CLA-2-73:OT:RR:NC:N1:113
Ms. Hanna Yakovina
Laufer Group International LLC 20 Vessey Street Suite 601 New York, NY 10007
RE: The tariff classification of Shot Glasses and Flask Sets from China
Dear Ms. Yakovina:
In your letter dated July 1, 2019, on behalf of Uncas International, you requested a tariff classification ruling. A sample of the Shot Glasses and Flask Set was submitted for our review.
The provided sample is identified on the product label as the 2 Shot Glasses and Flask Set, item number 592151BL. You also submitted photographs of shot glasses and flask sets identified as style numbers NJD000748, NJD000749 and NJD000750. Each shot glass is made of soda-lime glass and holds 2.03 ounces/60 milliliters of liquid. Each single-walled flask is made of stainless steel and holds 7 ounces/207.02 milliliters of liquid. Each style of Shot Glasses and Flask Set is decorated with a different Christmas motif and each style of flask incorporates different words into the design. The flask in the submitted sample includes the words “Santa’s little helper”. The flask in NJD000748 incorporates the words “Better Results Than Mistletoe”, NJD000749 features the words “Bottoms Up!” and NJD000750 features the words “Making Spirits Bright”.
The shot glasses and the flask in each set are imported packaged together in a single gift box ready for retail sale.
Each product identified as a 2 Shot Glasses and Flask Set contains shot glasses made of soda-lime glass and a flask made of stainless steel. The glass and stainless steel 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 glass and stainless steel components of the shot glasses and flasks 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.
Each product consisting of shot glasses and a flask is a set which consists of at least two different articles that are, prima facie, classifiable in different headings. The product consists of articles put up together to carry out a specific activity. Also, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the 2 Shot Glasses and Flask is within the term "goods put up in sets for retail sale”. GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component which gives them 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 glass or stainless steel component imparts the essential character to the shot glasses and flask sets under consideration. 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 stainless steel flask is necessary for carrying the liquid on the person, in the pocket or pocketbook. For this reason, among the components that merit equal consideration, it is the opinion of this office that the stainless steel flask imparts the essential character to the set. In accordance with GRI 3(b), the 2 Shot Glasses and Flask Set will be classified in heading 7326, HTSUS, which provides for other articles of iron or steel.
The applicable subheading for the 2 Shot Glasses and Flask Sets, including item number 592151BL and style numbers NJD000748, NJD000749 and NJD000750, will be 7326.90.3500, HTSUS, which provides for other articles of iron or steel, other, other, containers of a kind normally carried on the person, in the pocket or in the handbag. The rate of duty is 7.8 percent ad valorem.
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 subheading 7326.90.3500, 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 subheading 7326.90.3500, 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.
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.
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