The tariff classification of paper gift bags from China

N338305 March 8, 2024 CLA-2-48:OT:RR:NC:N5:130 CATEGORY: Classification TARIFF NO.: 9903.88.03; 4819.40.0040 Ms. Jackaline Rodriguez Caribbean Retail Ventures 14 Gautier Benitez Caguas, PR  00725 RE:      The tariff classification of paper gift bags from China Dear Ms. Rodriguez: In your letter, dated February 20, 2024, you requested a binding classification ruling.  The request sought the tariff classification of paper gift bags.  Product information and a sample were submitted for our review.  The product under consideration is item 10802-17-10B, a paper gift bag measuring 10.25” wide by 12.5” high by 4” deep.  The top edge of the bag is folded to the inside and there are braided textile cord handles with aglets anchoring the ends inside the bag.  The bag is made of coated paper that is printed with seven visible colors and has the words “Happy Birthday” emblazoned on each side, along with stylized candles with “flames” in the shape of stars.  Glitter is applied to the pattern on one side of the bag.  There is a clear plastic retail store hanger attached to the top edge of the bag.  There is a rectangular paperboard insert that stabilizes the bottom of the bag.  The applicable subheading for the gift bags will be 4819.40.0040, 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 sacks and bags, including cones; Other.  The rate of duty will be free. The bag may be subject to anti-dumping and countervailing duties for gift bags from China.  Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce (ITA) and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP).  General information regarding the ITA and AD/CVD can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties.  The ITA’s “Guide on How to File for an Antidumping/Countervailing Duty Scope Ruling Request” is available at https://enforcement.trade.gov/scope/Request-Scope-Ruling.pdf Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4819.40.0040, 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 4819.40.0040, 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, including information on exclusions and their effective dates, 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. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request.  This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1).  This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect.  In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.  Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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