CLA-2-48:OT:RR:NC:1:130
Ms. Lisa Murrin
Expeditors Tradewin, LLC
795 Jubilee Drive
Peabody, MA 01960
RE: The tariff classification of paperboard gift card holders from China
Dear Ms. Murrin:
In your letter, dated January 21, 2020, you requested a tariff classification ruling on behalf of your client, Gift Card Impressions, LLC. The ruling was requested for Items 104715, 105651, and 104753, paperboard gift card holders. Samples and product information were submitted for our review, and will be retained for reference.
Item 104715 is a round, paperboard gift card holder measuring approximately 4.5” in diameter. The holder is shaped and decorated like a Christmas tree ornament. It is hinged at the bottom, and at the top, it has a “cap” shape with a hole punch that is threaded with a ribbon for hanging. The holder opens 90 degrees along the hinge to reveal a paperboard “pop-up” scene with three Christmas trees and a snowman carrying gifts. When folded, the holder closes by means of the top edge of the front side being inserted into a slot in the back side. The gift card is securely held in place in the closed gift card holder.
Item 105651 is a package of two round, paperboard gift card holders measuring approximately 4” in diameter. The holders are shaped like Christmas tree ornaments and are lithographically printed with the words, “Ho Ho Ho”, with the O’s being replaced by seasonal motifs – a Santa head, a reindeer head, and a snowman head. The holder is constructed of two pieces of paperboard bonded together at their edges so as to form a pocket into which the gift card is inserted.
Item 104753 is a gift card holder constructed of multiple pieces of heavy paperboard assembled into the shape of a truck with three-dimensional tires. The holder measures approximately 6.375” L by 3.25” H. The gift card holder is lithographically printed to look like a truck carrying a tree that will be decorated for Christmas. The thick pieces of paperboard are stacked and assembled to form the wheels and truck body. The stacking creates a central slot into which a gift card is inserted.
In spite of the holiday and celebratory motifs, Explanatory Note 95.05(c) to Chapter 95, Harmonized Tariff System, specifically excludes “Packagings of plastic or of paper, used during festivals (classified according to constituent materials, for example, Chapter 39 or 48).” The gift card holders are not festive articles.
The applicable subheading for the three gift card holders, Items 104715, 105651, and 104753, will be 4819.50.4060, Harmonized Tariff Schedule of the United States (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: Other packing containers, including record sleeves: Other: Other: Other. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4819.50.4060, HTSUS, unless specifically excluded, are subject to an additional 25 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 4819.50.4060, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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.
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