The tariff classification of a paper gift bag with “instant tissue” from China

N283008 February 16, 2017 CLA-2-48:OT:RR:NC:3:230 CATEGORY: Classification TARIFF NO.: 4819.40.0040 Ms. Dianna Garren EMO Trans 20 Southwoods Pkwy Suite 500 Atlanta, GA 30354 RE: The tariff classification of a paper gift bag with “instant tissue” from China Dear Ms. Garren: In your letter, dated January 26, 2017, you requested a classification ruling on behalf of your client, International Greeting. The ruling was requested for a paper gift bag with “instant tissue”. A product specification sheet was submitted for our review. The article, identified as “Cahootz Cub Bag”, is a paper gift bag measuring approximately 9” wide by 10” high by 5” deep. The gift bag is outfitted with “instant tissue”. Two sheets of tissue paper are accordion-pleated, cut to shape, and permanently affixed to the inside of the the gift bag. When unfolded, the tissue paper fans out and gives the appearance of a gift bag stuffed or fully lined with tissue paper. The bag prevents the need for purchases of both a gift bag and tissue paper separately. The bag has two polypropylene cord handles. In your submission, you suggest that the gift bags are classified as gift bags without classifying the tissue paper separately. We agree with this suggestion. 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. In the instant case, neither GRIs 1 or 2 are applicable; classification under GRI 3 is considered. The gift bag is constructed of multiple materials, i.e., the paper bag and tissue, that are prima facie classifiable in different headings. The bag therefore is a composite good within the meaning of GRI 3(b). GRI 3(b) states, in pertinent part: 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. In accordance with the Explanatory Notes (ENs) 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 gift bag is the functional part of the item, has the greatest weight, value, and bulk, and imparts the item with its consumer appeal. The tissue paper enhances the bag, but does not impart the essential character on its own. Therefore, we find that the bag imparts the essential character and controls the classification. The applicable subheading for the gift bag with “instant tissue” will be 4819.40.0040, 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: Other sacks and bags, including cones: 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 https://hts.usitc.gov/current. 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 laurel.duvall@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division