CLA-2-42:OT:RR:NC:N4:441
Patrick Hennessey Bensussen Deutsch & Associates 15525 Woodinville Redmond Road NE
Woodinville, WA 98072
RE: The tariff classification of an insulated bag from China
Dear Mr. Hennessey:
In your letter dated August 16, 2011, you requested a tariff classification ruling. Your sample will be returned to you.
The sample was submitted without a style number, but is referred to as the Humalog medication bag in your letter. The item is an insulated bag constructed with an outer surface of polyester textile material. You indicate that the bag is intended for use by individuals with diabetes. The bag is designed to provide storage, protection, organization, and portability to diabetes medication (specifically insulin) and the accessories with which to inject the medication. The bag is also designed to keep the contents of the bag cool. It has a main storage compartment that is lined with PVC plastic, and there is a layer of foam between the exterior of the bag and the lining. The bag has a zippered closure along three sides, a textile carry handle at the top of the bag, and an adjustable webbed shoulder strap. The bag measures approximately 9" (W) x 7" (H) x 2"(D).
The applicable subheading for the insulated bag will be 4202.92.0807, Harmonized Tariff Schedule of the United States (HTSUS), which provides for insulated food and beverage bags, with outer surface of textile materials, other, of man-made fibers. The general rate of duty is 7% ad valorem.
In your submission you request consideration of a secondary classification for Humalog medication bag under subheading 9817.00.96, HTSUS, which applies to articles specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped.
Chapter 98, Subchapter 17, U.S. Note 4(a), HTSUS, states that the term “blind or other physically or mentally handicapped persons” includes any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one’s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working. Customs has previously determined that individuals with diabetes suffer from a permanent or chronic physical impairment which substantially limits a major life activity and therefore, are considered physically handicapped persons under U.S. Note 4(a), notably in Headquarters Ruling Letter 962132, dated October 26, 2000.
As stated above, you indicate that the Humalog medication bag is specially designed for use by those suffering from diabetes, who are required to administer injections of insulin to themselves, especially when traveling away from home. You state that the bag was designed specifically for the pharmaceutical company Eli Lilly, and is not intended for sale as a general use bag (Humalog is the brand name of a type of insulin sold by Eli Lilly). We note that the bag features a sewn-in label bearing Eli Lilly’s logo. In addition to being insulated, the Humalog medication bag has an internal zippered compartment to store gel packs to help keep the insulin cool, with space for other related accessories. There is also an elastic strap on the interior of the bag that is intended to hold a Humalog injection pen (a device that can be used to inject insulin, not imported with the bag). The Humalog medication bag serves a purpose similar to the diabetes organizers described in Headquarters Ruling Letter 561020, dated October 14, 1998 (which you cite).
Chapter 98, Subchapter 17, U.S. Note 4(b)(iii) and 4(b)(iv), HTSUS, excludes both therapeutic and diagnostic articles and medicine or drugs from classification in subheading 9817.00.96, HTSUS. However, it has been determined that insulin injections are not considered “therapeutic” for tariff purposes (see New York Ruling Letter L82256, dated March 2, 2005). Furthermore, the Humalog medication bag is not imported with any insulin vials, thus the exclusion for medicine or drugs does not apply.
On that basis we agree that a secondary classification will apply for the Humalog medication bag in subheading 9817.00.96, HTSUS, as specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped (except articles for the blind), free of duty and user fees (if any). Note that the requirement that you prepare and file a U.S. Department of Commerce form ITA-362P has been eliminated via a notice from the International Trade Administration, published in the Federal Register of June 1, 2010. Also note that this classification has no effect on any quota, visa, or restricted merchandise requirements.
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 http://www.usitc.gov/tata/hts/.
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 classification in 9817.00.96 of this item, contact National Import Specialist J. Sheridan at (646) 733-3012. If you have any other questions regarding the ruling, contact National Import Specialist Vikki Lazaro at (646) 733-3041.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division