CLA-2-63:OT:RR:NC:N3:351
Ms. Bernadette Purcell
QVC, Inc.
Studio Park
1200 Wilson drive
West Chester, PA 19380-4262
RE: The tariff classification of a gift wrapping organizer bag with wrapping paper, gift cards, and ribbons, from China
Dear Ms. Purcell:
This replaces Ruling Number N102958, dated May 26, 2010, which contained a mistake of fact. Specifically, we stated that the items were not imported in their retail packaging and thus could not be considered a set for tariff purposes, according to the terms of General Rule of Interpretation (GRI) 3, Harmonized Tariff Schedule of the United States (HTSUS). It was our determination that the items, as described in the ruling, were not put up in a manner suitable for sale directly to users without repackaging, as required by Explanatory Note X to GRI
3(b). We have now determined that they are in fact imported in their retail packaging, thus allowing classification of the collected items as a set for tariff purposes.
A complete corrected ruling follows.
In your letters dated April 23 and June 18, 2010, you requested a tariff classification ruling.
You submitted a tri-fold organizer containing an assortment of thirty gift bags, fifteen gift cards, fifteen sheets of gift wrap paper, three spools of polyester ribbon, and one spool of twisted craft paper (paper yarn). The bags, cards, etc., are grouped and wrapped in clear cellophane packages. The printed gift bags and gift cards are embellished with gemstones, buttons, glitter, ribbon, and foil designs.
The tri-fold organizer bag has an exterior that is constructed of 100% polyester woven fabric and an inner lining of 100% polypropylene non-woven textile fabric. The bag has two mesh pockets and two pockets made of non-woven textile fabric. The bag is designed with hook-and-loop fastener strips to secure the textile fabric pockets, and four grommets to ease the process of unraveling spools of ribbon. It has a metal hook to facilitate hanging and a plastic clasp that fastens around the folded organizer. The purpose of the bag is to hold and organize the gift wrap, gift cards, and ribbons for domestic storage.
The gift bags come in three sizes 4-1/4” x 2-5/8” x 5-1/4”, 7-1/2” x 4” x 9-1/2”, and 10” x 6” x 12”. The embellished bags are printed with holiday patterns and have a double satin ribbon handle and a coordinating gift tag attached. The embellished gift cards are lithographically printed tags with holiday patterns that can be attached to gifts by a satin ribbon which is threaded at the top of each card.
The paper yarn is made of 100 percent twisted craft paper (a multiple yarn). Two yarns are twisted together and then wrapped in a third yarn. It is contained on a spool. The yarn is used for decorating the gift wrapping.
The three spools of polyester ribbon are one inch wide and 3/4" wide. (The package says four spools.)
In your letter you indicate that all the items are packaged and sold together and you request that the product be considered a set. The Explanatory Notes, which constitute the official interpretation of the Harmonized Tariff Schedule of the United States (HTSUS) at the international level, state in Note (X) to Rule 3 (b) that the term “goods put up in sets for retail sale” means 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 up together to meet a particular need or carry out a specific activity;
(c) Are put up in a manner suitable for sale directly to users without repacking. We originally believed that the individual packaging indicated that the paper, cards, etc., needed to be repackaged for retail sale. In your June 18th letter you explain that QVC is not a retail store per se but a televised and on-line (“dotcom”) shopping retailer, akin to a mail-order house. As such, your retail packaging is the shipping box, delivered directly to the customer from your distribution center. In this instance, the individual items cannot be purchased separately and are shipped to each purchaser in the shipping box. Thus, all conditions of the above note are met and the item will be classified as a set for tariff purposes.
You state that you believe the essential character of the set is imparted by the gift bags. However, after the bags are used, the organizer can still function as intended. The essential character of this set is imparted by the textile organizer, which can be used even after the original wrapping paper, cards, and ribbons have been used and replaced.
The applicable subheading for the gift wrapping organizer bag with the wrapping paper, ribbons, etc., as described above, will be 6307.90.9889, HTSUS, which provides for other made up textile articles, other. The rate of duty will be 7% 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 on World Wide Web at http://www.usitc.gov/tata/hts/. The samples will be returned to you as you requested.
In our original ruling, we stated that a separate classification ruling regarding the fifteen gift wrap sheets would be issued at a later date pending Customs Laboratory analysis. Because the gift wrap sheets will be considered part of this set, a separate ruling on the paper will no longer be issued.
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 Mitchel Bayer at (646) 733-3102.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division