CLA-2-90:OT:RR:NC:N2:212
Ken Park
AMSCAN Inc., A Party City Holdings Co.
100 Tice Blvd Woodcliff Lake, NJ 07677
RE: The tariff classification of a costume accessory kit from China
Dear Mr. Park:
In your letter dated May 8, 2023, you requested a tariff classification ruling.
The merchandise under consideration, identified by item number 8409730, is described as a Hippie Accessory Kit. The subject kit consists of a head scarf, necklace, and sunglasses packaged together for direct sale to the consumer in order to be used as costume accessories. The head scarf is 60 inches long and constructed of tie-dyed polyester. The necklace is comprised of a plastic peace sign hung on a polyester string. The final component is a pair of sunglasses with tie-dyed frames and a plastic peace sign over UV-coated lenses.
In your request, you suggest that the Hippie Accessory Kit is properly classified under subheading 9505.90.6000, Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
Based upon the information provided, none of the incorporated articles within the kit meet the definition of festive articles as specified by heading 9505, HTSUS. As such, the finished article can not be considered for classification with the heading. Please see Headquarters Ruling Letter (HRL) H239480.
As presented in this request, the subject kit meets the definition of “goods put up in sets for retail sale” as it consists of articles classified in different headings that are put together to meet a specific need packaged in a manner suitable for sale directly to end users. Due to this fact, we look to the terms of General Rule of Interpretation (GRI) 3 in order to determine the appropriate classification. GRI 3(a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the set is to be determined by GRI 3(b) or GRI 3(c) taken in the appropriate order in which they are set out in GRI 3.
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. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among the competing headings which equally merit consideration. Inasmuch as no essential character can be determined, GRI 3(b) does not apply.
Upon examination of the facts presented in this case, it is our opinion that no article within the kit imparts the essential character of the finished kit, and all are considered equally important. Accordingly, classification will be derived pursuant to GRI 3(c). A thorough review of the competing headings finds that the sunglasses are classified under heading 9004, HTSUS, which occurs numerically last in the tariff.
The applicable subheading for the Hippie Accessory Kit, item number 8409730, will be 9004.10.0000, HTSUS, which provides for “Spectacles, goggles and the like, corrective, protective or other: Sunglasses.” The general rate of duty will be 2% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9004.10.0000, 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 9004.10.0000, 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
https://www.cbp.gov/trade/remedies/301-certain-products-china
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 at https://hts.usitc.gov/current
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division