Modification of NY G89560; Lanyard of Heading 6307; Not Other Articles of Iron or Steel of Heading 7326

HQ 965242 September 18, 2001 CLA-2 RR:CR:TE 965242 GGD CATEGORY: Classification TARIFF NO.: 6307.90.9989 Mr. Casey J. Malinowski J & J Fine Arts Forwarding & Shipping, Incorporated 7370 N.W. 36th Street, Suite 370 Miami, Florida 33166 RE: Modification of NY G89560; Lanyard of Heading 6307; Not Other Articles of Iron or Steel of Heading 7326 Dear Mr. Malinowski: In New York Ruling Letter (NY) G89560, issued to you May 3, 2001, two separate articles were classified. The first article, consisting of a clear plastic "ticket holder with a metal spring clip" (allowing the article to be clipped onto a pocket or lapel), was correctly classified in subheading 4202.92.6000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), the provision for "Trunks...spectacle cases...wallets, purses, map cases...of sheeting of plastics...: Other: With outer surface of sheeting of plastic or of textile materials: Other: Other, Other: Other." The second article, a lanyard composed of woven textile material with a clasp and metal clip, was classified in subheading 7326.90.8586, HTSUSA, the provision for "Other articles of iron or steel: Other: Other: Other: Other, Other," with a general column one duty rate of 2.9 percent ad valorem. We have reviewed NY G89560 and, with respect to the lanyard, have found the ruling to be in error. Therefore, this ruling modifies NY G89560. Pursuant to section 625(c), Tariff Act of 1930, as amended (19 U.S.C. 1625(c)), notice of the proposed revocation of several New York Ruling Letters involving the classification of textile lanyards was published on August 1, 2001, in the Customs Bulletin, Volume 35, Number 31. As stated therein, the notice covered any other rulings relating to the specific issues of tariff classification set forth in those rulings which had not been specifically identified. Any party who had received an interpretive ruling or decision on the issues subject to the notice -2- was directed to advise Customs during the comment period. In compliance with this information, you identified NY G89560 as a ruling requiring modification or revocation under the same principles provided in the notice. FACTS: In NY G89560, the lanyard is described as being composed of woven textile with a clasp. The lanyard is said to provide an optional way to carry the ticket holder (around the neck as opposed to its being clipped to a pocket or lapel), by attaching the lanyard's metal clip to the back of the ticket holder. Since the lanyard and ticket holder did not form a whole, each was classified separately, essentially because each article was found to be distinct, complete, and of a kind normally offered for sale separately. The ticket holder was designed to be used with or without a lanyard, and we note that the Explanatory Notes (EN) to heading 4202 state that the expression "similar containers" in the second part of the heading includes "ticket-cases." The lanyard, however, was classified under heading 7326, which covers "Other articles of iron or steel." ISSUE: Whether the lanyard of woven textile material and metal is properly classified under heading 7326, HTSUSA, or under heading 6307, HTSUSA. LAW AND ANALYSIS: Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI. Lanyards consisting of a loop or strap of textile material worn on the person to provide hands-free securing and suspension of a separate object, have been classified under headings 5609 and 6307, HTSUSA. Heading 5609, HTSUSA, covers "Articles of yarn, strip or the like of heading 5404 or 5405, twine, cordage, rope or cables, not elsewhere specified or included." Heading 6307, HTSUSA, covers "Other made up [textile] articles, including dress -3- patterns." In Merriam-Webster's Deluxe Dictionary, Tenth Collegiate Edition (1998), "lanyard" is defined, in pertinent part, as: "2 a : a cord or strap to hold something (as a knife or a whistle) and usually worn around the neck." Since lanyards are designed "to hold something," it is implicit that they incorporate some component(s) of general purpose hardware (usually of metal, but occasionally of plastics or other materials) such as ferrules, bands, swivels, hooks, snaps, clips, clasps, etc. These items are used to form or reinforce the loop of textile material, and/or to attach the object to be held. As such, they are not considered articles separate from the lanyard. Lanyards classified under headings 5609 and 6307, however, are distinguished from lanyards used solely or principally as clothing accessories (e.g., a cord worn to symbolize a military citation), which are classifiable under heading 6217, HTSUSA. See Headquarters Ruling Letters (HQ) 951316, dated July 10, 1992, HQ 955811, dated May 19, 1994, NY 829181, dated May 2, 1988, NY 890142, dated August 11, 1993, NY B85585, dated June 6, 1997, NY E87781, dated October 13, 1999, and NY F86765, dated May 15, 2000. Imported merchandise which consists of a textile lanyard and an article separate from the lanyard that the lanyard is designed to suspend (e.g., a knife, whistle, compass, bottle opener, split ring, key chain, badge holder, etc.), are considered composite goods that generally are classified pursuant to the principles of General Rule of Interpretation (GRI) 3, often with a finding that the essential character of the complete good is imparted by the separate, suspended component. See NY A88092, dated October 8, 1996, NY D86756, dated February 3, 1999, NY E81587, dated May 13, 1999, and HQ 964170, dated June 5, 2001. In this case, the lanyard is a composite good made up of different materials, i.e., the woven textile fabric strap and the metal clasp and clip. The metal clip is not a separate, suspended component principally used as a key chain but is a component part of the lanyard itself, of a kind that is normally incorporated to create "a cord or strap to hold something...worn around the neck." We thus find that it is the textile strap component which imparts the good's essential character. The subject lanyard is properly classified as an other made up textile article under heading 6307, HTSUSA, not under heading 7326, as an other article of iron or steel. HOLDING: The lanyard composed of woven textile fabric and metal is classified in subheading 6307.90.9989, HTSUSA, the provision for "Other made -4- up [textile] articles, including dress patterns: Other: Other: Other, Other: Other." The general column one duty rate is 7 percent ad valorem. NY G89560, issued May 3, 2001, is hereby modified. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin. Sincerely, John Durant, Director Commercial Rulings Division