The tariff classification of plastic sauce cups with lids from China

N311295 April 22, 2020 CLA-2-39:OT:RR:NC:N1:137 CATEGORY: Classification TARIFF NO.: 3923.90.0080, 9903.88.03 Xuli Ouyang Okane Container LLC 1251West 137th Ct Broomfield, CO 80023 RE: The tariff classification of plastic sauce cups with lids from China Dear Xuli Ouyang: In your letter dated April 17, 2020 you requested a tariff classification ruling. The subject products are clear plastic sauce cups with snap on lids. The cups are composed of food-grade polypropylene(PP) and the lids are composed of polyethylene terephthalate (PET). The cups will be imported in both 2 ounce and 3.5 ounce sizes. They are used to hold condiments, dips, and sauces for restaurant take out. The included lids snap on to prevent spillage to allow for easy transport. You suggest classification in 3924.10, Harmonized Tariff Schedule of the United States (HTSUS), which provides for tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics. However, the primary function of this item is for the conveyance of goods. The applicable subheading for the polypropylene sauce cups with polyethylene terephthalate lids will be 3923.90.0080, HTSUS, which provides for articles for the conveyance or packing of goods, of plastics: other: other. The general rate of duty will be 3 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3923.90.0080, 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 3923.90.0080, 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 Christina Allen at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division