NY 0876936 - The tariff classification of a set containing disposable wooden chopsticks, soy sauce and a paper napkin, from Canada. - United States International Trade Commision Rulings

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NY 876936

August 11, 1992

CLA-2-48:S:N1:234 876936

CATEGORY: CLASSIFICATION

TARIFF NO.: 4818.30.0000; 9801.00.10

Mr. Clement Chung
Pacific Rim (Canada) Manufacturing Ltd.
9678 186th Street
Surrey, B.C., CANADA V3T 4W2

RE: The tariff classification of a set containing disposable wooden chopsticks, soy sauce and a paper napkin, from Canada.

Dear Mr. Chung:

In your letter dated July 22, 1992, you requested a tariff classification ruling.

A sample was submitted and will be retained for reference. Evidently a type of "kit" intended to be distributed to patrons of certain restaurants or take-out food shops, it is a sealed plastic bag containing a pair of inexpensive, disposable wooden chopsticks (in a sealed paper wrapper), a packet of soy sauce, and a table napkin made of embossed paper. You state that the chopsticks will be made by your company in Canada, while the soy sauce and napkin will be of U.S. origin.

We believe that this product qualifies as a "set" for purposes of the Harmonized Tariff Schedule of the United States (HTS), and that no single component can be said to impart its essential character. Under such circumstances, HTS General Rule of Interpretation 3 (c) dictates that the entire set be classified under the heading which occurs last in numerical order among those which equally merit consideration. In this case, the heading corresponding to the napkin occurs last.

Accordingly, the applicable subheading for the above- described set will be 4818.30.0000, HTS, which provides for tablecloths and table napkins, of paper. The rate of duty will be 5.3%.

Goods classifiable under subheading 4818.30.0000, HTS, which have originated in the territory of Canada, will be entitled to a 1% rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations.

If the U.S.-made soy sauce and napkin are merely repackaged with the Canadian chopsticks before being returned as part of the set, they will be eligible (upon compliance with the documentary requirements of 19 CFR 10.1) for the duty exemption under subheading 9801.00.10, HTS, which provides for the free entry of U.S. products that are exported and returned without having been advanced in value or improved in condition by any means while abroad.

To recap: Assuming compliance with both the FTA and U.S.- goods-returned regulations, the full value of the set, less the value of its U.S. compo- nents, will be dutiable at the 1% Canadian rate associated with subheading 4818.30.0000. The U.S. components will be duty-free under subheading 9801.00.10.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire

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