CLA-2-94:OT:RR:NC:N 4 410
Joseph Kenny
Geodis USA LLC
One CVS Dr., Mail Code 5055 Woonsocket, RI 02895
RE: The tariff classification of a candle holder and gel clings from China
Dear Mr. Kenny:
In your letter dated August 22, 2023, you requested a tariff classification ruling.
The merchandise under consideration is identified as Diwali elephant CVS item 60783, gel clings CVS item 714650, and gel clings CVS item 864551. Product pictures were submitted with your ruling request.
The Diwali elephant is made of dolomite and measures approximately 6” tall by 6” wide by 2.5” deep. It is in the shape of an elephant in ceremonial garb with a symbol design associated with Diwali. There is a round indentation on the elephant’s back designed for secure placement of a candle. You state that the item is used in celebration of Diwali. Diwali is a religious and cultural holiday of "Festival of Lights" observed by followers of the Hindu and Sikh faiths, and to a lesser extent by other religious groups.
The gel clings CVS item numbers 714650 and 864551 are made from 95% thermoplastic rubber (TPR) and 5% polyethylene terephthalate (PET). Both items are intended for home decoration for the Diwali “Festival of Lights”. CVS item 714650 consists of an image of the phrase “Happy Diwali” and images of two lighted lamps or diyas, and two decorated elephants. CVS item 864551 consists of images of four decorated elephants, three lighted lamps or diyas, two flowers and a colorful paper lantern. The gel clings adhere to smooth, flat surfaces, such as glass windows without the need for adhesives, and are removable for reuse in the following year. The items are marketed and sold exclusively for Diwali.
The Diwali elephant is classifiable under subheading 9405.50.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Lamps and lighting fittings…: Non-electrical lamps and lighting fittings: Other: Other.” However, the symbol design in the item is a recognized festive motif for Diwali holiday. Therefore, it is eligible for duty-free treatment under subheading 9817.95.05, HTSUS.
The applicable subheading for the Diwali elephant candle holder will be 9817.95.05, HTSUS, which provides for “Articles classifiable in subheadings…9405.20, 9405.40 or 9405.50, the foregoing meeting the descriptions set forth below: Utilitarian articles in the form of a three-dimensional representation of a symbol or motif clearly associated with a specific holiday in the United States.” The general rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9405.50.4000, 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 9405.50.4000, HTSUS, listed above.
Please note that the additional duties imposed by headings 9903.88.01, 9903.88.02, 9903.88.03, and 9903.88.04 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.
The applicable subheading for gel clings CVS items 714650 and 864551 will be 9505.90.6000, HTSUS, which provides for “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Other: Other.” The rate of duty will be Free.
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.
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 at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Michael Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division