CLA-2-70:OT:RR:NC:N2:226
Mr. Kenneth B. Jaremco
Whisky Connoisseur International Group Inc.
23749-72 Avenue
Langley, British Columbia V1M 3K9
Canada
RE: The tariff classification of whisky travel kits from various countries.
Dear Mr. Jaremco:
In your letter dated January 21, 2016, you requested a tariff classification ruling.
The merchandise under consideration is referred to as the Deluxe Leather Whisky Travel Kit, the Canvas With Leather Trim Travel Kit, and the Share-A-Dram Gift Kit. Samples were submitted with your ruling request and will be returned to you.
The Deluxe Leather Whisky Travel Kit consists of two 4.5 inch high soda lime glass drinking glasses, six 3.25 inch high soda lime glass bottles with plastic caps and numbered metal medallions on a metal chain around their necks, two plastic pipets for dispensing water, a metal funnel, two fabric coasters, a whisky tasting journal, a samples ledger, a pencil, and an ID tag, packaged in a leather case with a fitted foam insert. The leather case in turn is stored in a fabric gift bag, and the whole is packaged for retail sale in a paperboard box.
From the information you provided, this kit is designed for use at a whisky tasting event or distillery tour. The funnel is used to pour whisky samples into the empty bottles for storage, and the glasses used to enjoy the stored whisky samples at home. The ledger is used to note the sample’s basic details, while the tasting journal is used for the recording of more detailed comments. You state that the unit value of the glasses is over thirty cents but not over three dollars each, while the unit value of the bottles is under three dollars each.
The Canvas With Leather Trim Travel Kit consists of two 4.5 inch high soda lime glass drinking glasses, six 3.25 inch high soda lime glass bottles with plastic caps and numbered metal medallions on a metal chain around their necks, two plastic pipets for dispensing water, a metal funnel, two fabric coasters, a samples ledger, a pencil, and an ID tag, packaged in a leather-trimmed fabric case with a fitted foam insert. The whole is packaged for retail sale in a paperboard box.
Like the Deluxe Leather Whiskey Travel Kit, the Canvas With Leather Trim Travel Kit is also designed for use at a whisky tasting event or distillery tour, and the implements used in the same way. You state that the unit value of the glasses is over thirty cents but not over three dollars each, while the unit value of the bottles is under three dollars each.
The Share-A-Dram Gift Kit consists of twelve 3.25 inch high soda lime glass bottles with plastic caps, a metal funnel, twelve paper neck tags for recording sample details and a samples ledger, packaged for retail sale in a paperboard box.
From the information you provided, this kit is used to share favorite whisky samples with friends, or to collect samples at whisky tasting events and bring them home to enjoy. The funnel is used to pour whisky into the empty bottles, and the tags are used to identify the variety of whisky in each bottle. Notes on the whisky samples may be recorded in the ledger. The unit value of the bottles is under three dollars each.
The Deluxe Leather Whisky Travel Kit, the Canvas With Leather Trim Travel Kit, and the Share-A-Dram Gift Kit meet the definition of “goods put up in sets for retail sale.” As per GRI 3(b), classification is determined by the component, or components taken together, which confer on the set as a whole its essential character. The essential character of these kits derives from the glass components. Among the Deluxe Leather Whisky Travel Kit and the Canvas With Leather Trim Travel Kit, the drinking glasses, which cost significantly more than the glass bottles, provide the essential character; the essential character of the Share-A-Dram Gift Kit is provided by the glass bottles.
The applicable subheading for the Deluxe Leather Whisky Travel Kit and the Canvas With Leather Trim Travel Kit will be 7013.37.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Glassware of a kind used for table, kitchen, toilet, office, indoor
decoration or similar purposes…: Other drinking glasses, other than of glass-ceramics: Other: Other: Valued over $0.30 but not over $3 each.” The general rate of duty will be 22.5 percent ad valorem.
The applicable subheading for the Share-A-Dram Gift Kit will be 7013.49.2000, HTSUS, which provides for “Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes…: Glassware of a kind used for table (other than drinking glasses) or kitchen purposes, other than of glass-ceramics: Other: Other: Valued not over $3 each.” The general rate of duty will be 22.5 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 on World Wide Web at http://www.usitc.gov/tata/hts/.
You have also asked for a country of origin ruling. The items in the set, although packaged and classified together, do not lose their separate identities.
Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means the country of manufacture, production or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908).
With regards to the glass bottles with plastic caps, the metal funnels, the coasters, the metal chains, the numbered metal medallions, the whisky tasting journal, the samples ledger, the ID tags, the neck tags, the paperboard box with tissue paper and sticker, you state that all of these items are made entirely in China. The country of origin of these items is China.
With regard to the plastic pipets, you state that they are made entirely in the United States. The country of origin of the plastic pipets is the United States.
With regards to the drinking glasses, you state that the glasses are made in Germany and are sent to the United Kingdom for etching or engraving. 19 CFR §102.20(l) requires a change to heading 7013 through 7018 from any other heading, including another heading within that group. Because the glasses are classified in 7013.37.2000 before and after etching/engraving, the country of origin of the drinking glasses is Germany.
With regards to the leather case, you state that it is assembled in China of Chinese components with the exception of the zipper, which is of Japanese origin. The rules set forth for 19 CFR §102.11(a)(3) state, “Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.” Per 19 CFR 102.20 the tariff shift for heading 4202.91, requires that a change to subheading 4202.91 through 4202.99 from any other heading is acceptable, provided that the change does not result from the assembly of foreign cut components. Based on the information provided, the leather case meets the terms of the tariff shift requirement of 19 C.F.R. 102.20. The country of origin of the leather case is China.
With regards to the pencils, you state that the pencils are made in China and are sent to the United States for monogramming. 19 CFR §102.20(s) requires a change to 9609.10 from any other subheading. Because the pencils do not make the tariff shift to 9609.10 due to imprinting (also referred to as embossing and monogramming), the country of origin of the pencils is China.
The aforementioned pencils in each of the sets may be subject to antidumping duties. Written decisions regarding the scope of AD/CVD orders are issued by the Import Administration in the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection. You can contact them at http://www.trade.gov/ia/ (click on "Contact Us"). You may also write to them at the U.S. Department of Commerce, International Trade Administration, Office of Antidumping Compliance, 1401 Constitution Avenue NW, Washington, DC 20230. For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on "Antidumping and Countervailing Duty" on the lower right hand side under "Investigations"), and you can search AD/CVD deposit and liquidation messages using the AD/CVD Search tool at http://addcvd.cbp.gov.
We are not able to determine the country of origin for the textile gift bag and the textile case. For the textile bag, please provide the fiber content of the textile material used to construct the bag. For both the bag and the case: state where all the textiles originate, state where each component was cut, sewn, knit, or otherwise assembled. State the country or origin of any non-textile components incorporated into the articles.
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 Nicole Sullivan at [email protected].
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division