The tariff classification of a paperboard box and textile pouch from China

N306338 October 16, 2019 CLA-2-48:OT:RR:NC:1:130 CATEGORY: Classification TARIFF NO.: 9903.88.03; 4819.50.4040; 9903.88.15; 6307.90.9889 Mr. Ernest Howard International Packaging Corp. 517 Mineral Spring Ave. Pawtucket, RI 02911 RE: The tariff classification of a paperboard box and textile pouch from China Dear Mr. Howard: In your letter, dated September 19, 2019, you requested a binding tariff classification ruling. The ruling request concerns a rigid paperboard box and a textile pouch. Samples were submitted for our review and will be returned to you, as requested. The ruling request concerns the classification of Item GP4, Box and Pouch. The box is a rigid, two-piece paperboard box, measuring approximately 7” (L) by 4.5” (W) by 1.375” (H). The box bottom is overlaid and lined with coated, colored paper, and the box top is overlaid with coated, embossed paper. The box consists of a single open space and is not fitted or divided for any specific contents. The drawstring pouch is constructed of polyester woven fabric that has been covered with a layer of glued acrylic flocking, giving the pouch a faux suede appearance. The pouch measures approximately 5" (W) by 7" (L), and is stitched along three sides with an open top. The pouch is closed by means of a drawstring closure. The pouch is used to protect the contents in the household and is not designed for travel. 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. While the paperboard box and the textile pouch are classifiable in different headings, they do not carry out a specific activity and are not put up in a manner suitable for sale to users without repacking. The box and the pouch are not interdependent. While purchased goods may be shipped to the consumer using both components, we find it likely that the box will be discarded and the pouch retained for household storage. Furthermore, the box and pouch are not packaged together nor provided together to a customer for use as they deem appropriate. We find that the box and pouch are two unrelated packaging receptacles. Therefore, the box and pouch will be classified separately. The applicable subheading for the rigid paperboard box will be 4819.50.4040, 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: Rigid boxes and cartons. The rate of duty will be free. The applicable subheading for the drawstring pouch will be 6307.90.9889, HTSUS, which provides for Other made up articles, including dress patterns: Other: Other: Other: Other: Other. The rate of duty will be 7 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4819.50.4040, HTSUS, unless specifically excluded, are subject to an 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 4819.50.4040, HTSUS, listed above. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.90.9889, HTSUS, unless specifically excluded, are subject to an additional 15 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6307.90.9889, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.  For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively. 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