CLA-2-46:OT:RR:NC:N4:434
Ms. Elizabeth McGuffin
Dollar General
100 Mission Ridge
Goodlettsville, TN 37072
RE: The tariff classification of a paper “rope” basket from China
Dear Ms. McGuffin:
In your letter dated July 20, 2021, you requested a tariff classification ruling. A sample and photographs of a basket were submitted with your request and sent for laboratory analysis. We regret the delay in response incurred by the lab analysis. The sample will be retained for training purposes.
SKU #29098001 is a decorative basket designed for home storage uses. The oval, open-top basket is constructed of multiple paper “ropes,” alternating between black and white, wrapped horizontally around an iron wire frame and held in place with thread. The wire frame forms the top and bottom rims of the basket, one wire centered across the bottom, twelve vertical supports, and rounded handles at each end. The paper “ropes” entirely obscure the underlying frame. According to the CBP laboratory analysis, the black “rope” consists of four paper strips combined as follows: three paper strips have been twisted and rolled lengthwise to form a core. One paper strip, forming the outermost material, is wrapped around the twisted paper strips. Meanwhile, per the lab analysis, the white “rope” consists of five paper strips constructed with an inner core consisting of one strip of paper that has been twisted and rolled lengthwise and four paper strips wrapped around the core to form the outermost materials.
The basket is available in three sizes: the large basket measures 16 ¾ inches in length by 12 inches in width by 9 inches in height; the medium basket measures 14 inches in length by 10 inches in width by 8 inches in height; and the small basket measures 12 inches in length by 8 ½ inches in width by 7 ½ inches in height. The basket is lined with a removable 100 percent cotton woven fabric that ties to each handle. Each size basket is sold separately.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes. If GRI 1 fails to classify the goods and if the heading and legal notes do not otherwise require the remaining GRIs are applied, taken in order. Since no one heading in the tariff schedule covers all the components of the subject paper basket, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that composite goods consisting of different materials or made up of different components shall be 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 basket is a composite article made up of iron wire, paper “ropes,” cotton textile, and thread. The essential character of the article is imparted by the paper “ropes,” which make up the vast majority of the surface area of the basket, establish the identity of the basket, and allow it to function to hold items. In turn, the paper “ropes” are made up of paper that has been treated in different fashions, so we must consider classification of the “ropes” themselves to arrive at a final classification.
The twisting or rolling of paper strips creates paper yarn of heading 5308, HTSUS, and is considered a textile for tariff purposes (per the Explanatory Notes to heading 5308). Meanwhile, the strips of paper that have not been twisted or rolled are considered plaiting materials of chapter 46, HTSUS, per chapter 46, Note 1, which expressly lists “strips of paper” within the definition of plaiting materials. The essential character of the paper “ropes” is imparted by the outermost paper strips which hold all the layers together, create the visual interest of the “ropes” and therefore of the basket, and establish the overall identity of the basket.
Therefore, the applicable subheading for the paper “rope” basket will be 4602.90.0000, HTSUS, which provides for “Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from the articles of heading 4601… Other. The rate of duty will be 3.5 percent 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 the World Wide Web at https://hts.usitc.gov/current.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4602.90.0000, 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 4602.90.0000, 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.
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 Charlene Miller at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division