The tariff classification of a plastic “Tassel Keyring” decoration from China.

N299150 August 7, 2018 CLA-2-39:OT:RR:NC:N4:422 CATEGORY: Classification TARIFF NO.: 3926.40.0090 Mr. Long Vu Walgreen Co. 304 Wilmot Road, MS #3163 Deerfield, IL 60015 RE: The tariff classification of a plastic “Tassel Keyring” decoration from China. Dear Mr. Vu: In your letter dated June 29, 2018, you requested a tariff classification ruling. You submitted samples of an item identified as a “Tassel Keyring,” Walgreens Item Code (WIC) 707436, that consists of a tassel with a split ring and a swivel spring ring at the top to clip onto another item. The tassels are offered in an assortment of three colors. The tassel is made of 50 polyurethane (PU) foam strips that measure approximately 12 cm in length, 2 cm wide and 1 cm thick. The strips are gathered into an iron ferrule at the top with a loop that is attached to the small iron split ring, which is in turn attached to a slightly larger iron spring ring. The item under consideration is a composite article, comprised of PU foam and iron rings. The PU foam and iron components 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 iron and PU components of the “Tassel Keyring” 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 “Tassel Keyring” is a composite good, we must apply rule 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. In your letter, you point out that the merchandise is primarily ornamental, with the ancillary feature of holding keys on the small split ring. Although the item includes a split ring, the large size of the tassel makes it difficult to put in one’s pocket if being used as a key holder. Having the design of the swivel spring ring at the top also agrees with your point that this article would be clipped onto another item to decorate and enhance its appearance. Items similar to this can often be seen decorating backpacks or purses. It is the opinion of this office that the PU foam tassel provides the essential character to this composite good. The applicable subheading for Walgreens Item Code (WIC) 707436 will be 3926.40.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other articles of plastics…: statuettes and other ornamental articles…other.” The rate of duty will be 5.3 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 the World Wide Web at https://hts.usitc.gov/current. 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 Sandra Carlson at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division