CLA-2-95:RR:NC:2:224 E84945
Gayla Hubeli
Zebco Corp.
P.O. Box 270Tulsa OK 74101
RE: The tariff classification of a fishing kit from China
Dear Ms. Hubeli:
In your letter dated June 04, 1999, received here on July 19, 1999, you requested a tariff classification ruling.
The articles under consideration are the ZEBCO® XRC Series fishing combinations. The models in the series – XRC3B, XRC4B, XRC6B, and XRC7B - consist of a spinning reel and a fiberglass fishing rod. You state that the XRC Series fishing combinations will be packaged ready for retail sale at the time they enter the U.S.
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 that classification is determined according to the terms of the headings and any relative section or chapter notes. GRI 3 must be considered in the classification of merchandise put up in sets for retail sale. GRI 3(b) provides that:
[m]ixtures, composites goods consisting of different materials or different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the
material or component which gives them their essential character, insofar as
this criterion is applicable.
In understanding the language of GRI 3(b), the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive, are to be used to determine the proper interpretation of the HTSUS.
Explanatory Note 3(b)(x), HTSUS, provides that “[f]or the purpose 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 up 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.”
The subject XRC Series fishing models meet the criteria for treatment as a set under GRI 3 analysis. The combinations “consist of at least two different articles which are, prima facie, classifiable in different headings,” are “put up in a manner suitable for sale directly to users without repacking” and “consist of components put up together to meet a particular need or carry out one specific activity.” Goods classifiable under GRI 3(b) are classified as if they consisted of the component that gives them their essential character.
In considering all the factors we believe the two components making up XRC Series models – the reel and the rod – play more or less equally necessary roles and are equally essential to the article’s performance of the function for which it was designed. Accordingly, we must refer to GRI 3(c) which provides that articles not classified by reference to GRI 3(a) or (b) will be classified in the heading which occurs last in the tariff in numerical order.
Accordingly, by virtue of GRI 3(c, the XRC Series fishing combinations would be classified in subheading 9507.30. 2000, 9507.30.4000 or 9507.30.6000, HTSUS, depending on the unit cost of the fishing reel component. If the cost of the reel itself is $2.70 or less, the fishing combination is classified in subheading 9507.30.2000, HTSUS, the provision for fishing reels valued not over $2.70 each. The duty rate is 9.2 percent ad valorem. This duty rate would then be applied to the entire cost of that particular XRC fishing combination article. If the cost of the reel is in the range of $2.71 to $8.45, it is classified in subheading 9507.30.4000, HTSUS, the provision for fishing reels valued over $2.70 but not over $8.45 each. The duty rate is 24 cents applied to each component of a fishing combination. If the reel is over $8.45 in value, it is classified in subheading 9507.30.6000, HTSUS. The duty rate will be 3.9 percent ad valorem applied against the entire value of the combination unit.
This ruling is being issued under the provisions of Section 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 Tom McKenna (212) 637-7011.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division