CBP Says Reusable Drink Tops With Children's Characters Not Toys

Collectable bottle lids that include plastic depictions of popular children's characters aren't eligible for classification as toys, CBP said in a recently released ruling (here). The importer, In Zone Brands, filed a protest and application for further review after CBP liquidated the lids under the subheading for plastic caps and not as toys, CBP said. The agency disagreed with the company that the product, called "SippaTop" bottle toppers, are best considered toys designed for amusement.

In Zone argued that the tops should be in subheading 9503.00.00 as toys due to the "representations of a wide variety of characters" and "three dimensional design and anthropomorphic nature." Those are physical characteristics of items for amusement, the company said. Additionally, the tops go through a more complicated production process, including painting and decoration, beyond that of a simple bottle cap, it said. Even so, "the play value and/or inherent amusement of the bottle topper is limited due to the fact that, once removed from the juice beverage container, it is a threaded cap, with a sipper straw and the head and/or head and shoulders of a licensed character," CBP said.

While the tops "provide an entertaining way to drink a juice beverage, thus making the specific activity of drinking a juice beverage more attractive to the user, drinking is a function, not amusement," the agency said. The company also argued that its SippaTop marketing is focused on the amusement value and that there's a large and constantly changing number of available characters. "The character selection variety is separate and apart from any utilitarian [purpose] or function of the bottle toppers, which demonstrates their play value," In Zone told CBP. The company also noted it sells the tops both as part of bottled beverage and in separate packages. The company largely ignored CBP precedent by seeking classification based on "actual use," CBP said. In fact, "there is established precedent that is directly on point wherein CBP has determined that a decorative container lid, molded in the shape of a cartoon character, is not classifiable as a 'toy' in Chapter 95," CBP said.

The company's own statements from its website also demonstrate that the utility of the tops is the primary interest of consumers, CBP said. "Although the character heads featured on the subject toppers make the activity of drinking more attractive to the user, they are nevertheless purchased by the ultimate consumer to be used as bottle toppers," it said. Also, unlike products in past CBP rulings cited by In Zone, the SippaTops are threaded to function as an actual top and don't give full depictions of characters, CBP said. The lids are classifiable in with a 5.3 percent duty rate in subheading 3923.50.00, which provides for “Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Stoppers, lids, caps and other closures," CBP said.