CLA-2-49:OT:RR:NC:4:434
David Prata
CVS Pharmacy, Inc.
Mail Code 5055
Woonsocket, RI 02895
RE: The tariff classification of books and plush toys from China
Dear Mr. Prata:
In your letter, dated June 18, 2024, you requested a classification ruling. A detailed description and photos were provided for our review, along with a sample of the book, “On The Night You Were Born.”
The items under consideration are two styles of “Story Packs,” which are books packaged together for sale with stuffed animal toys. Both styles are covered under CVS Item number 545670.
The first style consists of a 32-page, hardbound book entitled “On The Night You Were Born.” The text of the book is a poem, that a parent might read aloud to their child, expressing how unique and special their child is and how the animals and heavens rejoiced when the child was born. Half of the pages are reserved for text and the other half, the facing pages, are color illustrations that illustrate those lines of the poem. Packaged with the book in a paperboard display is a plush polar bear toy that stands approximately 12” high.
The second style consists of a 24-page, hardbound book entitled “The Night Before Christmas.” The book contains the classic Christmas poem, written by Clement Moore, formally titled “A Visit from St. Nicholas,” with accompanying illustrations. Packaged with the book in a paperboard display is a plush reindeer toy measuring approximately 12” tall.
You propose classification of the books and toys separately, with the toys in 9503.00.0071, Harmonized Tariff Schedule of the United States (HTSUS), and the books in either heading 4901, HTSUS or 4903, HTSUS. We agree that the books and toys do not meet the definition of a set and should be classified separately. For classification purposes, the word “set” has a specific connotation defined in the Explanatory Notes (ENs) to the HTSUS. The ENs constitute the official interpretation of the tariff at the international level. EN X to General Rule of Interpretation (GRI) 3(b) provides: “for the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put 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 (e.g., in boxes or cases or on boards).” Sets are classified according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character.
The items under consideration consist of multiple articles classifiable under separate headings. They are packaged for retail sale. Therefore, they fulfill the requirements of (a) and (c) above. However, they fail (b). Although the toy polar bear or reindeer is a representation of a creature portrayed in the book, and they will be packaged and sold together, there is no clear nexus between the two articles which contemplates a use together to amuse. Reading the book is an activity separate from playing with the toy. Therefore, the items are not a set for tariff purposes and will be classified separately.
When classifying the book within Chapter 49, HTSUS, which covers printed articles, we consider headings 4901, for printed hardbound books, and 4903 for “Children’s picture, drawing or coloring books.” Note 6 to Chapter 49 states, “For the purposes of heading 4903, the expression “children’s picture books” means books for children in which the pictures form the principal interest and the text is subsidiary.” This is not the case for the books in question. “The Night You Were Born” and “The Night Before Christmas” contain a fair amount of text, and the poems could stand on their own even without the pictures. Therefore, the text is not subsidiary to the pictures. The books are not “picture books” of heading 4903, HTSUS. Rather, they are classified with the books of heading 4901, HTSUS.
The applicable subheading for the two books will be 4901.99.0070, HTSUS, which provides for “Printed books…Other…hardbound books.” The rate of duty will be Free.
The applicable subheading for the plush toy polar bear and the plush toy reindeer will be 9503.00.0071, HTSUS, which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof… ‘Children’s products’ as defined in 15 U.S.C. § 2052: Other: Labeled or determined by importer as intended for use by persons: Under 3 years of age.” The rate of duty will be Free.
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.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4901.99.0070, 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, 9903.88.15, in addition to subheading 4901.99.0070, 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.
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 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 Charlene Miller at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division