HTSUS, which provides for toys. Although these items are being described as toys, the level of expertise needed to follow the instructions exceeds that of an educational toy.
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/.
The samples will be returned.
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 Mitchel Bayer at (646) 733-3102.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division