CLA-2-48:OT:RR:NC:2:234
Ms. Maribeth Dedmon
Dollar General
100 Mission Ridge
Goodlettsville, TN 37072
RE: The tariff classification of paperboard and metal PDQ display units from China
Dear Ms. Dedmon:
In your letter dated September 8, 2011, you requested a ruling on behalf of your client, Dolgencorp Inc. (the “Company”).
You requested in your ruling the determination of whether PDQ (point of purchase) display units are considered to be packaging “of a kind normally used for packing such goods”. For the purpose of this ruling, the PDQ sample submitted was filled with ornaments to demonstrate the manner in which this item will be imported.
You stated in your letter that you will import decorative ornaments in PDQs that contain metal racks. The metal racks under consideration attract a magnet; therefore, we believe that the subject racks are made of iron or steel. The metal rack measures approximately 8 ½” (w) x 6 ½” (d) x 16 ½” (h). The PDQ display unit is constructed of corrugated paperboard. The submitted sample resembles a rectangular cardboard carton that has been cut in half on a diagonal, so that the back of the unit is high and the front is low, with diagonal sides. The paperboard display unit assembles by folding and slotting and measures approximately 9” (w) x 7” (d) x 17” (h). It is printed at the base with the retail dollar amount and the words “Christmas Ornaments” and “Holiday Style®”. The cardboard carton has an open front which allows the metal rack to fit into the PDQ display unit. It appears that the filled unit is designed to be placed on a table, shelf, countertop or the like in a retail store.
You stated in your letter that the ornaments are imported in the same master case with the paperboard PDQ display unit and metal rack in an effort to minimize time required to load the merchandise on the store shelf. You also stated that once the ornaments have been sold the store disposes of the PDQ and rack and opens another case to restock the shelf.
The tariff status of the packing materials or containers will be determined in accordance with General Rule of Interpretation 5, Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202). General Rule of Interpretation (“GRI”) 5(b) HTSUS, provides that: packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods.
This provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.
Although the paperboard PDQ display unit is classifiable in subheading 4819.10.0040, the paperboard display unit is not suitable for repetitive use and will be considered ordinary packing and classifiable with the goods when imported with the saleable display items. However, the metal rack is of substantial construction and clearly suitable for repetitive use, whether or not it is used in that manner by your company. Therefore, the racks will be separately classified from the contents even when they are imported with the contents.
The samples submitted will be returned to you as requested.
The applicable subheading for the rack made of iron or steel will be 7326.20.0070, HTSUS, which provides for "Other articles of iron or steel: Articles of iron or steel wire: Other." The rate of duty will be 3.9% ad valorem.
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 ruling, contact National Import Specialist Albert Gamble at (646) 733-3037.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division