Application for Further Review of Protest No. 5301-23-109515; Tariff classification of folding paperboard cosmetic package

H335786 March 30, 2026 OT:RR:CTF:CPMMA H335786 NAH CATEGORY: Classification TARIFF NO: 4819.20.0040; 9903.88.03 Center Director Industrial and Manufacturing Materials Center of Excellence and Expertise U.S. Customs and Border Protection 726 Exchange Street, Suite 400 Buffalo, NY 14210 Attn: William Lahood, Import Specialist RE: Application for Further Review of Protest No. 5301-23-109515; Tariff classification of folding paperboard cosmetic package Dear Center Director, This is in reply to the Application for Further Review (“AFR”) of Protest No. 5301-23-109515, filed on November 15, 2023, by Sandler, Travis & Rosenberg, P.A., on behalf of Wormser Corporation (“Protestant”), contesting U.S. Customs and Border Protection’s (“CBP”) tariff classification of the subject folding paperboard cosmetic packages under the Harmonized Tariff Schedule of the United States (“HTSUS”), and the application of the additional duties on products of China under Section 301 of the Trade Act of 1974 (“Section 301 duties”). The folding paperboard cosmetic packages were classified under statistical reporting number 4819.50.4060, HTSUSA (“Annotated”), which provides for “[c]artons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Other packing containers, including record sleeves: Other: Other: Other.” As products of China, the articles were also classified under subheading 9903.88.03, HTSUS, which provides for “articles the product of China, as provided for in U.S. note 20(e) to this subchapter and as provided for in the subheadings enumerated in U.S. note 20(f).” The subject merchandise arrived in three entries at Houston, TX, between June 17 and August 26, 2022. The entries were liquidated under subheadings 4819.20.0040, 4819.50.4060, and 9903.88.03, HTSUSA, between May 19 and July 28, 2023. Protestant asserts that an 2 exclusion from the Section 301 duties applies to the subject merchandise, because U.S. note 20(sss)(iii)(5) to Section III of Chapter 99, HTSUS, applies. FACTS: The subject merchandise includes three styles of square-shaped and three-dimensional rectangular paperboard bifold cosmetic packaging. Each style is one continuous piece with preformed ridges to allow the paperboard to be bent into a box shape. Each style has images and product information printed on all exterior surfaces of the paperboard. Each style features an opening on one side to hold and allow powder makeup containers to extend out of the packaging. The cosmetics are not imported with the merchandise. After importation, the paperboard will be folded into a box, secured with tape or glue, and the cosmetic(s) will be glued into the opening. The three styles of packaging at issue are: 1. Product No. 133132: When assembled the packaging is a six-sided box. The top and bottom of the packaging are squares. The sides are thin rectangles. The top, square face has a circular cut in the center for the insertion of a cosmetic case. This style is substantially the same as product no. 133133. 2. Product No. 133133: When assembled the packaging is a six-sided box. The top and bottom of the packaging are squares. The sides are thin rectangles. The top, square face has a circular cut in the center for the insertion of a cosmetic case. This style is substantially the same as product no. 133132. 3. Product No. 133144: When assembled the packaging is a six-sided box. The top and bottom of the packaging is a long rectangle. The sides are thin rectangles. The top face has four rectangular cutouts in a line along the length of the face. ISSUES: 1. Whether the subject folding paperboard cosmetic packages are classified under subheading 4819.20, HTSUS, as folding boxes of paperboard; or under subheading 4819.50, HTSUS, as other packing containers. 2. Whether an exclusion to Section 301 duties applies to the subject folding paperboard cosmetic packages. LAW AND ANALYSIS: Initially, we note that the matter is protestable under 19 U.S.C. § 1514(a)(2) as a decision on classification. The protest was timely filed within 180 days of liquidation of the first entry. See Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2)(B)(ii), (iii) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)). Further review of Protest No. 5301-23-109515 is properly accorded pursuant to 19 C.F.R. § 174.24(b) because the decision against which the protest was filed is alleged to be inconsistent with rulings by CBP and the Customs Courts. 3 Classification of goods under the HTSUS is governed by the General Rules of Interpretation (“GRIs”). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule, and any relative section or chapter notes. In the event the goods cannot be classified solely based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 6 provides that for legal purposes, classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. * * * * * * The 2023 HTSUS subheadings under consideration are the following: 4819 Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: 4819.20 Folding cartons, boxes and cases, of non-corrugated paper or paperboard: 4819.20.0040 Other. 