CLA-2-48:OT:RR:NC:1:130
Mr. David Prata
CVS Pharmacy, Inc.
Mail Code 5055
Woonsocket, RI 02895
RE: The tariff classification of a rigid paperboard bucket from China
Dear Mr. Prata:
In your letter, dated August 18, 2020, you requested a tariff classification ruling. The ruling was requested for Item 294839, Cardboard Easter Bucket. Photos and product information were submitted for our review.
The item is a five-sided, open box constructed of rigid paperboard. It is flared toward the top, being constructed of a square bottom with four trapezoidal sides. The bucket has a textile ribbon handle that is inserted through grommeted holes on two opposite sides. The sides are printed with licensed Peeps artwork. The item serves as an alternative to a traditional Easter basket.
In your letter, you suggest that the Easter Bucket is classifiable under heading 9505, Harmonized Tariff Schedule of the United States (HTSUS), which provides for festive articles. We disagree. The Explanatory Notes (ENs) to heading 9505 specifically exclude “(c) packagings of plastics or of paper, used during festivals.” The bucket is effectively packaging for candy or other Easter-related items. It will be classified according to its constituent material, paper. While the item is referred to as a “bucket”, we find that it is akin to a box. Headquarters ruling H058795 explains that the ENs to heading 4819 do not limit boxes to those with lids. The Easter Bucket is not a decorative item that will be retained for household use.
The applicable subheading for the Easter Bucket will be 4819.50.4040, HTSUS, which provides for Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Other packing containers, including record sleeves: Other: Other: Rigid boxes and cartons. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4819.50.4040, HTSUS, unless specifically excluded, are subject to an additional 25% 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 4819.50.4040, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 laurel.duvall@cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division