The tariff classification of a Gift Wrap Finishing Kit from China

N014745 August 23, 2007 CLA-2-58:RR:NC:TA:350 CATEGORY: Classification TARIFF NO.: 5806.32.1090 Sandy Wieckowski Expeditors Tradewin, LLC 11101 Metro Airport Center Drive Bldg. M2, Suite 110 Romulus, MI 48174 RE: The tariff classification of a Gift Wrap Finishing Kit from China Dear Ms. Wieckowski: In your letter received July 24, 2007, on behalf of your client Hallmark Cards, Inc., you requested a classification ruling. On the header card of the sample you submitted, it is referred to as a Finishing Kit. The header card holds a gift tag, trim, and a ribbon. In your letter you indicate the gift wrap finishing kit (sku# 299TM1271) will be marketed and sold at the retail level and is intended to be sufficient to decorate one package. The gift tag is made of paper and has a small textile ribbon attached which may be used to secure the tag to the package. The trim is, in fact, a decorative bow measuring 4.5 inches in diameter. The bow is made from three metallized plastic sheets.  One sheet is die-cut in a shape that roughly resembles multiple petals. The second sheet is slit to form multiple “strips” that resemble fringe.  These “strips” are not completely cut through, leaving the bottom margin of the sheet intact.  The third sheet is slit to form multiple “strips” that are not cut through to either end, leaving both the top margin and bottom margin intact.  This slit sheet is folded onto itself and glued, forming multiple thin loops.  The three sheets are wrapped around a tube-shaped core forming a decorative bow with center loops, outer petals and radiating fringes. The ribbon consists of 2 yards of 1 inch wide woven grosgrain 100% nylon fabric. The edges of the ribbon are finished and the ends are heat cut. A cost breakdown was provided for the various components of the kit which indicates the textile ribbon costs over twice as much as the decorative bow. The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two 2 different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among those which equally merit consideration. The gift wrap finishing kit is considered to be a set for tariff classification purposes. No single component imparts the essential character, so the set will be classified in accordance with GRI 3(c). In this set, the heading for the ribbon appears last in numerical order among the competing headings which equally merit consideration. The applicable subheading for the gift wrap finishing kit will be 5806.32.1090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for narrow woven fabrics…of man-made fibers…ribbons…other. The duty rate will be 6 percent ad valorem. In your letter you indicate the ribbon should be classified in heading 6307. This assumption is incorrect. Textile fabrics that meet the definition of “narrow woven fabrics” found in Chapter 58 Note 5 are provided for in heading 5806. Ribbons are specifically provided for in that heading. As described in your letter, and verified with the sample, the woven fabric has a width not exceeding 30 cm and has selvages on both edges. 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 http://www.usitc.gov/tata/hts/. The ribbon falls within textile category 229. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at otexa.ita.doc.gov. 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 Deborah Walsh at (646) 733-3044. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division