4819.50 Other packing containers, including record sleeves: 4819.50.40 Other: Other: 4819.50.4040 Rigid boxes and cartons. 4819.50.40.60 Other. … 9903.88.03 Except as provided in headings 9903.88.13, 9903.88.18, 9903.88.33, 9903.88.34, 9903.88.35, 9903.88.36, 9903.88.37, 9903.88.38, 9903.88.40, 9903.88.41, 9903.88.43, 9903.88.45, 9903.88.46, 9903.88.48, 9903.88.56, 9903.88.64, 9903.88.66, 9903.88.67, 9903.88.68, or 9903.88.69, articles the product of China, as provided for in U.S. note 20(e) to this subchapter and as provided for in the subheadings enumerated in U.S. note 20(f). … 9903.88.66 Effective with respect to entries on or after December 1, 2021, and before June 1, 2023, articles the product of China, as provided for in U.S. note 20(sss) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative. * * * Note 20(e) to Section III of Chapter 99, HTSUS, states, in pertinent part, as follows: For the purposes of heading 9903.88.03, products of China, as provided for in this note, shall be subject to an additional 25 percent ad valorem rate of duty. The products of China that are subject to an additional 25 percent ad valorem rate of duty under heading 9903.88.03 are products of China that are classified in the subheadings enumerated in U.S. note 20(f) to subchapter III. All products of China that are classified in the subheadings enumerated in U.S. note 20(f) to subchapter III are 4 subject to the additional 25 percent ad valorem rate of duty imposed by heading 9903.88.03, except products of China granted an exclusion by the U.S. Trade Representative and provided for in . . . (17) heading 9903.88.66 and U.S. note 20(sss)(iii) to subchapter III of chapter 99[.] Note 20(f) to Section III of Chapter 99, HTSUS, states, in pertinent part, as follows: Heading 9903.88.03 applies to all products of China that are classified in the following 8-digit subheadings, except products of China granted an exclusion by the U.S. Trade Representative and provided for in . . . (17) heading 9903.88.66 and U.S. note 20(sss)(iii) to subchapter III of chapter 99 [.] Note 20(f) to Section III of Chapter 99, HTSUS, lists subheadings 4819.20.00 and 4819.50.40, HTSUS. Note 20(sss)(iii) to Section III of Chapter 99, HTSUS, states, in pertinent part, as follows: The U.S. Trade Representative determined to establish a process by which particular products classified in heading 9903.88.03 and provided for in U.S. notes 20(e) and 20(f) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.03, and by which particular products classified in heading 9903.88.04 and provided for in U.S. note 20(g) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.04. See 83 Fed. Reg. 47974 (September 21, 2018) and 84 Fed. Reg. 29576 (June 24, 2019). Pursuant to the product exclusion process, the U.S. Trade Representative has determined that, as provided in heading 9903.88.66, the additional duties provided for in heading 9903.88.03 or in heading 9903.88.04 shall not apply to the following particular products, which are provided for in the enumerated statistical reporting numbers: … (5) 4819.50.4060 * * * The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither 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. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN 48.19 states, in pertinent part, as follows: This group covers containers of various kinds and sizes generally used for the packing, transport, storage or sale of merchandise, whether or not also having a decorative value[.] The heading includes folding cartons, boxes and cases. These are: - cartons, boxes and cases in the flat in one piece, for assembly by folding and slotting (e.g., cake boxes); and - containers assembled or intended to be assembled by means of glue, staples, etc., on one side only, the construction of the container itself providing the means of forming the other sides, 5 although, where appropriate, additional means of fastening, such as adhesive tape or staples may be used to secure the bottom or lid. The articles of this group may be printed, e.g., with the name of the merchant, directions for use, illustrations. Thus, seed packets with pictures of the products and sowing directions, in addition to the name of the firm, or chocolate or cereal packets with pictures for the amusement of children remain classified in this heading. The articles of this heading may also have reinforcements or accessories of materials other than paper (e.g., textile backings, wooden supports, string handles, corners of metal or plastics). * * * * * 1. Whether the subject folding paperboard cosmetic packages are classified under subheading 4819.20, HTSUS, as folding boxes of paperboard; or under subheading 4819.50, HTSUS, other packing containers. There is no dispute that the folding paperboard cosmetic packages from China are classified under heading 4819, HTSUS, which provides for “[c]artons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like.” At