KCI Customs Brokers, Inc
1900 NW 82nd Ave
Miami, FL 33126
RE: The tariff classification of a magnet from China
Dear Mr. Knowles:
In your letter dated December 3, 2018 you requested a tariff classification ruling on behalf of your client American Gift Corporation. Pictures of the item were included.
The item under consideration is referred to as a Sea Turtle PVC magnet, item number 88277. The item consists of a PVC turtle with a circular magnet affixed to the underside of the turtle. The hard magnet is described as a ceramic (ferrite) magnet that is primarily of iron oxide material. The Sea Turtle PVC magnet allows for notes, pictures, and the like to be secured to metal surfaces.
In your letter, you suggest that the Sea Turtle PVC magnet is classified in subheading 8505.11.0030, Harmonized Tariff Schedule of the United States, HTSUS, which provides for permanent magnets and articles intended to become permanent magnets after magnetization: of metal: ceramic.
While we agree that the article is classified within heading 8505, we disagree at the subheading level. The Sea Turtle PVC magnet is a composite good that consists of a PVC turtle with a hard magnet. 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 the Sea Turtle PVC magnet, item number 88277 will be 8505.19.3000, Harmonized Tariff Schedule of the United States (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.
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 subheading 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 subheading 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.
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.
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 Sandra Martinez at Sandra.firstname.lastname@example.org.
Steven A. Mack
National Commodity Specialist Division