CLA-2-92:RR:NC:1:128
Mr. Peter Pennesi
V. Alexander & Co., Inc.
6555 Quince Rd.
Suite 201
Memphis, TN 38119
RE: The tariff classification of music box ornaments and gift bags from China.
Dear Mr. Pennesi:
In your letter dated July 23, 2007, on behalf of Mr. Christmas, Inc., you requested a tariff classification ruling.
The submitted sample is identified as Item Number 15009M, “PMB Christmas Tree Ornaments”. It consists of five music box ornaments: one each of Santa, Snowman, Nutcracker, Gingerbread House, Christmas Tree, and five paper gift bags. The ornaments are made of porcelain and feature a hinged, flip-open lid with a latch closure. When each box is opened, a wind-up musical mechanism concealed within the base compartment activates a Christmas carol, and a miniature rotating holiday scene is revealed. A textile hanging loop is attached to the top of each ornament. The paper gift bags are flat-bottomed, each with a base measuring approximately 3” x 4” and a height of 5¾”. Dual textile-cord carrying handles are attached at the top. Attached to one handle is a blank gift card, and included with the gift bag is a sheet of white tissue paper.
The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two 2 different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up 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.
The PMB Christmas Tree Ornaments with gift bags are not considered to be sets for tariff classification purposes since the components are not put up together to meet a particular need or carry out a specific activity. Therefore, the items must be classified separately.
In your letter, you suggest classification in 9505.10.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles: parts and accessories thereof: Articles for Christmas festivities and parts and accessories thereof: Christmas ornaments: Of glass.” However, since the essential character of the ornaments is imparted by the music boxes, and since the items are more specifically provided for as music boxes, consideration of classification under 9505.10.1000 is precluded.
The applicable subheading for the music box ornaments will be 9208.10.0000, HTSUS, which provides for “Music boxes, fairground organs, mechanical street organs, mechanical singing birds, musical saws and other musical instruments not falling within any other heading of this chapter; decoy calls of all kinds; whistles, call horns and other mount-blown sound signaling instruments: Music boxes.” The rate of duty will be 3.2% ad valorem.
However, heading 9902, HTSUS, covers a wide variety of goods that have a temporary reduction in their rate of duty by virtue of legislative action. Subheading 9902.13.47, HTSUS, provides for “Music boxes with mechanical musical movements, presented in the immediate packaging for shipment to the ultimate purchaser, and each weighing not over 6 kg together with retail packaging (provided for in subheading 9208.10.00).” Accordingly, if the subject music box ornaments meet the prerequisites of this tariff provision, they are entitled to beneficial treatment under HTSUS subheading 9902.13.47. The rate of duty is Free. This rate only applies to articles entered on or before December 31, 2009.
The applicable subheading for the paper gift bags will be 4819.40.0040, HTSUS, which provides for “Other (than certain enumerated) sacks and bags, of paper or paperboard.” 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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Sharon Chung at 646-733-3028.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division