CLA-2-70:OT:RR:NC:N4:433
Regina Woody
Classification Coordinator
Hobby Lobby Stores, Inc.
7707 SW 44th Street
Oklahoma City, OK 73179
RE: The tariff classification of Beads from China.
Dear Ms. Woody:
In your letter dated April 29, 2014, you requested a tariff classification ruling. As requested, the sample submitted will be returned to you.
Item 161612, is the Metal Gallery, Long Tube Beads. The blister card package contains 40 long tubular zinc alloy beads, with each bead measuring ½ inch long. These beads have a decorative design on their surface.
Item 165894, is the Metal Gallery, Rondelles. The blister card package contains 20 round zinc alloy beads, with each bead measuring 4 x 6 mm. These beads have a decorative design on their surface.
Item 222059, is the Brilliance, Rondelles. The blister card package contains 2 round beads, with each bead measuring 20 mm. Each of the beads has a copper casting, and has a decorative design on its surface consisting of seven, large size, glass rhinestones (diamond-like imitation gemstones). Company provided material breakdown data indicates that the weight of the glass imitation gemstones is greater than the base metal copper, while the cost of the copper is greater than the cost of the imitation gemstones. Both the weight and cost of glass imitation gemstones and copper castings are appreciable when compared against each other.
Item 282525, is the Brilliance, Rondelles. The blister card package contains 10 round beads, with each bead measuring 4 mm. Each of the beads has a copper casting, and has a decorative design on its surface consisting of several, small size, glass rhinestones (diamond-like imitation gemstones). Company provided material breakdown data indicates that the weight and cost of the base metal copper is greater than the glass imitation gemstones. Further observation of the data indicates that the weight of the copper and glass imitation gemstones is appreciable when compared against each other, with cost differences between the materials being negligible.
Item 958421, is identified as “A bead Story by charm Me.” The blister card package contains 11 miscellaneous size beads. Eight beads are made of zinc and three beads have zinc castings with glass rhinestones (diamond-like imitation gemstones). Company provided material breakdown data indicates that the weight and cost of the base metal zinc is significantly greater than the glass imitation gemstones.
Item numbers 222059, 282525 and 958421 are composed of different components (i.e. base metal and glass) and are considered composite goods. The Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS), GRI 3 (b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good.
For item 222059, we recognize the inverse relationship between the weight of the glass imitation gemstones exceeding that of the copper and the cost of the cooper exceeding that of the glass imitation gemstones. However, it is the large size, glass imitation gemstones that are visible to one’s eye and provides the attractiveness of the beads. Accordingly, the essential character of the beads is imparted by the glass imitation gemstones.
For item 282525, we recognize that the weight of the copper exceeds that of the glass imitation gemstones, while the cost variance of the copper and glass imitation gemstones is negligible. However, it is the small size, glass imitation gemstones that are visible to one’s eye and provides the attractiveness of the beads. Accordingly, the essential character of the beads is imparted by the glass imitation gemstones.
For item 958421, not only do we have a composite good, but we also have a {set} for tariff purposes, as defined in the ENs to the HTSUS, General Rules for the Interpretation of the Harmonized System, Rule 3 (b) (X). Item 958421 consist of base metal beads (heading 8308) and glass beads (heading 7018), put up together for the purpose of creating jewelry, and packaged for retail sales, falling within the meaning of a set as defined by Rule 3 (b) (X). We find that the weight and cost of the metal far surpasses that of the glass imitation gemstones; the quantity of metal beads without glass imitation gemstones (eight out of eleven) is greater than that of the glass imitation gemstone beads; and the designs are ornamented for six out of eight metal beads without glass imitation gemstones. The other two beads without imitation gemstones have smooth, polished finishes. Based on the totality of factors as described above and observed by sample, we are of the opinion that the essential character of the set is imparted by the base metal beads.
The applicable subheading for items 161612, 165894 and 958421 will be 8308.90.3000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Clasps, frames. With clasps, buckles, buckle clasps, hooks, eyes, eyelets and the like and parts thereof, of base metal, of a kind used for clothing, footwear, awnings, handbags, travel goods or other made up articles; tubular or bifurcated rivets of base metal; beads and spangles of base metal: Other, including parts: Beads and spangles of base metal.” The rate of duty will be free.
The applicable subheading for items 222059and 282525 will be 7018.10.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Glass beads, imitation pearls, imitation precious or semiprecious stones and similar glass smallwares and articles thereof other than imitation jewelry; ….: Glass beads, imitation pearls, imitation precious or semiprecious stones and similar glass smallwares: Other.” 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 E-mail address: [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division