CLA-2-48:OT:RR:NC:N1:130
Ms. Eileen Family
Geodis USA
5101 South Broad Street
Philadelphia, PA 19112
RE: The tariff classification of packaging items from China
Dear Ms. Family:
In your letter, dated May 3, 2023, you requested a binding tariff classification ruling on behalf of your client, David Donahue, Inc. The ruling was requested on packaging items. Product information and photos were submitted for our review. In your letter, you also appear to request a country of origin determination. However, you provided no information regarding the origin or manufacturing of any of the components, so only the tariff classification will be determined herein.
This ruling addresses the classification of 5 packaging items, as noted below. We will also address the classification when the first four items are imported together.
Item 1 is a rigid, non-corrugated paperboard box with a hinged lid and magnetic closure. You do not provide the dimensions for the box. The box appears to be approximately 4” wide by 10” long by 1.5” high.
Item 2 is a rectangular, non-corrugated paperboard insert that will be inserted into the box. You do not provide any additional information.
Item 3 is described as an acetate cover. It is composed of clear acetate sheet and is rectangle-shaped with four sides folded down to allow it to fit into the paperboard box. The cover will protect and provide a clear view of the goods eventually packaged inside.
Item 4, described as a “Woven Polyester Ribbon,” is a narrow woven ribbon used for decorative purposes. Based on the information provided, the ribbon is composed of polyester, approximately one centimeter in width and contains woven selvedges. The ribbon will be imported in two different forms. When the ribbon is shipped separately, it will be imported on rolls. When the ribbon is imported with the cardboard box, acetate cover, and cardboard insert, it will be cut to length at a 45 degree angle and tied into a bow.
Item 5 is a square box with an angled top that is constructed of rigid paperboard. The box lid is a flat square fitted that fits into the opening of the top of the box. The lid has a textile ribbon tab that allows it to be lifted out of the opening and off of the box. The box and lid are lined with polyester velvet textile. You do not identify the dimensions of the box, however, the box appears to be an appropriate size for the packaging of a pair of cufflinks. The box is not fitted and does not contain any insert.
The applicable subheading for Item 1, the rigid cardboard box with hinged lid, will be 4819.50.4040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Other packing containers, including record sleeves: Other: Other: Rigid boxes and cartons. The rate of duty will be free.
You have not provided sufficient information to allow for the classification of Item 2, the paperboard insert.
The applicable subheading for Item 3, the acetate cover, 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.
You suggest that the woven ribbon, when cut to size and tied in a bow, should be classified under subheading 6307.90.9891, HTSUS, which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.” We disagree. The ribbon does not meet the term “made up” as defined in Note 7 to Section XI of the HTSUS.
The applicable subheading for Item 4, both versions of the “Woven Polyester Ribbon,” will be 5806.32.1030, HTSUS, which provides for “Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs): Other woven fabrics: Of man-made fibers: Ribbons: Other: Of a width not exceeding 12 cm: Of polyester: With woven selvedge: Other.” The rate of duty will be 6 percent ad valorem.
You suggest that the small rigid paperboard box should be classified under subheading 4823.90.8680, HTSUS, which provides for Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers: Other: Other: Other: Other: Other: Other. We disagree. There is no aspect of the box that disqualifies it from being classified as a rigid paperboard box.
The applicable subheading for Item 5, the rigid paperboard box with removable lid, will be 4819.50.4040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Other packing containers, including record sleeves: Other: Other: Rigid boxes and cartons. The rate of duty will be free.
You indicate that items 1-4 may also be imported together in equal numbers to be assembled by the importer and used to package goods that will be shipped to retail outlets. Tariff classification under the HTSUS is governed by the principles set forth in the General Rules of Interpretation (GRIs) taken in order. The Explanatory Notes to the Harmonized Commodity Description and Coding System constitute the official interpretation of the HTSUS at the international level. The box, acetate cover, paperboard insert, and ribbons form a composite good whose classification is governed by GRI 3(b). When imported together in equal numbers, the packaging is essentially an unassembled composite good. GRI 2 instructs that an unassembled good is classified in the same manner as an assembled good. In accordance with the Explanatory Notes for GRI 3(b), the essential character of a composite good may be determined by the nature of the material or component, its bulk, quantity, weight, or value, or by the role of a constituent material in relation to the use of the goods. The rigid box with hinged lid predominates in bulk and contains all of the other components. The box is the most essential item in terms of the function of the four items as product packaging. Thus, the box is the component that imparts the essential character to this composite good.
The applicable subheading for Items 1-4 imported together in equal numbers will be 4819.50.4040, HTSUS, which provides for Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Other packing containers, including record sleeves: Other: Other: Rigid boxes and cartons. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 4819.50.4040, 3923.50.0000, and 5806.32.1030, 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 4819.50.4040, 3923.50.0000, and 5806.32.1030, 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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division