CLA-2-44:OT:RR:NC:4:434

Ms. Laurel Scapicchio
BJ’s Wholesale Club
25 Research Drive, P.O. Box 5230
Westborough, MA 01581

RE: The tariff classification of the Tile Command Center from China

Dear Ms. Scapicchio:

In your letter, dated January 18, 2019, you requested a classification ruling. A sample was provided for review and will be returned, per your request.

Item #208258, the “Tile Command Center Value Pack,” contains the following items packaged together for retail sale:

Four small magnets One 14” x 14” dry erase board calendar pre-printed with a grid and the days of the week One 11” x 14” dry erase board One 3” x 14” medium density fiberboard (MDF) bulletin board (covered with linen) Four dry erase markers Five push pins

The Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS) constitute the official interpretation of the tariff at the international level. EN X to General Rule of Interpretation (GRI) 3(b) provides: “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 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).” Sets are classified according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character.

The kit consists of multiple articles classifiable under separate headings. It is packaged for retail sale. Therefore it fulfills the requirements of (a) and (c) above. However, we believe that it fails (b). While the calendar is used to reference the date and track appointments, the dry erase board can be used for various messages or work and the bulletin board to post photos etc. They do not meet a particular need or carry out a specific activity. Consequently, each item will be separately classified.

In your letter, you suggest that the four magnetic items are classified in subheading 8505.11.0090, HTSUS, which provides for permanent magnets and articles intended to become permanent magnets after magnetization: of metal: Other.

While we agree that each magnetic item is classified within heading 8505, we disagree at the subheading level. Each magnetic item is a composite good that consists of a metal item with a magnet affixed to the backside. Such articles have been classified in subheading 8505.19.3000. See NYR N019818, dated December 11, 2007, and NYR N062663, dated June 11, 2009. As such, the applicable subheading for each gold metal magnet will be 8505.19.3000, HTSUS, which provides for “Permanent magnets and articles intended to become permanent magnets after magnetization: Other: Other.” The rate of duty will be 4.9 percent ad valorem

You propose classification of the bulletin board in 4420.90.8000, HTSUS, as wooden articles of furniture not falling within chapter 94, other. However, numerous previous rulings, including Headquarters ruling 955013, dated 1/14/94, have established that bulletin boards primarily of MDF are classifiable as other articles of wood within heading 4421. Therefore, the applicable subheading for the MDF bulletin board will be 4421.99.9780, HTSUS, which provides for “Other articles of wood: Other: Other: Other: Other: Other.” The rate of duty will be 3.3 percent ad valorem.

The applicable subheading for the printed dry erase calendar will be 4910.00.6000, HTSUS, which provides for “Calendars of any kind, printed, including calendar blocks: Other.” The rate of duty will be free. The applicable subheading for the push pins will be 7319.40.5010, HTSUS, which provides for “Sewing needles, knitting needles, bodkins, crochet hooks, embroidery stilettos and similar articles for use in the hand, of iron or steel; safety pins and other pins of iron or steel, not elsewhere specified or included: Safety pins and other pins: Other: Push pins.” The rate of duty will be free. Please note that your proposed statistical breakout of 7319.40.5000, HTSUS, is not an existing HTSUS number in the 2019 schedule.

You propose classification of the dry erase markers in 9609.20.0000, HTSUS. They are more specifically provided for in subheading 9608.00.0020, HTSUS, which provides for “felt tipped pens and other porous-tipped pens and markers.” The rate of duty will be 4 percent ad valorem.

The applicable subheading for the dry erase whiteboard will be 9610.00.0000, HTSUS, which provides for “slates and boards, with writing or drawing surfaces, whether or not framed.” The rate of duty will be 3.5 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 the World Wide Web at https://hts.usitc.gov/current.

Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS.  The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS.

Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS.

For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974).  Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.

Products of China classified under subheadings 4421.99.9780 and 8505.19.3000, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheadings 4421.99.9780 and 8505.19.3000, HTSUS, listed above.

The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.

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 Charlene Miller at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division