The tariff classification of an illuminated paper bag from China.

NY D82772 September 29, 1998 CLA-2-48:RR:NC:SP:234 D82772 CATEGORY: Classification TARIFF NO.: 4819.40.0040 Mr. Donald A. Keller O'Neill & Whitaker, Inc. 1809 Baltimore Ave. Kansas City, MO 64108 RE: The tariff classification of an illuminated paper bag from China. Dear Mr. Keller: In your letter dated September 16, 1998, on behalf of Hallmark Cards, Inc., you requested a tariff classification ruling. A sample identified as a "Lighted Christmas Decorative Paper Bag" (Stock # 495XGB6479) was submitted and is being returned to you as requested. It is a flat-bottomed paper bag measuring about 4 3/4" x 7 3/4" x 9 1/2"(H), with dual carrying handles made of twisted paper cord. The bag's front panel is constructed of two layers of paper, separated by bellows at the left and right edges, so as to form a kind of sleeve. The exterior (outermost) layer is printed with a picture of a decorated Christmas tree, and also incorporates numerous punched-out, star-shaped holes. Accompanying the bag is a small light bulb wired to a connector for a 9-volt battery (not included). An instruction sheet directs the user to attach the bulb to a battery and then mount the latter (using double-sided tape provided) within the paper "sleeve" at the front of the bag (i.e., behind the "tree"). The light from the bulb (which is said to blink) will then shine through the star holes. You state that this product will be marketed as a Christmas decoration for the home. While the instruction sheet bears the phrase, "Also makes a sparkling centerpiece or mantel decoration," it does not mention any other use. However, we note that the item is not merely a decoration but is suitable for functional packaging applications (i.e., as a "gift bag"), and that its "Christmas tree" is a flat printed image rather than a three-dimensional representation. As such, the product will not be considered a "festive article" for tariff purposes. The applicable subheading for the lighted bag will be 4819.40.0040, Harmonized Tariff Schedule of the United States (HTS), which provides for other (than certain enumerated) sacks and bags of paper or paperboard. The rate of duty will be 3.2%. 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 Carl Abramowitz at 212-466-5733. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division