CLA-2-76:OT:RR:NC:N1:113
Ms. Kayla Owens
Stein Shostak Shostak Pollack & O’Hara, LLP
865 South Figueroa Street
Suite 1388
Los Angeles, CA 90017
RE: The tariff classification of Ridge® wallets from China
Dear Ms. Owens:
In your letter dated July 10, 2019, on behalf of your client Balance Industrial Group (Hong Kong) Limited, you requested a tariff classification ruling. Pictures, advertising/marketing literature along with samples of the wallets were provided with your ruling request and will be returned to your office.
The articles under consideration are identified in your letter as Ridge® wallet credit card/money holders. The holders will be imported and sold in five styles including SKU 221, SKU 222, SKU 322, SKU 441 and SKU 442. Each wallet features two anodized aluminum inner plates, an aluminum screwdriver with a base metal working edge, and four extra steel screws. You have indicated that the holders will have two outer plates comprised of aluminum, titanium or graphite, and a steel money clip or an elastic and plastic cash strap. The wallets are fully assembled upon importation and are packaged in a cardboard box. Each of the holders measures approximately 3 5/16 inches long by 2 1/8 inches wide by 1/4 inch thick.
Ridge® wallet SKU 221 consists of two aluminum outer plates that weigh approximately 18 grams, two anodized aluminum inner plates that weigh approximately 31.5 grams, and an elastic and plastic cash strap.
Ridge® wallet SKU 222 consists of two aluminum outer plates that weigh approximately 18 grams, two anodized aluminum inner plates that weigh approximately 31.5 grams and a steel money clip.
Ridge® wallet SKU 322 consists of two titanium outer plates that weigh approximately 20 grams, two anodized aluminum inner plates that weigh approximately 15.5 grams and a steel money clip.
Ridge® wallet SKU 441 consists of two graphite outer plates that weigh approximately 5.5 grams, two anodized aluminum inner plates that weigh approximately 15.5 grams, and an elastic and plastic cash strap.
Ridge® wallet SKU 442 consists of two graphite outer plates that weigh approximately 5.5 grams, two anodized aluminum inner plates that weigh approximately 15.5 grams and a steel money clip.
Each wallet under consideration is a composite article that consists of components that are classified in different headings. Each of the five styles of Ridge® wallets consists of two anodized aluminum inner plates, steel screws, two outer plates comprised of aluminum, titanium or graphite, and either a steel money clip or an elastic and plastic cash strap. The aluminum, titanium, graphite, steel, elastic and 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 aluminum, titanium, graphite, steel, elastic and plastic components 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 Ridge® wallets are composite goods, 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 aluminum, titanium, graphite, steel, or elastic and plastic component imparts the essential character to the wallets. It is the role of the constituent materials or component in relation to the use of the good that imparts the essential character. It is the opinion of this office that the metal components impart the essential character to the wallets. In accordance with GRI 3(b), each of the five styles of Ridge® wallets will be classified as an other article of its constituent metal.
In your ruling request, you proposed classification for Ridge® wallets SKU 441 and SKU 442, which you refer to as carbon fiber wallets, under subheading 6815.10.0100, HTSUS, which provides for “Articles of stone or of other mineral substances (including carbon fibers, articles of carbon fibers and articles of peat), not elsewhere specified or included: Nonelectrical articles of graphite or other carbon.” However, the outer graphite plates do not impart the essential character to the Ridge® wallets. Therefore, Ridge® wallets SKU 441 and SKU 442 are not classifiable under heading 6815, HTSUS.
You have indicated in your letter that the Ridge® wallets are composed of more than one base metal. Section XV Note 7 of the 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. Based on the information provided to our office and our examination of the submitted samples, the metal in wallets SKU 221, SKU 222, SKU 441 and SKU 442 that predominates by weight is aluminum, and the metal in SKU 322 that predominates by weight is titanium.
The applicable subheading for Ridge® wallets SKU 221, SKU 222, SKU 441 and SKU 442 with extra screws will be 7616.99.5190, HTSUS, which provides for Other articles of aluminum: Other: Other: Other: Other: Other: Other. The rate of duty will be 2.5 percent ad valorem.
The applicable subheading for Ridge® wallet SKU 322 with extra screws will be 8108.90.3060, HTSUS, which provides for Titanium and articles thereof, including waste and scrap: Other: Articles of titanium, Other. The rate of duty will be 5.5 percent ad valorem.
The applicable subheading for the screwdrivers will be 8205.40.0000, HTSUS, which provides for Handtools (including glass cutters) not elsewhere specified or included; blow torches and similar self-contained torches; vises, clamps and the like, other than accessories for and parts of machine tools or water-jet cutting machines; anvils; portable forges; hand- or pedal-operated grinding wheels with frameworks; base metal parts thereof: Screwdrivers, and parts thereof. The rate of duty will be 6.2 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 the World Wide Web at https://hts.usitc.gov/current.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheadings 7616.99.5190, 8108.90.3060 and 8205.40.0000, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheadings 7616.99.5190, 8108.90.3060 and 8205.40.0000, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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,
Steven A. Mack
Director
National Commodity Specialist Division