issue is the classification at the 6-digit level under heading 4819, HTSUS, and whether the merchandise is classified under subheading 4819.20, HTSUS, which provides for “[f]olding cartons, boxes and cases, of non-corrugated paper or paperboard,” or subheading 4918.50, HTSUS, which provides for “[o]ther packing containers, including record sleeves.” The scope of subheading 4819.20, HTSUS, has been previously considered by CBP in Headquarters Ruling Letter (“HQ”) 963903, dated July 27, 2001, and HQ 965223, dated April 21, 2003. In HQ 963903, CBP classified a six-sided cosmetic container with inserts to hold cosmetics in subheading 4819.20, HTSUS. While classifying the container, CBP explicitly determined that the terms of subheading 4819.20, HTSUS, are met when an article is “in one piece (single sheet of paperboard),” “is imported in a flattened, prefolded or creased condition,” and “is assembled into a shaped carton by gently pressing the prefolded sides and inserting the slotted tabs into the top, bottom and side of the carton.” Approximately two years later, in HQ 965223, CBP classified “thin, rectangular boxes designed to hold compact disc[s] . . . made from a single sheet of paperboard, folded lengthwise such that a portion of paperboard forms an inner partition or filler on the inside of the box . . . [which are] assembled by gluing the folded sheet in three locations on two internal surfaces” under subheading 4819.20, HTSUS. In HQ 965223, CBP reasserted that subheading 4819.20, HTSUS, does not have limiting language in its explicit terms or legal notes that would preclude non-traditional folding cartons from the subheading. For example, folding cartons with complex construction in HQ 965873, dated December 9, 2002, and the internal compartments of folding cartons in HQ 963903, dated July 27, 2001, remain classified under subheading 4819.20, HTSUS. Turning to the merchandise at issue, there is no dispute that the three styles of merchandise are all single pieces of flat paperboard that are intended to be assembled via folding and slotting. As such, heading 4819, HTSUS, explicitly groups the merchandise at issue under “folding cartons, boxes and cases.” The subject folding paperboard cosmetic packages are not of 6 complicated design, and the only characteristic that separates them from a traditional cake box, which is a single piece of paperboard that can be folded and slotted into a hollow box to carry a cake, is the cutout that allows inserted cosmetics to extend out of the packaging. However, subheading 4819.20, HTSUS, does not have such a limit to its purview. The existence of cut-outs or holes in a box is no different than internal dividers or inserts. The merchandise is imported flat, in one piece, and assembled via folding and slotting. The merchandise is explicitly described by subheading 4819.20, HTSUS, which provides for “[f]olding cartons, boxes and cases, of non-corrugated paper or paperboard.” The three styles of merchandise are expressly provided for under subheading 4819.20, HTSUS. However, more can be said concerning the scope of subheading 4819.50, HTSUS. Certain cosmetic containers of non-corrugated paper or paperboard have been classified under subheading 4819.50, HTSUS, but only when the article, upon importation, did not meet the criteria of being flat, in one piece, and assembled via folding and slotting. For example, in HQ H315829, dated September 8, 2023, CBP classified a box designed to hold a blush pan under subheading 4819.50, HTSUS. The box was imported completely constructed and designed to have a lid with a mirror on the interior to assist in the application of the contained cosmetic. The container in HQ H315829 was not imported flat and CBP concluded that the inclusion of the mirror precluded the container from classification under subheading 4819.20, HTSUS. An examination of New York Ruling Letters (“NY”) N245413, dated September 12, 2013, and NY N105303, dated June 2, 2010, demonstrates similar distinctions. In NY N245413, CBP classified a cosmetic box, which was imported with a plastic molded insert and compartments sized to hold cosmetic products, “constructed of a rigid paper board material, entirely covered with a glossy white paper . . . with a hinged lid that flips up” under subheading 4819.50, HTSUS. In NY N105303, the cosmetic container classified under subheading 4819.50, HTSUS, was an empty compact of paperboard, which was wrapped in paper, and contained a mirror on the underside of the lid. The cosmetic containers in NY N245413 and NY N105303 were neither foldable nor imported in a flat form, and therefore were appropriately classified under subheading 4819.50, HTSUS. Finally, Protestant claims that NY K86744, dated June 22, 2024, sets precedent for folding paperboard cosmetics packages to be classified under subheading 4819.50, HTSUS. In NY K86744, the cosmetic container was a hexagonal paperboard box, which was presented in a flat condition, and required subsequent set-up. However, the similarities to the folding paperboard cosmetic packages