CLA-2-112:OT:RR:NC:N1:112
Mr. Walter Fong
Sr. Manager, Trade Compliance
Gap Inc.
2 Folsom Street
San Francisco, CA 94105
RE: The tariff classification of reusable security tags from China and their applicability as “packing” within the meaning of GRI 5(b)
Dear Mr. Fong:
In your letter dated April 10, 2009, you requested a tariff classification ruling.
The merchandise concerned is a plastic, reusable security tag. The security tag is a two piece unit consisting of a main housing and a pin connector. The main component consists of a durable plastic housing made from acrylonitrile butadiene styrene (ABS). The internal components consist of a wound copper coil, which acts as an antenna, and a capacitor. These components form a resonant circuit or tuned circuit. They react to a specific frequency that is emitted from a security door portal. The door portal consists of both a transmitter and a receiver. The door portal transmits a specific radio frequency, the security tag reacts to that frequency by resonating at its own frequency, the receiver portion of the door portal responds to the resonating security tag by sounding an alarm. This type of security tag is known as a passive security tag because it does not require a battery to operate. The pin connector is used to connect the security tag to various types of merchandise.
Regarding the applicability of GRI 5(b), as stated in your submission, these security tags will be attached to various types of wearing apparel when imported into the United States. Once the wearing apparel is sold at the retail store, the store employee will remove the security tag and retain it in a bin. Once there is enough security tags accumulated, each store will ship the tags to the tag manufacture’s warehouse in the United States. The warehouse will send the accumulated security tags back to their warehouse in China where they will be inspected and repackaged for reuse on Gap’s garments. GRI 5(b) states, “Subject to the provisions of rule 5(a) above, packing material and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.”
CBP has previously held that security tags attached to merchandise at the time of importation are packing materials. In this case, the security tags are suitable for repetitive use, and as you have indicated will be exported back to China for reuse on Gap garments. As such, by application of GRI 5(b), the security tags concerned are not classifiable with the merchandise with which they are imported, but are separately classifiable at the time of importation.
The applicable subheading for the passive, reusable security tags will be 8531.90.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electric sound or visual signaling apparatus…: Parts: Other: Other.” The rate of duty will be 1.3%.
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 http://www.usitc.gov/tata/hts/.
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 Steven Pollichino at (646) 733-3008.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division