CLA-2-42:OT:RR:NC:N4:441
Mr. Filipp G. Zaborenko
North Palmetto Customs Brokerage
803 Gable Oak Lane
Fort Mill, SC 29708
RE:
The tariff classification of a hard-sided insulated cooler from China
Dear Mr. Zaborenko:
In your letter dated May 17, 2023, you requested a tariff classification ruling on behalf your client, The Cooler Keg. Photographs and product descriptions were provided for our review.
The article at issue, which you referred to as the “Cooler Keg,” is a hard-sided insulated cooler constructed of stainless steel. The cooler features a handle on each side. The article is designed to maintain the temperature of and provide storage, protection, portability, and organization to food and beverages. You have indicated that the cooler will be imported with two metal kegs that are specially shaped and designed to be used in the interior of the cooler. You have also indicated the kegs are removable and the cooler can be used without them.
The cooler and kegs are considered composite goods in accordance with General Rule of Interpretation (GRI) 3(b) of the Harmonized Tariff Schedule of the United States (HTSUS). The essential character is imparted by the cooler as that is the component that maintains the temperature of the beverages. Moreover, the cooler may be used with or without the kegs. The kegs are optional components that will be used as needed.
You have suggested that the cooler be classified in two of the subheadings of Chapter 73, HTSUS, which provides for other articles of iron or steel. Pursuant to GRI 3(a) the heading which provides the most specific description shall be preferred to headings providing a more general description. While the article at issue is constructed of stainless steel, coolers are more specifically provided for in Heading 4202 and are, thus, classified therein. Please see New York Ruling N327600, dated September 6, 2022, New York Ruling N326804, dated July 21, 2022, and HQ Ruling H305292, dated June 18, 2020.
The applicable subheading for the steel cooler will be 4202.19.0000, HTSUS, which provides for trunks, suitcases, vanity cases, and similar containers, other. The general rate of duty will be 20 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading, 4202.19.0000, 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 4202.19.0000, 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.
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 Vikki Lazaro at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division