CLA-2-39:OT:RR:NC:N4:415
May Sin
Smart Concept Trading Limited
Flat C&D, 12th floor, Mai Wah Industrial Building
Kwai Chung
China
RE: The tariff classification of zippered pouch keychains from China.
Dear Ms. Sin:
In your letter received on April 15, 2024, you requested a tariff classification ruling.
Images were provided in lieu of a sample.
The product under consideration is a set of two pouches with keychains. The small round pouches are made of molded silicone plastic. Both measure 2.5 inches in diameter by one inch in depth, and include a functional zipper and a split ring. One pouch is lime green in color and features an attached polyvinyl chloride (PVC) plastic cartoon patch of a black cat on one side, while the other pouch is pink and features a PVC cartoon patch of a skull. Attached to both keychains is a small PVC hang tag with the words “Happy Halloween.” The pouches are intended to hold small items such as change.
In your request, you inquire whether this product could be classified under chapter 95 as a party favor, however this office does not agree. These pouches appear to be durable, utilitarian items intended for long-term use since they are made of silicone and include a zipper and keychain, unlike a typical party favor which is an article of little intrinsic value meant to serve principally as a reminder of the event. It would not be aberrant to continue to use these items at any time of the year. The two pouches are not identical and are not marketed and packaged as party favors. They would not be classified as festive articles in subheading 9505.10.4020 nor 9505.90.4000, Harmonized Tariff Schedule of the United States (HTSUS), as party favors. Rather, they will be classified accordingly by their constituent materials. For these pouches, the plastic would impart the essential character and provide the classification, General Rule of Interpretation 3(b) noted.
The applicable subheading for the set of two zippered pouches with keychains will be 3926.90.9985, HTSUS, which provides for “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [o]ther: [o]ther.” The column one, general rate of duty is 5.3 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3926.90.9985, 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 3926.90.9985, 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 at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division