CLA-2-73:OT:RR:NC:N1:113
Ms. Shawn Caroline McMenimen
Nite Ize, Inc.
5660 Central Avenue
Boulder, CO 80301
RE: The tariff classification of Gear Ties® from China
Dear Ms. McMenimen:
In your letter dated March 27, 2017, you requested a tariff classification ruling. Product information for the Gear Ties® was submitted for our review. You indicated that currently the country of origin for the Gear Ties® is the United States but that you are interested in making the Gear Ties® in China.
The subject article is identified in your letter as a Gear Tie®. The article consists of a bendable steel wire interior, a TPE (thermoplastic elastomers) exterior and two TPE end caps. The ties will come in various lengths. The sizes will range from approximately 17.5 inches to 31.5 inches. The Gear Ties® can be bent around various cords to hold them together. You indicated that the ties are used to contain and organize medium to long electronic cords and cables.
Each Gear Tie is a composite article that consists of steel and TPE components. The steel component and the TPE components are classified in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides the classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the steel and the TPE components of the subject Gear Ties® in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and 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.
As the Gear Tie® is a composite good, we must apply rule 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. EN VIII to GRI 3(b) explains that “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 the use of the goods.” We must determine whether the steel or TPE component imparts the essential character to the Gear Tie® in question. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character.
You proposed classification for the subject ties under 3926, HTSUS, which provides for other articles of plastics and articles of other materials of headings 3901 to 3914. In this case the function of the Gear Tie® is to hold the cords and cables together, and the steel wire directly performs the function of holding the cords and cables. Therefore, it is the opinion of this office that the steel wire imparts the essential character to the Gear Tie®. In accordance with GRI 3(b), each Gear Tie® under consideration will be classified as an other article of steel wire.
The applicable subheading for the Gear Ties® will be 7326.20.0071, HTSUS, which provides for other articles of iron or steel, articles of iron or steel wire, other. The rate of duty will be 3.9 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 https://hts.usitc.gov/current.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division