CLA-2 OT:RR:CTF:TCM H003217 ADK
Ms. Irit Horn
Flower Design LLC
11909 Stonewood Lane
Rockville, MD 20852
RE: Classification of the Light Emitting Diode (LED) Light Candle Light and the Rechargeable Tea Light Candle; Revocation of New York Ruling Letter (NY) L86672, dated August 30, 2005.
Dear Ms. Horn:
On August 30, 2005, the Bureau of Customs and Border Protection (CBP), National Commodity Specialist Division (NCSD), issued New York Ruling Letter (NY) L86672, in which your LED candle light was classified as a candle under subheading 3406.00.0000, Harmonized Tariff Schedule United States Annotated (HTSUSA), which provides for “candles, tapers and the like.” Your Rechargeable Tea Light Candle was classified as a “portable electric lamp” under subheading 8513.10.4000 of the HTSUSA. We have since reviewed NY L86672 and find it to be in error.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. §1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation was published on July 5, 2007, in the Customs Bulletin, Volume 41, No. 28. One comment in support of the proposed revocation was received in response to this notice.
FACTS:
Two separate articles were submitted for classification in NY L86672. The first, the LED Light Candle, consisted of a translucent pillar-shaped wax candle and a battery-powered light emitting diode (LED). The translucent pillar-shaped wax candle was hollowed out on the bottom to receive the LED. Upon entry, the LED was not inserted in the candle but was packed in the same box. In NY L86672, we determined that the wax pillar and LED were a set for classification purposes, and that the portable wax pillar imparted the essential character to the set.
The second article, the Rechargeable Tea Light Candle, consisted of a translucent, pillar-shaped wax lamp that was hollowed out on top to hold a tea light candle. The wax pillar also contained a rechargeable LED that illuminated the candle with varying colors. The portable wax lamp containing an LED, wax tea light candle and adaptor was put up for sale in a white paperboard box. In NY L86672, we determined that the wax pillar, LED and tea light were a set for classification purposes and that the portable wax pillar imparted the essential character to the set.
ISSUE:
What is the proper classification under the Harmonized Tariff Schedule of the United States (HTSUS) for the LED Light Candle and the Rechargeable Tea Light Candle?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The HTSUS provisions under consideration are as follows:
8513 Portable electric lamps designed to function by their own source of energy (for example, dry batteries, storage batteries, magnetos), other than lighting equipment of heading 8512; parts thereof:
8513.10 Lamps:
Other
* * *
9405 Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having permanently fixed light source, and parts thereof not elsewhere specified or included:
9405.40 Other electric lamps and lighting fittings:
9405.40.80 Other
* * *
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80. The relevant ENs are as follows:
The EN to heading 8513, HTSUS (EN 8513), provides, in pertinent part:
The term “portable lamps” refers only to those lamps (i.e., both the lamp and its electricity supply) which are designed for use when carried in the hand or on the person, or are designed to be attached to a portable article or object. They usually have a handle or a fastening device and may be recognized by their particular shapes and their light weight….
(Emphasis in original)
* * *
The EN to heading 9405, HTSUS (EN 9405), provides, in pertinent part:
Lamps and Light Fittings Not Elsewhere Specified or Included
(5) Portable lamp (other than those of heading 85.13), e.g., hurricane lamps; stable lamps; hand lanterns; miners’ lamps; quarrymen’s lamps.
(Emphasis in original)
* * *
In NY L86672, CBP considered classification the LED Light Candle and the Rechargeable Tea Light Candle. In both cases, we concluded that the articles were sets according to GRI 3(b), with the wax pillar imparting the essential character. We now find this conclusion to be in error. The two articles were comprised of wax pillars, each of which housed a battery-operated LED. These items functioned together to form a small lamp. The fact that the lamps were made-up of more than one component did not render them sets for classification purposes. We now find that the LED Light Candle and the Rechargeable Tea Light Candle are classifiable as lamps, according to GRI 1. At issue is whether they satisfy the definition of lamp under heading 8513, or 9405, HTSUS.
Generally, lamps are classifiable in heading 8513, HTSUS, provided that they are “portable” within the meaning of the terms of the heading. EN 8513, defines “portable” as referring only to those lamps which are “designed for use when carried in the hand or on the person, or are designed to be attached to a portable article or object.” Classification of the subject merchandise, therefore requires a threshold analysis of heading 8513, HTSUS. If designed for use when carried in the hand, i.e. portable, they will be classified under heading 8513, HTSUS. If not, the lamps are excluded from heading 8513, HTSUS, and classifiable instead under the basket provision for lamps, heading 9405, HTSUS.
“Whether an article is ‘specially designed’ or ‘specially constructed’ for a particular purpose may be determined by an examination of the article itself, its capabilities, as well as its actual use or uses. One must look at both the structural and auxiliary design features, as neither by itself is determinative.” Western States Import v. United States, 20 C.I.T. 736 (1996). In the present matter, we must determine whether the LED Light Candle and the Rechargeable Tea Light have any particular design features that adapt them for the stated purpose of being either carried in the hand or on the person, or being attached to a portable article or object. See Headquarters Ruling Letter (HQ) 965714, November 15, 2002. These design features include, but are not limited to, handles, fastening devices, ergonomic shapes capable of fitting easily into the hand, and use of light weight materials.
Although the subject lamps are lightweight, they do not posses any other design feature to indicate that they are designed for use when carried in the hand or on the person, or is designed to be attached to a portable article or object. The article’s shapes are such that they are not easily carried in the hand nor do they have handles or fastening devices. Instead, the design of each article indicates that they are intended for placement on a flat surface such as a table, for an illuminated candlelight effect. As a result, they are excluded from heading 8513, HTSUS and classifiable instead under heading 9405, HTSUS.
One comment was received in response to the publication of the proposed revocation. The comment “fully supports” CBP’s decision to reclassify the subject merchandise under subheading 9405.40.8000, HTSUSA. Specifically, the commenter “agrees that consideration of design features…that adapt [a lamp] for a stated purpose and for what use(s) the article is marketed and sold should be significant factors for rendering future decisions vis-à-vis HTS 8513 v. 9504.”
HOLDING:
By application of GRI 1, the LED Light Candle is classifiable under heading 9405, HTSUS. Specifically, it is classifiable under subheading 9405.40.8000, HTSUSA, which provides for: “Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having permanently fixed light source, and parts thereof not elsewhere specified or included: Other electric lamps and lighting fittings: Other.” The column one, general rate of duty is 3.9 percent ad valorem.
By application of GRI 1, the Rechargeable Tea Light Candle is classifiable under heading 9405, HTSUS. Specifically, it is classifiable under subheading 9405.40.8000, HTSUSA, which provides for: “Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having permanently fixed light source, and parts thereof not elsewhere specified or included: Other electric lamps and lighting fittings: Other.” The column one, general rate of duty is 3.9 percent ad valorem.
EFFECT ON OTHER RULINGS:
NY L86672, dated August 30, 2005, is hereby revoked. In accordance with 19 USC §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles Harmon, Director
Commercial and Trade Facilitation Division