CLA-2-48:OT:RR:NC:N5:130
Mr. Richard Writsman
Continental Agency
1768 W. Second St.
Pomona, CA 91766
RE: The tariff classification of tower boxes from China
Dear Mr. Writsman:
In your letter, dated December 13, 2024, you requested a binding tariff classification ruling on behalf of your client, Houdini, Inc. The ruling was requested for five styles of themed tower boxes. Photos and product information were submitted for our review.
The products under consideration are “tower boxes”, i.e., decorative figures consisting of three decorated, stacked paperboard boxes. You have submitted five styles for consideration, item TOW6452 Santa Claus, item TOW6446 Penguin, item TOW6660 Gnome, item TOW5239 Fox, and item TOW6650 Snowman. The tower boxes are elaborately decorated to appear as three-dimensional season-themed figures. Each is made of 90 percent paper and 10 percent textile, with the exception of item TOW6660 Gnome, which is 80 percent paper and 20 percent textile. The Santa Claus measures 7” wide by 5” deep by 14” tall when stacked. The bottom box forms the chimney, the middle box is the torso with textile arms, and the top box is the head with beard, face, and textile hat. The boxes are elaborate and reusable as a Santa Claus table decoration. You indicate that the boxes are used to package holiday food treats and will be filled by your customers and marketed for retail sale. We note, however, that the tower boxes are not usual packaging for products such as cookies and nut mixes.
The Penguin measures 5.5” wide by 4.5” deep by 9” tall when stacked. The bottom box is printed with snowflakes, the middle box is the torso with textile arms, and the top box is the head with a textile scarf and winter hat. The Gnome measures 7” wide by 6” deep by 17.9” tall when stacked. The bottom box is decorated in a plaid print, the middle box is the torso with textile arms, and the top is a head complete with full beard and tall, conical hat. The Fox measures 9” wide by 6” deep by 14.5” tall when stacked. The bottom box is the fox’s hindquarters, with textile feet and tail, the middle box is the torso with textile arms, and the top box is the fox head with a textile scarf and textile sweater hat. The Snowman measures 7” wide by 5” deep x 14” tall when stacked. The bottom box is decorated in a buffalo plaid, the middle box is the torso with textile arms, and the top box is the snowman’s head with a textile scarf and a textile winter hat.
In your letter, you suggest that the tower boxes are festive articles classifiable in heading 9505. We disagree. Boxes are utilitarian articles, and utilitarian articles are specifically excluded from classification as festive articles by Note 1(x) to Chapter 95. Furthermore, the fox, snowman, gnome, and penguin are not recognizable festive motifs. While the tower consists of boxes, the boxes are reusable together as a decorative item, which makes them beyond the packaging and conveyance limits of heading 4819.
The applicable subheading for the five tower boxes will be 4823.90.8680, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers: Other: Other: Other: Other: Other: Other. 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 4823.90.8680, 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 4823.90.8680, 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/programs-administration/trade-remedies, 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/.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division