CLA-2-84:S:N:N1:103 898802
Mr. David J. Loveday
Imperial Tobacco Limited
3810, rue St-Antoine Street
Montreal, P.Q. Canada H4C 1B5
RE: The tariff classification of tobacco kits from Canada
Dear Mr. Loveday:
In your letter dated June 2, 1994 you requested a tariff
classification ruling.
You submitted information regarding two tobacco kits, a
starter kit and a refill kit. The starter kit will consist of the
following individual items (all values shown are in Canadian
dollars):
1. A tin of fine cut cigarette smoking tobacco, composed of
Brazilian leaf processed in Canada, valued at $0.89.
2. A box of 200 cigarette paper tubes with filters, made in
Canada from paper of U.S. origin ($0.10).
3. A plastic cigarette rolling machine, made in Germany
($4.00).
4. A metal box for carrying cigarettes, made in the United
Kingdom ($0.75).
5. An instruction leaflet, produced in Canada ($0.25).
These items will be packed in a cardboard box with a plastic film
window through which the purchaser can see the items. They will
be held in place inside the box in a plastic molded base. The
outer box and molded base are both of Canadian origin and are
valued at $0.65 and $0.02 respectively.
The refill kit will consist of the 6 ounce tin of tobacco and
the box of 200 paper tubes.
The starter kit and the refill kit are sets intended for
retail sale, and thus they are classifiable in accordance with
General Rule of Interpretation 3(b). GRI 3(b) holds, in pertinent
part, that goods put up in sets for retail sale are classifiable
in accordance with the material or component which gives them their
essential character.
The essential character of the starter kit is imparted by the
cigarette rolling machine. Therefore, the applicable subheading
for the starter kit will be 8478.10.0090, Harmonized Tariff
Schedule of the United States (HTS), which provides for other
machinery for preparing or making up tobacco, not specified or
included elsewhere.... The rate of duty will be 4.2 percent ad
valorem. In addition, the cigarette paper tubes are subject to a
Federal Excise Tax pursuant to 26 U.S.C. 5701 of 1.5 cents per 50
tubes.
The essential character of the refill kit is imparted by the
tobacco. Accordingly, the applicable subheading for the refill kit
will be 2403.10.0040, HTS, which provides for smoking tobacco,
whether or not containing tobacco substitutes in any proportion:
in retail-sized packages: others. The rate of duty will be 38.6
cents per kilogram. Again, the cigarette paper tubes are subject
to a Federal Excise Tax of 1.5 cents per 50 tubes.
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