CLA-2-73:OT:RR:NC:N1:113
Mr. John D. Burgett
Carpentree, Inc.
2724 N. Sheridan Road
Tulsa, OK 74115
RE: The tariff classification of a key ring from India
Dear Mr. Burgett:
In your letter dated October 14, 2014, you requested a tariff classification ruling. Pictures and specification sheets for the article under consideration were submitted for our review.
The subject article is identified in your letter as the Loop Key Chain, Product Number CC012. The article consists of a steel split wire ring that slides through a brass grommet in a folded cotton canvas loop that measures approximately 10.5 cm in length by 3.5 cm in width. You indicated in your letter that there will be printing on one side of the cotton loop.
The steel, brass and cotton 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, brass and cotton components of the Loop Key Chain 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 Loop Key Chain is a composite good, we must apply rule GRI 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, brass or cotton component imparts the essential character to the key ring 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 Loop Key Chain under consideration is to hold keys and the metal component performs the function of holding the keys. Therefore, it is the opinion of this office that the metal component imparts the essential character to the subject article. In accordance with GRI 3(b), the Loop Key Chain under consideration will be classified as an other article of metal.
You have indicated that the Loop Key Chain is composed of more than one base metal including steel and brass. Section XV, Note 7 of the Harmonized Tariff Schedule of the United States (HTSUS), states that the classification of composite articles of base metal containing two or more base metals are to be treated as articles of the base metal that predominates by weight over each of the other metals. The metal in the article in question that predominates by weight is steel. Therefore, the Loop Key Chain is classifiable in heading 7326, HTSUS, which provides for other articles of iron or steel.
The applicable subheading for the Loop Key Chain, Product Number CC012, 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.
Articles classifiable under subheading 7326.20.0071, HTSUS, which are products of India are currently entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP, however, is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term "GSP".
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 [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division