CLA-2-63:OT:RR:NC:N3:351
Ms. Lesa Hubbard
JC Penney
2401 South Stemmons Freeway, Suite 4000 Lewisville, TX 75067
RE: The tariff classification of gift bags from China
Dear Ms. Hubbard:
In your letter dated November 17, 2022, you requested a tariff classification ruling. Samples of the products were provided to this office and will be retained for training purposes.
Item #346148-Santa, described as a “Large Christmas Gift Bag,” is a textile bag intended to be used as an alternative to Christmas gift-wrap or to hold multiple wrapped presents. The bag is composed of a 100 percent polyester knit, dyed red, velvet fabric, and is lined with a 100 percent polyester woven, dyed red, fabric. The rectangular bag measures 18 inches in length by 29 ½ inches in width and is sewn on three sides. The opened end is hemmed and features a drawstring closure with white pompoms. The front of the bag depicts a Santa featuring a Santa beard and fur hat brim applique composed of 100 percent polyester knit pile fabric, an embroidered pair of eyes and mouth, a red pompom nose, and a black belt composed of 100 percent polyester knit fabric with an embroidered yellow buckle.
Item #346148-Snowman, described as a “Large Christmas Gift Bag,” is a textile bag intended to be used as an alternative to Christmas gift-wrap or hold multiple wrapped presents. The bag is composed of four fabrics. The back fabric is composed of a 100 percent polyester knit, dyed white, velvet. The front hat fabric is composed of a 100 percent polyester knit, dyed green, micro mink. The front snowman face fabric is composed of a 100 percent polyester knit, dyed white, sherpa. The liner is composed of a 100 percent polyester woven, dyed white, fabric. The rectangular bag measures 18 inches in length by 29 ½ inches in width and is sewn on three sides. The opened end is hemmed and features a drawstring closure embellished with red snowflakes composed of 100 percent polyester nonwoven felt fabric. The front of the bag depicts a Snowman featuring a green hat with printed white vertical lines, two green felt holly leaves, three red berry pompoms, and a green fur hat brim stuffed with 100 percent polyester fiberfill. In addition, the snowman features a pair of black eyes, an orange carrot shaped nose, five embroidered dots for a mouth and a two inch wide 100 percent acrylic knit, dyed red, scarf wrapped around the bag, sewn, and tied in a knot.
You have suggested that the “Large Christmas Gift Bags” should be classified under subheading 9505.10.2500, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Christmas ornaments: Other: Other.” We disagree. The snowman and Santa themed drawstring textile gift bags are functional, utilitarian articles that hold and carry gifts to the intended recipient. Functional articles are excluded from classification as festive articles by Chapter Note 1(x) to Chapter 95 of the HTSUS.
The applicable subheading for the “Large Christmas Gift Bags” will be 6307.90.9891, HTSUS, which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.” The rate of duty will be 7 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.90.9891, 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 6307.90.9891, 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 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, contact National Import Specialist Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division