CLA-2-76:OT:RR:NC:N5:113
Mr. Joseph T. Black
Thompson Coburn LLP
1909 K Street N.W.
Suite 600 Washington, DC 20006
RE: The tariff classification of a Bag on Valve from China
Dear Mr. Black:
In your letter dated July 16, 2024, on behalf of your client Consumer Product Partners, LLC, you requested a tariff classification ruling. Product descriptions and photographs were submitted for our review.
The product under consideration is identified as a Bag on Valve (BoV). The components that comprise the bag and valve assembly include an aluminum seal cup, a rubber cup gasket, a rubber stem gasket, a nylon stem, a stainless steel spring, a nylon valve chamber, a rubber washer, a polyethylene bow, a polyethylene dip tube, a paper sticker, and a polyethylene terephthalate (PET), aluminum, nylon, and polyethylene multilayered bag. The Bag on Valve will be imported into the United States as an assembled product.
You stated in your letter that the Bag on Valve is a common consumer packaged goods technology that is used to retail various liquid products where dispensing is a desired feature. You indicated that the bag and valve assembly will be placed into a can, the can will be pressurized with air/nitrogen, the valve will be crimped onto the can, the bag will be filled with the liquid product, and the actuator and cap will be placed on the valve to enable delivery of the liquid product by the consumer. You are requesting the classification of the Bag on Valve alone.
In your letter, you suggested the applicable subheading for the Bag on Valve to be 8424.90.9080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof: Parts: Other: Other. We disagree. The Bag on Valve will be incorporated into a finished spray can, which has been consistently ruled on by Customs and Border Protection (CBP) to be classified outside of heading 8424, HTSUS. For example, Headquarters Ruling (HQ) 962432 (dated November 17, 1999), and New York Ruling (NY) 886712 (dated June 18, 1993), and NY 873871 (dated May 12, 1992), all contained similar spray cans that were found to be classified outside of heading 8424, HTSUS. In our opinion, the rulings are correct, therefore, the Bag on Valve cannot be considered a part in subheading 8424.90, HTSUS.
The Bag on Valve is a composite article that is comprised of a seal cup, cup gasket, stem gasket, stem, spring, valve chamber, washer, bow, dip tube, a paper sticker, and multilayered bag comprised of different materials including aluminum, rubber, nylon, stainless steel, polyethylene, and paper that are classified in different headings. Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the components that comprise the subject Bag on Valve in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character.
As the Bag on Valve is a composite good, we must apply rule GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. EN VIII to GRI 3(b) explains that the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.We must determine whether the seal cup, cup gasket, stem gasket, stem, spring, valve chamber, washer, bow, dip tube, a paper sticker, or multilayered bag imparts the essential character to the Bag on Valve. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the Bag on Valve is used to package various liquids and hold the product, and the multilayered bag performs the function of holding the liquid. Therefore, it is the opinion of this office that the bag imparts the essential character to the subject Bag on Valve.
The multilayered bag is a composite article that is comprised of polyethylene, aluminum, and nylon layers that are classified in different headings. Since no one heading in the tariff schedules covers the polyethylene, aluminum, and nylon of the subject bag in combination, GRI 1 cannot be used as a basis for classification. As the multilayered bag is a composite good, we must apply rule GRI 3(b), which provides that composite goods are to be classified according to the component that gives the bag its essential character. It is the role of the constituent material or component in relation to the use of the bag that imparts the essential character. In this case, the polyethylene and nylon reinforce/support the aluminum layers which protect and preserve the liquid contents. Therefore, it is the opinion of this office that the aluminum imparts the essential character to the multilayered bag. In accordance with GRI 3(b), the Bag on Valve will be classified in heading 7612, HTSUS, which provides for Aluminum casks, drums, cans, boxes and similar containers, for any material, of a capacity not exceeding 300 liters.
The applicable subheading for the Bag on Valve will be 7612.90.1030, HTSUS, which provides for Aluminum casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment: Other: Of a capacity not exceeding 20 liters: Cans of a capacity not exceeding 355 ml. The rate of duty will be 5.7 percent ad valorem.
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/.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7612.90.1030, 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 7612.90.1030, 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, 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 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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division