OT:RR:CTF:CPMM H305186 KSG
Mr. Brett Stewart
Customs Compliance Specialist
Michaels Stores Procurement Company, Inc.
8000 Bent Branch Drive
Irving TX 75063
RE: Tariff classification of greeting and note card set
Dear Mr. Stewart:
This letter is in reference to your request on behalf of Michaels Stores Procurement Company, Inc., for a binding ruling regarding the tariff classification of a set of sixty (60) greeting and note cards under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
This case involves six styles of printed paper greeting cards that are packaged together in a box. All six styles of cards are blank on the inside. The box contains ten cards of each style, for a total of 60 cards.
Three styles of greeting or note cards have a design of either hearts, dots, or stripes on the outside cover of the card and no words. Three styles of greeting or note cards have a message on the outside of the card: one style bears the phrase "THANK you"; one style bears the phrase "cheers to you", and the third style bears the word "YAY!". All of the cards are blank on the inside of the cards.
ISSUE:
Whether the set of six styles of greeting cards are classified in heading 4909, HTSUS, or in heading 4911, HTSUS?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order. Rule 2(a) relates to incomplete or unfinished goods. Rule 2(b) relates to mixtures and combinations of materials or substances.
Rule 3 provides, in pertinent part, that
When, by application of Rule 2(b) or for any other reason, goods are prima facie, classifiable under two or more headings, classification shall be effected as follows:
[t]he heading which provides the most specific description shall be preferred to headings providing a more general description....
Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character….
(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
The HTSUS subheadings under consideration are the following:
4909 Printed or illustrated postcards; printed cards bearing personalgreetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings:
4909.00.40 Other
***
4911 Other printed matter, including printed pictures and photographs:
Other:
4911.91 Pictures, designs and photographs:
Printed not over 20 years at time of importation:
Other:
4911.91.40 Other
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80. 54 Fed. Reg. 35127, 35128 (August 23, 1989).
EN VII to GRI 3(b) states 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 value, or by the role of the constituent material in relation to the use of the goods.
The EN for Rule 3 states that it provides three methods of classifying goods which, prima facie, fall under two or more headings, either under the terms of Rule 2(b) or for any other reason. These methods operate in the order in which they are set out in the Rule. Thus Rule 3(b) operates only if Rule 3(a) fails in classification, and if both Rules 3(a) and (b) fail, Rule 3(c) will apply. The order of priority is therefore (a) specific description; (b) essential character; (c) heading which occurs last in numerical order.
The EN to heading 49.09 states that it covers:
(i) Printed or illustrated postcards regardless of whether they are for private, commercial or advertising purposes, and
(ii) Printed cards bearing personal greetings, messages or announcements for any occasion. Such printed cards may be illustrated or not and may be with or without envelopes or trimmings.
These products comprise particularly :
(1) Picture postcards, i.e., cards which have printed indications of their use as postcards, and in which the whole or greater part of one side is devoted to pictorial matter of any kind. Similar products not having such indications of use are classified as pictures in heading 49.11. These picture postcards may be in sheet or booklet form. Printed postcards in which the pictorial matter does not form the principal feature (e.g., certain postcards with advertising matter or small pictures) also fall in this heading. However, such postcards, if printed or embossed with postage stamps, are excluded (heading 49.07). Plain postcards where printing is merely incidental to their primary use are also excluded (heading 48.17).
(2) Christmas, New Year, birthday or similar cards. These may be in the form of picture postcards, or consist of two or more folded leaves fastened together, one face or more being devoted to pictorial matter. The term “similar cards” is to be taken to include cards used to announce births or christenings, or for conveying congratulations or thanks. The printed cards may incorporate trimmings such as ribbons, cords, tassels and embroidery, or novelty features such as pull out views, or be decorated with glass powder, etc.
The EN to heading 49.11 states that the heading covers all printed matter (including photographs and printed pictures) of this Chapter (see the General Explanatory Note above) but not more particularly covered by any of the preceding headings of the Chapter…. On the other hand, certain articles of stationery with printing which is merely incidental to their primary use for writing or typing are classified in Chapter 48 (see Note 12 to Chapter 48 and in particular the Explanatory Notes to headings 48.17 and 48.20).
In addition to the language of heading 4909, Note 4 to Chapter 49, HTSUS, further demonstrates the distinction between literary and illustrated material for the purposes of that chapter. While the first part of that note addresses heading 4901, HTSUS (“Printed books, brochures, leaflets and similar printed matter, whether or not in single sheets”), the last sentence is relevant in this case. It states that “printed pictures or illustrations not bearing a text, whether in the form of signatures or separate sheets, fall in heading 4911.” Emphasis supplied. Heading 4911, HTSUS, provides for “other printed matter including printed pictures and photographs.”
