The tariff classification of a paper gift bag set from China

N300917 October 26, 2018 CLA-2-48:OT:RR:NC:N1:130 CATEGORY: Classification TARIFF NO.: 9903.88.03; 4819.40.0040 Blair M. Choi John A. Steer Co. 6610 Tributary Street Suite 107 Baltimore, MD 21224 RE: The tariff classification of a paper gift bag set from China Dear Mr. Choi: In your letter, dated October 2, 2018, you requested a tariff classification ruling on behalf of your client, Lindy Bowman Co. Photos and product information were submitted for our review. The product under consideration is a combination of three items: a gift bag, a greeting card, and two sheets of tissue paper. The gift bag is constructed of coated paper, has a surface pattern of foil dots, and has two textile ribbon handles. The tissue sheets are solid color, and the greeting card appears to be the size of a standard mail-type greeting card. While you do not give the dimensions of the bag, it appears to not exceed 10” (25.4cm) in width. The three items are packaged together for retail sale. Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). The Explanatory Notes, which constitute the official interpretation of the HTSUS at the international level, state in Note (X) to GRI Rule 3 (b) that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. The paper gift bag, greeting card, and tissue paper are all classifiable in different headings, and the three items are packaged for sale directly to retail consumers. The items are used together to wrap and present gifts. Therefore, the paper gift bag set meets the HTSUS definition of a set. We find that, as the gift bag performs the primary function of the set in wrapping the gift, and because it predominates in weight, size, value, and consumer appeal, the set will be classifiable under the applicable subheading for the gift bag. The applicable subheading for the paper gift bag set 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. Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings. Products of China classified under subheading 4819.40.0040, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 4819.40.0040, HTSUS, listed above. The tissue paper sheets contained in the gift bag set may be subject to anti-dumping duties for tissue paper from China. Written decisions regarding the scope of anti-dumping and countervailing duty (AD/CVD) orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP).  You can contact them at http://trade.gov/enforcement/ (click on “Contact Us”).  For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/. 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