The tariff classification of a Red Tag™ de-tagger from England

N009303 April 17, 2007 CLA-2-85:RR:NC:N1:109 CATEGORY: Classification TARIFF NO.: 8505.11.0000 Ms. Susan Renea McCabe Compliance Manager Expeditor’s Int’l of Washington, Inc. 2550 Ellsmere Avenue, Suite B Norfolk, VA 23513 RE: The tariff classification of a Red Tag™ de-tagger from England Dear Ms. McCabe: In your letter dated March 26, 2007, you requested a tariff classification ruling and a quota category on behalf of your client, Meadwestvaco Consumer Packaging Group LLC of Glen Allen, Virginia. The merchandise subject to this ruling is described in your letter as a Red Tag™ de-tagger. You state that the purpose of this de-tagger is to magnetically remove, what is referred to in the DVD sales world, a Red Tag security system. You further state that the Red Tag is inserted through shrink-wrapped DVDs or non-shrink- wrapped DVDs from the side of the box that creates a case and disc- locking mechanism, which cannot be removed without causing damage to the DVD box and the DVD in the box. At the time that a DVD is purchased, the employee (cashier) inserts the DVD/video into the Red Tag™ de-tagger to remove the tag via magnets. A sample of this merchandise was furnished for classification purposes. It consists of a plastic housing with a swivel top that opens and closes to reveal four (one round and three square) metal magnets under the swivel top. On the front of the housing there is a round imbedded circular piece of metal, which is not magnetic, and raised lettering that reads “Red Tag™.” This item is not hand-held, but contains a sturdy base for resting on a surface. The sample is being returned as per your request. In your letter you cite two subheadings to be considered in determining the classification of the Red Tag™ de-tagger. They are Harmonized Tariff Schedule of the United States (HTSUS) 3926.90.9980, which provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other: Other” and Harmonized Tariff Schedule of the United States (HTSUS) 8205.59.8000, which provides for “Other handtools: Other: Other.” However, the Red Tag™ de-tagger is not solely an article of plastic. It is a plastic box containing four metal magnets. As such, it is considered to have the essential character of the magnets because removal of the magnets would leave the product incapable of performing its function. The plastic acts as a housing, stand, or holder for the magnets. As such, HTSUS 3926.90.9980 is inapplicable. HTSUS 8205.59.8000 is also inapplicable as the classification of the Red Tag™ de-tagger because it is not hand-held and directed. The sturdy base of this article allows for the item to be placed on a surface, such as a cashier’s counter. In addition, this item does not perform any type of “work” on another item. Your letter also cites heading 8505, which provides for “Permanent magnets and articles intended to become permanent magnets and articles intended to become permanent magnets after magnetization.” However, you claim that this heading should not be allowed by referencing Exclusionary Note (b) to Explanatory Note (EN) 85.05 in support of your claim. That note states : “The heading does not cover: “Electro-magnets, permanent magnets or magnetic devices of this heading, when presented with machines, apparatus, toys, games, etc., of which they are designed to form part (classified with those machines, apparatus, etc.).” The Red Tag™ de-tagger is not presented with a machine, apparatus, toys, game, etc., nor is it designed to form part of a machine, apparatus, toy, game, etc. It is, however, a device or apparatus onto itself whose essential character is imparted by the four permanent magnets held within its sturdy plastic housing. As such, Exclusionary Note (b) to EN 85.05 in not applicable. The permanent magnets impart the essential character of the Red Tag™ de-tagger because the magnets are integral to the functioning of this item. Therefore, the Red Tag™ de-tagger is appropriately classified as a “Permanent magnet” under heading 8505. In addition to the classification of the Red Tag™ de-tagger, you also requested the quota category for this merchandise. However, this merchandise is not subject to quota. The applicable subheading for the Red Tag™ de-tagger will be 8505.11.0000,Harmonized Tariff Schedule of the United States (HTSUS), which provides for Permanent magnets and articles intended to become permanent magnets after magnetization: Of metal. The rate of duty will be 2.1 percent ad valorem. 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 Linda M. Hackett at 646-733-3015. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division