The tariff classification of a paperboard wedding gift receptacle from China

N311060 April 10, 2020 CLA-2-48:OT:RR:NC:1:130 CATEGORY: Classification TARIFF NO.: 9903.88.03; 4823.90.6700 Mr. Kyle Williams KCW Holding Company 12440 Upatoi Ln Upatoi, GA 31829 RE: The tariff classification of a paperboard wedding gift receptacle from China Dear Mr. Williams: In your letter, dated April 3, 2020, you requested a tariff classification ruling. The ruling was requested for an item described as “Wedding Card Gift Box”. Photos and product information were submitted for our review. The “Wedding Card Gift Box” is a decorative receptacle into which wedding guests insert gift envelopes for the bride and groom. The receptacle is a two-piece box measuring approximately 8.9” (L) x 8.9” (W) x 7” (H). It is constructed of heavy, rigid, 1.8mm-thick paperboard covered with decorative, coated, metallic gold paper. The lid is fixed in shape. The box base is constructed of five main pieces of paperboard - a square bottom and four rectangular sides – with the covering paper forming “hinges” at the edges of the box bottom. The box base is packaged in a flat, unfolded condition. It folds into shape and is held in place by metal snaps at the vertical edges (snap backs are attached to paperboard plackets hinged at the edges of two opposite sides). The box lid is also die-cut on its top with a long slot for inserting the gift envelopes. The unit is decorated like a gift box that has been wrapped in ribbon. The lid is adorned with ivory textile ribbons that are tied into a bow on top. The bow is embellished with a faux jewel charm. The base is also decorated on each side with a single ribbon strip. In your letter, you suggest that the boxes are classifiable in subheading 4819.20.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for folding boxes of paperboard. We disagree. The Harmonized Commodity Decription and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4-digit headings and the 6-digit subheadings) and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the General Rules of Interpretation (GRIs). While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (August 23, 1989). The ENs to subheading 4819.20 explain the meaning of the term “folding boxes”: Cartons, boxes and cases in the flat in one piece, for assembly by folding and slotting (e.g., cake boxes); and containers assembled or intended to be assembled by means of glue, staples, etc., on one side only, the construction of the container itself providing the means of forming the other sides, although, where appropriate, additional means of fastening, such as adhesive tape or staples may be used to secure the bottom or lid. The instant receptacle, while a box that folds, is not a “folding box” as set forth in the HTSUS. The Wedding Card Gift Box does not meet the terms of either description above. Instead, the box is a novelty receptacle used for a specific event. Its decorative finish, metal fasteners, gift slot, and wedding marketing indicate that the box is not intended for storage or conveyance of goods, like the goods of heading 4819, HTSUS. The applicable subheading for the Wedding Card Gift Box 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 subheading 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 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