The EN to heading 48.17 states, in pertinent part, that:
This heading covers paper or paperboard stationary of the kind used in correspondence, e.g., envelopes, letter cards, plain postcards (including correspondence cards). Separate writing paper in loose sheets or in blocks and certain other articles referred to below are, however, excluded.
These articles may be printed with addresses, names, trade marks, decorations, crests, initials, etc., merely incidental to their use as stationery.
Letter cards are sheets of paper or paperboard or card with gummed (and sometimes perforated) edges or other provision for closing or sealing without the use of envelopes.
Plain postcards do not fall in this heading unless they contain printed provision for the address or stamp or other indications of their use.
Correspondence cards do not fall in this heading unless they have deckled or gilt edges or rounded corners, or are printed or otherwise prepared in such a manner as clearly to indicate their use as stationery. Plain cards not so prepared are classified in heading 48.02, 48.10, 48.11 or 48.23, as the case may be.
The heading also covers boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery.
The three styles of cards that bear a greeting, message or announcement on their outside in the instant case would be those cards described in the EN for heading 4909 as "similar cards." CBP has ruled in a series of Headquarters Ruling Letters (HQ) 966415, HQ 966416, HQ 966417, HQ 966418, HQ 966419, HQ 966420 and HQ 966421, all dated July 17, 2003, that the word "message" is defined in the dictionary very broadly as any communication, written or oral.
All the above HQ rulings clearly state that the language of heading 4909 means than goods classified in heading 4909 must have some form of literary text. This is in accordance with other CBP rulings such as HQ 966418, dated July 17, 2003, (card with flower design and the word "poppy"), New York Ruling Letter (NY) N275291, dated May 13, 2016 (Thank you cards), NY I87566, dated November 7, 2002 (Thank you and "Invitation" cards), NY F88324, dated June 13, 2000 ( Thank you and Happy Birthday Cards). Particularly, the EN for heading 4909 includes thank you notes as an enumerated example of "similar cards." The "cheers to you" and "YAY" messages are similar to thank you cards in that they express a personal greeting or message. Based on the above, the three styles of cards bearing a personal greeting, message, or announcement, if packaged alone, would be classified in heading 4909, HTSUS. However, the three styles of note cards without a written message must be considered.
In this case, as stated above, the note cards not bearing a written greeting, message, or announcement are precluded from classification in heading 4909, HTSUS.
In HQ 962603, dated May 14, 2002, held that a greeting card with only an illustration on it does not convey a "message" within the meaning of heading 4909 and is classified in heading 4911, HTSUS. Consistent with this ruling CBP ruled in HQ 966419, dated July 17, 2003, that paper note cards without a written greeting, message or announcement on the outside of the card were classified in heading 4911, HTSUS, and not in heading 4817, HTSUS. The outside of the cards bore only a picture or design and the inside of the cards was blank. Also see HQ 966415, dated July 17, 2003, HQ 966416, dated July 17, 2003, HQ 966417, dated July 17, 2003, and HQ 966418, dated July 17, 2003.
In accordance with the above CBP rulings, which as described above, classified cards with solely a picture or design on their outside as articles of heading 4911, the three styles of printed cards in the instant case with solely a design on the outside would be classified in heading 4911, HTSUS. See HQ 966415, dated July 17, 2003, NY N273942, dated April 8, 2016, and NY N275291, dated May 13, 2016. Pursuant to GRI 6, the printed cards that have a striped, dot or heart design are classified in subheading 4911.90.40, HTSUS.
Since the box of equally mixed note cards contain cards with a written greeting, message or announcement would be classified in heading 4909, and note cards with only a design on the outside of the printed card would be classified in heading 4911, there are two headings under which the box of greeting and note cards could be classified. Therefore, it cannot be classified according to GRI 1.
Because the box of note cards are equally mixed with cards that bear a greeting, message or announcement, on the outside and greeting or note card which only bear a design on the outside, the box cannot be classified under GRI 3(b) according to essential character. The cards with a written message, greeting or announcement are equally of value and importance to the cards bearing only a design. Accordingly, GRI 3(b) is not applicable and we must turn to GRI 3(c).
GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among those which equally merit consideration. The paper note cards with a written greeting, message or announcement are classified in heading 4909. The paper note cards bearing only a design are classified in heading 4911 and equally merit consideration. Consequently, by application of GRI 3(c), the box of printed paper note cards which contain an equal number of cards bearing a greeting, message, or announcement, and cards bearing only a design are classified in heading 4911, HTSUS, as "Other printed matter, including printed pictures and photographs." By operation of GRI 6, the box of six styles of note cards are classified in subheading 4911.91.40, HTSUS.
HOLDING:
By application of GRI’s 3(c) and 6, the box of six styles of note cards described above are classified in subheading 4911.91.40, HTSUS. The column one, general rate of duty is Free.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided for at www.usitc.gov.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division
cc: NIS Charlene Miller