CLA-2-84:OT:RR:NC:N1:102
Kristina Marie Barry
GDLSK LLP
599 Lexington Avenue FL 36
New York, New York 10022
RE: The tariff classification of wine preservation systems
Dear Ms. Barry:
In your letter dated August 6, 2021, you requested a tariff classification ruling on behalf of your client, Coravin, Inc. Descriptive information was provided with your request.
The products under consideration are four Coravin wine preservation systems: the Model Three SL, the Model Three Plus, the Model Pivot and the Model Pivot Plus. The Model Three SL consists of a Coravin Model Three device, a needle clearing tool, a bottle bag, and a screw cap in some instances. The Model Three Plus consists of a Coravin Model Three device, an aerator, two screw caps, a needle clearing tool, and a bottle bag. The Model Pivot consists of a Coravin Pivot device, two pivot stoppers and a bottle bag. The Model Pivot Plus consists of a Coravin Pivot device, a pivot aerator, two pivot stoppers and a bottle bag. Upon importation, the systems will be repackaged with gas argon capsules.
The Coravin Model Three and Model Pivot devices, which are primarily of plastic material, are handheld devices that use compressed argon gas to allow a user to pour wine from a wine bottle. With the Model Three device, the user aligns the SmartClamps™ over the neck of the bottle and pushes down on the handle in one fluid motion, thereby manually inserting a thin metal needle through the cork and into the wine bottle. The needle, when inserted into an unopened wine bottle, facilitates the flow of argon gas from the device into the bottle, and draws wine out of the bottle for serving when the bottle is upturned.
A hand-operated trigger activates a valve to regulate the flow of compressed argon gas (stored in a disposable cartridge within the device body) through a pressure regulator valve and into the wine bottle.
To pour the wine, a user tilts the bottle towards a wine glass and presses and releases the trigger button, sending argon gas into the bottle and forcing the pressurized wine to flow up the needle to the pouring spout. Releasing the trigger stops the flow of argon gas into the bottle, and the bottle is returned to an upright position to stop pouring. When the Coravin device and its needle are removed, the cork reseals itself, and the argon gas within the bottle prevents the remaining wine from spoiling through oxidization.
The Model Pivot device is described as a single-system. In use, the user replaces the cork of a wine bottle with a pivot stopper. The user then inserts a gas argon capsule into the Model Pivot device. Afterwards, the device’s metal insert is pushed though the pivot stopper. A hand-operated trigger button at the top of the device activates a valve that regulates the flow of argon gas and wine.
To pour the wine, a user tilts the bottle towards a wine glass and pressurized wine flows up and through the spout. Once the user is finished pouring, the trigger button is released, and the bottle is turned into an upright position. When the Model Pivot device is removed from the wine bottle, the pivot stopper is closed to seal the wine bottle.
The aerator (compatible with Model Three Plus and Model Three SL) and the Pivot Aerator (compatible with the Pivot and Pivot Plus Models) operate in the same manner but differ in size and angle of the wine spout. Both aerators force wine through their two rings, which feature multiple small openings, creating a shower effect. This process aerates the wine. The aerator, which is primarily of plastic material, consists of an inner separator, outer separator, a mid-separator, a screen, and a body.
The stainless-steel needle clearing tool is used to clear cork from the inside of the needle. The user holds the needle in one hand and the tool in the other hand. The user alternately uses the clearing tool to push cork down from the top toward the eye of the needle, then uses the tool to push cork through the eye of the needle. The user repeats this process until the needle pathway is clear.
The screw cap is constructed of molded plastic and incorporates a silicone plug in the center to aid in sealing the bottle and a foam plastic cap liner.
Two stoppers are included with the Model Pivot and Model Pivot Plus systems. Review of submitted photos and documentation indicate that these stoppers are composed of silicone and are hollow with an attached cap. A stopper is inserted into the bottle to replace the cork. The user will pop open the cap to insert the Pivot device and after use, the Pivot device is removed, and the cap is snapped back into place.
The accessory, described as a bottle bag, is a bag designed and intended to be used with a wine bottle to provide protection and containment of glass should the bottle break. The bag is composed of 100 percent nonwoven polypropylene textile material. The rectangular shaped bag measures 6 inches in width by 11 ½ inches in height. To form the bag, the nonwoven fabric is cut to shape, folded over, and heat sealed closed along both sides. The open-top bag features the top edge of the fabric also folded over and heat sealed. You state the bag does not feature a ribbon drawstring or zipper closure.
In your letter, you suggest that the wine preservation systems are classified as sets, in accordance with General Rule of Interpretation (GRI) 3(b). The Explanatory Notes to the Harmonized Tariff System of the United States (HTSUS) provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the International level.
Explanatory Note X to GRI 3 provides that the term "goods put up in sets for retail sale" mean goods that: (a) consist of at least two different articles which are prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking.
In this instance, the items packaged together do not represent a set, in accordance with Explanatory Note X. Upon importation, the systems will be repackaged to include the gas argon capsules. The missing argon capsules render the merchandise unsuitable for retail sale at the time of importation. Accordingly, the items in each wine preservation system will be separately classified.
The applicable subheading for the Coravin Model Three and Model Pivot devices will be subheading 8481.80.5090, HTSUS, which provides for Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Other appliances: Hand operated: Of other materials: Other. The general rate of duty will be 3 percent ad valorem.
The applicable subheading for the bottle bag will be 6307.90.9891, HTSUS, which provides for Other made up articles, including dress patterns: Other: Other: Other: Other: Other. The general rate of duty will be 7 percent ad valorem.
The applicable subheading for the needle clearing tool will be 8205.59.5560, HTSUS, which provides for Handtools (including glass cutters) not elsewhere specified or included; blow torches and similar self-contained torches; vises, clamps and the like, other than accessories for and parts of machine tools; anvils; portable forges; hand- or pedal-operated grinding wheels with frameworks; base metal parts thereof: other handtools (including glass cutters) and parts thereof: other: other: of iron or steel: other: other (including parts). The general rate of duty will be 5.3 percent ad valorem
The applicable subheading for the molded plastic screw caps will be 3923.50.0000, HTSUS, which provides for Stoppers, lids, caps and other closures, of plastics. The general rate of duty will be 5.3 percent ad valorem.
The applicable subheading for the pivot stopper will be 3923.50.0000, HTSUS, which provides for Stoppers, lids, caps and other closures, of plastics. The general rate of duty will be 5.3 percent ad valorem.
As the aerators would be considered articles of plastic, and as they are not more specifically provided for elsewhere, the applicable subheading will be 3926.90.9985, HTSUS, which provides for Other articles of plastics and articles of other materials of headings 3901 to 3914: Other: Other: Other. The general rate of duty is 5.3 percent ad valorem.
In your letter, it is mentioned that some of the products are from China. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8481.80.5090, HTSUS, and 8205.59.5560, 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 subheadings 8481.80.5090, HTSUS, and 8205.59.5560, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 6307.90.9891, HTSUS, and 3926.90.9985, 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 subheadings 6307.90.9891, HTSUS, and 3926.90.9985, 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, including information on exclusions and their effective dates, 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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division