May 1, 2009 CBP Bulletin Notice on Classification of Certain Pez Dispensers
In the May 1, 2009 issue of the U.S. Customs and Border Protection Bulletin (Vol. 43, No. 18), CBP published a notice proposing to revoke a ruling and a treatment as follows:
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Proposed revocation of ruling; proposed revocation of treatment. CBP is proposing to revoke a ruling on the classification of certain Pez dispensers. Additionally, CBP proposes that this notice covers any rulings on this merchandise that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed revocations, or any party involved with a substantially identical transaction, should advise CBP by May 31, 2009, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
Pez dispenser. The merchandise is described as a plastic Pez pocket-size dispenser imported without any candy. After importation the subject candy dispenser is packaged with two individually wrapped packages of candy, which the consumer will place within the dispenser. The sample Pez dispenser provided had "Snoopy" head at the top.
CBP is proposing to issue HQ H026238 in order to revoke NY 852481 and reclassify the Pez dispenser under HTS 3926.90.9980 as "other articles of plastic" rather than under HTS 3923.90.0080 as "articles of plastic for the conveyance or packaging of goods."
CBP proposes this change as a correction based on the Explanatory Notes (ENs) and prior rulings. .The EN to heading 3923 provides that:
"This heading covers all articles of plastic commonly used for the packing or conveyance of all kinds of products. The articles covered include: (a) containers such as boxes, cases, crates, sacks and bags (including cones and refuse sacks), casks, cans, carboys, bottles and flasks."
It is CBP's consistently stated position that the exemplars listed in EN 3923 are generally to convey or transport goods over long distances and often in large quantities. Furthermore, heading 3923 provides for cases and containers for shipping purposes, and for bulk and commercial goods, not personal items. CBP has revoked a series of rulings in which containers used for personal items were classified under heading 3923. (See bulletin for rulings.)
The subject Pez dispenser is not used in the conveyance of goods. In fact, the Pez dispenser does not carry candy until the purchaser places the candy within the dispenser. CBP now proposes that because the Pez dispenser is designed to facilitate the purchaser's personal use with regards to carrying and dispensing candy, it does not fall within the scope of heading 3923.
CBP proposes that by application of GRI 1, the subject Pez dispenser is classified under 3926.90.9980, which provides for "other articles of plastics and articles of other materials of headings 3901 to 9014: other: other: other."
Proposed: 3926.90.9980, 5.3%; Current: 3923.90.0080, 3%
May 1, 2009 CBP Bulletin (Vol. 43, No. 18) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/