CLA-2-48:OT:RR:NC:4:434
Joseph Kenny
Geodis USA, Inc.
One CVS Drive
Woonsocket, RI 02895
RE: The tariff classification of journals and other supplies from Vietnam and China
Dear Mr. Kenny:
In your letter, dated September 22, 2021, you requested a classification ruling on behalf of your client, CVS Pharmacy, Inc. A detailed description and photos were provided for review.
The items under consideration are two retail boxed kits containing journals and other supplies, item number 600342 and item number 241978.
Item number 600342 consists of the following items packaged together in a retail box:
1 soft-cover, bound “Glitter journal” measuring 6” x 8” and containing 80 lined pages
1 memo pad measuring 5” x 7” that is glue bound at the top, containing 100 lined pages, with the words “Things to Conquer Today” printed on the front cover
2 gel ballpoint pens
4 button type magnets with a plastic cover holding a small permanent magnet
6 steel binder clips
12 pushpins
Item number 241978 consists of the following items packaged together in a retail box:
1 soft-cover “Glitter Journal” measuring 6” x 8” and containing 80 lined pages
1 hard-cover spiral-bound notebook measuring 6” x 8” and containing 100 lined pages with the words “Dream Out Loud” printed on the front cover
2 gel ballpoint pens
4 button type magnets with a plastic cover holding a small permanent magnet
2 steel binder clips
30 pushpins
4 heart-shaped steel wire paper clips
You describe the items as “sets.” For classification purposes, the word “set” has a specific connotation defined in the Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States. (HTSUS). The ENs constitute the official interpretation of the tariff at the international level. EN X to General Rule of Interpretation (GRI) 3(b) provides: “for the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).” Sets are classified according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character.
Items 600342 and 241978 consist of multiple articles classifiable under separate headings. They are packaged for retail sale. Therefore, they fulfill the requirements of (a) and (c) above. However, we believe that they fail (b) because they are not intended to be used together or in conjunction with one another for a single purpose or activity. In particular, the magnets and push pins do not seem directly related to the activity of journaling. Because the kits are not sets for classification purposes, the items within each kit will be classified separately.
The applicable subheading for the “Glitter journals” will be 4820.10.2010, HTSUS, which provides for Diaries and address books. The rate of duty will be Free.
The applicable subheading for the “Dream Out Loud” spiral journal will be 4820.10.2010, HTSUS, which provides for Diaries and address books. The rate of duty will be Free.
The applicable subheading for the “Things to Conquer Today” memo pad will be 4820.10.2020, HTSUS, which provides for Memorandum pads, letter pads and similar articles. The rate of duty will be Free.
The applicable subheading for the gel ink ball point pens will be 9608.10.0000, HTSUS, which provides for ball point pens. The rate of duty will be 0.8 cents each plus 5.4 percent ad valorem.
The applicable subheading for the button type magnets with a plastic cover will be 8505.19.3000, HTSUS, which provides for Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization: Other: Other. The rate of duty will be 4.9 percent ad valorem.
The applicable subheading for the binder clips will be 8305.90.3050, HTSUS, which provides for Paper clips, and parts thereof, Other. The rate of duty will be Free.
The applicable subheading for the push pins will be 7319.40.5010, HTSUS, which provides for “Sewing needles, knitting needles, bodkins, crochet hooks, embroidery stilettos and similar articles for use in the hand, of iron or steel; safety pins and other pins of iron or steel, not elsewhere specified or included: Safety pins and other pins: Other: Push pins.” The rate of duty will be Free.
The applicable subheading for the paper clips will be 8305.90.3010, HTSUS, which provides for Paper clips, and parts thereof, wholly of wire. The rate of duty will be Free.
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 the World Wide Web at https://hts.usitc.gov/current.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9608.10.0000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 9608.10.0000, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8505.19.3000, 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 8505.19.3000, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 7319.40.5010, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty under 9903.88.15, HTSUS. At the time of importation, you must report the Chapter 99 subheading, 9903.88.15, in addition to subheading 7319.40.5010, 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.
Some merchandise in question, specifically the paper clips, may be subject to antidumping duties and countervailing duties (AD/CVD). 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 https://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 https://www.usitc.gov/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb.
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 Charlene Miller at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division