The tariff classification of a cupcake kit from China

N304472 June 20, 2019 CLA-2-48:OT:RR:NC:N1:130 CATEGORY: Classification TARIFF NO.: 9903.88.03; 4823.90.8600 Mr. Simon Slyper Amscan, Inc. 80 Grasslands Road Elmsford, NY 10523 RE: The tariff classification of a cupcake kit from China Dear Mr. Slyper: In your letter, dated May 23, 2019, you requested a binding classification ruling. Product information and a sample were submitted for our review. The sample will be returned to you, as requested. The product under consideration is a “cupcake kit”. The sample kit consists of multiple items. The first item is 48 printed, uncoated, fluted baking cups. Second, there are 12 coated, paperboard star picks (the pick is wood and the star is paperboard). The star measures approximately 2” across. Third, there is a large, double cupcake pick. This consists of a 6.25”-wide, paperboard sign (the sample pick is unprinted but appears that it will be printed with the words “Let’s Celebrate”) with two wooden pics attached. The double pick is meant to be inserted into two separate cupcakes. Last, the kit contains printed, paper, cupcake placement template sheets. The templates are printed for placement of the cupcakes into a pattern, such as a rainbow and clouds. Tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the principles set forth in the General Rules of Interpretation (GRI’s) taken in order. The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides 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. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which 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 article. Each of the items contributes to cupcake and party decoration. The items do not qualify as festive items as they do not represent any specific holiday or celebration. The baking cups and picks are classifiable in a different heading from the template sheets. The four items are packaged together for retail sale. We therefore find that the cupcake kit constitutes a set for classification purposes. Of the four items, the baking cups are the most numerous and have the greatest mass. While the picks and placement sheets enhance cupcake presentation, we find that the baking cups are the only element that is essential to making and presenting cupcakes. Therefore, we find that the baking cups impart the essential character of the set. The applicable subheading for the cupcake kit will be will be 4823.90.8600, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers: Other: Other: Other: Other: Other. The rate of duty will be free. Effective July 6, 2018, the Office of the United States Trade Representative 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(f), HTSUS.  For additional information see “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710).  Products of China that are provided for in subheading 9903.88.03 and classified in one of the subheadings enumerated in U.S. note 20(f) 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 subheading 9903.88.03. Products of China classified under subheadings 4823.90.8600, HTSUS, unless specifically excluded, are subject to the additional 25 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 4823.90.8600, HTSUS, listed above. The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading. 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