CLA-2-48:S:N1:234 876936
Mr. Clement Chung
Pacific Rim (Canada) Manufacturing Ltd.
9678 186th Street
Surrey, B.C., CANADA V3T 4W2
RE: The tariff classification of a set containing disposable
wooden chopsticks, soy sauce and a paper napkin, from
Canada.
Dear Mr. Chung:
In your letter dated July 22, 1992, you requested a tariff
classification ruling.
A sample was submitted and will be retained for reference.
Evidently a type of "kit" intended to be distributed to patrons
of certain restaurants or take-out food shops, it is a sealed
plastic bag containing a pair of inexpensive, disposable wooden
chopsticks (in a sealed paper wrapper), a packet of soy sauce,
and a table napkin made of embossed paper. You state that the
chopsticks will be made by your company in Canada, while the soy
sauce and napkin will be of U.S. origin.
We believe that this product qualifies as a "set" for
purposes of the Harmonized Tariff Schedule of the United States
(HTS), and that no single component can be said to impart its
essential character. Under such circumstances, HTS General Rule
of Interpretation 3 (c) dictates that the entire set be
classified under the heading which occurs last in numerical
order among those which equally merit consideration. In this
case, the heading corresponding to the napkin occurs last.
Accordingly, the applicable subheading for the above-
described set will be 4818.30.0000, HTS, which provides for
tablecloths and table napkins, of paper. The rate of duty will
be 5.3%.
Goods classifiable under subheading 4818.30.0000, HTS, which
have originated in the territory of Canada, will be entitled to a
1% rate of duty under the United States-Canada Free Trade
Agreement (FTA) upon compliance with all applicable regulations.
If the U.S.-made soy sauce and napkin are merely repackaged
with the Canadian chopsticks before being returned as part of the
set, they will be eligible (upon compliance with the documentary
requirements of 19 CFR 10.1) for the duty exemption under
subheading 9801.00.10, HTS, which provides for the free entry of
U.S. products that are exported and returned without having been
advanced in value or improved in condition by any means while
abroad.
To recap: Assuming compliance with both the FTA and U.S.-
goods-returned regulations, the full value of the set, less the
value of its U.S. compo- nents, will be dutiable at the 1%
Canadian rate associated with subheading 4818.30.0000. The U.S.
components will be duty-free under subheading 9801.00.10.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport