CLA-2 CO:R:C:T 951274 JED
District Director, Blaine
United States Customs Service
9901 Pacific Highway
Blaine, Washington 98230
RE: Request for further review of protest 3004-91-000224; wooden
boxes imported without lids
Dear District Director:
The following is our response to the request for further
review of Protest No. 3004-91-000224, concerning your decision on
the classification of wooden boxes imported separately from their
lids.
FACTS:
The merchandise involved is wooden salmon roe boxes. The
protestant, a box manufacturer, in filling "a large order
involving more than one trailer load of complete assembled
boxes", due to "production scheduling", shipped "two full vans of
assembled boxes without tops, followed by the balance of the
boxes, and all the tops for the order."
Entry of the boxes without lids was attempted under
subheading 4415.10.3000, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA):
4415 Packing cases, boxes, crates, drums and similar
packings, of wood; cable drums, of wood; pallets,
box-pallets and other load boards, of wood:
4415.10 Cases, boxes, crates, drums and similar
packings; cable drums:
4415.10.3000 Packing boxes and cases with solid
sides, lids and bottoms
Articles so classified are imported free of duty.
Customs disagreed with that classification since the
requisite lids were not present with the boxes at time of
importation. Customs placed the boxes in subheading
-2-
4415.10.9000, HTSUSA, Boxes, Other. Such importations were
assessed a Column 1, Special rate of duty of 11.2% ad valorem
pursuant to the United States-Canada Free Trade Agreement.
ISSUE:
Whether boxes imported separately from their lids may be
classified in a subheading describing "packing boxes...with
lids"?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) taken in
appropriate order provide a framework for classification of goods
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). The majority of imported goods are
classified by application of GRI 1, that is, according to the
terms of the heading of the tariff schedule and any relative
Section or Chapter Notes.
GRI 2(a) states in pertinent part:
Any reference in a heading to an article shall be taken
to include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete
or unfinished article has the essential character of
the complete or finished article.
In this instance, although a box without a lid could be
considered an unfinished box, GRI 2(a) cannot be applied. GRI 1
must be considered first, and the description in the heading
requires a lid be present.
For an article, in this case a packing box, to be
classifiable under subheading 4415.10.3000, HTSUSA, a lid must be
present with the box at the time the goods arrive within the
Customs territory of the United States. Section 141.l(a),
Customs Regulations (19 CFR 141.l(a)), states:
141.1 Liability of importer for duties.
(a) Time duties accrue. Duties and the liability
for their payment accrue upon imported merchandise...
at the time of arrival within the Customs territory of
the United States if the merchandise arrives otherwise
than by vessel, unless otherwise specially provided for
by law.
* * *
-3-
In the entries subject to the instant protest, no lids were
present with the boxes at the time of arrival. The fact that the
same party importing the boxes imported the lids at a later date
and joined the two importations to produce boxes with lids does
not matter in regard to the time liability for payment of duties
accrued.
HOLDING:
Classification of merchandise is determined based upon its
condition as imported. In this instance, at the time the subject
boxes were considered imported, no lids were present.
Accordingly, classification in subheading 4415.10.3000, HTSUSA,
was incorrect. Subheading 4415.10.9000, HTSUSA, is the proper
classification.
You are instructed to deny the protest in full. A copy of
this ruling should be attached to Customs Form 19, Notice of
Action, furnished to the protestant.
Sincerely,
John Durant, Director
Commercial Rulings Division