The tariff classification of gift bags and tea towels from China

N310974 April 17, 2020 CLA-2-63:OT:RR:NC:N3:351 CATEGORY: Classification TARIFF NO.: 6302.91.0045; 6307.90.9889; 9903.88.15 Ms. Teresa Nagel Creative Sourcing Group Inc. 4369 Shallowford Industrial Parkway Marietta, GA 30066 RE: The tariff classification of gift bags and tea towels from China Dear Ms. Nagel: In your letter dated March 30, 2020, you requested a tariff classification ruling. Computer graphic renderings of the items were provided in lieu of samples. PD-4038 is described as a “Gingerbread Man Bag with Towels.” The item consists of a decorative felt gift bag with handle measuring approximately 15 x 10 x 6 centimeters. Large felt cut-outs forming the shape and design of a gingerbread man are appliqued to the front of the bag. The cut-out forming the body of the gingerbread man extends above the top and beyond the sides of the bag. Inside the bag are two 100 percent cotton waffle weave tea towels measuring 38 x 63 centimeters. You state the tea towels are not jacquard woven. PD-4039 is described as a “Santa Bag with Towels.” The item consists of a decorative felt gift bag with handle measuring approximately 15 x 10 x 6 centimeters. Felt cut-outs forming the shape and design of Santa’s hat and face are appliqued to the front of the bag. Some of the cut-out pieces extend above the top and beyond the sides of the bag. Inside the bag are two 100 percent cotton waffle weave tea towels measuring 38 x 63 centimeters. You state the tea towels are not jacquard woven. Though the bags and towels are imported and sold together at retail, the items are not considered “retail sets” for Customs purposes; therefore, the decorative bag and towels will be classified separately. The applicable subheading for the tea towels will be 6302.91.0045, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Bed linen, table linen, toilet linen and kitchen linen: Other: Of cotton: Other: Towels: Other: Dish.” The rate of duty will be 9.2 percent ad valorem. The applicable subheading for the decorative gift bags will be 6307.90.9889, HTSUS, which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.” The rate of duty will be 7 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 6302.91.0045 and 6307.90.9889, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheadings 6302.91.0045 and 6307.90.9889, 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 the 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 Kim Wachtel at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division