CLA-2-48:OT:RR:NC:N1:130
Ms. Hoi Yiu Shek
Silver Timing Ltd.
8/F Pioneer Place
33 Hoi Yuen Road
Kwun Tong, Hong Kong
HONG KONG
RE: The tariff classification of a bow gift tag stickers from China
Dear Ms. Shek:
In your letter, dated November 5, 2018, you requested a tariff classification ruling. Product information and photos were submitted for our review.
The product under consideration is identified as “CAMS Bow Gift Tag Stickers 8CT”. The item consists of a package containing eight adhesive stickers that are designed for attachment to gifts. Each sticker is lithographically printed with Christmas- or holiday-themed designs, and has an affixed, three-dimensional, plastic strip gift bow. Each sticker, which measures approximately 3.5 inches wide by 1.75 inches high, designates “To:” and “From:” whom the gift is given. The bow, which measures 1.5 inches in diameter, is constructed of plastic strip exceeding 5mm in width and consisting of polypropylene and polyethylene terephthalate.
Tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the principles set forth in the General Rules of Interpretation (GRIs) taken in order. The Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) constitute the official interpretation of the HTSUS at the international level. Constructed of an adhesive paper label and a plastic strip bow, each of which are classifiable under different headings, the gift tag stickers are composite goods whose classification is governed by GRI 3. In accordance with the ENs for GRI 3(b), the essential character of a composite good may be determined by the nature of the material or component, its bulk, quantity, weight, or value, or by the role of a constituent material in relation to the use of the goods. In the instant case, we find that neither the bow nor the gift tag sticker imparts the essential character. The bow functions as a three-dimensional decoration, while the gift tag sticker functions as a label. Both are marketed equally in the instant packaging, and both impart consumer appeal. Both gift tags and bows are common items that are separately affixed to holiday gifts. As such, the bow gift tag stickers will be classifiable in accordance with GRI 3(c), or by the classification occurring last in the HTSUS. Gift bows constructed of plastic strip are classifiable in heading 4602, HTSUS, while the gift tags are classifiable in a heading within Chapter 48. Therefore, the bow gift tag stickers will be classified in Chapter 48.
The ENs facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings. While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989). Heading 4821, HTSUS, provides for paper and paperboard labels. The ENs to heading 4821, HTSUS, state that:
This heading covers all varieties of paper and paperboard labels of a kind used for attachment to any type of article for the purpose of indicating its nature, identity, ownership, destination, price, etc. They may be of the stick-on type (gummed or self-adhesive) or designed to be affixed by other means, e.g., string.
These labels may be plain, printed to any extent with characters or pictures, gummed, fitted with ties, clasps, hooks or other fasteners or reinforced with metal or other materials. They may be perforated or put up in sheets or booklets.
The instant gift tag stickers are used for attachment by adhesive to gifts and identify the giver and recipient of the gift. As such, we find that the instant stickers function as paper labels of heading 4821, HTSUS.
The applicable subheading for the bow gift tag stickers will be 4821.10.2000, HTSUS, which provides for Paper and paperboard labels of all kinds, whether or not printed: Printed: Printed in whole or in part by a lithographic process. The rate of duty will be free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 4821.10.2000, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 4821.10.2000, HTSUS, listed above.
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 https://hts.usitc.gov/current.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division