CLA-2-70:OT:RR:NC:N2:226

Ms. Mia J. Aguilar
Kuehne & Nagel, Inc.
156-15 146th Avenue
Jamaica, New York 11434

RE: The tariff classification of a lead crystal decanter of cognac in a display/gift box from France.

Dear Ms. Aguilar:

In your letter dated December 27, 2011, on behalf of your client, Remy Amerique, Inc., you requested a tariff classification ruling. A representative sample of a lead crystal glass decanter with a lead crystal glass stopper, a display/gift box and a cardboard box were submitted with your ruling request. These samples will be returned to you as requested.

The subject merchandise consists of 750 milliliter of “Louis XIII Cognac” imported in a decorative lead crystal glass decanter packaged together with a lead crystal fleur de lis glass stopper in a red hard-covered display box and an outer cardboard box with two rope carrying handles. The inside of the display box has a satin textile lining which covers hollowed shapes designed to secure the glass decanter with cognac and the glass stopper. The outside of the box features a gold-colored base metal label with the words “Louis XIII de Remy Martin Grande Champagne Cognac.”

This fitted display box is designed to protect, store, display and/or transport the decanter of cognac during shipment into the United States. You state that the item is imported in the display box, which is the retail packaging in which it will be sold to consumers in the United States. The display box including its contents will be imported in the cardboard box.

You indicate in your letter that the glass decanter is composed of 24 percent or more lead monoxide by weight. The neck of the decanter features a gold-colored base metal band with the words “Louis XIII de Remy Martin Grande Champagne Cognac.” It is also featured with a cork stopper attached to a gold-colored base metal lid. You state that the cork stopper is used for shipping purposes but will be replaced with the glass stopper when displayed on the bar back.

In your letter you state that the lead crystal glass decanter and lead crystal glass stopper both have a unique serial number engraved on each article for purposes of tracking and traceability. The unit value of the glass decanter with glass stopper is over five dollars.

The applicable subheading for the decorative lead crystal glass decanter with fleur de lis glass stopper will be 7013.41.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for glassware of a kind used for table (other than drinking glasses) or kitchen purposes other than that of glass-ceramics: of lead crystal: valued over five dollars each. The rate of duty will be 6 percent ad valorem.

The applicable subheading for the Louis XIII Cognac will be 2208.20.4000, HTSUS, which provides for…spirits, liqueurs and other spirituous beverages: spirits obtained by distilling grape wine or grape marc (grape brandy): in containers each holding not over 4 liters: valued over $3.43/liter. The rate of duty will be free.

For entry purposes, the value of the display box will be prorated over the tariff classifications of the glass decanter and the cognac.

In addition, each bottle of Cognac is subject to a Federal Excise Tax of $13.50 per proof gallon and a proportionate tax at the like rate on all fractional parts of a proof gallon.

This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.

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 Jacob Bunin at (64) 733-3027.

Sincerely,

Thomas J. Russo
Director
National Commodity Specialist Division