CLA-2-73:OT:RR:NC:N1:113
Ms. Long Vu
Walgreen Company
304 Wilmot Road
MS #3163
Deerfield, IL 60015
RE: The tariff classification of a key ring and lanyard from China
Dear Ms. Vu:
In your letter dated July 26, 2013, you requested a tariff classification ruling. A sample of the key ring and lanyard under consideration were submitted and will be returned to you as requested.
The subject articles are identified in your letter as a Rhinestone Keychain and a Rhinestone Lanyard, Walgreens Item Code 307274. The Keychain consists of a steel split wire key ring that is permanently attached to a looped felt strap that is decorated with acrylic rhinestones. The strap measures approximately 4 inches in length by 1/2 inch in width. The strap features silver rhinestones that are glued on top of the felt material and a small five-petal steel flower that is covered with rhinestones.
The lanyard is also textile felt with acrylic rhinestones. It measures approximately 33 inches in length by 1/4 inch in width and contains red rhinestones that are glued on top of the felt material. It features a steel heart-shaped ornament covered with silver rhinestones and a nylon cord retractable reel. The front of the plastic reel is covered with red rhinestones and the back is attached with a belt clip. A steel swivel hook and a steel split key ring are connected at the bottom of the reel. The felt material is made of polyester and the acrylic rhinestones are made of plastic.
You indicated in your letter that the Rhinestone Keychain and Rhinestone Lanyard will not be put up in a set for retail sale.
You suggested classification for the key ring in subheading 3926.90.4000, Harmonized Tariff Schedule of the United States (HTSUS). Subheading 3926.90.4000, HTSUS, provides for other articles of plastics…imitation gemstones, however, this subheading has no provision for articles. Therefore, the merchandise under consideration cannot be classified in subheading 3926.90.4000, HTSUS. You suggested classification for the lanyard with a rhinestone covered heart-shaped ornament and a rhinestone covered plastic reel in subheading 7117.90.7500, HTSUS, which provides for imitation jewelry, other, other, valued over 20 cents per dozen pieces or part, other, of plastics. However, the lanyard under consideration is not principally worn for personal adornment and thus cannot be classified in Chapter 71, HTSUS. The plastic reel houses a retractable nylon cord and clip for a badge holder, or similar item, indicating functional usage over that of adornment. In addition, the lanyard is made of polyester, a textile of Section XI, HTSUS; Chapter 71, Note 3(g) states that Chapter 71 does not cover goods of Section XI.
The Rhinestone Keychain is a composite article that consists of a steel key ring, a polyester strap and plastic rhinestones. The steel component, the polyester component and the plastic components 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 schedules covers the steel, polyester and plastic components of the subject Keychain 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 Keychain 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 component, polyester component or the plastic component imparts the essential character to the Keychain in question. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the function of the Keychain under consideration is to hold keys and the steel split wire key ring directly performs the function of holding the keys. Therefore, it is the opinion of this office that the steel split wire key ring imparts the essential character to the Keychain. In accordance with GRI 3(b), the Rhinestone Keychain under consideration will be classified as an other article of steel.
The Rhinestone Lanyard is a composite article that consists of a textile felt lanyard, steel key ring, a polyester strap and plastic rhinestones. The steel component, the polyester component and the plastic components are classified in different headings. As the Rhinestone Lanyard is a composite good, we must apply GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. In this case, as noted above, the lanyard is not principally worn for personal adornment. The retractable nylon cord and clip for a badge holder, or similar item, indicate functional usage over that of adornment. Therefore, it is the opinion of this office that the polyester lanyard imparts the essential character to the Rhinestone Lanyard.
The applicable subheading for the Rhinestone Keychain will be 7326.20.0071, HTSUS, which provides for other articles of iron or steel, articles of iron or steel wire, other. The rate of duty will be 3.9 percent ad valorem.
The applicable subheading for the Rhinestone Lanyard will be 6307.90.9889, HTSUS, which provides for other made up textile articles, other. The rate of duty will be 7 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,
Myles B. Harmon
Acting Director
National Commodity Specialist Division