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 paperboard gift card box from China
Dear Mr. Prata:
In your letter, dated November 16, 2020, you requested a tariff classification ruling. The ruling was requested for Item 168232, 3-Pack Gift Card Holders. Photos and product information were submitted for our review.
The gift card holders are boxes that are constructed of non-corrugated paperboard and have six sides. They each measure 4” W x 3” L x ¾” thick and are constructed of 300gsm paperboard. The paperboard is die-cut, folded to shape, and glued together along one edge. On two opposite ends, each box has flap closures that fold to insert into the box. Each box is printed and decorated with a Christmas or holiday theme. A separately-purchased gift card is inserted into the holder after importation.
In your letter, you inquire as to whether the boxes constitute folding or rigid paperboard boxes. The Explanatory Notes to the Harmonized System for heading 4819 identify what is meant by the term “folding boxes”. There are two definitions, yet one describes the instant boxes:
containers assembled or intended to be assembled by means of glue, staples, etc., on one side only, the construction of the container itself providing the means of forming the other sides, although, where appropriate, additional means of fastening, such as adhesive tape or staples may be used to secure the bottom or lid.
The instant boxes are fully assembled by means of glue on one side only, with the construction providing the means for forming the other sides. Effectively, they are the same as flat folding boxes; they are simply already folded to shape prior to importation. Therefore, they are classifiable as folding boxes.
The applicable subheading for the gift card holders will be 4819.20.0040, Harmonized Tariff Schedule of the United States (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: Folding cartons, boxes and cases, of non-corrugated paper or paperboard: Other. 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 4819.20.0040, 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 4819.20.0040, 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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division