CLA-2-42:OT:RR:NC:N4:441
Greg V. Tout
Freight On Board International Services Pty Ltd
Gr Floor, 100 Paisley Street
Footscray 3011
Australia
RE: The tariff classification of an insulated cooler bag and food containers from China
Dear Mr. Tout:
In your letter, dated March 7, 2019, you requested a tariff classification ruling on behalf of Smash USA Inc. You have submitted a sample, which will be retained by this office.
The submitted sample is identified as a five-piece lunch bag, style 22080. The item is comprised of a sandwich container, a cookie container, a double snack tube container, a bottle, and an insulated cooler bag. The containers and bottle are all made of polypropylene (PP) plastic material.
The insulated cooler bag is constructed with an outer surface of plastic sheeting and textile material. The front panel of the bag is constructed with the plastic sheeting. There is a motif on the front panel incorporating eyes, ears, a nose, and other distinctive features that create the face of a dog. The dog face formed on the plastic panel creates the most pronounced and interesting visual impact. As such, the essential character of the bag is imparted by the front panel, General Rule of Interpretation 3(b) of the Harmonized Tariff Schedule of the United States (HTSUS) noted.
The insulated bag is designed to provide storage, protection, portability, and organization to food and beverages during travel. It is also designed to maintain the temperature of food and beverages. The bag has a top zippered opening, a zippered side pocket to hold a bottle, and one handle. The front exterior has a zippered pocket. The interior has a mesh wall pocket with a hook-and-loop strip.
In your request, you proposed classification of both the insulated cooler bag and the food storage containers in subheading 3924.90, HTSUS, which provides for tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: other: other. We disagree. Firstly, the insulated bag and food containers are not considered a set or a composite good. As such, each component will be classified separately under its appropriate subheading. Insulated food and beverage bags are correctly classified in Heading 4202.
Secondly, regarding the classification of the storage containers, General Rule of Interpretation (GRI) 3(a) states, in part, the following: “The heading which provides the most specific description shall be preferred to headings providing a more general description.” In addition, GRI 6 states, in part, the following: “For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable.”
The term kitchenware is a general one that includes food storage items and beverage bottles. These items are designed for use to hold and store food or beverages until they are served. Since the food storage items and beverage bottle of plastic are more specifically provided for in an earlier subheading of Heading 3924 than the subheading that you have proposed, it is the opinion of this office that this item is correctly classified in the more specific subheading described below.
The applicable subheading for the plastic storage containers will be 3924.10.4000, HTSUS, which provides for tableware, kitchenware…of plastics: tableware and kitchenware: other. The general rate of duty will be 3.4 percent ad valorem.
The applicable subheading for the insulated cooler bag will be 4202.92.1000, HTSUS, which provides for insulated food and beverage bags, with outer surface of sheeting of plastic or of textile materials, other. The general duty rate will be 3.4 percent ad valorem.
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 4202.92.10, 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, 9903.88.03, in addition to subheading 4202.92.1000, HTSUS, listed above. The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the notice cited above and the applicable Chapter 99 subheading.This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 the 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 Vikki Lazaro at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division