The tariff classification of a paper and polypropylene basket from China

N221326 July 12, 2012 CLA-2-46:OT:RR:NC:2:230 CATEGORY: Classification TARIFF NO.: 4602.90.0000 Mr. David Larson Kohl’s Inc. N56 W17000 Ridgewood Drive Menomonee Falls, WI 53051 RE: The tariff classification of a paper and polypropylene basket from China Dear Mr. Larson: In your letter dated June 7, 2012, you requested a tariff classification ruling. The ruling was requested on style # SS13DBGLNB01, “nesting tray”. A representative sample was submitted for our review and will be returned to you, as requested. The “nesting tray” is an open-top, rectangular-shaped basket measuring approximately 7” (l) x 4 ½” (w) x 3 ½” (h). The outer surface of the basket is composed of interwoven paper strips. From our examination the paper strips appear to be folded, not twisted or rolled. The basket is lined with a non-woven polypropylene textile .The upper and lower edges of the basket are wrapped with twisted paper strands. You state that the basket’s primary function will be used to hold small toiletry items. The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation ("GRIs"), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs will be applied, in the order of their appearance. Neither GRI 1 nor GRI 2 governs the classification of the instant item. The folded paper strips forming the outer surface of the basket constitutes “plaiting materials” as set forth in Chapter Note 1 of Chapter 46, Harmonized Tariff Schedule of the United States (HTSUS), which states as follows: In this chapter the expression “plaiting materials” means materials in a state or form suitable for plaiting, interlacing or similar processes; it includes straw, osier or willow, bamboos, rattans, rushes, reeds, strips of wood, strips of other vegetable material (for example, strips of bark, narrow leaves and raffia or other strips obtained from broad leaves), unspun natural textile fibers, monofilament and strip and the like of plastics and strips of paper, but not strips of leather or composition leather or of felt or nonwovens, human hair, horsehair, textile rovings or yarns, or monofilament and strip and the like of chapter 54. In accordance with the Explanatory Notes for GRI 3(b), the essential character of an item may be determined by the nature of the material or component, its bulk, quantity, weight, or value, or by the role of a constituent material in relation to the use of the goods. The basket is constructed from multiple materials (e.g., paper, polypropylene) that are prima facie classifiable in different headings. As such, the item is a composite good within the meaning of GRI 3(b). GRI 3(b) states, in pertinent part: (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. You state that the component breakdown of this article is 50% paper and 50% polypropylene. Although the components are equal in volume, it is the folded paper strips that impart the essential character. The folded paper strips on the outer surface form the basket-like structure and contribute to the item’s consumer appeal. The applicable subheading for the paper and polypropylene basket will be 4602.90.0000, HTSUS, which provides for Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601: Other (than of vegetable materials). The rate of duty will be 3.5 percent ad valorem. 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 Laurel Duvall at (646) 733-3035. Sincerely, Thomas J. Russo Director National Commodity Specialist Division