CLA-2-96:OT:RR:NC:N4:462
Andrew Selevan JA-RU, Inc. 12901 Flagler Center Blvd.
Jacksonville, FL 32258
RE: The tariff classification of a pencil chalk from China.
Dear Mr. Selevan:
In your letter dated April 4, 2022, you requested a tariff classification ruling. Photos and descriptive literature were provided.
The article at issue, item number 7806, “Disney Pencil Chalk,” consists of a plastic jumbo chalk-holder decorated with several Disney characters. The chalk-holder has built-in sharpener and a top eraser. It also contains a jumbo-sized chalk. The item is packaged and sold in an individual blister pack.
The “Disney Pencil Chalk,” item number 7806, will be sold and marketed as a set, and the product will also be considered a set for tariff purposes. No one heading in the tariff schedule covers these components in combination; thus, General Rule of Interpretation (GRI) 1 cannot be used as a basis of classification. GRI 3 provides for goods that are, prima facie, classifiable in two or more headings. 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.
Noting GRI 3(b), the component that gives the set its essential character would dictate the classification of the set. The chalk holder portion of this particular set exemplifies the essential character. Therefore, the applicable subheading for the “Disney Pencil Chalk,” item number 7806, will be 9608.99.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for ball point pens; felt tipped and other porous-tipped pens and markers… pen-holders, pencil holders and similar holders…other: other. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9608.99.6000, 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 9608.99.6000, 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.
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.
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