CLA-2 CO:R:C:G 083533 SM
Dr. I. Redstone
Honeyrose Products Ltd.
Creeting Road
Stowmarket, Suffolk 1P14 5AY
England
RE: Tariff classification of herbal cigarettes
Dear Dr. Redstone:
Your letter of November 18, 1988, addressed to our New
York office, requesting a tariff classification ruling for
herbal cigarettes, has been referred to this office for reply.
FACTS:
Samples of the cigarettes were submitted. They contain
no tobacco or nicotine but are made with herbs or other
materials including coltsfoot, clover, rose petals, marsh-
mallow leaves, and ginseng. They are stated to be for smokers
who wish to smoke less and avoid the effects of nicotine. You
inquire as to both their tariff status and federal excise tax
status.
ISSUE:
How are the herbal cigarettes classified? Are federal
excise taxes applicable?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA) is in accordance with the
General Rules of Interpretation. GRI 1 provides that classi-
fication is determined first in accordance with the terms of
the headings of the tariff and any relative section or chapter
notes and then, if the headings and notes do not otherwise
require, in accordance with the remaining GRI's.
-2-
Heading 2402, HTSUSA, covers cigarettes of tobacco or of
tobacco substitutes. Note 1 of Chapter 24 excludes medicinal
cigarettes from the chapter. The term tobacco substitutes is
not defined in the tariff. The Explanatory Notes (EN), the
official interpretation of the HTSUSA at the international
level, for heading 2402 indicate that the term cigarettes of
tobacco substitutes is intended to include, "for example,
'cigarettes' . . . made from specially processed leaves of a
variety of lettuce, containing neither tobacco nor nicotine."
The EN go on to state that "cigarettes containing certain
types of products specifically formulated to discourage the
habit of smoking but which do not possess medicinal properties
remain classified in this heading." Thus nonmedicinal non-
tobacco cigarettes such as herbal cigarettes are intended to
be included under this heading.
Goods classified under heading 2402, HTSUSA, may be sub-
ject to federal excise taxes. Cigarettes are included. 26
U.S.C.A. { 5701(b) (1980 and Supp. 1988). However, the term
cigarette is limited to wrapped rolls of tobacco. 26 U.S.C.A.
{ 5702(b).
HOLDING:
The herbal cigarettes are classified under subheading
2402.90.00, HTSUSA, a provision including other cigarettes not
containing tobacco. The 1989 Column 1 rate of duty is
$2.34/kg plus five percent ad valorem. No federal excise tax
applies.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc: Area Director of Customs
NY Seaport Area
cc: Legal Reference section
cc: NIS Ralph Conte