The tariff classification of a sock countertop display from China

N270614 December 8, 2015 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7326.20.0071 Ms. Jessica Rowe Blue Q Corporation 103 Hawthorne Avenue Pittsfield, MA 01201 RE: The tariff classification of a sock countertop display from China Dear Ms. Rowe: In your letter dated November 5, 2015, you requested a tariff classification ruling. You have submitted a sample of the product for our review which will be returned to your office. The article under consideration is identified as a Blue Q women’s sock countertop display, Blue Q item number BS487. The merchandise is described as a countertop display made of steel wire. Three cardboard headers will be included. The cardboard headers are designed to be placed inside the wire display in the shape of a triangle and will be used to market the sock display. You indicated in your letter that “The intended use of our countertop display is to merchandise our goods in retail stores.” The steel wire display with three cardboard headers will be imported packed in a cardboard box with three cardboard inserts to prevent shipping damages.     The women’s sock countertop display in question is a composite article that consists of steel and cardboard components that are classified in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the steel and cardboard components of the subject article 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 women’s sock countertop display 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 steel or cardboard component imparts the essential character to the article in question. 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 function of the countertop display under consideration is to display the socks in retail stores and the steel component performs the function of holding the socks for display. Therefore, it is the opinion of this office that the steel component imparts the essential character to the countertop display. In accordance with GRI 3(b), the countertop display under consideration will be classifiable in heading 7326, HTSUS, which provides for other articles of iron or steel. The applicable subheading for the Blue Q women’s sock countertop display, Blue Q item number BS487. will be 7326.20.0071, HTSUS, which provides for other articles of iron or steel, articles of iron or steel wire, other. The rate of duty will be 3.9 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 Ann Taub at [email protected]. Sincerely, Gwenn Klein Kirschner Director National Commodity Specialist Division