The tariff classification of a keepsake bag from China, Taiwan, or Hong Kong.

NY K83505 March 9, 2004 CLA-2-63:RR:NC:N3:351 K83505 CATEGORY: Classification TARIFF NO.: 6307.90.9889 Ms. Edith Tolchin EGT Global Trading P.O. Box 231 Florida, NY 10921 RE: The tariff classification of a keepsake bag from China, Taiwan, or Hong Kong. Dear Ms. Tolchin: In your letter dated Feb. 23, 2004, you requested a ruling on behalf of American Products Co., of Waco, Texas, on tariff classification. You submitted a sample of the keepsake bag. It is flat and measures approximately 9¾” x 8”. It is composed of a man-made satin woven fabric. It is sewn on three sides and open at the top, closing with a snap closure. A laminated photograph of flowers with the words “Joyful Thoughts” and “A Keepsake” written on it is edged with a 1” lace border and sewn onto the front of the bag. The applicable subheading for this product will be 6307.90.9889, Harmonized Tariff Schedule of the United States (HTS), which provides for other made up textile articles, other. The general rate of duty will be seven percent ad valorem. You state that the laminated photograph may be manufactured in the United States and supplied by American Products to the manufacturer of the bag to be attached in the country of manufacture, China, Taiwan, or Hong Kong. Please note that the cost or value of the laminated photograph that is supplied in this scenario may be considered a dutiable assist under Section 402 of the Tariff Act (TA). The term “assist” is defined as that which is supplied directly or indirectly by the buyer of imported merchandise, free of charge or at reduced cost, for use in connection with the sale of the merchandise for export to the U.S., under 19 U.S.C. 1401a(h)(1)(A). There are four categories of assists, but only the first, encompassing “materials, components, parts and similar items incorporated in the imported merchandise,” is potentially relevant to the instant situation. As an assist, the value of the photograph would have to be added to the processing costs of the finished keepsake bags before the ad valorem rate of duty is applied, pursuant to Section 402, TA. Additionally, please note that the value of any assist will include transportation costs to the place of production. See Section 152.103(d), Customs Regulations (19 C.F.R. §152.103(d)). Obviously, in the other scenario you describe, where the photograph is not supplied to the manufacturer by American Products, the question of assists would not be relevant. Your samples will be returned as requested. You also ask about marking. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article, in this case China, Taiwan, or Hong Kong. The assist in the first scenario would have no bearing on the marking. If you wish to include any reference to the U.S. origin of the photograph, we suggest that you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R.). 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 Mitchel Bayer at 646-733-3102. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division