CLA-2-39:OT:RR:NC:N1:137
Lucinda Swartz
Scarbrough International, LTD
10841 N Ambassador Drive
Kansas City, MO 64153
RE: The tariff classification of a supply pack kit from China
Dear Ms. Swartz:
In your letter, dated August 27, 2019, you requested a tariff classification ruling on behalf of your client, Integrity Product, Inc.
The supply pack kit consists of twelve polyethylene bags printed with the word “biohazard”, twelve super-absorbent polymer sachets, and fifteen tamper-evident seals. The absorbent polymer sachets are inserted into the biohazard bags prior to packaging and shipment. The supply pack kits are supplied to collection sites to be used in conjunction with laboratory specimen containers (containers not included in the supply pack kit). After collection, a tamper-evident seal will be applied to the specimen container. The container will be placed in the biohazard bag where the absorbent polymer sachet will absorb any leakage. The tamper-evident seals will assure the laboratory that the specimen has not been tampered with or altered since it was bagged at the collection site. Each supply pack kit contains supplies sufficient to accommodate twelve individual specimen cups. A few extra tamper evident seals are provided should any be damaged in application.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). The Explanatory Notes, which constitute the official interpretation of the HTSUS at the international level, state in Note (X) to GRI Rule 3 (b) that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article.
The supply pack kit meets the term "goods put up in sets for retail sale". The kit contains three unique items: a polyethylene biohazard bag, an absorbent sachet, and a tamper-evident seal, each of which is classifiable in a separate heading. Together, the items carry out the activities of sealing, protecting, and transporting laboratory specimens. Finally, the items are packaged together for sale to the end user. It has been a long-standing position of CBP that "there is no requirement that sets actually be sold at retail." (See HQ 083968.) Therefore, we find that the supply pack kit qualifies as “goods put up in sets for retail sale” for purposes of classification under the HTSUS. In considering the three elements of the kit, we find that the biohazard bag performs the main function of sealing, protecting, and transporting laboratory specimens. The absorbent sachet and tamper-evident seal are secondary (or enhancing) to the main function in that they merely prevent leakage and signal that the specimen is uncompromised. Accordingly, we find that the biohazard bag imparts the essential character of the set.
The applicable subheading for the supply pack kits will be 3923.21.0095, HTSUS, which provides for Articles for the conveyance or packing of goods, of plastics: Sacks and bags: Of polymers of ethylene: Other: Other. The general rate of duty will be 3 percent ad valorem.
In your request, you suggest that the supply pack kits are classifiable under subheading 3926.90.9910, HTSUS, which provides for plastic laboratory ware. This office disagrees. General Rule of Interpretation 1, HTSUS, states in part that, for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. The biohazard bags are not used in a laboratory, but are instead used to seal, protect, and transport the laboratory specimens. They would not be considered to be laboratory ware, but are more specifically described as polyethylene bags. Therefore, heading 3926 would not be considered.
Products of China classified under subheading 3923.21.0095, HTSUS, unless specifically excluded, are subject to the 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 3923.21.0095, 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 Section 301 trade remedy, 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 the 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 Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division