Ms. Carrie Vanderhoff
1100 Opdyke Suite 200
Auburn Hills, MI 48326
RE: The tariff classification of a LEGO playset from China
Dear Ms. Vanderhoff:
In your letter submitted dated August 14, 2019, you requested a tariff classification ruling. Samples of 4 LEGO kits were received with your inquiry and will be returned to you under separate cover.
Each kit consists of a LEGO building toy, a journal and a pen. Item No. 52578, LEGO Star Wars Creativity Set; Tie Fighter, includes a building toy containing 42 pieces, Item No. 52583, LEGO Star Wars Naboo Starfighter, includes a building toy containing 48 pieces, Item No. 52584, LEGO Star Wars Pod Racer, includes a building toy containing 58 pieces and Item No. 52579, LEGO Duck, includes a building toy containing 10 pieces. All of the LEGO building toys are principally designed for the amusement of children aged 6 years and older. In addition, each of the sets also include a gel pen with an embedded LEGO brick and a journal, measuring approximately 5.6” x 8.5”, containing 192 lined paper pages bound between rigid paperboard covers incorporating an embedded LEGO brick on the exterior cover, allowing for a matching pen to adhere to.
In order to classify, we must first determine whether the LEGO kits meet the definition of a “set” within the meaning of General Rule of Interpretation 3(b) (GRI 3(b)). 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 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 kits under consideration do consist of multiple articles classifiable under separate headings. They are packaged together for retail sale. Therefore they fulfill the requirements of (a) and (c) above. However, we find that they fail (b). Although the pen and journal contain a LEGO block embedded within, there is no indication that any direct interaction is contemplated between all three articles. That is, writing in the journal would seem to be an activity separate from playing with the toy. Therefore, these items will not be regarded for tariff purposes as “goods put up in sets for retail sale,” and will be classified separately.
The applicable subheading for the gel pens will be 9608.10.0000, HTSUS, which provides for ball point pens. The general rate of duty will be 0.8 cents plus 5.4 percent ad valorem.
The applicable subheading for the LEGO building toys will be 9503.00.0073, HTSUS, which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof… ‘Children’s products’ as defined in 15 U.S.C. § 2052: Other: Labeled or determined by importer as intended for use by persons: 3 to 12 years of age.” The rate of duty will be Free.
The applicable subheading for the journals will be 4820.10.2060, HTSUS, which provides for “Diaries, notebooks and address books, bound; memorandum pads, letter pads and similar articles: Other.” The rate of duty will be free.
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. Subsequently, USTR imposed additional tariffs, effective September 1, 2019, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20 (r). 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) and August 30 2019 (84F.R. 45821). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). 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 9608.10.0000, HTSUS, unless specifically excluded, are subject to the additional 15 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 9608.10.0000, HTSUS, listed above.
Products of China classified under subheading 4820.10.2060, HTSUS, unless specifically excluded, are subject to the additional 25 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 4820.10.2060, 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 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].
Steven A. Mack
National Commodity Specialist Division