CLA-2-42:OT:RR:NC:N4:441
Victoria Williams
Aldi USA
1200 North Kirk Road
Batavia, IL 60103
RE: The tariff classification of a pouch with decorating materials from China
Dear Ms. Williams:
In your letter dated July 5, 2023, you requested a tariff classification ruling. You have submitted a sample, which will be retained in our office per your request.
The submitted sample, which you referred to as a “tie dye kit,” item number 704012, includes a reusable pouch, an instruction booklet, three bottles of dye powder, ten rubber bands, and disposable gloves. The dye powders and other components are used to tie dye the pouch. In your correspondence, you stated that the outer surface of the pouch is constructed of one hundred percent cotton textile material. The pouch is designed to provide storage, protection, portability, and organization to personal effects during travel. It features a zippered closure. The article measures approximately 9 inches (L) by 5.5 inches (D).
The pouch, instruction booklet, dye powders, rubber bands, and disposable gloves are considered a set for tariff purposes. All the materials are used to decorate and personalize the pouch, and the instruction booklet explains how to do so. The pouch is fully functional as a useful article in its imported state and serves its functions before and after it is decorated with the additional components. As such, the pouch provides the essential character of the set, General Rule of Interpretation 3(b) noted.
In your request, you suggested that the pouch be classified under 9503.00.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Tricycles, scooters, pedal cars and similar wheeled toys…dolls, other toys…puzzles of all kinds; parts and accessories thereof…Other.” As noted in the submission, the article is intended for adults, and not children, and it is further noted that the zippered pouch has a utilitarian function of being able to carry small items, thus it is not classifiable in 9503 as a toy in accordance with Legal Note 1(d) to Chapter 95 which excludes “Sports bags or other containers of heading 4202, 4303 or 4304.” Please see HQ H251422 dated November 29, 2019.
The applicable subheading for the pouch will be 4202.92.1500, HTSUS, which provides for travel, sports, and similar bags, with outer surface of textile materials, of vegetable fibers and not of pile or tufted construction, of cotton. The general rate of duty will be 6.3 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading, 4202.92.1500, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate 9903.88.03 of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., in addition to subheading 4202.92.1500, 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