CLA-2-92:OT:RR:NC:1:128
Mr. Peter A. Pennesi
V. Alexander & Co., Inc.
6555 Quince Rd., Suite 201
Memphis, TN 38119
RE: The tariff classification of music boxes from China.
Dear Mr. Pennesi:
In your letter dated October 17, 2008, on behalf of Mr. Christmas, Inc., you requested a tariff classification ruling.
The merchandise under consideration is identified as item number 81954346, “Christmas Music Boxes – retail display”. The item consists of twenty four music boxes, six each of four different motifs: Santa, Snowman, Nutcracker, and Christmas Tree. The music boxes are made of glass and porcelain. Each music box is separated across the middle into two parts which are connected with a hinge and a latch closure. The upper portion flips open to reveal a miniature holiday scene. The bottom portion contains a wind up musical mechanism with a bottom key that activates a Christmas melody while the holiday scene turns. The music boxes weigh less than 0.25 kilograms each and are individually packaged for retail sale in a clear acetate box. The retail display is a temporary display, made of cardboard and weighing 5 kilograms. It has interlocking cardboard dividers that form twenty four compartments to hold each of the music boxes. The music boxes will be imported inserted into the cardboard display, which will then be inserted into a master cardboard carton for shipment. You have submitted four sample music boxes, one of each motif. You have also submitted photographs depicting the music boxes housed in the retail display, and a photograph of the master cardboard carton.
With respect to the cardboard retail display, packing containers are governed in part by General Rule of Interpretation (GRI) 5, Harmonized Tariff Schedule of the United States (HTSUS). GRI 5(b) provides that “packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.” The instant cardboard retail display is not suitable for repetitive use and is classified with the music boxes pursuant to GRI 5(b).
In your letter you indicate that, in your opinion, the Christmas Music Boxes shipped in retail packaging in a temporary retail display qualifies for beneficial treatment under 9902.13.47, HTSUS, which provides for “Music boxes with mechanical musical movements, presented in the immediate packaging for shipment to the ultimate purchaser, and each weighing not over 6 kg together with retail packaging (provided for in subheading 9208.10.00).”
In order to qualify for beneficial treatment under 9902.13.47, HTSUS, the music boxes must be presented in the immediate packaging for shipment to the ultimate purchaser. 19 C.F.R. §134.1 (d) defines the “ultimate purchaser” as generally the last person in the U.S., who will receive the article in the form in which it was imported. 19 C.F.R. §134.1 (d) (3) states that if an article is to be sold at retail in its imported form, the purchaser at retail is the “ultimate purchaser.” Since the subject music boxes will be purchased at retail by the ultimate purchaser, and not shipped to the ultimate purchaser, they do not meet the requirements of 9902.13.47, HTSUS.
Your samples are being returned as requested.
The applicable subheading for item number 81954346, “Christmas Music Boxes – retail display” will be 9208.10.0000, (HTSUS), which provides for music boxes. The rate of duty will be 3.2% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Sharon Chung at (646) 733-3028.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division