CLA-2-48:OT:RR:NC:N5:130
Mr./Ms. Angel Hsieh
Pacific Island Creations Co., Ltd.
6F, No. 8, Lane 321, Yang Guang St.
Neihu Dist., Taipei 114
TAIWAN
RE: The tariff classification of paper tags from China
Dear Mr./Ms. Hsieh:
In your letter, dated November 20, 2023, you requested a binding classification ruling. The request sought the tariff classification of paper tags. Product information and photos were submitted for our review.
The products under consideration are die-cut paperboard tags in three shapes. The first, DAD0476, is a generally rectangular tag with a scalloped edge on one of its narrow sides. The tags measure 1 1/2" x 3 1/8” and are punched with a hole for threading and attachment to an article. The second, DAD0477, is a generally rectangular tag with four scroll-shaped sides. The tags measure approximately 2” x 2 3/4" and are punched with a hole. The third, DAD0478, is a generally circular tag cut in the shape of a flower with 8 petals. The tags measure approximately 3” in diameter and are punched with a hole. The tags are unprinted and are used to label articles, for example, for identification or for addressing gifts.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the Harmonized Tariff Schedule of the United States (HTSUS) by offering guidance in understanding the scope of the headings and the General Rules of Interpretation (GRIs). While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
The Explanatory Notes (ENs) to Heading 4821 provide that the heading “covers all varieties of paper and paperboard labels of a kind used for attachment to any type of article for the purpose of indicating its nature, identity, ownership, destination, price, etc. They may be of the stick-on type (gummed or self-adhesive) or designed to be affixed by other means, e.g., string.” The tags are plain labels designed to be affixed to an article, so this language describes the tags. Therefore, the tags are classifiable under heading 4821.
The applicable subheading for the grading tags will be 4821.90.4000, HTSUS, which provides for Paper and paperboard labels of all kinds, whether or not printed: Other: Other. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4821.90.4000, 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 4421.90.4000, 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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, contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division