CLA-2-96:OT:RR:NC:N4:433
Jason Young
Operations Manager
Kanata Blanket Company
100 – 13260 Delf Place
Richmond, BC v6v 2a2
Canada
RE: The tariff classification of a “microfiber wash kit” from Canada.
Dear Mr. Young:
In your letter dated May 9, 2014, you requested a tariff classification ruling. Illustrative literature was provided.
Company provided information indicates that the merchandise concerned is identified as a microfiber wash kit used for washing automobiles. The wash kit consists of two microfiber towels, one washing mitt, and one squeegee, placed inside of a mesh bag. The two towels of different sizes are constructed from 80% polyester and 20% polyamide, the mitt is constructed from 100% polyester, and the sponge of the squeegee is constructed from 80% polyester and 20% polyamide. The body of the squeegee consists of plastic and rubber. The mesh bag has a pocket and zipper, and is constructed from 100% polyester. All individual items are packed in their own polybag, and then packaged together into the mesh bag. Illustrative literature indicates that the merchandise concerned will be placed in a master carton (Factory Carton 1 / Count 50) with the identifying marks Kanata Blanket Co., Quality*Enduring*Original, Vancouver Canada.
Illustrative literature depicts the printing of the name Mercedes-Benz with the Mercedes-Benz logo on the front of the mesh bag. It is not stated whether the microfiber wash kit will be sold to car dealerships exclusively, or to dealerships, car-wash establishments, automobile equipment and supply stores, gas stations, convenience stores and the like. Consequently, we will limit the ruling on the merchandise concerned to car dealerships, in that an automobile manufacturer’s logo is placed on the mesh bag and that the mesh bag is not blister packaged ready to be placed onto a rack, thereby indicating that car dealerships will either provide free of charge the microfiber wash kit to their customer or will sell the kit within their dealerships.
In the event that your company sells the merchandise concerned and similar type merchandise to car-wash establishments, automobile equipment and supply stores, gas stations, convenience stores and the like, please furnish additional information on the display and sale of the microfiber wash kits. Also indicate whether these microfiber wash kits will be repackaged for retail sales.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined 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 1 and GRI 2(a) are not applicable to the merchandise concerned.
GRI 3 provides, in pertinent part, as follows: When, by application of rule 2(b) [not applicable in this case] or 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 […]
(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.
(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The relevant ENs, “General Rules for the Interpretation of the Harmonized System,” Rule 3 (b) provide:
(VIII) 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 good
(X) For the purposes of this Rule, the term “goods put 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. Therefore, for example, six fondue forks cannot be regarded as a set within the meaning of this Rule;
(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 repackaging (e.g., in boxes or cases or on boards).
A simple reading of the Explanatory Note (X) indicates that there is no requirement that sets actually be sold at retail – see Headquarters ruling HQ 083968 dated July 6, 1989. For the merchandise concerned, the three criteria in Note (X) have to be satisfied in order to be classified as a set. The microfiber wash kit meets the first requirement because the product consists of two or more goods, which are prima facie classifiable in two or more headings of the HTSUS. In addition the microfiber wash kit meets the second requirement because the microfiber towels, mitt and squeegee are all put up together for purposes of washing an automobile. Finally, the microfiber wash kit, packaged in a mesh bag, delivered to car dealerships, without repacking, is put up in a manner suitable for sale directly to users. Based on the scenario that the merchandise concerned is sold to car dealerships, without repacking, the microfiber wash kit falls within the meaning of goods put up in sets for retail sale for purposes of GRI 3(b), HTSUS.
As each article is equally important to the set, we are unable to determine which article imparts the essential character to the microfiber wash kit. In this situation, GRI 3(c), HTSUS, obliges us to classify the merchandise under the heading which occurs last in numerical order among those which equally merit consideration. Therefore, the microfiber wash kit is classified under heading 9603, HTSUS, the provision in pertinent part for squeegees.
The applicable subheading for the microfiber wash kit will be 9603.90.8050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Brooms, brushes … squeegees (other than roller squeegees): other: other: other. The rate of duty will be 2.8 percent ad valorem.
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