CLA-2-96:OT:RR:NC:N5:113
Mr. Travis Kindler
Kinco
18792 NE Portal Way
Portland, Oregon 97230
RE: The tariff classification of a tack button from China
Dear Mr. Kindler:
In your letter dated November 4, 2024, you requested a tariff classification ruling. Product descriptions and pictures of the button and tack were submitted for our review.
The merchandise under consideration is a tack button that consists of a button identified as Kinco Item # PHW-LEBCW-IRN-SLV and a corresponding tack identified as Kinco Item # PHW-LEBT-PST-SLV. The button features a top diameter of 20 mm and has an iron face, an iron back plate, and an internal crimp made of polypropylene. The tack is a single piece made of aluminum. You indicated in your letter that the buttons and tacks will be imported together in equal quantities in the same shipment in separate bulk packaging. Eight buttons and eight tacks will be packaged together in a polybag for retail sale at your warehouse in the United States. The button and tack are designed to function together as a fastening mechanism for garments, accessories, or other fabric based items.
Classification of goods under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order. We note that the button and tack that comprise the complete tack button are imported unassembled in the same shipment. General Rule of Interpretation (GRI) 2(a) states as follows:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
Furthermore, the Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) represent the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN for GRI 2(a) states in “Rule 2(a) (Articles presented unassembled or disassembled) (V)”:
The second part of Rule 2 (a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.
At the time of importation into the United States, the subject product is a complete unassembled tack button that is comprised of an iron button and a corresponding aluminum tack that are classified in different headings. Since no one heading in the tariff schedules covers the components of the tack button in combination, GRI 1 cannot be used as a basis for classification. 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.
As the tack button is a composite good, we must apply rule GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. EN VIII to GRI 3(b) explains that “the factor which determines essential character will vary as between different kinds of goods. It may, for example be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.” We must determine whether the button or the tack imparts the essential character to the subject tack button. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the tack button is used as a fastening mechanism for garments, accessories, or other fabric based items. The function of the button is to fasten the garment and the tack ensures that the button is securely fastened to the garment. We note that the button predominates by weight and cost. Therefore, it is the opinion of this office that the button imparts the essential character to the composite article. In accordance with GRI 3(b) the tack button will be classified as a button.
The applicable subheading for the tack button will be 9606.22.0000, HTSUS, which provides for Buttons, press-fasteners, snap-fasteners and press-studs, button molds and other parts of these articles: Button blanks: Buttons: Of base metal, not covered with textile material. The rate of duty will be free.
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/.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9606.22.0000, 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 9606.22.0000, 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 and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division