CLA-2-48:OT:RR:NC:1:130
Mr. Joseph Kenny
Geodis USA, Inc.
One CVS Drive
Woonsocket, RI 02895
RE: The tariff classification of a Boo Bucket from China
Dear Mr. Kenny:
In your letter, dated April 7, 2021, you requested a tariff classification ruling on behalf of your client, CVS Pharmacy, Inc. The ruling was requested for Item 608337, Boo Bucket. Photos and product information were submitted for our review.
The Boo Bucket is a combination of several items: a rigid paperboard bucket, four paper goodie bags, four bingo cards with tokens, and four paper candy bar wrappers. The paperboard bucket is a five-sided box constructed of rigid paperboard. It is flared toward the top, being constructed of a square bottom with four trapezoidal sides. The bucket has a textile ribbon handle that is attached on two opposite sides with metal rivets. The front of the box is printed with a jack-o-lantern face and has a trapezoidal extension above the rim, representing the pumpkin stem. The goodie bags are printed, folding paper bags for filling with treats. The bingo cards are paperboard printed with Halloween images such as ghosts, skulls, and bats. The candy bar wrappers are paperboard that has been printed and die-cut to the shape of a ghost, a spider, jack-o-lanterns, or a bat. The wrappers are scored for folding around a candy bar. The Boo Bucket is marketed as a means of presenting treats or gifts for Halloween.
Tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the principles set forth in the General Rules of Interpretation (GRIs) taken in order. Because the Boo Bucket consists of several items that are each classifiable under a different heading in the HTSUS, GRI 3(b) governs classification. GRI 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.” The Boo Bucket items are packaged together and ready for retail sale, as clearly evidenced by the retail tag. The items are intended to all be used together to present treats or gifts to another person for Halloween. Therefore, the items together constitute a set for tariff purposes. The bucket itself constitutes the overwhelming decorative and containing element of the Boo Bucket. The bucket is the chief marketing element and can be used for the gift-giving function without the remaining items. All of the remaining items are subsidiary and are marketed to be contained by the bucket when in use. Therefore, we find that the bucket imparts the essential character of the set.
The applicable subheading for the Boo Bucket will be 4819.50.4040, HTSUS, which provides for Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Other packing containers, including record sleeves:Other: Other: Rigid boxes and cartons. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4819.50.4040, HTSUS, unless specifically excluded, are subject to an 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 4819.50.4040, 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 trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, 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 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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division