CLA-2-96:OT:RR:NC:N4:462
Joy Pan
Officemate, LLC
90 Newfield Avenue
Edison, NJ 08837
RE: The tariff classification of pencil box school kits from China
Dear Ms. Pan:
In your letter dated May 17, 2021, you requested a tariff classification ruling. Images and descriptive literature were provided. The items under consideration are two pencil box school kits.
Item 97313 is a polypropylene plastic pencil box containing the following: 1) a box of 12 wood pencils, 2) a 6-inch plastic protractor, 3) a stainless steel 5-inch scissor, 4) a non-toxic glue stick, 5) a mini stapler with a box of staples, 6) a pencil/crayon sharpener, and 7) 3 pink erasers. All items are packaged together and put up as a set for retail sale.
Item 97316 is a polypropylene plastic pencil box containing the following: 1) a box of 12 wood pencils, 2) a 6-inch plastic protractor, 3) a mini stapler with a box of staples, 4) a pencil/crayon sharpener, and 5) 3 pink erasers. All items are packaged together and put up as a set for retail sale.
You have suggested the pencil box school kits should be classified under subheading 3923.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for articles for the conveyance or packing of goods, of plastics: Boxes, cases, crates and similar articles. We disagree.
General Rule of Interpretation (GRI) 1, HTSUS, states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS.
GRI 3(a) states in part that when two or more headings each refer to a part of the item in a set put up for retail sale, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the goods. Both sets listed above, consist of at least two different articles that are, prima facie, classifiable in different headings. They consist of articles put up together to carry out a specific activity (i.e., providing measurements). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the items in question are within the term "goods put up in sets for retail sale."
GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component that gives them their essential character. Inasmuch as no essential character can be determined for the sets listed above, GRI 3(b) does not apply. GRI 3(c) states that, if neither GRI 3(a) nor GRI 3(b) applies, merchandise shall be classified in the heading that occurs last in numerical order. In this case, both sets contain pencils which fall last within heading 9609, HTSUS.
The applicable subheading for both pencil box sets, item 97313 and item 97316, will be 9609.10.0000, HTSUS, which provides for pencils (other than those of heading 9608), crayons, pencil leads, pastels, drawing charcoals, writing or drawing chalks and tailors’ chalks: pencils and crayons, with leads encased in a rigid sheath. The rate of duty will be 14 cents per gross plus 4.3 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9609.10.0000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 9609.10.0000, 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. The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb.
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, please contact National Import Specialist Sandra Sary at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division