CLA-2-94:OT:RR:NC:N4:110
Mr. Joseph Kenny
Geodis USA Inc.
One CVS Dr.
Woonsocket, RI 02895
RE: The tariff classification of the witch hat LED light string from China
Dear Mr. Kenny:
In your letter dated March 19, 2021, on behalf of CVS Pharmacy Inc., you requested a tariff classification ruling. Product information and a photo were submitted for our review.
The merchandise under consideration is identified as Witch Hat LED Light String, CVS item 656327. The item is a lighted garland sold and marketed only as part of the CVS Spooky Village Halloween line. It is powered with three AAA batteries. There are eight 9 inches tall woven polyester hat-shaped decorations which contain LED lamps. When attached to the garland, the hats light up internally to provide a decorative effect. It is stated that the hats can be removed from the garland to provide decoration but do not light independently of the garland. The hats could probably be worn as part of a costume though they are not designed for that purpose.
The subject garlands may be hung or displayed in various areas of the home (e.g., doorways, windows, railings, fireplace mantles, yard, etc.). Light strings are also known as electric garland. Electric garland was defined in Ruling HQ 963311 as “an article…able to be hung or displayed and is composed of a string of light bulbs which are powered by an electrical source either attached by a battery, cord, or plug.” They are classifiable under subheading 9405.40.8410, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Lamps and lighting fittings…: Other electric lamps and lighting fittings: Other: Other light sets.” However, the item has a three-dimensional motif(s) closely associated with Halloween, a specific holiday in the United States. Therefore, they are eligible for duty-free treatment under subheading 9817.95.05, HTSUS, which provides for “Articles classifiable in subheadings…9405.20, 9405.40, or 9405.50, the foregoing meeting the descriptions set forth below: Utilitarian articles in the form of a three-dimensional representation of a symbol or motif clearly associated with a specific holiday in the United States.” The general rate of duty will be Free.
However, both subheading 9817.95.05 and subheading 9405.40.8410 must be reported for statistical purposes with regard to this item, according to Statistical Note 1(a) of Chapter 98 Subchapter XVII.
Products of China classified under subheading 9405.40.8410, 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., 9903.88.03, in addition to subheading 9405.40.8410, HTSUS, listed above. Please note, the additional duties imposed by heading 9903.88.03 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, and heading 9802.00.80.
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 the World Wide Web at http://www.usitc.gov/tata/hts/.
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 Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division