The tariff classification of paperboard gift card holders from China

N309459 February 25, 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 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 Items 102067, 104873, and 105503, paperboard gift card holders. Samples and product information were submitted for our review, and will be retained for reference. Item 102067 is a paperboard gift card holder measuring approximately 4.5” H by 4” W. The holder is lithographically printed for birthday use. The holder is folded and glued into an envelope shape which closes by means of a front flap with a hook and loop closure. The holder is made by with a patented design, which, when opened, lifts out an internal pocket that holds the gift card. Item 104873 is a paperboard gift card holder that has been lithographically printed to resemble a bag of popcorn. The holder measures approximately 3.5” W by 6” H. The holder is constructed of two pieces, a pocket-like popcorn “bag” and a card printed with popcorn that is pulled upward out of the “bag”. The popcorn card is folded at its bottom edge to hold the gift card in place. Item 105503 is a two-piece paperboard gift card holder measuring approximately 4” W by 4.25” H. The gift card holder is decorated to look like a gift box. The “gift box” base is a glitter-covered sleeve decorated with a textile bow. The “gift box” top is a second paperboard piece, also decorated with a textile bow. The “box top” lifts upward, exposing a paperboard pocket into which the gift card is inserted. The “box top” then slides back down into the sleeve to contain the gift card. In spite of the celebratory 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 gift card holders are not festive articles. The applicable subheading for the gift card holders, Items 102067, 104873, and 105503, 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