The tariff classification of a corrugate display carton for utility carts from China.

 N273333 March 18, 2016 CLA-2-87:OT:RR:NC:N1:106 CATEGORY: Classification TARIFF NO.: 8716.80.5090 David Prata, Trade Compliance Analyst OHL International 1 CVS Drive Woonsocket, RI 02895-6146 RE: The tariff classification of a corrugate display carton for utility carts from China. Dear Mr. Prata, In your letter dated February 22, 2016, you requested a tariff classification ruling on behalf of CVS Pharmacy of Woonsocket, Rhode Island. Pictures and other illustrations were submitted with your request. The item under consideration has been identified as a preloaded retail display container (CVS Item Number 845891), comprised of four sell units of collapsible steel rolling utility carts with rubber wheels and handles (CVS Item Number 845305) in a corrugate display carton. You state in your letter that when the product is received at the store, the outer cardboard is cut from five sides to reveal the four utility carts in a white paperboard display carton, which is the lower half of the shipping carton. This display carton will be placed on the store floor to display the utility carts for sale to the consumer. When the four individual utility carts have been sold, the display carton will be discarded. The tariff status of the packing materials or containers will be determined in accordance with General Rule of Interpretation 5, Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202). General Rule of Interpretation (“GRI”) 5(b) HTSUS, provides that “packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.”  It is the opinion of this office that the one (1) carton containing four (4) utility carts prior to import to the United States is strong enough to be a packing container, even if packaged in a master carton.  Further, the fact that the carton will be cut after importation does not change the condition of the normal packing box containing four (4) utility carts, which will be cut after importation for point of display and sale.  There is no indication that the cut box after importation when fully sold will be restocked (bulk goods restocked) and reused to display merchandise subject to sale.  It appears that the packing display box will be disposed of after the four utility carts are sold rather than be restocked.  In any event, the restocking of a sold out packing display box would be an incidental reuse.  Consistent with Holly Stores, Inc. v. United States, 2 CIT 278, 534 F. Supp. 818 (1981), affirmed 1 Fed. Cir. (T.) 16, 69 F.2d 1387 (1982) the “corrugate display carton” is entered with the four (4) utility carts, and should not be separately classified.  The applicable classification subheading for the Collapsible Utility Carts (CVS Item Number 805305) will be 8716.80.5090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Trailers and semi-trailers; other vehicles, not mechanically propelled; and parts thereof: Other vehicles: Other: Other: Other.” The general rate of duty will be 3.2%. The applicable classification subheading Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/. 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, please contact National Import Specialist Liana Alvarez at [email protected]. Sincerely, Deborah Marinucci Acting Director National Commodity Specialist Division