CLA-2-48:OT:RR: NC:4:434
Godfrey Yeung
Smart Concept Trading Limited
Flat C, 8/fl, Mai Wah Industrial Bldg.
1-7 Wah Sing Street
Kwai Chung
CHINA
RE: The tariff classification of spiral notebooks from China
Dear Mr. Yeung:
In your letter, dated August 4, 2023, you requested a tariff classification ruling. Photos and a detailed description of the items were submitted for our review.
Item number WMUSHAL 2024001 corresponds to four styles of spiral bound notebook, each with a different Halloween themed cover design. The notebooks measure approximately 5” x 5” and contain 50 lined pages. They are individually packaged.
Although the sticker on the back of each notebook identifies them as “party favors,” the instant items do not meet the requirements for classification as party favors in chapter 95, Harmonized Tariff Schedule of the United States (HTSUS). Party favors are generally miniature in size, inexpensive, not suitable for long-term use, and packaged in multiples to distribute to a number of party guests. They are meant to serve as a remembrance of the party. The notepads at issue are of a substantial size and functionality and are not advertised, marketed, or sold exclusively as party favors. The environment of sale is also not uniquely for party favors. Instead, the notepads are wrapped individually and sold separately, intended for bulk purchase and distribution on Halloween, perhaps in lieu of candy.
The applicable subheading for the notebooks will be 4820.10.2060, HTSUS, which provides for “Diaries, notebooks and address books, bound; memorandum pads, letter pads and similar articles: Other.” 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4820.10.2060, 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, 9903.88.03, in addition to subheading 4820.10.2060, 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.
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