The tariff classification of a USB Flash Disk on Key Ring from China

NY M83598 June 7, 2006 CLA-2-84:RR:NC:1:120 M83598 CATEGORY: Classification TARIFF NO.: 8471.70.6000 Ms. Beth Shaw Trust Air Cargo USA Company 1360 North Wood Dale Road, Unit 1 Wood Dale, Illinois 60191 RE: The tariff classification of a USB Flash Disk on Key Ring from China Dear Ms. Shaw: In your letter dated May 2, 2006 you requested a tariff classification ruling on behalf of your client Telephone Products. The Universal Serial Bus (USB) flash drive memory is encased in a plastic key ring measuring 3.5” x 1.25” x .5”. The USB flash memory is available in 16 MB-256 MB of memory storage. The USB flash drive is designed to plug into the USB port of a PC or Notebook. It is used for data storage and retrieval of data. The Universal Serial Bus Flash Memory Drive with key chain is a composite good consisting of a USB storage device classified under subheading 8471.70.6000, Harmonized Tariff Schedule of the United States (HTSUS), and a keychain of plastic classified under subheading 7326.20.0070, HTSUS. The General Rules of Interpretation (GRIs) of the HTSUS governs the classification of goods. Composite goods are classified in accordance with GRI 3(b), by determining the essential character of the good. The Explanatory Notes (ENs) of the HTSUS provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. The ENs to GRI 3(b) state, in pertinent part, the following: (VIII) The factor that determines the essential character will vary between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods. When the attachment to the key ring is a useful, functional item, the essential character is that useful attachment rather than the key ring. The USB electronics represents more than 90% of the value of the USB key ring. Therefore the USB flash memory provides the essential character of the USB USB Flash Disk on Key Ring. The applicable subheading for the USB Flash Disk on Key Ring will be 8471.70.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Automatic Data processing machines and units thereof…Storage units: Other storage units: Not assembled in cabinets for placing on a table, desk, wall, floor or similar place." 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 on World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Denise Faingar at 646-733-3010. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division