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HQ 966426




July 3, 2003

CLA-2 RR:CR:TE 966426 KSH

CATEGORY: CLASSIFICATION

TARIFF NO: 6307.90.9889

Ms. Dana L. Bounds
UPS Supply Chain Solutions
1600 Genessee, Suite 450
Kansas City, MO 64102

RE: Reconsideration of NY J81837; Textile Strap Lanyards of Heading 6307; Not Other Articles of Iron or Steel of Heading 7326

Dear Ms. Bounds:

This is in response to your letter, on behalf of your client Design Resources, Inc., dated April 16, 2003, in which you requested reconsideration of New York Ruling Letter (NY) J81837, dated March 19, 2003, which classified a “key chain” in subheading 6307.90.9889, HTSUSA, the provision for “Other made up articles, including dress patterns: Other: Other: Other, Other: Other.”

FACTS:

The sample you submitted is described as a key chain and identified by style 1977. It is constructed of a 100 percent polyester woven fabric strap with a plastic snap buckle closure. The strap is folded over and sewn to create a loop. A metal split ring with a metal swivel and rubber ring (used to hold a bottle) is attached to the loop.

ISSUE:

Whether the item is properly classified under heading 7326, HTSUSA, or under heading 6307, HTSUSA. LAW AND ANALYSIS:

Classification under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied. The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI.

The classification of textile lanyards has been the subject of numerous rulings by Customs, now the Bureau of Customs and Border Protection (CBP). In each of the rulings it was determined that a crucial factor for classification purposes is the essential character of the article in question, namely does the item function primarily as a key chain or as cord or strap to hold something. See Headquarters Ruling Letter (HQ) 965085 , HQ 965086, HQ 965242 and HQ 965072 all dated September 18, 2001.

Imported merchandise which consists of a textile lanyard and an article separate from the lanyard that the lanyard is designed to suspend (e.g., a knife, whistle, compass, bottle opener, split ring, key chain, badge holder, etc.), is considered a composite good that generally is classified pursuant to the principles of General Rule of Interpretation (GRI) 3, often with a finding that the essential character of the complete good is imparted by the separate, suspended component. See NY A88092, dated October 8, 1996, NY D86756, dated February 3, 1999, NY E81587, dated May 13, 1999, and HQ 964170, dated June 5, 2001.

However, since lanyards are designed to hold something, it is implicit that they incorporate some component(s) of general purpose hardware (usually of metal, but occasionally of plastics or other materials) such as ferrules, bands, swivels, hooks, snaps, clips, clasps, etc. These items are used to form or reinforce the loop of textile material, and/or to attach the object to be held. As such, they are not considered articles separate from the lanyard.

In this case, the lanyard is a composite good made up of different materials, i.e., the woven textile fabric strap, the metal ring and the rubber bottle holder. The metal ring is not a separate, suspended component principally used to hold keys but is a component part of the lanyard itself, of a kind that is normally incorporated to allow a cord or strap to hold something. As such it is not considered an article separate from the lanyard. Moreover, we note that the consumer’s ability to drink from a bottle in the holder would be impaired by keys placed on the metal split ring and potentially dangerous.

The bottle holder and the lanyard also form a whole which would not normally be offered for sale in separate parts. A rubber ring bottle holder has very little utility or function without the lanyard attached to it. We thus find that it is the textile strap component which imparts the good's essential character. The subject lanyard is properly classified as an other made up textile article under heading 6307, HTSUSA, not under heading 7326, as an other article of iron or steel.

HOLDING:

NY J81837, dated March 19, 2003, is hereby affirmed.

The textile lanyard described as a key chain and identified by the style number 1977 is classified in subheading 6307.90.9889, HTSUSA, the provision for "Other made up [textile] articles, including dress patterns: Other: Other: Other, Other: Other." The general column one duty rate is 7 percent ad valorem.

Sincerely,

Myles B. Harmon, Director

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