CLA-2-85:OT:RR:NC:N1:103
Debbie Bell
Customs Compliance Specialist
HSN
1 HSN Drive
St Petersburg, FL 33729
RE: The tariff classification of a stainless steel engravable magnetic plaque from China
Dear Ms. Bell:
In your letter dated March 23, 2021 you requested a tariff classification ruling on behalf of Cinmar, a wholly owned subsidiary of HSN.
The item under consideration is a stainless steel engravable magnetic plaque, item number 170900. Made from Type 201 stainless steel, the rectangular sheet measures 126 mm (4.96 inches) in length, 50 mm (1.96 inches) in width and 1.5 mm (0.06 inch) in thickness. Based on the information provided, the sheet is cut, brushed (polished) and rounded at the edges and will be adhered to a non-flexible magnet made of neodymium-iron-boron. The plaque can be engraved with family names or other words and attached to magnetic travel maps that are sold separately.
General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS. When mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, cannot be classified by reference to GRI 3(a), consideration is given to GRI 3(b) which covers mixtures, composite goods, and goods put up in sets for retail sale. For purposes of this rule, Explanatory Note IX to GRI 3(b) provides that, “composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.”
The stainless steel engravable magnetic plaque is a composite good. The article consists of components that are prima facie classifiable in different headings. Under GRI 3(b), composite goods must be classified according to the material or component that imparts the article with its essential character. As no one component imparts the essential character of the stainless steel engravable magnetic plaque, the article cannot be classified pursuant to GRI 3(b). GRI 3(c) states that when goods cannot be classified by reference to GRI 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
In this case, both the stainless steel sheet and magnet are of equal merit. Thus, the two headings which merit equal consideration are heading 7220, HTSUS, which provides for “Flat-rolled products of stainless steel, of a width of less than 600 mm” and heading 8505, HTSUS, which provides for “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof.”
The applicable subheading for the stainless steel engravable magnetic plaque will be 8505.19.3000, HTSUS, which provides for “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization: Other: Other.” The rate of duty will be 4.9 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8505.19.3000, HTSUS, unless specifically excluded, are subject to an 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 8505.19.3000, 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, including information on exclusions and their effective dates, 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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division