The tariff classification of paperboard birthday gift card holders from China

N309286 February 19, 2020 CLA-2-48:OT:RR:NC:1:130 CATEGORY: Classification TARIFF NO.: 9903.88.03; 4819.50.4060 Ms. Lisa Murrin Expeditors Tradewin, LLC 795 Jubilee Drive Peabody, MA 01960 RE: The tariff classification of paperboard birthday gift card holders from China Dear Ms. Murrin: In your letter, dated January 21, 2020, you requested a tariff classification ruling on behalf of your client, Gift Card Impressions, LLC. The ruling was requested for Item 101968, a paperboard gift card holder for birthday use. A sample and product information were submitted for our review, and will be retained for reference. Item 101968 is a paperboard gift card holder resembling a gusseted gift bag. When expanded to shape, the holder measures approximately 4” W by 4” H by 1.5” deep. The paperboard weighs 250 grams per square meter. The “bag” has a flap that folds over is held in place by means of a hook and loop closure. The holder is lithographically printed with colored stripes, and the flap is printed with the words “happy B*day”. The holder has a textile ribbon handle onto which a paperboard gift tag is threaded. When the holder is opened, there is an inner, built-in slot in which the gift card will be placed. In spite of the celebratory motif, 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 gift card holders are not festive articles. The applicable subheading for Item 101968, birthday gift card holder, 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. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4819.50.4060, 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 4819.50.4060, 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