The tariff classification of a LEGO Creative Drawing Set from China

N306095 September 27, 2019 CLA-2-96:OT:RR:NC:N4:462 CATEGORY: Classification TARIFF NO.: 9503.00.0073; 9609.10.0000; 4903.00.0000; 3926.10.0000; 3919.90.5060; 3926.90.9990; 9903.88.02; 9903.88.15 Ms. Carrie Vanderhoff Santoki, LLC.1100 N. Opdyke Rd. Suite 200 Auburn Hills, MI 48326 RE: The tariff classification of a LEGO Creative Drawing Set from China Dear Ms. Vanderhoff: In your letter dated September 4, 2019, you requested a tariff classification ruling. You submitted a sample and photos of item, identified as number 52627, the “LEGO Creative Drawing Set; Imagine.” It includes one LEGO Minifigure Toy, one LEGO Brick Pencil Topper, one LEGO Sketchbook, one LEGO Graphite Pencil, six LEGO Colored Pencils, a LEGO Sticker Sheet, and two LEGO Brick Erasers. All of items are packaged together in a blister pack. The sample will be returned, as requested. You propose classification in subheading 9503, Harmonized Tariff Schedule of the United States, (HTSUS), as toys. However, the items are not classifiable in Chapter 95 since CBP does not consider drawing, pasting, writing, coloring or painting to have significant play value for classification purposes as a toy. Moreover, CBP does not classify the tools for drawing, pasting, writing, coloring or painting as toys since those tools are not designed to amuse. To proceed with classification, we must determine whether the products meet the definition of a “set” within the meaning of General Rule of Interpretation (GRI) 3(b). The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level. EN X to GRI 3(b) provides: “for the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).” Sets are classified according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character. The kits under consideration do each consist of different articles classifiable under separate headings. They are packaged together for retail sale. Therefore, they fulfill the requirements of (a) and (c) above. However, we find that they fail (b). Although the LEGO Minifigure toy may be intended to “spark imagination and creativity for the sketches,” there is no indication that any direct interaction is contemplated between these articles. That is, writing, drawing and coloring would seem to be an activity separate from playing with the toy. Therefore, the items will not be regarded for tariff purposes as “goods put up in sets for retail sale,” and will be classified separately. The applicable subheading for the LEGO Minifigure toy will be 9503.00.0073, HTSUS, which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof… ‘Children’s products’ as defined in 15 U.S.C. § 2052: Other: Labeled or determined by importer as intended for use by persons: 3 to 12 years of age.” The rate of duty will be Free. The applicable subheading for the LEGO sketchbook will be 4903.00.0000, HTSUS, which provides for “Children's picture, drawing or coloring books.” The rate of duty will be Free. The applicable subheading for the LEGO brick erasers will be 3926.10.0000, HTSUS, which provides for “Other articles of plastics, office or school supplies.” The rate of duty will be 5.3 percent ad valorem. The applicable subheading for the LEGO sticker sheet will be 3919.90.5060, HTSUS, which provides for “Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls: Other: Other: Other.” The rate of duty will be 5.8 per cent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3919.90.5060, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 3919.90.5060, HTSUS, listed above. As the plastic pencil topper would be considered an article of plastic, and as it is not provided for more specifically elsewhere, the applicable subheading will be 3926.90.9990, HTSUS, which provides for “Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other: Other.” The rate of duty will be 5.3 percent ad valorem. The applicable subheading for the LEGO graphite pencil and the colored pencils will be 9609.10.0000, HTSUS, which provides for “Pencils (other than those pencils of heading 9608), crayons, pencil leads, pastels, drawing charcoals, writing or drawing chalks or tailors’ chalks, pencils and crayons, with leads encased in a rigid sheath.” The rate of duty will be 14 cents per gross plus 4.3 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3926.90.9990 and 9609.10.0000, HTSUS, unless specifically excluded, are subject to an additional 15 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 3926.90.9990 and 9609.10.0000, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively. The pencils may be subject to antidumping duties and countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP. You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb. 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, please contact National Import Specialist Sandra Sary at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division