CLA-2-38:OT:RR:NC:N3:139
Mr. Joseph J. Kenny
Geodis, USA
One CVS Drive
Woonsocket, Rhode Island 02895
RE: The tariff classification of CVS Health® Finger Injury Cold Pack and CVS Health® Instant Cold Pain Relieving Compress from Vietnam
Dear Mr. Kenny:
In your letter dated January 31, 2020, you requested a tariff classification ruling on behalf of, CVS Pharmacy Inc. Samples were provided.
Two items at issue are imported in retail packaging, ready for sale. A description of each item follows:
Product 1- CVS Health® Finger Injury Cold Pack (Item 533489) is made of two small cold packs sewn together with an opening in the center shaped to fit the finger. Attached to the side is a wide velcro strap with a hook and loop closure for fastening. The cold packs contains 28.3% glycerin, 70% water and small amounts of a polymer and preservative. This product is reusable and intended to be stored in the freezer.
Product 2- CVS Health® Instant Cold Relieving Compress (Item 920126) is described as an “instant Cold Pack,” made from plastic coated non-woven material, containing 60% water and 40% calcium ammonium nitrate. This product is reusable and intended to be applied to the body and held in place with a polyester and spandex strap with a hook and loop fastener.
In your ruling request, you suggest that CVS item 533489 should be classified under subheading 6307.90, Harmonized Tariff Schedule of the United States (HTSUS). We disagree. Goods consisting of two or more materials and substances, in this case a textile exterior and a chemical component are considered composite goods, for tariff purposes, and classifiable under General Rule of Interpretation (GRI) 2(b) and 3. Under GRI 3(b) classification of an article is to be determined on the basis of the component which gives the article its essential character. With respect to items such as these, where the article as a whole appears to function primarily as a means to employ the heating or cooling element, the heating/cooling element usually imparts the essential character on the basis of its more predominant function or role. It is only when the article as a whole performs an ordinary function that merely incorporates the heating or cooling function, that it is not clear that the heating/cooling element is predominant. HQ H253885 noted. In the case of CVS item 533489, the textile component is primarily used to employ the cooling function and, therefore, subheading 6307.90 is not appropriate.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation ("GRIs"), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1 and if the heading and legal notes do not otherwise require, the remaining GRIs will be applied in the order of their appearance.
GRI 3 states as follows:
When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
The Harmonized Tariff Schedule of the United States ("HTSUS") General Rule of Interpretation 3 (b) states as follows:
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
Both products described above are composite goods made up of different components. General Rule of Interpretation 3(b), HTSUS, states that composite goods are to be classified according to the material or component that gives them their essential character. The essential character of both items is imparted by the chemical mixture, which provides the desired heat and/or cold temperature to the targeted body part. The textile and plastic covering only serves to hold the heat/cold pack in place. It does serve in some capacity to allow the chemical pack to be left on longer by protecting the skin, however that function is subsidiary in our opinion.
The applicable subheading for Item 1- CVS Health® Finger Injury Cold Pack (Item 533489) will be 3824.99.9297, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included: Other: Other: Other: Other: Other: Other. The rate of duty will be 5 percent ad valorem.
The applicable subheading for Item 2- CVS Health® Instant Cold Relieving Compress (Item 920126) in a package of a gross weight not exceeding 10kg will be 3105.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium; other fertilizers; goods of this chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg: Products of this chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg.” 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.
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 Paul Hodgkiss at Paul.Hodgkiss.cbp.dhs.gov. If you have any questions regarding the ruling, contact National Import Specialist Paul Hodgkiss at [email protected]; or for issues related to Heading 3105, contact National Import Nuccio Fera at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division