CLA-2-48:OT:RR:NC:N1:130
Mr. Brad Eickhoff
Bunzl International Services, Inc.
11973 Westline Industrial Drive
St. Louis, MO 63141
RE: The tariff classification of a gift box kit from China
Dear Mr. Eickhoff:
In your letter, dated September 27, 2018, you requested a tariff classification ruling. Your request was returned to you for additional information, which was received by this office on December 4, 2018. Samples and product information were submitted for our review, and will be retained for reference.
The product under consideration is a gift box set. The set consists of a two-piece, folding, non-corrugated paperboard box, two sheets of tissue paper to wrap the contents of the gift box, a sheet of plain white paper to wrap the gift box, and a greeting card. The entire gift box kit is packaged in a plastic cellophane bag with a fold-over, adhesive flap for closure. Two sizes of gift boxes were submitted for our review. The smaller box measures approximately 15” (L) x 9.75” (W) x 2” (H), and the larger measures 19” (L) x 12” (W) x 3” (H). The paperboard measures approximately 0.42mm in thickness. Both box tops are constructed of coated paperboard that has been decorated with a printed red band at the center and an embossed square, within which the expression “Believe in the wonder of giving” is printed. The bottom, right-hand corner of the box top is embossed with a retailer’s name and logo. Inside the box is a folded sheet of uncoated, white wrapping paper, two sheets of printed (red stars on red background) tissue paper, and a paperboard greeting card. You state that the tissue paper weighs 17 grams per square meter. The kit is given by the retailer to a retail customer at no charge with a purchase. The kits are never sold at retail, and are never imported without the retailer’s name indicated on the box top.
Tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the principles set forth in the General Rules of Interpretation (GRIs) taken in order. Because the kit consists of paperboard boxes, wrapping paper, tissue paper, and a greeting card, each of which is classifiable under a different heading in the HTSUS, GRI 3 governs classification. GRI 3(b) states as follows: (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
The Explanatory Notes to the Harmonized System (ENs) for GRI 3(b) explain that “goods put up in sets for retail sale” shall be taken to mean goods consisting of at least two different articles classifiable in different headings that are “put up together to meet a particular need or carry out a specific activity,” and “are put up in a manner suitable for sale directly to end users without repacking.” The gift wrapping kits do consist of multiple articles classifiable in different headings that carry out the activity of gift wrapping, and are put up together in a manner suitable for sale to end users without repacking. While the kits are given away and not sold to the retail consumer, there is no requirement in the Explanatory Notes that sets actually be sold at retail. See HQ Rulings 083968, 964478, H060579, etc.). Therefore, we find that the kits are “sets for retail sale” as set forth in GRI 3(b).
The set will be classified by the component which gives it its essential character. The gift box comprises the bulk (and, presumably, value) of each gift wrapping kit. The box can easily be utilized for packaging gifts without the addition of the tissue, wrapping paper, or greeting card. Thus, we find that the gift box imparts the essential character of each set.
The applicable subheading for the gift box kits will be 4819.20.0040, HTSUS, which provides for Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Folding cartons, boxes and cases, of non-corrugated paper or paperboard: Other. The rate of duty will be free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 4819.20.0040, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 4819.20.0040, HTSUS, listed above.
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 https://hts.usitc.gov/current.
The tissue paper and wrapping paper contained within the gift wrapping kits may be subject to antidumping duties and countervailing duties (AD/CVD) for certain tissue paper and certain uncoated paper from China. Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at http://trade.gov/enforcement/ (click on “Contact Us”). 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” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division