CBP Rules Section 301 Tariffs Apply Despite MTB Inclusion
The Section 301 tariffs still apply to textile backpacks used to hold dolls even though that product was included in the Miscellaneous Tariff Bill that became law last year (see 1809140004), CBP said in a Dec. 10 ruling. That ruling, NY N301879, follows CBP's previously announced position that the Section 301 tariffs would still be imposed on MTB goods from China (see 1810150051). While the MTB allows for duty-free treatment of the backpacks, the 10 percent tariffs apply on those goods from China, CBP said.
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S.J. Stile Associates asked on behalf of Fast Forward LLC for CBP to weigh in on the classification of the backpacks. The backpacks are for storage during travel and include "six straps on the back wall to hold dolls in place." The backpacks lack "an exterior window," so would be classifiable in subheading 4202.92.3120, which includes a 17.6 percent duty rate, CBP said. The backpack is also provided for in HTS subheading 9902.12.40, which, "by virtue of legislative action, provides for a temporary reduction in the rate of duty."
Although the backpacks are eligible for the duty-free treatment under the MTB, "when that merchandise is produced in China it will be subject to additional duties imposed by Section 301," CBP said. Goods classified in subheading 4202.92.31 were included in the third tranche of Section 301 tariffs, which imposed an additional 10 percent duty rate. As a result, the backpacks from China would be tariffed at 10 percent. "At the time of importation, you must report subheadings 9903.88.03, 9902.12.40 and 4202.92.3120," CBP said.