CLA-2-24:RR:NC:2:231 B88489
Mr. Charlie Luse
Honduras Cigar and Coffee Company
P.O. Box 3660
San Pedro Sula
Honduras
RE: The tariff classification cigars from the Dominican Republic, Honduras, and Nicaragua.
Dear Mr. Luse:
In your letter, which is undated and received in this office on August 7, 1997, you have requested a tariff classification ruling.
The merchandise is comprised of hand rolled cigars.
The applicable tariff provision for small cigars, cheroots and cigarillos, if the value of each is less than 15 cents, and if weighing not more than 1.36 kilogram per 1,000, will be 2402.10.3030, Harmonized Tariff Schedule of the United States (HTS), which provides for cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes, cigars, cheroots and cigarillos, containing tobacco, each valued less than 15 cents, small cigars, cheroots and cigarillos (weighing not more than 1.36 kilograms per 1,000. The rate of duty will be US $3.05 per kilogram, plus 7.6 percent ad valorem.
Cigars, cheroots and cigarillos valued less than 15 cents each, other than small cigars, cheroots and cigarillos (weighing not more than 1.36 kilogram per 1,000) are classifiable under subheading 2402.10.3060, HTS, if ATF statistical classes A through G apply, and 2402.10.3090, HTS, if ATF statistical class H applies. The rate of duty will be US 3.05 per kilogram, plus 7.6 percent ad valorem.
The applicable tariff provision for cigars, cheroots and cigarillos, if the value of each is 15 cents or more but less than 23 cents, will be 2402.10.6000, Harmonized Tariff Schedule of the United States (HTS), which provides for cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes, cigars, cheroots and cigarillos, containing tobacco, each valued 15 cents or over but less than 23 cents. The rate of duty will be 92 cents per kilogram, plus 2.2 percent ad valorem.
The applicable tariff provision for cigars, cheroots and cigarillos, if the value of each is 23 cents or more, will be 2402.10.8000, HTS, which provides for cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes, cigars, cheroots and cigarillos, containing tobacco, each valued 23 cents or over. The rate of duty will be 92 cents per kilogram, plus 2.2 percent ad valorem.
Articles classifiable under subheading 2402.10.8000, HTS, which are products of Honduras, are entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations.
Articles classifiable under subheadings 2402.10.3030, HTS, 2402.10.3060, HTS, 2402.10.3090, HTS, 2402.10.6000, HTS, and 2402.10.8000, HTS, which are products of the Dominican Republic, Honduras, or Nicaragua, are entitled to duty free treatment under the Caribbean Basin Economic Recovery Act (CBERA) upon compliance with all applicable regulations.
In addition, imports under these provisions are subject to a Federal Excise Tax (26 USC 5701) as follows:
1) $1.125 per 1,000 on cigars weighing not more than 3 pounds per 1,000;
2) 12.75 percent of the price for which sold but not more than $30 per 1,000.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Ralph Conte at (212) 466-5759.
Sincerely,
Gwenn Klein Kirschner
Chief, Special Products Branch
National Commodity
Specialist Division