CLA-2-63:OT:RR:NC:N3:351
Ms. Krisanne Fischer
Geodis
5101 South Broad Street
Philadelphia, PA 19112
RE: The tariff classification of a decorative flag with stand from China
Dear Ms. Fischer:
In your letter dated May 21, 2021, you requested a tariff classification ruling on behalf of your client, QVC Inc. In lieu of a sample, photographs of a decorative flag with stand were provided with your request.
Item L190200, described as a “Lawn Flag Pole with Sign” is designed to be staked to the ground to hang and display a decorative flag. The flag stand is made of iron with a black finish and measures 16 inches wide by 36 inches high. The decorative flag is composed of 100 percent woven polyester fabric and measures 12 inches wide by 18 inches high. The top end of the flag is folded and sewn to form a channel in which the flag stand may be inserted so the flag can hang. The flag is printed on both sides and features four lemons, white flowers, a butterfly and a glass of lemonade on top of a table with the words “Squeeze the Day” in black lettering. The decorative flag and stand will be packaged together as one product in a plastic bag, imported, and sold at retail as a set. You state the decorative flag in the set will change from season to season.
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, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS. GRI 3(a) states in part that when two or more headings each refer to a part of the item in a set put up for retail sale, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the goods. The decorative flag with stand, consists of at least two different articles that are, prima facie, classifiable in different headings. It consists of articles put up together to carry out a specific activity (i.e., decoration). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the item in question 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 that gives them their essential character. In this case, we find the flag provides the primary decorative appeal and comprises the greater value of the two components. The flag stand, based on examination of the photo, appears to be a simple narrow-gauge, bent iron rod with no ornamentation. The essential character of the set is, therefore, imparted by the decorative textile flag.
The applicable subheading for Item L190200, described as “Lawn Flag Pole with Sign,” will be 6307.90.9891, HTSUS, which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.” The rate of duty will be 7 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.90.9891, 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 6307.90.9891, 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 Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division