CLA-2-73:OT:RR:NC:N1:113
Mr. Erol Fikri
George Patton Associates, Inc.
55 Broad Common Road
Bristol, RI 02809
RE: The tariff classification of a sign holder from China
Dear Mr. Fikri:
In your letter dated July 11, 2013, you requested a tariff classification ruling. The submitted samples will be returned to you as requested.
The article in question is identified in your letter as a sign holder, SKU# DMCNT85BLK. You indicated that the sign holder will be placed on a countertop to display advertisements or menus in stores and/or restaurants. The article in question consists of a curved steel sign stand, a flexible PVC lens and rubber magnets. The lens adheres to the stand via flexible magnets that line the edges of the lens. The stand measures approximately 13.75 inches in height by 9.5 inches in width and is used to display media that measures approximately 11.5 inches in height by 8.25 inches in width.
You suggested classification for the sign holder, SKU# DMCNT85BLK in subheading, 8306.29.0000, Harmonized Tariff Schedule of the United State (HTSUS), which provides for bells, gongs and the like, nonelectric, of base metal…statuettes and other ornaments, and parts thereof, other. However, the subject article is identified in the submitted marketing literature as a “Photo Holder for 8-1/2”w x 11-1/2”h Signage.” It is described as “an essential marketing tool for any business.” As such, it is used to display a functional article (the advertisement). Explanatory Note (EN) 83.06(B) states that "The group covers articles which have no utility value but are wholly ornamental, and articles whose only usefulness is to contain or support other decorative articles or to add to their decorative effect…." Since the subject article is used to display a functional article, it cannot be classified in heading 8306, HTSUS.
The sign holder under consideration is a composite article that consists of a steel component, a PVC component and a rubber component. The steel component, the PVC component and the rubber component are classified in different headings. 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 shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedule covers the steel, PVC and rubber components of the subject sign holder in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character.
As the sign holder is a composite good, we must apply rule 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. EN VIII to GRI 3(b) explains that “the factor which 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 the use of the goods.” We must determine whether the steel, the PVC or the rubber component imparts the essential character to the sign holder. In this case, the steel predominates by both weight and value. Based on the information provided, the steel component of the sign holder constitutes the overwhelming majority of the value of the article. In this instance, steel forms the majority of the surface area of the sign holder, and the weight of the steel is significantly greater than the weight of the PVC or the rubber. You also indicated that the lens would be useless without the steel stand. Therefore, it is the opinion of this office that the steel component imparts the essential character to the sign holder. In accordance with GRI 3(b), the sign holder under consideration will be classified as an other article of steel.
The applicable subheading for the sign holder, SKU# DMCNT85BLK, will be 7326.90.8588, HTSUS, which provides for other articles of iron or steel, other, other, other, other, other. The rate of duty will be 2.9 percent ad valorem.
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 Ann Taub at (646) 733-3018.
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division