CLA-2-95:OT:RR:NC:N4:424
Mr. Jonathan W. Sterne
J&S Customs Brokers Inc.
9365 Nicklaus Ln.
Village of Lakewood, IL 60014
RE: The tariff classification of fly-fishing kits from China
Dear Mr. Sterne:
In your letter submitted September 17, 2021, you requested a tariff classification ruling on behalf of your client, The Sports Products LLC.
Photographs, a description and a cost breakdown of two fly-fishing combo kits were submitted with your inquiry.
The kits (item numbers not provided), will be put up for retail sale as a complete set including rod, reel, line, and case. There are two different styles, at slightly different price points depending on the line weight. The first kit contains a 9' rod, (5 weight, 4 sections, half-well cork grip), an 85 mm diameter reel that can be changed to a right - or left - hand assembly, a 5-weight line, including fly line, backing line and taper leader, and a case with 4 compartments and a reel seat pocket with logo embroidery.
The second kit contains a 9' rod, (8 weight, 4 sections, full-well cork grip), a 95 mm diameter reel that can be changed to a right - or left - hand assembly, an 8-weight line, including fly line, backing line and taper leader, and a case with 4 compartments and a reel seat pocket with logo embroidery.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and provided the heading or notes do not require otherwise, according to GRIs 2 through 6. GRI 3(b) states, in part, that goods put up in sets for retail sale shall be classified as if consisting of the component that gives them their essential character.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and thus are useful in ascertaining the classification of merchandise under the System.
To qualify as a set for tariff purposes, relevant ENs for GRI 3(b) list three requirements: (1) there must be at least two articles which are, prima facie, classifiable in different headings (or subheadings); (2) the components must be put up together to meet a particular need or carry out a specific activity; and, (3) the components must be put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).
This office is of the opinion that the subject fly-fishing kits are in fact a set for tariff purposes. The individual components of the kits are, prima facie, classifiable in different subheadings of the HTSUS, as indicated below. All of the components are used in the sport activity of fishing. Furthermore, the components will be packaged for retail sale prior to entry into the U.S. with no need for repacking. Hence, the combination kits do constitute goods put up in sets for retail sale for purposes of GRI 3(b), HTSUS.
Further, GRI 3(b) states that goods put up in sets for retail sale shall be classified according to that component which gives them their essential character. The Explanatory Notes for GRI 3(b) state that:
The factor that 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 goods.
In the case of the fly-fishing kits, no one particular component stands out. No single component is of such distinctive nature, quantity, or value as to impart to the kit its essential character. Nor does any component play such a role in relation to the use of the good as to be determinative of essential character. Inasmuch as no essential character can be determined, GRI 3(b) does not apply.
GRI 3(c) says that if neither GRI 3(a) nor GRI 3(b) applies, merchandise shall be classified in the heading that occurs last in numerical order among those equally meriting consideration. In doing this, GRI 3(c) directs us to consider which articles in the set merit consideration in determining the relevant classification subheading. While we have determined that no one item gives this set its essential character, we find that not all of the component articles equally merit consideration in the classification determination. The kits are marketed as a rod, reel, and case combination.
The fishing rod and fishing reel are each essential to the performance of the combination kit. Hence, by application of GRI 3(c) the instant sets are classified in subheading 9507.30, HTSUS, the subheading that occurs last in numerical order among those provisions that merit consideration.
The applicable subheading for the 9’ 5 weight fly-fishing rod combo kit will be 9507.30.4000, HTSUS, which provides for “Fishing rods, fish hooks and other line fishing tackle…Fishing reels and parts and accessories thereof: Fishing reels: Valued over $2.70 but not over $8.45 each.” The rate of duty will be $0.24 cents each component.
The proper subheading given above is based on the cost of the reel component in the subject kit. The column 1 general rate of duty is applied to both the rod and reel units in the combination because each of the components within the GRI 3(c) set are treated for classification purposes as if they are reels. Thus, one imported combination kit consisting of a case, rod and reel would, under these circumstances, be assessed $0.72 cents total duty.
The applicable subheading for the 9’ 8 weight fly-fishing rod combo kit will be 9507.30.6000, HTSUS, which provides for “Fishing rods, fish hooks and other line fishing tackle…Fishing reels and parts and accessories thereof: Fishing reels: Valued over $8.45 each.” The general rate of duty will be 3.9% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9507.30.6000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, 9903.88.15, in addition to subheading 9507.30.6000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 Roseanne Murphy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division