The tariff classification of unfiltered and filtered cigarillos from Canada.

N150760 June 23, 2011 CLA-2-24:OT:RR:NC:2:231 CATEGORY: Classification TARIFF NO.: 2402.10.30; 2402.10.60; 2402.10.80 Mr. Brian J. Murphy Miller & Company P.C. 4929 Main Street Kansas City, MO 64112 RE: The tariff classification of unfiltered and filtered cigarillos from Canada. Dear Mr. Murphy: In your letters dated February 2 and 25, 2011, you requested a tariff classification ruling on behalf of Bastos du Canada Ltée. Samples of two types of cigarillos were submitted for our review. The samples were not labeled for the U.S. market. The first sample consists of 25 “Regular Cigarillos without Filters” put up for retail sale in a paperboard box measuring 3-3/8” by 4” by 5/8”. Each cigarillo consists of a roll of tobacco particles (described as filler made from tobacco leaves, stems and reconstituted tobacco) within a brown, paper-like wrapper, which is said to contain at least 66-2/3% tobacco byproduct material (stems, scrap, dust, stalks). The wrapper material thus appears to be of the kind known as “homogenized” or “reconstituted” tobacco. Each cigarillo exhibits a uniformly cylindrical shape, and measures approximately 3-1/4” in length by ¼” in diameter. One end of each cigarillo is reinforced by a glued-on “brown tipping,” which is said to be of wood fibers, and which runs along slightly less than one inch of the tube’s length. The second sample consists of 25 “Regular Cigarillos with Acetate Filters.” With one exception, these are the same as the cigarillos described above. The difference is that each of these cigarillos incorporates, at one end, a filter component made of acetate tow wrapped with a plug wrap (made of wood fibers) and held to the tubular construction by the “brown tipping.” The appearance (except for the white color of the filter’s exposed end), size, shape, and packaging are the same as for the unfiltered version. Based on our review of the samples and accompanying technical information, we concur with your assertion that the subject goods exhibit characteristics that are consistent with those of “cigars” (as opposed to cigarettes). The applicable subheading for the unfiltered and filtered cigarillos, if valued less than 15 cents each, will be 2402.10.30, Harmonized Tariff Schedule of the United States (HTSUS), which provides for cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes: cigars, cheroots and cigarillos, containing tobacco: each valued less than 15 cents. The general rate of duty will be $1.89 per kilogram + 4.7% ad valorem. Goods classified in this subheading are also subject to a Federal Excise Tax. The applicable subheading for the unfiltered and filtered cigarillos, if valued 15 cents or over but less than 23 cents each, will be 2402.10.60, HTSUS, which provides for cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes: cigars, cheroots and cigarillos, containing tobacco: each valued 15 cents or over but less than 23 cents. The general rate of duty will be 57 cents per kilogram + 1.4% ad valorem. Goods classified in this subheading are also subject to a Federal Excise Tax. The applicable subheading for the unfiltered and filtered cigarillos, if valued 23 cents each or over, will be 2402.10.80, HTSUS, which provides for cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes: cigars, cheroots and cigarillos, containing tobacco: each valued 23 cents or over. The general rate of duty will be 57 cents per kilogram + 1.4% ad valorem. Goods classified in this subheading are also subject to a Federal Excise Tax. 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 http://www.usitc.gov/tata/hts/. In your initial (Feb. 2) letter, you stated that the cigarillos imported into the United States will be labeled and packaged in compliance with applicable TTB, CBP and other U.S. regulatory requirements. With your second (Feb. 25) letter, you submitted, at our request, packaging artwork contemplated for the cigarillos destined for the U.S. market. However, we advised you that this proposed packaging artwork, which nowhere identified the product as “cigars” but bore the phrases “Regular Cigarillos” and “25 Unflavored Cigarillos,” did not satisfy the requirements of 27 CFR 41.73. The latter requires that every package of cigars must be labeled with the designation “cigars,” the quantity of cigars contained in the package and, for small cigars, the designation “small” or “little.” (The term “cigarillos” does not satisfy these regulatory requirements, although it may appear on the package as additional information.) We note that you have since submitted (via email transmission dated May 31, 2011) revised artwork bearing, in various places, the phrases “Regular Small Cigars” and “25 Unflavored Small Cigars.” This revised labeling proposal appears to satisfy the cited regulation. The revised artwork also bears the phrase “MADE IN CANADA,” and appears to satisfy the country of origin marking requirements of 19 CFR Part 134. For the purposes of this ruling, it is thus assumed that the subject goods will in fact be in full compliance with all labeling requirements when they are imported into the United States. For further information on the tax status of the merchandise, or on the labeling requirements of 27 CFR 41.73, you may contact the following agency: Alcohol & Tobacco Tax & Trade Bureau (TTB) U.S. Department of the Treasury 1310 G Street, NW, Suite 200E Washington, D.C. 20220 Attn.: Amy Greenberg Telephone: (202) 453-2099 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 Nathan Rosenstein at (646) 733-3030. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division