CLA-2-49:OT:RR:NC:4:434
Mr. Joseph Kenny
Geodis USA
One CVS Drive
Woonsocket, RI 02895
RE: The tariff classification of a child’s activity kit from China
Dear Mr. Kenny:
In your letter, dated March 17, 2022, you requested a tariff classification ruling on behalf of your client, CVS Pharmacy, Inc. A detailed description and photos were provided for review.
CVS item #398749, the “Activity Kit,” is a child’s activity kit that comes in a version featuring Minnie Mouse and Daisy Duck and a version featuring Disney princesses. All items are packaged inside a 7” x 6” x 3” tin plate steel carrying case with plastic handles. The items inside are as follows:
A 20-page, spiral-bound activity book with printed pages for coloring, stamping and sticker play
1 sheet of lithographically printed paper stickers
1 marker
4 crayons
1 stamper
1 ink pad
Flexible magnets portraying characters and accessories
1 plastic magnet board covered with a lithographically printed scene on paper for use with the flexible magnets
You propose classification of the kit as a set and cite ruling N026491 for a school locker activity kit. We note that in N026491 a clear nexus is drawn between all items in the set, “The activity book contains twenty printed pages which includes creative ideas and activities to decorate and create personalized frames using the above-mentioned items included with the set.” This book contained specific ideas for using all the frame-making items in the kit to complete a finished frame to mount in a locker.
The kit before us for consideration is more similar to those in rulings N305207 and N264258 that contain magnetic scenes/flexible magnets with other unrelated items. In those cases the kits were not classified as sets, as the magnetized scene and magnets do not interplay with the activity book, the marker, crayons, or any other items.
A “set” is defined within the meaning of General Rule of Interpretation 3(b) (GRI 3(b)) and the Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS), which constitute the official interpretation of the tariff at the international level. EN X to GRI 3(b) provides: “for the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put 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 (e.g., in boxes or cases or on boards).” Sets are classified according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character.
The kit under consideration does consist of multiple articles classifiable under separate headings. It is packaged together for retail sale. Therefore, it fulfills the requirements of (a) and (c) above. However, we find that it fails (b). The magnetized board and magnets are designed to be used together and do not contribute to the same need or activity as the remaining items, that of creating and embellishing a picture in the activity book. Since the kit is not a set for customs purposes, the items will be separately classified.
The container has the shape of a traditional school lunch box, only smaller. You have indicated it measures 7" x 6" x 3" and is constructed of tin plate metal. One side of the item opens and may be secured closed by a latch on the top. It has a plastic handle. The article is of a durable construction and suitable for repetitive reuse. It has a generic interior compartment capable of containing articles beyond those with which it will be sold.
The applicable subheading for the metal container will be 4202.19.0000, HTSUS, which provides for trunks, suitcases, vanity cases, attaché cases, briefcases, school satchels and similar containers, other. The rate of duty will be 20 percent ad valorem.
The applicable subheading for the activity book will be 4903.00.0000, HTSUS, which provides for “Children’s picture, drawing or coloring books.” The rate of duty will be Free.
The applicable subheading for the sticker sheet will be 4911.91.2040, HTSUS, which provides for “Pictures, designs and photographs: Printed not over 20 years at time of importation: Other: Lithographs on paper or paperboard: Not over 0.51 mm in thickness: Other.” The rate of duty will be Free.
The applicable subheading for the marker will be 9608.20.0000, HTSUS, which provides for felt tipped and other porous-tipped pens and markers. The rate of duty will be 4 percent ad valorem.
The applicable subheading for the crayons will be 9609.90.8000, HTSUS, which provides for pencils...crayons, pencil leads, pastels, charcoals, writing or drawing chalks and tailors’ chalks: other: other. The rate of duty will be Free.
The applicable subheading for stamper, will be 9611.00.0000, HTSUS, which provides for “Date, sealing or numbering stamps and the like…designed for operating in the hand.” The rate of duty will be 2.7 percent ad valorem.
The applicable subheading for the ink pad will be 9612.20.0000, HTSUS, which provides for “Typewriter or similar ribbons, inked or otherwise prepared for giving impressions, whether or not on spools or in cartridges; ink pads, whether or not inked, with or without boxes: Ink Pad.” The rate of duty will be 3.5 percent ad valorem.
The applicable subheading for the magnetic characters will be 8505.19.2000, HTSUS, which provides for “permanent magnets and articles intended to become permanent magnets after magnetization: Other: Composite goods containing flexible magnets.” The rate of duty will be 4.9 percent ad valorem.
The applicable subheading for the printed plastic magnetic board will be 4911.91.3000, HTSUS, which provides for printed “Pictures, designs and photographs: Printed not over 20 years at the time of importation: Other: Lithographs on paper or paperboard: Over 0.51 mm in thickness.” 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.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 9608.20.0000, 9609.90.8000, 9611.00.0000; 9612.2.0000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. For goods the country of origin of which is China, at the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheadings 9608.20.0000, 9609.90.8000, 9611.00.0000; 9612.20.0000, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 4202.19.0000 and 8505.19.2000, 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 4202.19.0000 and 8505.19.2000, 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, 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.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
This merchandise may also be subject to the laws and regulations of the Consumer Product Safety Act. Import compliance information may be obtained by contacting the U.S. Consumer Product Safety Commission (CPSC) at 4330 East West Highway, Bethesda, MD 20814, telephone (301) 504-7912.
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