CLA-2-92:OT:RR:NC:N4:424
George R. Tuttle, III
Tuttle Law Offices
3950 Civic Center Drive, Suite 310
San Rafael, CA 94903
RE: The tariff classification of the “Happy Loop” music box with note cards from China
Dear Mr. Tuttle:
In your letter dated September 21, 2023, you requested a tariff classification ruling on behalf of your client, Lovebox, Inc.
Photographs and a description of the “Happy Loop” music box sets were received with your inquiry.
The “Happy Loop” music box sets are comprised of the “Happy Loop” hand cranked music box accompanied by a set of 30 printed paper note cards, each with an individual message, and a decorative magnet to affix a card to the front of the music box. The “Happy Loop” music box comes in 3 themes: “Happy Loop Family” (with a puppy face magnet), “Happy Loop for Couples” (with a heart shaped magnet), and “Happy Loop Self-Love” (with a sun shaped magnet).
The music box and lid are composed of bamboo wood. The interior mechanism, which includes the music box apparatus, consists of a metal cylinder set with pins mounted on a plate and wound by a metal handle. The magnet, designed to hold the accompanying notecards, is made of silicone and a neodymium N40 magnet measuring 15mm by 1.5mm. The notecards are printed using offset printing and are made of paper similar to a deck of cards.
When the hand crank is turned, the drive mechanism rotates both the music box mechanism and the roller which is in contact with the card. As the roller rotates, it ejects a card from the box and plays a musical melody. The card can then be affixed to the front of the music box with the magnet to display the message that’s printed on the card.
The products will be imported as follows:
A set containing a music box, 30 message cards and a magnet.
A set containing a music box and a magnet.
A package of 30 message cards.
In accordance with General Rule of Interpretation ("GRI") 3(b), the aforementioned “Happy Loop” music box sets, shall be classified by the component or components taken together, which can be regarded as conferring on the set, as a whole, its essential character. The essential character of each set is imparted by the music box which is an indispensable attribute that strongly marks or serves to distinguish the purpose of the article.
The applicable subheading for the “Happy Loop” music box sets, will be 9208.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Music boxes, fairground organs, mechanical street organs, mechanical singing birds, musical saws and other musical instruments not falling within any other heading of this chapter; decoy calls of all kinds; whistles, call horns and other mouth-blown sound signaling instruments: Music boxes.” The rate of duty will be 3.2% ad valorem.
You propose classification of the cards, when imported separately from the music box sets, in subheading 4909.00.4000, HTSUS, “printed cards bearing personal greetings, messages or announcements.” We disagree. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. The Explanatory Notes to Heading 4909, HTSUS, state that the type of cards anticipated in this heading are traditional greeting cards and similar, such as birthday cards, Christmas cards, birth announcements, and thank you cards. Rather, the cards under consideration provide topics to spark conversation or personal inspiration. They are more similar to the cards classified in past CBP rulings N322436 (11/15/21), N326331 (6/15/22), and N128508 (11/17/10).
Therefore, the applicable subheading for the 30-pack of cards, when imported separately, will be 4911.99.6000, HTSUS, which provides for “Other printed matter, Other: Other: Other: Printed on paper in whole or in part by a lithographic process.” The rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4911.99.6000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, 9903.88.15, in addition to subheading 4911.99.6000, 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.
Although no request was made for a country of origin marking determination, a review of the “Happy Loop” music box sets retail packaging indicate that the products are not properly, sufficiently, or legally marked. The phrases “INVENTED IN FRANCE,” “Designed In France” and “La French Tech” are printed in a significantly larger and bolder font size than the incorrect country of origin marking, “Made in PRC,” printed on the last line of the bottom retail box.
Marking “PRC” on the retail container, does not satisfy the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134, and is not an acceptable country of origin marking for the imported goods. Customs and Border Protection has repeatedly found that the abbreviation “PRC” is not acceptable for country of origin marking purposes. See HQ ruling 560693, dated March 6, 1998, HQ ruling 562901, dated November 6, 2003, and HQ ruling W968266, dated September 19, 2006.
In HQ 734144, dated July 5, 1991, CBP held that a label marked "Designed in U.S.A." with the words "Made in (Country of Origin)" in close proximity and in the same size and color as the words "Designed in U.S.A." satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46.
Provided the abbreviation “PRC” is changed to “China,” and the retail packaging is then marked "Made in China" in close proximity and in the same size and color as the words “Invented In France,” “Designed In France” and “La French Tech,” the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46 would be satisfied so long as the words "Made in China" are legible, conspicuous, and permanent.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
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.
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 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 Roseanne Murphy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division