CLA-2-63:OT:RR:NC:N3:351
Ms. Krisanne Stecklair
Geodis USA, LLC
5101 South Broad Street Philadelphia, PA 19112
RE: The tariff classification of a collapsible storage box set from China
Dear Ms. Stecklair:
In your letter dated April 13, 2023, you requested a tariff classification ruling on behalf of your client, QVC, Inc. A sample of the product was provided to this office and will be retained for training purposes.
Item #JNST81, described as a “Set of Eight Assorted Collapsible Storage Boxes” are collapsible, stackable textile storage boxes intended to store clothing and household items on a shelf. Each storage box is constructed of 100 percent polyester woven fabric coated with polyethylene on the interior surface. The rectangular-shaped box is held to shape by a collapsible stainless-steel frame with vertical supports that can be folded when not in use. The bottom of the box is comprised of a medium density fiberboard (MDF) base covered with self-fabric. Each box features a zipper closure on the top and a zippered polyethylene vinyl acetate (PEVA) window on the front for interior access; a fabric handle sewn to each side for carrying; and a “Periea®” logo sewn onto the left-hand side of the box. Each set includes: two small storage boxes, measuring 15.7 x 13 x 9.8 inches; two medium, measuring 19 x 16 x 9 inches; two large, measuring 21 x 16 x 14 inches; and two compact, measuring 11.8 x 9.6 x 6.3 inches. The large, medium, and small storage boxes also feature a PEVA window panel on the left side. The set of storage boxes is available in a variety of colors and print designs.
The collapsible storage boxes are composite goods consisting of a made-up textile article (heading 6307), stainless-steel frame (heading 7326), and PEVA (chapter 39). General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (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. GRI 3(a) states that the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to part only of the items in a composite good, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good is to be determined by GRI 3(b) or GRI 3(c). GRI 3(b) states in part that composite goods, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component which gives them their essential character. In this case, we find the essential character of the collapsible storage boxes to be the made-up textile component.
You suggest the “Set of Collapsible Storage Boxes” should be classified under 6307.90.9891, HTSUS, which provides for “Other made-up articles, including dress patterns: Other: Other: Other: Other: Other.” We agree. 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, 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 at https://hts.usitc.gov/current
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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 Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division