CLA-2-96:OT:RR:NC:N4:462
Simon Slyper
Amscan Inc. 80 Grasslands Road
Elmsford, New York 10523
RE: The tariff classification of gel pens in a pouch from China.
Dear Mr. Slyper:
In your letter, dated February 4, 2021, you requested a tariff classification ruling. Images and descriptive information were provided.
Item 3902587, “Gel Pens in a Pouch,” consists of six roller pens in a clear polyvinyl chloride (PVC) plastic pouch with a zipper for closure. The six ballpoint pens contained within the pouch are in a variety of colors.
In your ruling request, you suggest the components are not a set. However, for classification purposes, the components of your sample will be classified as a set.
The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and coding System at the international level. Explanatory Note X to General Rule of Interpretation (GRI) 3(b) provides that the term “goods put up in sets for retail sale” means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consists of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking.
Your sample meets the qualifications of “goods put up in sets for retail sale.” The set consists of at least two different articles which are prima facie classifiable in different subheadings. They are put up together to meet a particular need or carry out a specific activity (in this instance drawing or writing). The pencil pouch is used to store, transport, protect, and organize the other components of the set. Lastly, they are packed for sale directly to users without repacking.
Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. The information submitted with your ruling request indicates that the value and quantity of the pens exceeds that of the pouch. Therefore, in this case, it is the gel pens which impart the essential character.
The applicable subheading for item 3902587, “Gel Pens in a Pouch,” will be 9608.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for ball point pens. The rate of duty will be 0.8 cents each plus 5.4 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9608.10.0000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 9608.10.0000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 Sandra Sary at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division