CLA-2-48:OT:RR:NC:1:130
Mr. Simon Slyper
Amscan, Inc.
80 Grasslands Road
Elmsford, NY 10523
RE: The tariff classification of a “Hanukkah Mystery Punch Box” from China
Dear Mr. Slyper:
In your letter, dated June 22, 2020, you requested a tariff classification ruling. The ruling was requested for Item 270299, “Hanukkah Mystery Punch Box” (“punch box”). Photos and product information were submitted for our review.
The punch box is a one-piece, folding box constructed of corrugated paperboard. The box is color-printed with the expression “Happy Hanukkah” and many Hanukkah icons. It measures approximately 16.45” L x 10” W x 5” H. The lid is die-cut with eight circular holes. A paperboard grid insert is included with the box. When inserted into the box, the grid separates the box into eight compartments that align with the eight lid holes when the box is closed. Separately purchased gifts are placed inside each compartment. The item includes a sheet of printed paper that is inserted between the lid and the grid before closing the box. For each of the eight days of Hanukkah, a child punches their hand through one of the holes and the underlying paper to retrieve one of the gifts.
In your letter, you suggest that the punch box is classifiable under subheading 9503.00.0073, Harmonized Tariff Schedule of the United States (HTSUS), as children’s toys. We disagree. The punch box is unlike other types of cardboard “gift boxes” that are packaged with toys and designed to be used as a play environment. The instant product functionally serves only as gift presentation and does not provide any amusement or role-play value. Therefore, the goods do not meet the terms of heading 9503.
Tariff classification under the HTSUS is governed by the principles set forth in the General Rules of Interpretation (GRIs) taken in order. The punch box consists of three parts classifiable in different tariff headings: the box in heading 4819, the paper sheet in heading 4811, and the paper grid assembly in heading 4823. Because the punch box consists of multiple components that are classifiable under different headings in the HTSUS, GRI 3(b) 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. Because the paper, box, and grid function together to form a single whole, the punch box is a composite good for tariff purposes. While each of the three components are functional to the punch box, it is the folding box that is the primary component that holds the gifts and conveys the seasonal consumer appeal, in addition to contributing the greatest bulk. Therefore, we find that the box imparts the essential character of the punch box.
While the punch box is clearly decorated for a specific holiday, it is not to be classified as a festive article. The Explanatory Notes to the Harmonized System specifically exclude “packagings of plastic or paper, used during festivals”. In spite of the unique aspects of the punch box, namely the cut holes, paper, and grid, we find that it is merely a novel, folding, corrugated paperboard box.
The applicable subheading for the Hanukkah Mystery Punch Box will be 4819.10.0040, 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: Cartons, boxes and cases, of corrugated paper or paperboard: 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 4819.10.0040, HTSUS, must be entered using subheading 4819.10.0040, HTSUS, jointly with the Chapter 99 subheading, 9903.88.43, HTSUS.
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