The Customs and Border Protection (CBP) is a state’s body. Vested with the power and authority to issue custom legal rulings. It also deals with other legal decisions that relate to the importation of merchandise. The rulings enable the international trade community to understand how the CPB will treat a prospective carrier transaction or import.
While various components are grouped in several categories in the trade/custom legal guidelines, the CPB classifies newly unveiled products to facilitate taxation. With a view of promoting efficiency and transparency, the Customs and Border Protection makes various classifications readily available for the general public.
Classification of Stuffed Bunny in a Ceramic Cup from China
Shopping for children (or anyone who likes colorful sweets) can seem like an endless task, especially during the holidays. That stuffed bunny in a ceramic cup from China might be the perfect gift. But what’s the true cost behind the plush “Peep” in a mug? Let’s consider the tariff classification ruling for this product.
The package boasts an 8-inch–tall polyester plush toy that resembles a Peeps candy bunny and a separate white ceramic cup with a handle on one side and a top diameter of approximately 4”, a bottom diameter of 2”, and 4” height. The ceramic cup features “Peeps” candy decorations and a printed phrase, “Inside we are all the same.”
Classification starts by determining whether the products can be defined as a “set” according to General Rule of Interpretation (GRI) 3(b). According to the rule, “goods that are put in sets for retail sale” should refer to goods that (a) feature at least two items or products which are prima facie, categorized in different headings, (b) Those that are put together to accomplish a particular activity, or (c) Those that are put together to facilitate sale without re-packaging.
While the products at hand fulfill the requirements of headings (a) and (c), they fail to satisfy the requirements of heading (b) in that the two items don’t have any correlation. Playing with a toy and consuming a beverage are two unrelated activities. By that definition, these products would not be regarded as a “set” and thus are classified separately.
9503.00.0073, HTSUS, is the appropriate classification for the “Peeps” bunny.
It provides for tricycles, scooters, pedal cars and wheeled toys; dolls’ carriages; dolls, other toys; …parts and accessories thereof. The bunny will be liable for free duty, but that is if it is determined that the products are intended for children aged 3 to 12 years.
As for the ceramic cup, the most appropriate subheading is 6912.00.4500, HTSUS, which covers ceramic tableware…other than of porcelain or china: other...cups. For cups priced over $5.25 per dozen, the subject rate of tariff duty is 4.5% ad valorem. See NY N306654. At the time of this publication an additional tariff of 15% is scheduled to be imposed effective December 15, 2019 on these items from China, unless exempted.
With Global Training Center’s Tariff Classification courses, you will learn different methods to determine the product’s classification number through multiple and detailed hands on workshops and examples. The course is intended to help you answer real-world questions like the one above and reach an informed and well-thought determination on the classification number for your products.