The tariff classification of a paperboard display unit from China

N184136 October 12, 2011 CLA-2-48:OT:RR:NC:2:234 CATEGORY: Classification TARIFF NO.: 4819.10.0040 Ms. Maribeth Dedmon Dollar General 100 Mission Ridge Goodlettsville, TN 37072 RE: The tariff classification of a paperboard display unit from China Dear Ms. Dedmon: In your letter dated September 8, 2011, you requested a tariff classification ruling on behalf of your client, Dolgencorp Inc (the “Company”). You requested in your ruling the determination of whether PDQ (point of purchase) display units for general merchandise are considered to be packaging “of a kind normally used for packing such goods”. For the purpose of this ruling, you submitted photos of the product for our examination and the PDQ sample submitted was filled with Foam Cell Phone Holders to demonstrate the manner in which this item will be imported. The subject sample, a paperboard PDQ display unit filled with general merchandise, is constructed of corrugated paperboard. The square shaped paperboard box is a one piece assembly and measures approximately 11” (w) x 3 ¾” (d) x 8 ½” (h). The one piece display unit is held together on the back panel by gluing and is further assembled by folding and slotting at the bottom of the box. The PDQ box top is cut off in order for it to be filled with merchandise. The PDQ display unit is printed with the name and price of the item it contains. You stated in your letter that general merchandise will be imported in PDQ display units. Photos submitted depict that in some instances the PDQ is shipped in a 6 sided master case and in others the master case is only 5 sided. You further stated that when the goods are shipped in a 5-sided master case, the bottom of the PDQ unit serves as the sixth side of the master case. The master case slides over the PDQ and the two are sealed together with packing tape. In the case of the subject sample, the 5-sided master carton is used in conjunction with your merchandise. You also stated that the PDQ units, whether imported with the 5-sided or the 6-sided master cases, are thrown away after the merchandise is sold. You ask whether the PDQs, when imported with general merchandise, are separately classifiable from the general merchandise. General Rule of Interpretation (GRI) 5(b) of the HTSUS provides that, subject to the provisions of GRI 5(a), packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. This provision does not apply when such materials or packing containers are clearly suitable for repetitive use. The paperboard display unit is not suitable for repetitive use and will be considered ordinary packing and classifiable with the goods when imported with the general merchandise for display. However, the PDQ display units are separately classifiable in subheading 4819.10.0040, HTSUS, when they are not imported with merchandise. The submitted sample will be returned to you as requested. The applicable subheading for the PDQ display units imported without general merchandise will be 4819.10.0040, Harmonized Tariff Schedule of the United States (HTSUS), 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: Cartons, boxes and cases, or corrugated paper or paperboard: Other. The rate of duty will be free. 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/. 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 Albert Gamble at (646) 733-3037. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division