at issue end there. In NY K86744, the cosmetic container was not a single box as it folded into an open square with a “ready-to-use” top/removable lid accompanying the article. Further, the cosmetic case in NY K86744 was not a typical folding box; CBP describes the merchandise at issue therein as follows: The main section consists of several pieces of rigid, non-corrugated paperboard that have been placed edge-to-edge and united with a common connective covering of coated paper. That is, the coated paper is laminated to the paperboard pieces in such a way that it serves to hold them together and form hinges between them. The covered paperboard pieces are, in addition, glued to each other in certain strategic locations. The flattened box can be “set up” by a simple manipulation in which the side panels are pulled in an outward direction, which causes the hinged bottom to unfold and 7 form the base. A separate 6-sided sheet of paperboard (included) can then be dropped into the box to provide added support at the bottom and to help prevent the structure from collapsing. The cosmetic case therein had a separate lid that is not accounted for in the construction of the folding apparatus, and it could not maintain its shape, even after folding, without the insertion of a separate paperboard sheet. In sum, the cosmetic case in NY K86744 was neither comprised of a single paperboard piece nor assembled merely by “by folding and slotting,” and the construction of the container did not provide “the means of forming the other sides.” Those are conditions explicitly provided for in the definition of “folding cartons, boxes and cases” as stated in EN 48.19. The cosmetic case in NY K86744 is appropriately classified under subheading 4819.50, HTSUS, because it is different from a traditional folding box that is classified under subheading 4819.20, HTSUS. The cosmetic packages at issue are distinguishable from the cosmetic cases under subheading 4819.50, HTSUS. As discussed above, CBP has consistently classified similar folding paperboard cosmetic packages in subheading 4819.20, HTSUS. See, e.g., HQ 965873, dated December 9, 2002, and HQ 963903, dated July 27, 2001. As such, the subject folding paperboard cosmetic packages are properly classified in subheading 4819.20.0040, HTSUSA, as “Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Folding cartons, boxes and cases, of non-corrugated paper or paperboard: Other.” 2. Whether an exclusion to Section 301 duties applies to the subject folding paperboard cosmetic packages. As an initial matter, products of China are subject to Section 301 duties unless explicitly excluded. Specifically, Notes 20(e) and 20(f) to Section III of Chapter 99, HTSUS, designate additional duties on every subheading of heading 4819, HTSUS. Note 20(sss) to Section III of Chapter 99, HTSUS, is a designated exemption under Note 20(f) to Section III of Chapter 99, HTSUS. Note 20(sss) only applies to entries on or after December 1, 2021, and before June 1, 2023. In this instance, the only relevant classification enumerated under Note 20(sss)(iii) is statistical reporting number 4819.50.4060, HTSUSA. For note 20(sss) to apply to an entry, the entry must conform with the terms of subheading 9903.88.66, HTSUS, which explicitly states that it only applies “to entries on or after December 1, 2021, and before June 1, 2023.” In this circumstance, the products are from China and the three entries at issue entered during the relevant time period for subheading 9903.88.66, HTSUS. However, the merchandise in the subject entries is not classified under statistical reporting number 4819.50.4060, HTSUSA. Thus, the subject paperboard cosmetic cases are not excluded from additional Section 301 duties. HOLDING: By application of GRIs 1 and 6, the subject folding paperboard cosmetic packages from China are classified in heading 4819, HTSUS, and specifically in subheading 4819.20.0040, HTSUSA, which provides for “Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Folding 8 cartons, boxes and cases, of non-corrugated paper or paperboard: Other.” The 2023 column one general rate of duty is free. Pursuant to U.S. Note 20(e) and (f) to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4918.20.00, 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, HTSUS, in addition to subheading 4918.20.0040, HTSUS, listed above. You are instructed to DENY the protest, except to the extent that reclassification of the merchandise as indicated above results in a partial allowance. You are instructed to notify the Protestant of this decision no later than 60 days from the date of this decision. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to this notification. Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings will make the decision available to CBP personnel, and to the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov/, which can be found on the CBP website at http://www.cbp.gov and other methods of public distribution. Sincerely, Yuliya A. Gulis, Director Commercial and Trade Facilitation Division