The tariff classification of paper “page flags” and magnetic page markers from China

N310674 March 31, 2020 CLA-2-48:OT:RR:NC:1:130 CATEGORY: Classification TARIFF NO.: 9903.88.03; 4820.10.2020; 4823.90.6700 Mr. Joseph J. Kenny Geodis USA, Inc. One CVS Drive Woonsocket, RI 02895 RE: The tariff classification of paper “page flags” and magnetic page markers from China Dear Mr. Kenny: In your letter, dated March 13, 2020, you requested a tariff classification ruling on behalf of your client, CVS Pharmacy, Inc. The ruling was requested for Items 575936, Sticky Page Flags, and 579276, Magnetic Page Markers. Photos and product information were submitted for our review. Item 575936 consists of a set of “page flags”.   The page flags are pads of sticky notes in various sizes and shapes, some with lines, others with designs or phrases and are used to mark one’s place in a book or other printed material. There are ten pads per backer card. The applicable subheading for the page flags will be 4820.10.2020, HTSUS, which provides for Memorandum pads, letter pads and similar articles.  The rate of duty will be free. Item 579276 is a collection of four magnetic page markers (or “bookmarks”). The page markers are rectangular with rounded lower corners. They each consist of two thin magnets that are fully covered with decorative, coated paper. The paper forms a “hinge” between the two magnets. The page marker folds over the edge of the page at the hinge, and the two magnets stick together, holding the marker in place. 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 (GRIs) taken in order. Because the page markers consist of paper and magnets, both of which are classifiable under a different heading in the HTSUS, GRI 3(b) governs classification. GRI 3(b) states as follows: (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. Because the paper and magnet elements are inseparable, the two form a composite good for tariff purposes. While both the paper and the magnets are functional to the page markers, the paper forms the hinge that allows the item to fold over the page and function as a page marker. The paper also imparts the consumer appeal to the markers. Therefore, we find that the paper imparts the essential character of the page markers. The applicable subheading for the magnetic page markers will be 4823.90.6700, 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: Of coated paper or paperboard: 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 subheadings 4820.10.2020 and 4823.90.6700, 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, 9903.88.03, in addition to subheading 4820.10.2020 or 4823.90.6700, 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