The tariff classification of gift card holders from China

N304777 July 10, 2019 CLA-2-48:OT:RR:NC:1:130 CATEGORY: Classification TARIFF NO.: 9903.88.03; 4819.50.4060 Mr. David Prata CVS Pharmacy One CVS Drive Mail Code 5055 Woonsocket, RI 02895 RE: The tariff classification of gift card holders from China Dear Mr. Prata: In your letter, dated June 13, 2019, you requested a tariff classification ruling. The ruling was requested for Items 168262, “Santa Envelope”, and 451072, “Character Wraps”. Photos and product information were submitted for our review. The first article, Item 168262, is a package of three paperboard gift card holders. Each holder is lithographically printed to resemble an air mail envelope with a return address of “Santa Claus, North Pole”, and is accented by red and green stripes around its edges. The back flap of the gift card holder folds to secure its contents and is held in place by a cotton string looped around a metal rivet. The “Santa Envelope” gift card holder is designed to hold a credit card-sized gift card, and measures approximately 3 1/2” long by 2 1/2” wide. The second article, Item 451072, is a package of three paperboard gift card holders, each lithographically printed with a holiday motif (Santa Claus, reindeer, snowman). Each holder is die cut into a rectangle with rounded, creased flaps extending from each side. The gift card holders are designed to hold a credit-card-sized gift card; the card is placed on the center rectangle, and enclosed by folding the flaps over it. The holder is secured by inserting a tab on one flap into a slot on another. The “Character Wraps” gift card holders measure approximately 3 1/2” by 2 1/2”. In spite of the holiday motifs, Explanatory Note 95.05(c) to Chapter 95, Harmonized Tariff System, specifically excludes “Packagings of plastic or of paper, used during festivals (classified according to constituent materials, for example, Chapter 39 or 48).” The applicable subheading for Item 168262, “Santa Envelope”, and Item 451072, “Character Wraps”, gift card holders will be 4819.50.4060, 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: Other packing containers, including record sleeves: 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 4819.50.4060, 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 4819.50.4060, 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