CLA-2-83:OT:RR:NC:N5:121
Michael Cawley
Vaughan Inc
367 Troutman St
Brooklyn, NY 11237
RE: The tariff classification of steel retail display channels from China
Dear Mr. Cawley:
In your letter dated June 23, 2025, you requested a tariff classification ruling.
The articles under consideration are steel retail store display channels displaying pre-printed cards with a
picture or live sample (door hinges, mending plates, etc.). The steel channels will be fastened to the front of
product shelves in a hardware store to display an example of the product for sale in that bin. The product’s
back bracket attaches the channel to the shelf using self-tapping screws. The channels are made of powder
coated cold rolled sheet steel and measure from approximately 37 to 53 inches long and from approximately
5 to 7.5 inches tall. The channels will be imported with cards with either a picture or a single sample of the
live product permanently attached to the printed card. Some of the product has been cut down to size to make
attachment to the cards practical, but most are attached with screws or wire to the cards. Only one of each
unique item is included. They are not intended for resale. The printed cards are not permanently attached to
the metal channel. The metal channels remain attached to the shelf and can be reused to display updated
information cards.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in
accordance with the General Rules of Interpretation (GRIs). GRI 1, 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 GRIs taken in order. Goods that are,
prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3. The instant
tool set 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., home improvement or construction
projects). Finally, the articles are put up in a manner suitable for sale directly to users without repacking.
Therefore, the set in question is within the term “goods put up in sets for retail sale.” GRI 3(a) states in part
that when two or more headings each refer to part only of the items 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
good.
GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to 3(a),
are to be classified as if they consisted of the component which gives them their essential character. The
factor or factors which determine essential character varies with the goods under consideration. Explanatory
Note Rule 3(b)(VIII) lists factors such as the nature of the material or component, their bulk, quantity, weight
or value and the role of a constituent material in relation to the use of the good. It is the opinion of this office
that the steel display channel imparts the essential character of this product because it is permanently attached
to the shelf and can be reused, it provides the structure of this store display, and it predominates by weight
and value. Therefore, this set will be classified by the steel channel.
The applicable subheading for the steel retail display channels will be 8302.42.3065, Harmonized Tariff
Schedule of the United States (HTSUS), which provides for Base metal mountings, fittings and similar
articles… Other mountings, fittings and similar articles, and parts thereof: Other, suitable for furniture: Of
iron or steel, of aluminum or of zinc; Other. The duty rate will be 3.9 percent ad valorem.
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate
of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition
to subheading 8302.42.3065, HTSUS, listed above.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries,
including China, will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you
must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to
subheading 8302.42.3065, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 8302.42.3065, HTSUS, unless specifically excluded, are subject to an additional xx 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 8302.42.3065, 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/programs-administration/trade-remedies, respectively.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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/.
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 Jennifer Jameson at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division