CLA-2-48:RR:NC:SP:234 L84861
Mr. Jeff Morse
Keeco, LLC
5000 Shoreline Ct., Suite 100
So. San Francisco, CA 94080
RE: The tariff classification of paperboard retail display bins, imported pre-filled with merchandise, from China.
Dear Mr. Morse:
In your letters dated April 15 and May 9, 2005, you requested a tariff classification ruling.
A sample of a 10½” x 24” x 10½”(H) corrugated paperboard article identified as a “PDQ Display Unit” was submitted for our examination. The unit will be imported pre-filled with various home textile items individually packaged for retail sale. It appears that the filled unit is designed to be placed on a table, shelf, countertop or the like in a retail store. You seek a ruling as to whether the paperboard display unit will be classified separately from its contents, and, if so, what its proper classification will be. You have provided the following discussion (edited slightly for clarity) concerning the nature, importation and use of the merchandise:
Each of these PDQ units is made out of cardboard, and resembles a
cardboard carton that has been cut in half on a diagonal, so that the back of
the unit is high, and the front low, with diagonal sides, and has a center
divider panel. The central panel has illustrations in full color printing and
four affixed 2” x 2½” fabric swatches representing the product that will be displayed.
The PDQ is designed to hold and display several household textile items (window covers, shams, etc.) for retail sale. The textile items will all be individually packaged for retail sale, but will be imported inserted into the PDQ, and then two filled PDQs will be inserted into a master cardboard carton. The master cardboard carton would serve to contain and protect both the PDQ and the textile items during shipping. The PDQ by itself would not be adequate to protect the product during shipping and storage, and is not of a kind normally used to pack window coverings or pillow shams.
You note that the PDQ is shipped pre-filled with textile goods so that the latter can be more quickly and efficiently put on display in the retail stores. Citing General Rule of Interpretation 5 of the Harmonized Tariff Schedule of the United States (HTS), you suggest that since the PDQ functions essentially as a display rather than as a “packing container,” and is suitable for repetitive use, it should be classified separately from the textile items held within it. We agree with that reasoning.
Accordingly, the applicable subheading for the “PDQ Display Units,” not including the pre-inserted, pre-packaged textile goods, will be 4823.90.8600, HTS, which provides for other (non-enumerated) articles of paper or paperboard. The rate of duty will be Free.
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 Carl Abramowitz at 646-733-3037.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division