CLA-2-95:OT:RR:NC:N4:424
Mr. Louis Shoichet
Sandler, Travis & Rosenberg, P.A.
551 5th Avenue Suite 11100
New York, NY 10176
RE: The tariff classification of “Cuglies” from China
Dear Mr. Shoichet:
In your letter submitted August 18, 2020, you requested a tariff classification ruling on behalf of your client, Yolo Candy LLC. Images and descriptive information were provided in lieu of a sample. In follow-up emails you provided additional information including images of the product in its retail packaging. It is further noted that you have withdrawn your request for confirmation of the proposed value breakdown at entry for the product at issue.
You are requesting the tariff classification on an item which is identified as “Cuglies”. The merchandise at issue consists of a ball shaped lollipop candy on a plastic stem which is attached to a hinged, hollow, spherical shaped plastic container, which will contain a surprise toy. After the product is purchased and the outer wrapping is removed, the plastic handle of the sphere is designed to be opened, revealing, and providing access to the small, molded plastic toy hidden inside. Each sphere contains one plastic toy designed to fit inside which is in the form of a “cute yet ugly” toy animal figurine that a child will be interested in collecting. The assortment of “Cuglies” figurines for collection includes various animal figures such as cats, dogs, fish and monkeys.
In this instance, the “set” criteria is not met since the candy and toy in the package are not put up together to meet a particular need or carry out a specific activity. Therefore, the “Cuglies” package is not classifiable as a set, and each item is classified individually.
In your letter, you suggest the toy figurine as well as the plastic container that holds the lollipop and the toy surprise should be classified under the toy provision 9503.00.0073, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof. We disagree in part. The plastic clamshell which holds the lollipop and houses the toy surprise is not classifiable as a toy and is considered packaging.
The applicable subheading for the “Cuglies” toy figurines will be 9503.00.0073, HTSUS, which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof… ‘Children’s products’ as defined in 15 U.S.C. § 2052: Other: Labeled or determined by importer as intended for use by persons: 3 to 12 years of age.” The rate of duty will be Free.
The applicable subheading for the lollipop portion of the “Cuglies” will be 1704.90.3550, HTSUS, which provides for “Sugar confectionary (including white chocolate), not containing cocoa: Other: Confections or sweetmeats ready for consumption: Other: Other: Put up for retail sale: Other.” The rate of duty will be 5.8 percent 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 https://hts.usitc.gov/current.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 1704.90.3550, 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, i.e., 9903.88.35, in addition to subheading 1704.90.3550, 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.
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 Roseanne Murphy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division