CLA-2-48:OT:RR:NC:N1:130
Mr. Joseph Kenny
Geodis USA Inc.
One CVS Drive
Woonsocket, RI 02895
RE: The tariff classification of a paperboard gift card holder from China
Dear Mr. Kenny:
In your letter, dated July 11, 2022, you requested a tariff classification on behalf of your client, CVS Pharmacy Inc. The ruling was requested for a gift card holder. Photos, product information, and a sample were submitted for our review.
The item under consideration is a paperboard gift card holder that is constructed of three layers of paperboard that are glued together at the upper edge. The gift card holder is die-cut in the shape of Santa Claus’ head. The holder’s face layer is lithographically printed with a Santa Claus face terminating at the mustache. The mustache edge overlaps, and is glued to, the tops of several pieces of notched crepe paper that form Santa’s beard. The crepe paper pieces are mounted onto the second layer of paperboard. The combined top two layers of the gift card holder fold upward to reveal the third or bottom layer of the holder. The bottom layer has two scored openings designed to hold a gift card. The layer is also printed with Santa’s arms holding a cookie. The back of the gift card holder is printed with the words “To:” and “From:”.
In spite of the holiday motifs, Explanatory Note 95.05(c) to Chapter 95, Harmonized Tariff System, specifically excludes “Packagings of plastics 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 gift card holder 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